Your client is Implementing Oracle Financials and Order Management. The AR team lead has heard about the Tax Reporting Ledger and wants to know which subledger modules are used by the report…

Question

Options

• ATreasury
• BPayables
• CPurchasing
• DReceivables
• EGeneral Ledger
• FCash Management
• GOrder Management

• A
  2% (1)
• B
  80% (33)
• C
  2% (1)
• F
  5% (2)
• G
  10% (4)

Explanation

Payables, Receivables, and General Ledger are the three subledger modules supported by the Oracle Tax Reporting Ledger because they are the core transaction-processing applications where tax is calculated, recorded, and summarized - AP captures input tax on vendor invoices, AR captures output tax on customer invoices, and GL consolidates tax entries from across the subledger ecosystem.

The distractors are wrong for these reasons: Purchasing (C) generates purchase orders but tax liability is recognized downstream in Payables, not at the PO stage; Order Management (G) initiates sales cycles but tax is recognized in Receivables when the invoice is created; Cash Management (F) handles bank reconciliation and cash positioning, with no direct tax transaction source; and Treasury (A) manages debt and investments, which operate outside the tax reporting flow.

Memory tip: Think "money in, money out, and the books" - Payables = money out (you pay vendors), Receivables = money in (customers pay you), General Ledger = the books. Those are your three Tax Reporting Ledger modules. Everything else (Purchasing, OM, Cash Mgmt, Treasury) is either upstream of the tax event or unrelated to it.

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