A customer has one Business Unit, two Legal Entities, and each have eight warehouses (defined as Inventory Orgs). While trying to set up Cost Organizations for each of these Legal Entities you were…

Question

Options

• AThe Legal Entity Setup is incomplete.
• BThere is no Inventory Validation Organization defined.
• CThe General Ledger is not associated with Business Unit.
• DThe Business Unit is not enabled for Costing.
• EThere is no Business Unit associated with the Legal Entity.

• A
  3% (1)
• B
  3% (1)
• C
  9% (3)
• D
  6% (2)
• E
  79% (26)

Explanation

Option E is correct because with only one Business Unit serving two Legal Entities, only one of those Legal Entities has a Business Unit formally associated with it in the system. In Oracle Fusion, assigning a Profit Center Business Unit to Inventory Organizations during Cost Organization setup requires that the Legal Entity owning those Inventory Orgs has an associated Business Unit - without that link, the assignment field is simply unavailable, explaining the asymmetry between the two sets of eight.

Why the distractors fail:

• (A) Legal Entity setup being "incomplete" is too vague and doesn't explain why one LE works and the other doesn't - both LEs exist and function otherwise.
• (B) An Inventory Validation Organization is required for Business Unit setup, not for this specific Profit Center BU assignment step in costing.
• (C) A missing GL-to-BU association would cause ledger/accounting issues, not block the Profit Center BU assignment specifically.
• (D) If the Business Unit were not enabled for Costing, the assignment would fail for both Legal Entities - the fact that it works for one rules this out.

Memory tip: Think "1 BU ÷ 2 LEs = one gets the link, one doesn't." In Oracle Fusion Costing, the BU-LE association is the bridge that makes Profit Center assignment possible - no bridge, no crossing.

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