1Z0-516 Oracle EBS R12.1 General Ledger Essentials Exam Set 9

ABC.com has two sets of books and six inventory organizations. What is the minimum number of times that ABC.com needs to run the general ledger interface in order to close the inventory at the end of each accounting cycle? 



Options are :

  • 2
  • 10
  • 4
  • 6 (Correct)

Answer : 6

Which three statements are true about the revaluation process? (Choose three.)
A. Revaluation calculates the differences between the current cumulative functional currency balance of the foreign transactions and the revalued functional currency balance calculated using the revaluation rate.
B. The revaluation process revalues the foreign currency portion of the account balances using the revaluation rate defined in the Period Rates table.
C. The revaluation process should be executed after the transaction process has completed.
D. You must post the revaluation journal entries.


Options are :

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

Answer : A,B,D

Which five statements are true about the elements required for a set of books? (Choose five.)
A. The same segment security rules apply to all segments that use the same value sets and have
security enabled, although you can choose to assign the security rules to specific responsibilities.
B. Multiple chart of accounts structures can share the same value sets.
C. It is technically possible to use the same balancing segment value in multiple sets of books.
D. Each set of books must have its own unique accounting calendar defined.
E. Period Type Calendar results in fiscal year being used in the system name of accounting periods.
F. General Ledger converts amounts in a foreign currency to functional currency by using Corporate rate type only.
G. Adjusting periods are used for journal entries originating in General Ledger only.
H. Enable the appropriate functional currency before you define a set of books.


Options are :

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

Answer : A,B,C,G,H

The clients GL accountant, George, is responsible for taking care of recurring journals. He comes to you with a problem. He defined a recurring journal batch, and after that he generated the  recurring journal from the definition. He wants to know whether he can add new lines in this un posted journal. What explanation would you give to George?


Options are :

  • Additional lines can be added to an unposted recurring journal through Review journal window (Correct)
  • The GL accounts entered in the Enter Journal form relate to items that do not exist in the item master organization in the inventory module
  • The Allow Dynamic Insert box is not selected for the accounting flexfield
  • The GL period is closed

Answer : Additional lines can be added to an unposted recurring journal through Review journal window

You are implementing Oracle General Ledger at a ABC.com site. ABC.com is based in the US but has a presence in many countries worldwide, and has transactions in multiple currencies. The implementation team decides that GL multicurrency setup will be part of the implementation. The Controller wants a system which allows the flexibility to enter transactions in any foreign currency, and at the same time automatically performs currency conversion online and in real time. She wants to know whether this requirement could be satisfied. What is the correct response?


Options are :

  • Account generator needs to be customized for journals to be entered in foreign currency.
  • Oracle GL does not support this functionality.
  • Oracle GL provides this functionality and there is no problem in satisfying the requirement. (Correct)
  • Workflow needs to be customized for journals to be entered in foreign currency.

Answer : Oracle GL provides this functionality and there is no problem in satisfying the requirement.

Select the two minimum set up steps for intercompany accounting. (Choose two.)
A. Enable Balance Intercompany Journal when defining the set of books.
B. Define a clearing company for all many-to-many intercompany journals.
C. Set up intercompany accounts for journal source and journal category of Other.
D. Define a journal source and a journal category for Intercompany.
E. Include an Intercompany segment in the chart of accounts structure.
F. Set up intercompany accounts for every journal source and journal category for intercompany
transactions.
G. Define a value set for the Company and Intercompany segments.
H. Enable the Intercompany Qualifier for the Intercompany segment. 


Options are :

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

Answer : A,C

ABC.com is implementing Oracle E-Business Suite 11.5.10. It wants to use a global chart of accounts. It has business operations in Canada, the United States, France, and Spain. You are told that both France and Spain require Document Sequencing whereas Canada and the United
States do not. There are three legal entities in Canada, four in the United States, two in France, and two in Spain. All legal entities have the same fiscal year end. Advise the DBI Enterprise corporate controller what is feasible, in order to set up the minimum number of set of books, without customization.


Options are :

  • 1 set of books for Canada, 1 for the U.S. and 1 for Europe. Enable Document Sequencing for Europe set of books only.
  • 1 set of books for Canada, 1 for the U.S. and 2 for France and 2 for Spain. Enable Document Sequencing for France and Spain sets of books. (Correct)
  • 1 set of books for Canada, 1 for the U.S. and 2 for France and 1 for Spain. Enable Document Sequencing for France and Spain sets of books
  • 1 set of books for Canada, 1 for the U.S. and 1 for France and 2 for Spain. Install and set up Global Accounting Engine for France and Spain sets of books.

Answer : 1 set of books for Canada, 1 for the U.S. and 2 for France and 2 for Spain. Enable Document Sequencing for France and Spain sets of books.

You have the following information:  The Accounting flexfield structure is Company-Department-Product-Account. Product has two rollup groups: Domestic and International. Department has one rollup group: Manufacturing. All accounting flexfield segment values can use alphanumeric characters. Which summary account template would Oracle General Ledger not allow you to create? (D: Detail) (T: Total


Options are :

  • D-D-D-D (Correct)
  • T-Manufacturing-International-D
  • D-Manufacturing-D-T
  • D-T-Domestic-D

Answer : D-D-D-D

Your client would like a consolidation process to consolidate operations in the UK and US. Your client requires a summary of transactions from both companies. Company 01 is located in Chicago; Company 02 is located in London. Both companies share only the same calendar. Which actions should be considered when defining the consolidation process for your client? (Choose all that apply.)
A. Define mapping rules to map Company 01 and Company 02 to Company 90.
B. Define an elimination set to include a group of related elimination entries.
C. Define a consolidation process using the Global Consolidation System by defining Parent
Company 90 to consolidate data from Company 01 and Company 02.
D. Select the transaction method for transferring data from Company 01 to Company 90. 


Options are :

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

Answer : A,B,C

US.-based ABC.com wants to consolidate the U.K. subsidiary accounting and the China subsidiary accounting into the U.S. parent accounting information. Both foreign subsidiaries and the U.S. parent have different currencies and different calendars. Which correctly describes the steps required before transferring balances to the U.S. parent?


Options are :

  • Run the revaluation process, post the revaluation journal, translate the foreign currency, post the translated journal entry, run the Trial Balance Report in the translated currency in the subsidiary set of books. Review the Trial Balance to ensure accuracy.
  • Translate the foreign currency, post the translated journal entry, revalue the balance sheet accounts, run the Trial Balance Report in the translated currency in the subsidiary set of books, review the Trial Balance to ensure accuracy.
  • Run the revaluation process, post the revaluation journal, translate foreign currency, run the Trial Balance Report in the translated currency in the subsidiary set of books, review the Trial Balance to ensure accuracy (Correct)

Answer : Run the revaluation process, post the revaluation journal, translate foreign currency, run the Trial Balance Report in the translated currency in the subsidiary set of books, review the Trial Balance to ensure accuracy

Identify three invoice holds that cannot be manually released. (Choose three.)
A. Acct Hold Reason
B. Funds Hold Reason
C. Invoice Hold Reason
D. Variance Hold Reason
E. Insufficient Information
F. Matching Hold Reason
G. Prepaid Amount Reason 


Options are :

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

Answer : A,E,G

Identify two events that take place when an invoice is matched to a purchase order. (Choose two.)
A. Tolerances are enforced.
B. The quantity billed is updated.
C. The quantity received is updated.
D. The purchase order accounting information is copied to the invoice. 


Options are :

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

Answer : B,D

Which is the final step in processing a payment batch? 


Options are :

  • Cancel the payment batch.
  • Validate the payment batch.
  • Confirm the payment batch. (Correct)
  • Run the create accounting process.

Answer : Confirm the payment batch.

There are many fields with important data displayed on the main page of the Payables Overview window. Which three fields do NOT appear in the Payables Overview main window? (Choose three.)
A. Terms
B. Paygroup
C. Trading Partner
D. Settlement Date
E. Remit-To Bank Account Name 


Options are :

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

Answer : A,B,E

A client is implementing ACH and has a business requirement that all invoices go through an approval process flow. Identify three features of the Invoice Approval Workflow that would meet their requirement. (Choose three.)

A. allows automatic resubmission of an invoice if rejection occurs
B. has predefined criteria to identify which invoices require approval
C. allows approval routing management from one central responsibility
D. provides automatic routing of invoices upon approval to another designated approver
E. allows for corrections to invoices to be made while still in the approval routing process
F. provides time limits as to how long an invoice can remain unapproved before being automatically rerouted to the next approver 



Options are :

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

Answer : B,D,F

Identify three options available to manage cash requirements. (Choose three.)
A. Include Only Due.
B. Change Pay Groups.
C. Select Payment Terms.
D. Select additional Pay Through Days.
E. Narrow the selection of invoices in pay run. 


Options are :

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

Answer : A,D,E

Identify the default value for the term date that would extend the time to pay an invoice, if the payment term is net 30 days. 


Options are :

  • invoice date
  • goods received date
  • invoice entered date
  • system date (Correct)

Answer : system date

ABC Corp. wants to allocate the gross amount of XYZ Co. invoices to fifty cost centers each time an invoice is received from them. The cost centers that are to be charged require minimal updating. Select the option you would recommend that requires minimal ongoing maintenance. 


Options are :

  • Create a distribution set for all the desired accounts and associate it to all new invoices for this supplier. (Correct)
  • A customization may be created to allocate the charges at the end of the month.
  • Create an invoice and use the prorate functionality to allocate the cost across accounts.
  • Import predefined invoices from an Excel spreadsheet.

Answer : Create a distribution set for all the desired accounts and associate it to all new invoices for this supplier.

Identify four interface tables that are available in Oracle Payables. (Choose four.)
A. Payables Open Interface 

B. Suppliers Open Interface
C. Payables PCard Interface
D. Payables Payments Interface
E. Payables PO Matching Interface
F. Payables Invoice Open Interface


Options are :

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

Answer : A,B,C,E

Identify three true statements about the invoice approval workflow. (Choose three.)
A. If an approver rejects the invoice, the Workflow program ends.
B. If an approver does not respond within the time you specify, Workflow routes the invoice back to the originator.
C. If an approver does not respond within the time you specify, then Workflow requests approval from that person's manager.
D. If an approver approves the invoice, the invoice goes to the next person in the approver list until all required people approve the invoice.
E. If the invoice amount is changed after the invoice is already submitted to the approval process or after the process is complete, the system does not automatically resubmit the invoice for approval. 


Options are :

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

Answer : A,C,D

Identify the two invoice types processed by the Payables Open Interface process. (Choose two.)
A. standard
B. prepayment
C. debit memos
D. credit memos 


Options are :

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

Answer : A,D

Company K has identified these business requirements for their Payables operations:
1. All invoices must be part of a batch.
2. Discounts must be taken in all situations. 

3. Invoices must be numbered by the system.
4. Accounting entries must be created for all invoice types.
5. All credit memos above a certain dollar amount must be approved before entry.
6. Four-way matching is enforced.
Select the profile option to be configured that will satisfy the above requirements. 



Options are :

  • AP: AP Discounts Interface Start Date
  • AP: Use Invoice Batch Controls (Correct)
  • AP: Invoice Match
  • AP: Enable Invoice Auto numbering

Answer : AP: Use Invoice Batch Controls

Identify three statements that properly describe the use of distribution sets. (Choose three.)
A. Assign a distribution set to an invoice when you enter it.
B. Use full distribution sets to create distributions with no set percentage amounts.
C. Use skeleton distribution sets to create distributions with set distribution amounts.
D. Assign a default distribution set to a supplier site, so Payables will use it for every invoice you enter for that supplier site.
E. Use a distribution set to enter distributions for an invoice automatically when you are not matching it to a purchase order. 


Options are :

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

Answer : A,D,E

Identify four functions of the Invoice Validation process. (Choose four.)
A. applying any required holds
B. releasing any qualifying holds
C. applying all prepayments and discounts
D. validating the General Ledger accounting information
E. validating and creating accounting entries for the invoice
F. ensuring that the total amount of all distributions equals the invoice total
G. creating an additional distribution for any difference between the total amount of all distributions and the invoice total 


Options are :

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

Answer : A,B,D,F

Select four tips that can be used to speed up data entry. (Choose four) 

A. Use quick invoices.
B. Use distribution sets.
C. Use recurring invoices.
D. Use keyboard shortcuts.
E. Use only invoices without holds. 


Options are :

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

Answer : A,B,C,D

Identify the item that requires approval through the workflow process. 


Options are :

  • invoices that existed before you enabled the feature
  • expense reports imported through the Payables Expense Report Import Program
  • invoices not matched to a purchase order (Correct)
  • recurring invoices if the recurring invoice template did not have the Approval Workflow Required option enabled

Answer : invoices not matched to a purchase order

Company XYZ has received an invoice that includes freight charges. They want to distribute the freight charges proportionately to the same accounts that were charged for the items. Identify the steps they need to follow to create the freight distributions. 


Options are :

  • Manually enter freight-type distributions for each account that was charged.
  • Create a freight distribution by selecting the Create Freight Distribution check box in the Invoices window.
  • In the Distributions window, click the Allocate button, identify the distribution type as Freight, select Prorate, and select the distributions to which freight charges would be allocated. (Correct)
  • Enable Automatically Create Freight Distribution in the invoice region in the Payables Options window

Answer : In the Distributions window, click the Allocate button, identify the distribution type as Freight, select Prorate, and select the distributions to which freight charges would be allocated.

ABC Corporation wants to convert from their existing legacy application to Oracle E-Business Suite Release 12. Identify three statements that are true for invoice conversion. (Choose three.)
A. Merge all paid invoices for a supplier.
B. Invoices related to employee expense cannot be converted.
C. Establish a cutoff date after which invoices will be entered in Payables.
D. Use Payables Open Interface to convert unpaid invoices and credit memos.
E. Develop metrics that will be used to determine whether data conversion was successful. 


Options are :

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

Answer : C,D,E

Company ABC has implemented Oracle Payables. They have decided not to define supplier bank accounts. They will use payment batches, quick payments, and manual payment processing. Select three payment methods that are available based on the company's requirements. (Choose three.)
A. wire
B. check
C. clearing
D. electronic funds transfer (EFT)
E. electronic data interchange (EDI)
F. extensible markup language (XML) 


Options are :

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

Answer : A,B,C

Select three types of Payables open interfaces that will import data into Payables from other applications or third-party solutions. (Choose three.)
A. PCard Open Interface
B. Supplier Open Interface
C. Matching Open Interface
D. Receiving Open Interface
E. Payments Open Interface 


Options are :

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

Answer : A,B,C

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