1Z0-516 Oracle EBS R12 General Ledger Essentials Exam Set 2

BT Inc. is implementing Oracle Accounts Receivable to interface with an external non-Oracle 

legacy billing system. The client wants Receivables to generate accounting entries, instead of
sending accounting data through the interface. Identify four setup items that are used by
Receivables to generate the General Ledger (GL) code combinations. (Choose four.)
A. AutoAccounting
B. Transaction type
C. Accounting rules
D. Transaction source
E. Customer bill-to site
F. Standard memo line

Options are :
  • A,B,C,D
  • C,D,E,F
  • A,B,E,F
  • A,B,E,F (Correct)

Answer : A,B,E,F

There are three invoice correction methods: underinvoicing, overinvoicing, and invalid
transactions. Which option lists all the correct underinvoicing choices? 


Options are :

  • Void, delete, re-create invoice
  • Update invoice, create a credit memo, create an on-account credit memo, perform an adjustment, refund
  • Update invoice, create a debit memo, perform an adjustment (Correct)
  • Void, delete

Answer : Update invoice, create a debit memo, perform an adjustment

Choose the correct sequence of events taking place in the data access set setup process.
1. Define a legal entity.
2. Define ledger sets.
3. Define data access sets.
4. Define a secondary ledger.
5. Define a primary ledger.
6. Assign a data access set to responsibilities.
7. Define operating units.
A. 1, 7, 5, 4, 2, 3, 6
B. 1, 2, 3, 4, 5, 6, 7
C. 1, 7, 4, 5, 3, 2, 6
D. 1, 7, 3, 2, 5, 4, 6 


Options are :

  • C
  • A (Correct)
  • B
  • D

Answer : A

After creating two new customers, LeftBank and RightSide, you create and complete an invoice for
$105 ($100 plus $5 tax) for LeftBank. You immediately realize that you should have created the
invoice for RightSide. Which three steps can you take to correct the situation? (Choose three.)
A. Change the status of the invoice to incomplete. Delete the invoice, and then enter and complete
the invoice for RightSide.
B. Change the status of the invoice to incomplete. Change the customer in the invoice to
RightSide. Complete the invoice.
C. Create an adjustment to the invoice for the entire amount, and then create a negative
adjustment to the account of RightSide.
D. Create an on-account credit memo for $105 for LeftBank. Apply the on-account credit memo to
the invoice. Enter and complete the invoice for RightSide.
E. Change the status of the invoice to incomplete. Change the transaction type of the invoice to a
transaction type that has creation sign equal to negative sign. Complete the invoice. Enter and
complete the invoice for RightSide. 


Options are :

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

Answer : A,B,D

AutoAccounting automatically generates accounting flexfields for Receivables transactions.
Identify four accounts generated by AutoAccounting. (Choose four.)
A. Tax
B. Freight
C. Payable
D. Discount
E. Revenue

F. Receivable


Options are :

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

Answer : A,B,E,F

Which relationship group would you assign to allow each party to pay for its own transactions, as
well as the transactions of all parties that are lower in the hierarchy (children, grandchildren, and
so on)? 


Options are :

  • Pay without
  • Pay parties
  • Pay below (Correct)
  • Pay group

Answer : Pay below

Which three statements are true about accounting rules? (Choose three.)
A. Accounting rules enable you to defer revenue.
B. Accounting rules enable you to define fixed and variable rules to recognize revenue.
C. Accounting rules enable you to define the number of periods and percentage of total revenue
that you can record in each accounting period.
D. Accounting rules enable you to define the number of periods and amount of invoice that you
can bill your customer in each accounting period.


Options are :

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

Answer : A,B,C

You reviewed all the reconciliation reports for month-end close. Identify the correct sequence of
actions you would undertake to close the month.


Options are :

  • Run Sales Journal Report, run AR to GL Reconciliation Report, run Create Accounting Program.
  • Run Create Accounting Program, run AR Reconciliation Report, run AR to GL Reconciliation Report. (Correct)
  • Run AR Reconciliation Report, run Sales Journal Report, run Create Accounting Program.
  • Run Applied Receipts Report, run AR Reconciliation Report, run Journal Import

Answer : Run Create Accounting Program, run AR Reconciliation Report, run AR to GL Reconciliation Report.

There are several setup steps for receipts in Oracle Receivables; some are required whereas
others are optional. Which two setup steps are optional? (Choose two.)
A. Define receipt classes.
B. Define receipt methods.
C. Define receipt sources.
D. Define AutoCash rule sets.
E. Define application rule sets.


Options are :

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

Answer : D,E

You have transferred, closed, and reconciled all subledgers. The sales manager informs you
about a material transaction that was completed on the last business day of the closing period.
Select the best option in this situation.


Options are :

  • Ignoring the transaction in the current period
  • Reversing the prior postings and retransferring data from the subledgers
  • Opening the subledger to enter the transaction
  • Recording a manual accrual journal in the current period and reversing the journal in the next period (Correct)

Answer : Recording a manual accrual journal in the current period and reversing the journal in the next period

Tina is entering a receipt and she determines that a short payment on a customer's invoice should
be considered an invoice deduction. Tina applies the cash to the customer's open invoice, thereby
triggering receivables to create a claim in Trade Management. After Tina saves her work,
Receivables _____. 


Options are :

  • Fully applies customer invoice, thereby creating a debit memo for the remaining invoice balance
  • Partially applies balance to customer invoice and places the remaining invoice balance in dispute (Correct)
  • Fully applies customer invoice, thereby creating a chargeback for the remaining invoice Balance
  • Partially applies balance to customer invoice and places the full invoice amount in dispute

Answer : Partially applies balance to customer invoice and places the remaining invoice balance in dispute

XYZ Enterprises, a US-based export firm, has two offices in the US (East) and the US (West).
They use their primary ledger for their US operations, and an additional ledger for management
analysis and reporting. They use five segments for their accounting flexfield: company,
department, account, product, and future. Select the minimum number of required flexfield
qualifiers that they would be using for the accounting structure. (Choose three.)
A. Future segment
B. Product segment
C. Balancing segment
D. Cost center segment
E. Department segment
F. Management segment
G. Natural account segment 


Options are :

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

Answer : C,D,G

Journal creation rules in Subledger Accounting are defined by event type and event class. Identify
the event type associated with the event class of reverse.


Options are :

  • Adjustment
  • Invoice
  • Receipts (Correct)
  • Chargeback
  • Transactions

Answer : Receipts

Your client is implementing Oracle Financials and Order Management. The AR team lead has
heard about the Tax Reporting Ledger and wants to know which subledger modules are used by
the report. Identify three applications that can be reported by the Tax Reporting Ledger. (Choose
three.)
A. Treasury
B. Payables
C. Purchasing
D. Receivables
E. General Ledger
F. Cash Management
G. Order Management 


Options are :

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

Answer : B,D,E

Select two features regarding the completion of a successful customer merge in Oracle
Receivables that support ongoing customer data cleansing efforts after go-live. (Choose two.)
A. Customer merge activity can be reversed after the merge process.
B. Bank details for the merge-from customer remains available after the merge process.
C. Duplicate parties are repointed to the surviving party after the customer merge process.
D. Duplicate customers are repointed to the surviving customer after the customer merge process.
E. Customer sites associated with the old customer or site are associated with the new customer
or site after the customer merge process.
F. Customer transactions or audit transactions details for the merge-from customer remain
available for reprinting after the customer merge process.

Options are :
  • D,F
  • A,B
  • C,D
  • D,E (Correct)

Answer : D,E

Your company needs a solution that provides the option of transferring a high volume of customer
receipts from the bank into the Oracle Accounts Receivable system. You do not want the
customers account balance to be affected immediately when the receipts are transferred and
uploaded to the receivables system. Which is the most appropriate receipt creation method to
implement in Oracle Receivables?

Options are :
  • Cash receipts
  • Quickcash receipts (Correct)
  • Manual receipts
  • Miscellaneous receipts
  • Automatic receipts

Answer : Quickcash receipts

ABC Enterprises is implementing Oracle E-Business Suite Release 12. They possess much data
relating to Assets, HRMS, Inventory, vendors, and customers. They also have budgetary control
enabled, and they have a substantial amount of budget datA. They want to upload their data into
Oracle with the use of Oracle Web Application Desktop Integrator. Identify four types of data that
can be used for uploading data by using Web ADI. (Choose four.)
A. HRMS data
B. Assets data
C. Vendors data
D. Budgets data
E. Inventory data

Customers data


Options are :

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

Answer : A,B,D,E

A debit memo reversal must be utilized to reverse the receipt if_____ . 

Options are :
  • Receipt has an open claim associated with it
  • Receipt has been reconciled in Cash Management
  • Receipt has a remitted credit card refund application (Correct)
  • Receipt is a non-invoice-related receipt

Answer : Receipt has a remitted credit card refund application

Select two correct journal types to be used based on the context provided. (Choose two.)
A. Company E wants to track availability of funds against budgets. Use encumbrance journals.
B. Company D wants to track availability of funds against budgets. Use budget journals
C. Company B wants to track floor space and other physical attributes. Use statistical journals.
D. Company A wants to track floor space and other physical attributes for Mass Allocation. Use
encumbrance journals.


Options are :

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

Answer : A,C

Which three statements are true about Balance Forward Billing? (Choose three.)
A. Billing date is an optional grouping rule.
B. Billing date value is mandatory when cycle is external.
C. Accept Consolidated Billing Invoices program is available.
D. Print New Consolidated Billing Invoices program is available.
E. It considers both manual transactions and imported transactions.
F. Activity can be consolidated across account sites, or by each billing site.

Options are :
  • C,D,E
  • A,B,D
  • A,B,C
  • B,E,F (Correct)

Answer : B,E,F

Identify the report that is used to reconcile the Accounts Payable liability balance at period end.

Options are :
  • Payables Posted Payment Register
  • Accounts Payable Trial Balance (Correct)
  • Accrual Write-Off Report
  • Uninvoiced Receipts Report
  • Payables Posted Invoice Register
  • Matched and Modified Receipts Report

Answer : Accounts Payable Trial Balance

Identify three E-Business Tax setup options. (Choose three.)
A. set up supplier
B. set up tax regimes
C. set up tax recovery rates
D. set up taxes and tax rates
E. set up currency exchange

Options are :
  • B,C,D (Correct)
  • A,C,E
  • A,C,D
  • C,D,E

Answer : B,C,D

Identify three statements that are true for the automatic withholding tax process. (Choose three.)
A. Withholding tax type distributions are negative amounts.
B. The Withholding tax group can be assigned only to an invoice distribution.
C. Using automatic withholding tax, Payables creates the correct withholding tax distributions.
D. Withholding tax distributions are automatically created during invoice validation or during
payment processing.
E. If an invoice with an associated withholding tax invoice is canceled, Payables automatically
creates an invoice for the tax authority supplier to offset the amount of the withholding tax invoice.

Options are :
  • A,B,D
  • A,C,D
  • C,D,E (Correct)
  • A,B,C

Answer : C,D,E

Select the income tax report that is NOT available in the Payables module.


Options are :

  • Withholding Tax by Supplier Site (Correct)
  • Withholding Tax by Payment
  • Withholding Tax by Supplier
  • Withholding Tax by Invoice

Answer : Withholding Tax by Supplier Site

Where does the expense AP accrual account used in the Period End Accrual process default
from?


Options are :

  • Receiving Options
  • Payables Options
  • Purchasing Options (Correct)
  • Financial Options

Answer : Purchasing Options

Identify two statements that apply to Oracle Collections. (Choose two.)
A. It is a Web-based self-service application.
B. It can be used to place an invoice in dispute.
C. It enables customers to see their own Oracle Receivables account information, such as
balances.
D. It can be used to initiate the Oracle Approvals Management (AME) credit memo request
workflow from Oracle Collections.

Options are :
  • C,D
  • B,D (Correct)
  • B,C
  • A,D

Answer : B,D

Identify three processes that you must run before closing your Payables period. (Choose three.)
A. Expense Report Export
B. The Create Accounting program
C. Payables Open Interface Import
D. Period Close Exceptions Report
E. The Transfer Journal Entries to GL program

Options are :
  • B,D,E (Correct)
  • A,D,E
  • A,C,D
  • B,C,D

Answer : B,D,E

When you validate an invoice in Payables, E-Business Tax automatically performs four tasks.
(Choose four.)

A. creates distributions
B. recalculates tax lines
C. allocates tax amounts
D. places tax-related holds on the invoice
E. updates imported invoices into Payables

Options are :
  • A,B,C,E
  • A,B,C,D (Correct)
  • A,C,D,E
  • B,C,D,E

Answer : A,B,C,D

Identify three key accounts to be considered during the implementation of Payables that impacts
the reconciliation of the accounts payable liability accounts. (Choose three.)
A. AP liability account
B. accrual charge account
C. receiving accrual account
D. accrued Payables account
E. receiving inventory account
F. expense AP accrual account
G. inventory AP accrual account

Options are :
  • C,F,G
  • A,F,G (Correct)
  • D,E,F
  • A,C,D

Answer : A,F,G

A clerk from ABC Inc., receives a customer receipt that does not have sufficient information to
identify the customer or invoice. Which is the correct method of entering the receipt in Oracle
Accounts Receivable?



Options are :

  • Enter the receipt as an on-account receipt.
  • Enter the receipt by applying it to a dummy customer account.
  • Enter the receipt as a miscellaneous receipt.
  • Enter the receipt as an unidentified receipt. (Correct)
  • Enter the receipt as an unapplied receipt.

Answer : Enter the receipt as an unidentified receipt.

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