1Z0-516 Oracle EBS R12 General Ledger Essentials Exam Set 6

A receipt of $2,000 is received for an invoice that has $1,500 as the amount due. The remittance
advice does not state a reason for the overpayment. Identify the receipt state that should be
displayed.

Options are :
  • Applied
  • Unapplied (Correct)
  • Unidentified
  • On-account
  • Partially applied

Answer : Unapplied

Customer reason codes can be used to assist in automatic claim creation in Receivables.
Customer reason code mappings are assigned in _____.

Options are :
  • Receivables
  • Cash Management
  • Trade Management (Correct)
  • Order Management
  • Subledger Accounting
  • Payables

Answer : Trade Management

Which profile option must be enabled to allow you to change the tax code on the transaction line in
Receivables?

Options are :
  • eBtax: Allow Manual Tax Lines
  • eBtax: Inventory item for Freight
  • eBtax: Allow Ad Hoc Tax Changes (Correct)
  • eBtax: Allow Override of Customer Exemptions

Answer : eBtax: Allow Ad Hoc Tax Changes

You are using the Event Based Revenue Management business rule for revenue recognition.
Your company is on the calendar month for financial reporting. On April 12th of the current year, a
customer invoice of $1000 is imported. It has an acceptance clause of 60 days and a cancellation
clause of 120 days. On April 28th of the current year, a receipt of $1000 is applied against this
invoice. You would recognize revenue of $1000 in the month of _____.

Options are :
  • April
  • June
  • May
  • July
  • August (Correct)

Answer : August

Sam, the CFO of XYZ Company, finds that in the expenditure budget of the current year, there are
many funds available in the stationery account, whereas there is not much amount left for
employee travel expenses. Sam instructs the budget analyst John to transfer 80% of the stationery
account to the travel expenses account. While transferring the amount, John encountered errors
and approached Sam for a resolution. Sam reviews the situation and clarifies it to John. Choose
what Sam would have explained to John.

Options are :
  • It is not possible to transfer amount from one account to another unless the absolute amount is known. So John should have calculated 80% of the stationery account and then tried to make the transfer.
  • There must be some budgetary control enabled on the stationery and travel expenses accounts, and a transfer can be made only after a funds check.
  • There must be some budgetary control enabled on the stationery account, and a transfer can be made only after a funds check. (Correct)
  • There must be some budgetary control enabled on the travel expenses, and a transfer can be made only after a funds check.

Answer : There must be some budgetary control enabled on the stationery account, and a transfer can be made only after a funds check.

Identify the Receivables activity type where you are unable to select the tax rate code source
option of invoice.

Options are :
  • Adjustment
  • Earned discount
  • Unearned discount
  • Miscellaneous cash (Correct)

Answer : Miscellaneous cash

You are defining FSG reports to be used by different users for your customer. One of the customer
requirements is that some users must be able to modify the report definition, some users must be
able to only view the report definition, and other users can modify, view, and submit the report.
Which solution must be implemented to meet the customer requirement?

Options are :
  • Define security rules and specify what actions can be performed by each user or a group of users.
  • Define a separate ledger set for each FSG user and grant them privileges accordingly.
  • Define definition access sets and specify what actions can be performed for a user or group of users. (Correct)
  • Define a separate data set for each FSG user and grant them privileges accordingly.
  • Set up profile options for each user and specify what actions can be performed by each user or a group of users.

Answer : Define definition access sets and specify what actions can be performed for a user or group of users.

Which four transactions are imported by AutoInvoice? (Choose four.)

A. Invoices
B. Deposits
C. Guarantees
D. Debit memos
E. Credit memos
F. On-account credits

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

Answer : A,D,E,F

ABC Corporation has five companies, which operate in different industries. Each company has a
different ledger-processing option that is industry specific. Choose the number of primary ledgers
that are required to be defined.

Options are :
  • One
  • Five (Correct)
  • Four
  • Two
  • Three

Answer : Five

Identify three tables that can be used to import billing data into Oracle Receivables. (Choose
three.)
A. RA_INTERFACE_LINES_ALL
B. RA_INTERFACE_SALES_ALL
C. RA_INTERFACE_HEADERS_ALL
D. RA_INTERFACE_SALESCREDITS_ALL
E. RA_INTERFACE_DISTRIBUTIONS_ALL

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

Answer : A,D,E

Newco Inc. has decided on a chart of accounts structure that consists of four segments:
company, cost center, account, and subaccount. It has only one company value and wants to
restrict (limit the appearance of) the lists of account values and subaccount values for some cost
centers. Which is the design option that would meet Newco Inc.'s requirement?

Options are :
  • Define a value set with independent validation for each of the three segments: cost center, account, and subaccount. Deselect dynamic inserts for the accounting flexfield structure and define all possible code combinations that are desirable for the specified cost centers.
  • Define a value set with independent validation and non-hierarchical security for each of the three segments: cost center, account, and subaccount. Enable security for all three segments and define security rules to restrict lists accordingly. (Correct)
  • Define a value set for the cost center with independent validation and non-hierarchical security. Define a value set for the account with dependent validation, which depends on the cost center. Define a value set for the subaccount with dependent validation, which depends on the account. Enable security for the cost center segment and define security rules to restrict lists accordingly.

Answer : Define a value set with independent validation and non-hierarchical security for each of the three segments: cost center, account, and subaccount. Enable security for all three segments and define security rules to restrict lists accordingly.

Identify the three applications that create invoices into Oracle Receivables. (Choose three.)
A. Oracle Loans
B. Oracle Projects
C. Oracle Shipping
D. Oracle Cash Management
E. Oracle Lease Management

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

Answer : A,B,E

ABC Corp. is implementing General Ledger, Payables, Receivables, and Cash Management.
Identify two points of integration between General Ledger, Payables, Receivables, and Cash
Management. (Choose two.)
A. Payables sends bank reconciliation accounting entries to General Ledger.
B. Receivables sends accrued revenue accounting entries to General Ledger.
C. Receivables sends bank reconciliation accounting entries to General Ledger.
D. Cash Management sends bank reconciliation accounting entries to General Ledger.
E. Cash Management does not send bank reconciliation accounting entries to General Ledger.

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

Answer : A,D

An easy methodology to clarify how to define rollup groups for the summary account is to _____.

Options are :
  • Review detailed financial reports
  • Sketch the summarization levels (Correct)
  • Discuss it with all levels of management within the organization
  • Look at industry standards

Answer : Sketch the summarization levels

Identify two mandatory attributes for grouping rules. (Choose two.)
A. GL date (GL_DATE)
B. Sales order (SALES_ORDER)
C. Currency (CURRENCY_CODE)
D. Accounting rule (ACCOUNTING_RULE_ID)

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

Answer : A,C

Identify three profile options that affect the integration of Oracle Receivables with other Oracle
applications. (Choose three.)
A. OM: Item Flexfield
B. EB Tax: Inventory Item for Freight
C. AR: Application GL Date Default
D. EB Tax: Invoice Freight as Revenue
E. AR: Change Customer on Transaction

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

Answer : A,B,D

Identify a correct statement about profile classes.

Options are :
  • Profile classes can be assigned to party, customer account, and account site levels.
  • Credit checking is managed in Receivables and Credit Management.
  • Profile classes can be assigned at the site level if the site has active bill-to and ship-to address purposes.
  • Late charge type includes adjustment, debit memo, and interest invoice. (Correct)
  • Profile classes include credit check, credit collector, payment term, statement cycle, and statement-to address.

Answer : Late charge type includes adjustment, debit memo, and interest invoice.

AutoCash rules apply to _____ receipts.

Options are :
  • Automatic
  • Quickcash (Correct)
  • Prepayment
  • Manual
  • Direct debit
  • Credit card

Answer : Quickcash

Mark, the GL accountant, asks you whether he can use the constant (C) segment type with the
parent segment values while defining the MassAllocation formulA. What would be your response?

Options are :
  • You can do this only if there is a summary account associated with the parent. (Correct)
  • You can do this only if Allow Dynamic Insert is enabled.
  • Whether you can do this depends on the responsibility.
  • You can customize the workflow and then do this.
  • Whether you can do this depends on the formula.

Answer : You can do this only if there is a summary account associated with the parent.

Horizon Real Estate Company usually issues rent invoices to its tenants at the beginning of every
quarter. It recognizes the monthly rent revenue on the first day of each month. However, some
tenants are required to make the monthly rent payments in two installments, that is on the15th and
the last day of the month. Which two statements are correct about the possible solutions for this
business requirement? (Choose two.)

A. Payment term can be set to defer the monthly rent revenue.
B. Invoicing rules can be set to defer the monthly rent revenue.
C. Accounting rules can be set to defer the monthly rent revenue.
D. Payment term can be set to allow customers to make payments in two installments.
E. Invoicing rules can be set to allow customers to make payments in two installments.
F. Accounting rules can be set to allow customers to make payments in two installments.

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

Answer : C,D

Identify two correct statements about the transaction flexfields for the Receivables AutoInvoice
interface tables. (Choose two.)
A. Link-to transaction flexfields are used to associate a specific tax line with a specific transaction line.

B. Reference transaction flexfields are used to associate a specific tax line with a specific
transaction line.
C. Link-to transaction flexfields are used to apply a credit memo to an invoice or associate an
invoice with a specific commitment.
D. Reference transaction flexfields are used to apply a credit memo to an invoice or associate an
invoice with a specific commitment.

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

Answer : A,D

Select four processes that are facilitated by the credit management workflow. (Choose four.)
A. Gathering prospect credit data
B. Analyzing prospect credit data
C. Gathering organization account credit data
D. Implementing credit decisions for individuals
E. Implementing credit decisions for organizations
F. Analyzing customer account credit data for individuals

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

Answer : A,B,C,E

All remittance bank details are created and maintained in _____.

Options are :
  • Oracle Payables
  • Oracle Purchasing
  • Oracle Lease Management
  • Oracle Cash Management (Correct)
  • Oracle Receivables
  • Oracle Trade Management

Answer : Oracle Cash Management

Retail customers are encouraged to sign up for direct debit form of payment. This provides the
bank with authorization to debit a customers checking account for either the full amount due or the
minimum balance, depending on the option selected by the customer at the time of enrolling for
the direct debit. Which is the most appropriate receipts solution in Oracle Receivables to directly
address this business need of your client?

Options are :
  • Implement bills of exchange.
  • Implement AutoLockbox receipts
  • Implement credit card receipts.
  • Implement QuickCash receipts.
  • Implement automatic receipts. (Correct)

Answer : Implement automatic receipts.

Select three statuses of the consolidation workbench. (Choose three.)
A. Posted
B. Entered
C. Exported
D. Reversed
E. Transferred

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

Answer : A,D,E

ABC company and XYZ company are both customers. Last month XYZ company purchased ABC
company. ABC company has hundreds of over-due invoices outstanding. According to the credit
department, the layoffs at ABC, following the merger, are responsible for the over-due invoices.
Both ABC and XYZ companies are making frequent requests for reprinted invoices of ABC
company. There will be no new business with ABC company. However, it will take another three
months to respond to the numerous requests for reprinted invoices and ABC company will
continue to be charged late fees. How should you handle the merger of ABC company and XYZ
company in Oracle Receivables during your first month end after their merger?

Options are :
  • Inactivate ABC company.
  • Invoice XYZ company for the invoices of ABC company.
  • Place ABC company on credit hold. (Correct)

Answer : Place ABC company on credit hold.

Before you can create customer invoices, you have to define customers and your remit-to
address. Identify five additional setups that are required before you can create invoices in
Receivables. (Choose five.)
A. payment terms
B. AutoAccounting
C. Transaction sources
D. Standard memo line
E. System and profile options
F. Receivables transaction types
G. Customer account relationships

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

Answer : A,B,C,E,F

The tables for the Customer Master are owned by _____.

Options are :
  • Oracle Customer Relationship Management
  • Oracle Receivables
  • Oracle Order Management
  • Oracle Trading Community Architecture (Correct)

Answer : Oracle Trading Community Architecture

Your client has requirements to enter customers, suppliers, and remit-to addresses in country
specific formats for the United States, United Kingdom, and Ireland. Which are the three steps
required to set up new flexible address formats in Oracle Applications? (Choose three.)
A. Creating address style lookup
B. Creating flexible address code
C. Setting up the "Default Address" profile option
D. Assigning address style to a specific country
E. Setting up flexible address format in a descriptive flexfield

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

Answer : A,D,E

Which table stores information about contingencies that impact revenue recognition for imported
transactions?

Options are :
  • AR_INTERFACE_CONTS_ALL (Correct)
  • RA_INTERFACE_DISTRIBUTIONS_ALL
  • RA_INTERFACE_LINES_ALL
  • RA_INTERFACE_ERRORS_ALL
  • RA_INTERFACE_SALESCREDITS_ALL

Answer : AR_INTERFACE_CONTS_ALL

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