1Z0-516 Oracle EBS R12.1 General Ledger Essentials Exam Set 10

Identify four purposes for which the Special Calendar is used. (Choose four.)
A. payment terms
B. recurring invoices
C. Key Indicators Report
D. automatic tax withholding
E. opening and closing payables periods
F. controlling the number of future periods 


Options are :

  • A,C,D,E
  • C,D,E,F
  • A,B,C,D (Correct)
  • B,C,D,E

Answer : A,B,C,D

Which statement is true about paying invoices? 


Options are :

  • An invoice can be paid only after the invoice accounting entries are created.
  • An invoice can be paid without being validated.
  • Invoice accounting entries and payment accounting entries can be transferred at different times to General Ledger only if they are in different calendar periods.
  • An invoice must be validated before you can create invoice accounting entries. (Correct)

Answer : An invoice must be validated before you can create invoice accounting entries.

The rate variance Gain/Loss accounts specified in the Financial Options - Accounting region are used to account for _____. 


Options are :

  • exchange rate variance for expense items in purchase orders and invoices
  • exchange rate variance in invoices and payments
  • exchange rate variance for inventory items in purchase orders and invoices (Correct)
  • invoice price variance in purchase orders and invoices

Answer : exchange rate variance for inventory items in purchase orders and invoices

ABC Corp. requires that all invoices are matched to both a purchase order and a receipt. Invoice tolerances are set to zero. A standard purchase order is entered for consulting services. An invoice is entered and matched against a purchase order. The total invoice amount matches the distribution amount. When the steps to prepare the invoice for payment are completed, the invoice is placed on hold. The company's business policy states that all holds cannot be manually released. To pay the supplier, identify the step to be completed to remove the hold and be eligible for payment. 


Options are :

  • Inspection is required because it is a three-way match.
  • Manually release the hold because it is not a system hold.
  • The service must be received in Accounts Payable because it is a purchase order for a service and not a commodity or item.
  • The service must be received in Purchasing because three-way matching is required. (Correct)

Answer : The service must be received in Purchasing because three-way matching is required.

There are five major business functions that occur sequentially during the natural flow of the Payables processes. Consider this list of five steps: 

1. Invoice Payment
2. Invoice Validation
3. Invoice and Payment Accounting
4. Supplier Entry
5. Invoice Import/Entry
What is the order in which these steps must be performed? 


Options are :

  • 5, 3, 1, 2, 4
  • 1, 2, 3, 4, 5
  • 4, 5, 2, 1, 3 (Correct)
  • 3, 1, 4, 2, 5

Answer : 4, 5, 2, 1, 3

Company ABC has decided to use the invoice approval workflow to require approval on all invoices. Select two exceptions where Payables automatically sets the approval status to not required. (Choose two.)
A. invoices imported through EDI
B. invoices created after invoice workflow approval is enabled
C. invoices created using the Pay on Receipt Autoinvoice program
D. expense reports imported through the Payables Expense Report Import program
E. recurring invoices if the approval workflow option required was not enabled on the template


Options are :

  • A,B
  • A,C
  • C,D
  • D,E (Correct)

Answer : D,E

Oracle Payments is the central payment engine for Oracle E-Business Suite Release 12. Identify three modules that integrate with Oracle Payments. (Choose three.)
A. Assets
B. Payables
C. Receivables
D. Cash Management
E. Order Management 


Options are :

  • A,B,C
  • C,D,E
  • B,C,D (Correct)
  • A,B,D

Answer : B,C,D

Which three are true regarding purchase order-matched invoices? (Choose three.)
A. You can set up controls in your system to require you to purchase order-match each invoice.
B. You can set up controls in your system to require you to invoice-match credit /debit memos that have been matched to a purchase order.
C. You can set an option on a purchase order shipment that controls whether invoices must match that shipment directly or through a receipt.
D. You set tolerances to specify the range of variance you will allow if the amounts or quantities on the invoice are less than the amounts or quantities on the purchase order or receipt.
E. You set tolerances to specify the range of variance you will allow if the amounts or quantities on the invoice are greater than the amounts or quantities on the purchase order or receipt. 



Options are :

  • B,C,D
  • A,B,C
  • A,C,E (Correct)
  • A,D,E

Answer : A,C,E

Select four options that can be set at the supplier site level. (Choose four.)
A. surveys
B. tax details
C. accounting
D. bank details
E. business classification


Options are :

  • A,C,D,B
  • B,C,D,E
  • A,B,D,E
  • A,B,C,D (Correct)

Answer : A,B,C,D

Company Z has implemented Payables, General Ledger, and Project Accounting. Both Transfer to GL and Interface Supplier Costs are processed each night. A descriptive flexfield called SAI Value has been defined on the invoice header to capture additional information, and is used in  conjunction with the accounting on the invoices. This is not a required field. There is a corresponding user-defined hold called SAI Hold, which is manually applied whenever an invoice is created and the SAI Value has not been provided to Company Z by the supplier. During weekly reviews of accounting, users have found that invoice transactions that are on SAI Hold are displayed in Project Accounting but not in General Ledger. Select what is causing this issue. 


Options are :

  • The current General Ledger period is closed.
  • Invoices have not been validated
  • The current Project Accounting period is closed.
  • Accounting is not being created by the user-defined hold. (Correct)

Answer : Accounting is not being created by the user-defined hold.

Identify three types of entities that can be defined and related to one another in Oracle Applications. (Choose three.)
A. ledger
B. paygroups
C. legal entities
D. responsibilities
E. business groups 


Options are :

  • A,B,D
  • A,C,E (Correct)
  • B,C,D
  • A,B,C

Answer : A,C,E

You are on a phased-approach implementation. Payables and Purchasing are being implemented in Phase One, and Assets in Phase Two. Identify three choices in the process for the best way to discuss supplier naming conventions and supplier site naming conventions. (Choose three.)
A. Agree upon naming conventions.
B. Gather only the Payables and Purchasing personnel.
C. Document conventions and obtain the sign-off by authorized approvers later.
D. Document conventions and obtain the sign-off by authorized approvers immediately.
E. Gather all interested parties for requirements-including Assets, Payables and Purchasing. 


Options are :

  • A,B,C
  • B,C,D
  • A,D,E (Correct)
  • A,B,E

Answer : A,D,E

Sub ledger Accounting is a rule-based accounting engine that centralizes accounting for Oracle E Business Suite Release 12 products. Select the Oracle application that is NOT a Sub ledger Accounting module. 


Options are :

  • Payables
  • Assets
  • General Ledger (Correct)
  • Purchasing

Answer : General Ledger

There are numerous Oracle modules that are integrated into or out of the Payables module. Identify four Oracle modules that are directly integrated with Oracle Payables. (Choose four.)
A. Loans
B. Purchasing
C. Bill of Materials
D. E-Business Tax
E. Order Management
F. Cash Management
G. System Administrator 


Options are :

  • D,E,F,G
  • B,C,D,E
  • A,B,C,D
  • A,B,D,F (Correct)

Answer : A,B,D,F

What are the three prerequisites for interfacing Payables invoice lines with Assets? (Choose three.) 

A. The invoice has no holds.
B. The invoice must be posted to General Ledger.
C. The invoice has been transferred to General Ledger.
D. The invoice distribution has "Track as Asset" selected.
E. The distribution account is an Asset Clearing or CIP account. 


Options are :

  • B,C,D
  • C,D,E (Correct)
  • A,B,C
  • A,D,E

Answer : C,D,E

Identify three statements that describe Payment Terms. (Choose three.)
A. default from the supplier site
B. cannot be specified in import tables
C. can be used for electronic payments
D. can be used to schedule payments for an invoice
E. automatically calculate due dates, discount dates, and discount amounts for each invoice 


Options are :

  • A,B,C
  • B,C,D
  • A,B,D
  • A,D,E (Correct)

Answer : A,D,E

Select three invoice types that can be entered ONLY in the Invoice Workbench, and CANNOT be entered via the Invoice Gateway. (Choose three.)
A. debit memos
B. credit memos
C. prepayments
D. PO default invoice
E. PO standard invoice 


Options are :

  • A,C,D (Correct)
  • A,D,E
  • C,D,E
  • A,B,C

Answer : A,C,D

Identify the two methods that are NOT used to enter invoice distributions. (Choose two.)
A. using a distribution set
B. creating through allocations
C. matching the invoice to a shipment
D. using the Distributions Open Interface
E. manually entering in the distributions window 


Options are :

  • A,B
  • B,C
  • A,D
  • C,D (Correct)

Answer : C,D

Before you can pay or create accounting entries for an invoice, the Invoice Validation process must validate the invoice. After this process is run, there is data that cannot be updated, modified, or changed. Choose three data fields that cannot be updated, modified, or changed after the Invoice Validation process has run and this invoice has a prepayment applied to it. (Choose three.)
A. invoice date
B. supplier site
C. trading partner
D. supplier number
E. invoice description 


Options are :

  • A,C,D (Correct)
  • C,D,E
  • A,B,C
  • A,B,D

Answer : A,C,D

Select the three windows where a user can manually release an invoice hold or payment hold. (Choose three.)
A. Holds
B. Actions
C. Invoice Lines
D. All Distributions
E. Scheduled Payments 


Options are :

  • A,B,C
  • C,D,E
  • B,C,D
  • A,B,E (Correct)

Answer : A,B,E

A client has a requirement for their Payables application:
1) AP must automatically create balancing accounting entries for invoice and payment transactions by using the expense GL Account.
2) Stop the application of a prepayment amount to an invoice or expense report amount that is charged to a different balancing segment.
Which two steps would satisfy both these requirements? (Choose two.)

A. Set the Automatic Offset Method to Accrual.
B. Set the Automatic Offset Method to Account.
C. Set the Automatic Offset Method to Balancing.
D. Enable the Prevent Prepayment Application Across Offset Segments option. 

E. Enable the Prevent Prepayment Application Across Account Segments option.
F. Enable the Prevent Prepayment Application Across Balancing Segments option.


Options are :

  • C,D
  • B,F (Correct)
  • A,B
  • D,E

Answer : B,F

You are working on an implementation for Accounts Payable. Many payments for small suppliers will be made outside the system, but your client does not want to manually record them because that would be time consuming. Choose the best solution. 


Options are :

  • Create electronic payment batches by using a check payment method for those multiple suppliers, and destroy those checks.
  • Create electronic payment batches by using an electronic payment method such as EFT for those multiple suppliers, and then do not send the resulting electronic file to the bank
  • Create electronic payment batches by using a clearing payment method for those multiple suppliers because this payment method does not generate a file
  • Create electronic payment batches by using a wire payment method for those multiple suppliers, and then delete the resulting electronic file (Correct)

Answer : Create electronic payment batches by using a wire payment method for those multiple suppliers, and then delete the resulting electronic file

Client L has implemented Oracle Payables. They have been able to enter invoices and have them validated, but have been unable to create accounting entries. You have been asked to review the situation. Identify what could be causing this problem. 


Options are :

  • Automatic offsets have been set to balancing.
  • The Payables Accounting Process was not submitted. (Correct)
  • The primary accounting method has not been defined.
  • The base currency has not been defined.

Answer : The Payables Accounting Process was not submitted.

Client A has three legacy systems that contain this financial information: purchase orders, suppliers, receipts, invoices, accruals, and expense reports. The client must have much of this information loaded into Oracle Accounts Payable daily until they can effectively retire these three systems. Identify the best approach that involves minimal customization. 


Options are :

  • Use Invoice Import to bring in invoice and invoice accrual information. The rest requires custom interfaces to be developed
  • Develop custom interfaces for receipts and accruals, and use the invoice import process to bring in other information. (Correct)
  • Use Invoice Import to bring in all the above information after setting the correct profile options and defining the appropriate AP and non-AP transaction sources. No custom interfaces are needed.
  • Use Invoice Gateway to bring in invoice information, and Supplier Import for suppliers. The rest requires custom interfaces to be developed

Answer : Develop custom interfaces for receipts and accruals, and use the invoice import process to bring in other information.

To set up and use Multiple Organization Access Control (MOAC) most effectively, you need to define three profile options. (Choose three.)
A. MO: Operating Unit
B. HR: Security Profile
C. MO: Security Profile
D. HR: Business Group
E. MO: Default Operating Unit 


Options are :

  • B,C,D
  • A,C,E (Correct)
  • A,B,C
  • C,D,E

Answer : A,C,E

Identify three Payables system setup options. (Choose three.)
A. bill-to location
B. always take discount
C. allow void and reissue
D. create interest invoice
E. application accounting definitions 


Options are :

  • C,D,E
  • A,B,C
  • A,B,D
  • B,C,D (Correct)

Answer : B,C,D

You can hold the payment of an entire invoice or part of an invoice. This hold prevents a validated invoice from being selected in a Payment Batch, and paid. Identify the Payables window where you can select the Hold check box to place the invoice on a Payment Hold. 


Options are :

  • Enter Payments
  • Scheduled Payments (Correct)
  • Invoice Distributions
  • Invoice Overview

Answer : Scheduled Payments

Which two statements are true if you select the QuickMatch invoice type? (Choose two.)
A. You can use QuickMatch to match individual distribution lines.
B. You can use QuickMatch to match individual purchase order shipments.
C. Payables automatically completes the match to all available shipments on the purchase order.
D. Payables automatically creates invoice distributions on the basis of the purchase order distributions


Options are :

  • A,B
  • B,C
  • C,D (Correct)
  • A,D

Answer : C,D

Using the Payables System Setup Options form, you can enable auto numbering for _____.


Options are :

  • invoices
  • payments
  • suppliers (Correct)
  • employees

Answer : suppliers

You are at a client site that has thousands of suppliers in their current legacy system that will end up in the Oracle Production system. Before conversion, you must perform a supplier cleanup on these numerous names and sites. Which three naming conventions would you use for "Best Practices" during the supplier cleanup? (Choose three.)

A. Use Last Name, First Name to identify employees as suppliers.
B. Create some supplier names in uppercase and others in mixed case.
C. Use abbreviations in the supplier name even it is not abbreviated on the invoice.
D. Remove all punctuation marks (commas, periods, and so on) from the supplier name.
E. Use the exact spelling of a supplier name as it appears on the invoice for the naming convention. 


Options are :

  • C,D,E
  • A,D,E (Correct)
  • B,C,D
  • A,B,C

Answer : A,D,E

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