While performing the task "Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet Task", you mentioned that the legal entity country is the United States of America…

Question

Options

• AThe system will ask the user to provide functional currency at the time of uploading the
• BThe system will automatically pick "USD" as functional currency from the legal entity country.
• CThe system will pock the first available currency from the list of Values.
• DIt is mandatory to provide functional currency, because ledger cannot be defined without
• EIt is mandatory to provide functional currency because ledger cannot be defined without

• B
  77% (20)
• C
  8% (2)
• D
  12% (3)
• E
  4% (1)

Explanation

Option B is correct because in Oracle Fusion Financials, when you associate a ledger with a legal entity, the system automatically derives the functional currency from that legal entity's country - a U.S.-based legal entity automatically maps to USD. This is by design to ensure alignment between the legal entity's reporting currency and its associated ledger.

Why the distractors fail:

• A is wrong - the system does not prompt the user to supply a currency at upload time; currency derivation is automatic from the legal entity.
• C is wrong - the system does not arbitrarily pick the first currency in a list; it uses country-based defaulting logic.
• D and E are wrong (and nearly identical) - while a functional currency is required for a ledger, the premise is misleading because the system already provides it automatically from the legal entity; no manual entry is needed in this scenario.

Memory tip: Think of it as a chain - Country → Legal Entity → Currency. The legal entity inherits the country's primary currency, and the ledger inherits it from the legal entity. USA = USD, automatically, no questions asked.

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