1Z0-516 Oracle EBS R12 General Ledger Essentials Exam Set 7

The Receipt Inherit Invoice Number option affects only receipts created by _____.

Options are :
  • The AutoLockbox program
  • Oracle Trade Management
  • Oracle Cash Management
  • The Automatic Receipts program (Correct)

Answer : The Automatic Receipts program

Identify two correct statements regarding a primary ledger. (Choose two.)
A. Defining a primary ledger is not mandatory.
B. A primary ledger is the main record-keeping ledger.
C. Multiple legal entities can be linked to one primary ledger.
D. Multiple primary ledgers can be linked to one secondary ledger.
E. Multiple primary ledgers are required for one accounting setup always.

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

Answer : B,C

ABC Company's requirement is that all mass allocation journals must be approved by using the
journal approval process. When the company accountant enters his or her mass allocation
journals, these journals must be routed to his or her manager for approval, then to the CFO, and
finally to the CEO for review and final approval. Select the option that would help ABC Company
meet this requirement.

Options are :
  • Go to peers
  • Go direct to the person with sufficient authorization limit
  • Go up the management chain (Correct)
  • One stop go direct

Answer : Go up the management chain

Select four values that default from profile classes in Oracle Accounts Receivable. (Choose four.)
A. Currency
B. Legal entity
C. Payment terms
D. Statement cycle
E. Business purpose
F. Credit classification

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

Answer : A,C,D,F

Identify four required Oracle Credit Management system options. (Choose four.)
A. Territory
B. Legal entity
C. Aging bucket
D. Exchange rate type
E. Default customer credit classification
F. Data quality management (DQM) matching rule name

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

Answer : C,D,E,F

After creating two new customers, ABC and XYZ, you create and complete an invoice for $105
($100 plus $5 tax) for customer ABC. You print the invoice and realize that you should have
created the invoice for customer XYZ and not for customer ABC. The accounting for the
transaction is posted to the General Ledger (GL). Which is the best option to correct the situation?

Options are :
  • Change the status of the invoice to incomplete. Change the transaction type of the invoice to a transaction type that has class equal to credit memo. Complete the invoice. Enter and complete the invoice for XYZ.
  • From the Navigator, select Transactions > Credit Transactions. The Credit Transactions form is displayed; choose your transaction. Click the Credit Balance button, save your work, and then click the Complete button. Enter and complete the invoice for XYZ. (Correct)
  • Create an on-account credit memo for $105 for ABC. Apply the on-account credit memo to the invoice. Enter and complete the invoice for XYZ.
  • Create an adjustment to the invoice for the entire amount, and then create a negative adjustment to the account of XYZ.

Answer : From the Navigator, select Transactions > Credit Transactions. The Credit Transactions form is displayed; choose your transaction. Click the Credit Balance button, save your work, and then click the Complete button. Enter and complete the invoice for XYZ.

Select the setup task that you are required to perform in Receivables to manage tax calculations
on invoices.

Options are :
  • Defining tax registrations
  • Defining tax rules
  • Defining Account Generator
  • Defining AutoAccounting (Correct)
  • Defining AutoInvoice

Answer : Defining AutoAccounting

You can define a credit hierarchy of parties and party relationships to consolidate and display all
credit data for the entire hierarchy in Credit Management. Which profile option should be set to
enable this functionality?

Options are :
  • AR: Credit Hierarchy Type (Correct)
  • HR: BIS Reporting Hierarchy
  • Exchange Protocol: Allow Hierarchy
  • OSC: Reporting Hierarchy
  • HZ: Allow Hierarchy Copy

Answer : AR: Credit Hierarchy Type

ABC Company in India exports raw materials to XYZ Company in the USA. There is an
outstanding invoice of INR 90,000,000 to be paid in two months. The USD-to-INR rate when the
transaction was completed was 45. Now the USD-to-INR rate has changed from 45 to 40.
Jack, who is a treasury analyst at ABC Company, reviews the transactions and comes to a
conclusion. Select two correct conclusions arrived upon by Jack. (Choose two.)

A. XYZ Company has a positive impact by this rate change.
B. ABC Company is not impacted at all by this rate change.
C. ABC Company has a positive impact by this rate change.
D. XYZ Company has a negative impact by this rate change.

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

Answer : B,D

AutoLockbox execution employs a multistep process. These steps can be submitted individually or
at the same time from the Submit Lockbox Processing window. Identify the correct sequential
combination of steps that are executed while running the AutoLockbox concurrent process in
Oracle Receivables.

Options are :
  • Enter receipts, import bank file, validate data, post quickcash
  • Import bank file, validate data, post QuickCash (Correct)
  • Enter receipts, validate data, apply QuickCash
  • Import bank file, enter receipts, validate QuickCash
  • none
  • Enter receipts, import bank file, validate data, post QuickCash, apply receipts

Answer : Import bank file, validate data, post QuickCash

Your receivables clerk is confused about entering duplicate receipt numbers in Oracle
Receivables. According to the organization's policy, the customers check number is entered as the
receipt number while entering manual check receipts. There are instances when the same check
number is received from different customers. What do you tell your receivables clerk?

Options are :
  • Oracle Receivables allows entry of duplicate receipt numbers if the receipt amount is different from the amount in other receipts with the same receipt number.
  • Oracle Receivables allows entry of duplicate receipt numbers if the receipts are from the same customer.
  • Oracle Receivables allows entry of duplicate receipts if the receipts are from the same batch source.
  • Oracle Receivables does not allow entry of duplicate receipt numbers if the receipt number, currency, amount, and customer number in a receipt are identical to those in another receipt. (Correct)
  • Oracle Receivables does not allow entry of duplicate receipt numbers.

Answer : Oracle Receivables does not allow entry of duplicate receipt numbers if the receipt number, currency, amount, and customer number in a receipt are identical to those in another receipt.

You have just opened the Transactions form. Which field would you see on this form?

Options are :
  • Company
  • Cost center
  • Legal entity (Correct)
  • Operating unit

Answer : Legal entity

Which three data elements default from transaction type in Oracle Receivables? (Choose three.)
A. Legal entity
B. Accounting
C. Sales person
D. Transaction numbering
E. Payment terms (if not set at the customer level)

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

Answer : A,B,E

When summary account templates are associated with the check-level advisory of budgetary
control funds, which are the two items that must be associated with the template? (Choose two.)
A. The formula must be identified.
B. The currency must be identified.
C. The boundary must be identified.
D. The funding budget must be identified.

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

Answer : C,D

The GL accountant tells you that he is running the tests to check the budget functionality. He says
that the GL period was closed, but he was able to post the budget journal in a closed period. You
check the setup and confirm that the GL period in which he was able to post the budget journal
was closed. What explanation do you give?

Options are :
  • The budget year is open. (Correct)
  • The Require Budget Journal profile option is set at the set of books level.
  • The budget status is current.
  • The budget status is frozen.

Answer : The budget year is open.

Tax on Receivables invoices are posted to different General Ledger (GL) accounts by taxing authorities in your primary ledger. For example, one GL account (2501) for California tax and one (2502) for VirginiA. There is a regulatory requirement for tax on Receivables invoices to be posted to one account (2550) in your secondary ledger. Where would you set up the accounting rules for this requirement?

Options are :
  • Oracle General Ledger
  • Oracle E-Business Tax
  • Oracle Receivables
  • Oracle Subledger Accounting (Correct)
  • Oracle Payables

Answer : Oracle Subledger Accounting

Several fields are required during manual invoice entry. Which are the fields required at the
header level?

Options are :
  • Terms, date, bill-to, source, legal entity, type, remit-to
  • Date, customer, source, type, GL date, legal entity
  • Date, customer, source, type, General Ledger (GL) date, class
  • Date, legal entity, bill-to, source, type, class, remit-to
  • Date, source, class, type, GL date, legal entity, bill-to, terms, remit-to (Correct)

Answer : Date, source, class, type, GL date, legal entity, bill-to, terms, remit-to

ABC Corp. has a requirement that all budget entries are made through journals. Identify one
choice where this can be accomplished.

Options are :
  • Journal categories
  • Journal types
  • Ledger setup (Correct)
  • Budget organizations
  • Journal sources

Answer : Ledger setup

Which statement best describes stages in the credit review process?

Options are :
  • Initiating a credit review, data collection, data analysis, making and implementing the recommendations (Correct)
  • Defining a profile class, assigning it to customers, setting up the scoring model, and starting the workflow background process
  • Manually initiating a review by sending out mails to customers requesting information, reviewing and making recommendations, and implementing recommendations after approval
  • Manually reviewing customers' past billing and payment history, initiating discussions with customers, and implementing recommendations

Answer : Initiating a credit review, data collection, data analysis, making and implementing the recommendations

Your client has sales tax requirements that involve two types of sales tax. The first sales tax
applies to all customers. The second sales tax is based on where the company ships the goods.
All goods are taxable; however some customers who resell the goods are exempted from the
second sales tax. Choose three applicable options to set up sales tax for your client. (Choose
three.)
A. Tax classification code for exempt tax
B. Item exemptions for both sales taxes
C. Customer exemptions for the first sales tax
D. Customer tax exemptions for the second sales tax
E. Tax group for the combination of the two tax classification codes

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

Answer : A,D,E

To define the primary ledger, which account is always required?


Options are :

  • Reserve for encumbrance account
  • Entered currency balancing account
  • Retained earnings account (Correct)
  • Suspense account
  • Realized profit/loss account
  • Unrealized profit/loss account

Answer : Retained earnings account

Organizations have unique credit policies that aid in managing their collections and establishing
relationships with customers. Describe the two dimensions on which Oracle Credit Management is
based. (Choose two.)
A. Various customer credit classifications
B. Various credit review types identified by collectors

C. Various analysis of prior billing period and receipt history of customers
D. Various analysis of customers on the basis of the aging of their outstanding balances

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

Answer : A,B

Jane, the GL accountant, says that she had heard about the budget upload functionality of Oracle
General Ledger and had been eager to test it. However, she was unable to test it in the
Conference Room Pilot (CRP) instance. What would be your explanation?


Options are :

  • The budget dates in the budget organization have a different date range.
  • The GL account code combination is invalid.
  • The budget status may be frozen.
  • Budget journals are required at the ledger level. (Correct)
  • The GL period is closed.

Answer : Budget journals are required at the ledger level.

Select two ways in which you can complete an invoice. (Choose two.)
A. Use the Complete button in the Transactions window.
B. Run the concurrent program Complete Transactions.
C. Select the complete check box in the Transactions window.
D. Use the Complete button in the Transactions Summary window.
E. Select the complete check box in the Transactions Summary window.
F. Ask the technical developer to run a custom PL/SQL program to update all tables.

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

Answer : A,D

XYZ Company uses Oracle General Ledger. They have a practice of loading data from the legacy
systems into the GL_INTERFACE table, from where they import it into Oracle General Ledger.
They have enabled four account segments. In the Key Flexfield Segments window, you find that:
Segment 1 corresponds to the SEGMENT1 column
Segment 2 corresponds to the SEGMENT2 column
Segment 3 corresponds to the SEGMENT4 column
Segment 4 corresponds to the SEGMENT5 column
Identify the columns of the GL_INTERFACE table with the data that must be populated.

Options are :
  • Segment 1 in GL_INTERFACE.SEGMENT2, Segment 2 in GL_INTERFACE.SEGMENT3, Segment 3 in GL_INTERFACE.SEGMENT4, Segment 4 in GL_INTERFACE.SEGMENT5
  • Segment 1 in GL_INTERFACE.SEGMENT2, Segment 2 in GL_INTERFACE.SEGMENT3, Segment 3 in GL_INTERFACE.SEGMENT3, Segment 4 in GL_INTERFACE.SEGMENT4
  • Segment 1 in GL_INTERFACE.SEGMENT1, Segment 2 in GL_INTERFACE.SEGMENT2, Segment 3 in GL_INTERFACE.SEGMENT4, Segment 4 in GL_INTERFACE.SEGMENT3
  • Segment 1 in GL_INTERFACE.SEGMENT1, Segment 2 in GL_INTERFACE.SEGMENT2, Segment 3 in GL_INTERFACE.SEGMENT4, Segment 4 in GL_INTERFACE.SEGMENT5 (Correct)

Answer : Segment 1 in GL_INTERFACE.SEGMENT1, Segment 2 in GL_INTERFACE.SEGMENT2, Segment 3 in GL_INTERFACE.SEGMENT4, Segment 4 in GL_INTERFACE.SEGMENT5

Identify the two tasks that you can achieve by using sequential numbering. (Choose two.)
A. Enable sequential invoice numbers.
B. Enable gapless sequence numbers.
C. Sequentially number GL and subledger journal entries.
D. If you use journal- or subledger-level reporting currencies and when sequences are defined for
the source ledger (such as the primary or secondary ledger), the sequence number generated for
the source ledger is automatically assigned to the reporting currency journal.

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

Answer : B,C

Select four key system options in Oracle Receivables that are related to customers. (Choose four.)
A. Default country
B. Receipt method
C. Automatic site numbering
D. Create reciprocal customer
E. Customer credit classification
F. Automatic customer numbering
G. Allow payment of unrelated transactions

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

Answer : C,D,F,G

ABC Enterprise wants to achieve processing efficiencies in its accounts closing cycle. It has
multiple ledgers and needs to summarize balances across ledgers. ABC Enterprise is security
conscious and wants to restrict user access on ledgers. All its ledgers share the same chart of
accounts and accounting calendar or period-type combination. Identify which functionality of
Oracle General Ledger serves the need of ABC Enterprise.


Options are :

  • Ledgers
  • Ledger sets (Correct)
  • Consolidation
  • Balance transfers

Answer : Ledger sets

Identify three entities that can become a party in Oracle Trading Community Architecture (TCA).
(Choose three.)
A. An individual customer
B. A personal relationship
C. A business organization
D. A business contact email
E. A business mailing address
F. A business contact telephone

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

Answer : A,B,C

To create a party paying relationship, the relationship type must be hierarchical and the party type
must be _______.


Options are :

  • Organization (Correct)
  • Person or organization
  • Child
  • Parent
  • Person

Answer : Organization

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