XYZ Company has disabled the Receivables Profile Option "AR: Disable Receivable Activity Balancing Segment*. What must be defined In order for the General Ledger Transfer process to execute without…

Question

Options

• Again account
• Brevenue account
• Cexpense account
• Drounding account
• Esuspense account

• A
  8% (4)
• B
  2% (1)
• C
  12% (6)
• D
  4% (2)
• E
  73% (36)

Explanation

When the "AR: Disable Receivable Activity Balancing Segment" profile option is disabled, Oracle Receivables actively enforces balancing segment rules, meaning the GL Transfer process must create balanced journal entries per balancing segment value. A suspense account (E) must be defined in AR System Options so the GL Transfer can post temporary offsetting entries when transactions cross multiple balancing segments - without it, the process errors out because it cannot reconcile out-of-balance amounts.

Why the distractors are wrong:

• (A) Gain account - used for foreign currency exchange gains; unrelated to balancing segment processing.
• (B) Revenue account - drives revenue recognition entries; not involved in cross-segment balancing during GL Transfer.
• (C) Expense account - applies to write-offs and adjustments; not a requirement for this profile option scenario.
• (D) Rounding account - handles minor currency rounding differences; distinct from the balancing segment issue.

Memory tip: Think of the suspense account as a temporary bridge - when the GL Transfer must balance entries across different segment values, it parks the imbalance in suspense until everything clears. No bridge = the transfer collapses (errors). The keyword "balancing" in the profile name is your cue that balance must be maintained somewhere, and that somewhere is the suspense account.

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