In the Multi-Org model of Oracle E-Business Suite Release 12, which organization type owns Bank Account?

Question

Options

• ALedger
• BLegal Entity
• COperating Unit
• DBalancing Entity
• EBusiness Group

• A
  7% (3)
• B
  89% (40)
• D
  2% (1)
• E
  2% (1)

Explanation

In Oracle E-Business Suite R12's Multi-Org model, Bank Accounts are owned by the Legal Entity because banks deal with legally registered entities that can enter contracts, hold assets, and bear financial obligations - a Legal Entity is precisely that: a recognized legal body (company, subsidiary) with its own regulatory standing.

Why the distractors are wrong:

• A. Ledger - A Ledger is an accounting construct for recording transactions, not an organizational entity that can legally hold a bank account.
• C. Operating Unit - An Operating Unit controls transactional data (orders, invoices) but has no independent legal standing to own a bank account; it operates under a Legal Entity.
• D. Balancing Entity - This is a financial reporting segment (a value in the chart of accounts), not an org structure that owns real-world assets.
• E. Business Group - A Business Group is the top-level HR org structure for managing employees and payroll; it has no role in treasury or banking setup.

Memory tip: Think "Legal = Liability." Only a Legal Entity can be legally liable for a bank account - if a bank needs to sue for an overdraft, they sue a legal person, not an accounting book or an HR group.

No community discussion yet for this question.