1Z0-516 Oracle EBS R12 General Ledger Essentials Exam Set 8

You have Oracle Receivables and Trade Management installed to manage claims. You discover
that one claim is a split claim, that is, half valid and half invalid. Identify three correct statements
about split claims. (Choose three.)
A. The amount of the claim is split in Receivables.
B. Splits are never shown in Receivables, they look like one claim.
C. The originating non-invoice-related claim number would be shown in Receivables with the split
number.
D. When a claim is split in Trade Management, the information is not immediately updated in
Receivables.
E. Claim information is automatically updated in Receivables when one of the claims is resolved
directly from Trade Management.

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

Answer : B,D,E

Your functional end users are perplexed by the contents of the AutoInvoice Execution report.
They needed expert guidance and came to you. You look at the report and see that the Interface
Lines section of the report shows the following:
Selected: 9
Successfully Processed: 8
Failed Validation: 0
What is the likely reason for this?


Options are :

  • The General Ledger (GL) code combination ID failed the cross validation rules.
  • A credit memo for an invoice and the invoice itself are submitted in the same batch and the credit memo is selected first. (Correct)
  • An adjustment update of an old invoice is included in this batch.
  • The GL code combination segment value for the cost center was valid in the prior calendar month but is end-dated a day earlier.
  • A debit memo for an invoice and the invoice itself are submitted in the same batch and the debit memo is selected first.

Answer : A credit memo for an invoice and the invoice itself are submitted in the same batch and the credit memo is selected first.

ABC Enterprise has operations in the US (East), the US (West), the US (North), and the US
(South). The US (North) and the US (East) divisions want to have budgetary controls. The US
(West) wants to have journal approvals. ABC Enterprise reports to its parent company in the UK
and the reporting currency is GBP. The scope of implementation is for the US operations. The
currency, chart of accounts, and calendar are the same for all operations. Identify the number of
legal entities and primary ledgers that must be created.


Options are :

  • 1 and 3 (Correct)
  • 2 and 3
  • 1 and 2
  • 1 and 4

Answer : 1 and 3

Which are the three formats in which late charges can be presented to your customers? (Choose
three.)
A. Adjustment
B. Chargeback
C. Debit memo
D. Add-on fees
E. Credit memo
F. Interest invoice

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

Answer : A,C,F

Jack is implementing Oracle General Ledger for ABC Corporation. The management wants the
definition of data access set with full ledger access set type for its four ledgers/ledger sets as
shown here:
Balancing Segment Value Data Access Set Type
Ledger/Ledger Set Balancing Segment Value Privileges
ABC Services All Read and Write
ABC Operations 01 Read-Only
ABC Operations 20 (Parent of child values 21-29) Read and Write
ABC Global Industries Ledger Set All Read and Write Select two correct statements in this scenario. (Choose two.)

A. Users can only view the existing data in ABC Operations for the balancing segment value 01.
B. Users have read-only access to the data in some balancing segment values in the ledger set,
ABC Global Industries.
C. Users have read and write access to the data in some balancing segment values in the ledger
set, ABC Global Industries.
D. Responsibilities using this data access set will have read and write access to the data in ABC
Services and all its balancing segment values.

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

Answer : A,D

When you define an assignment rule in Bill Presentment Architecture, you specify one or more
criteria for content item values. Select the three items contained in each criterion. (Choose three.)
A. Value
B. Template
C. Condition
D. Attribute name
E. Primary data source

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

Answer : A,C,D

ABC Company in India imports baking equipment from XYZ Company in the US A. There is an
outstanding invoice of $1,000,000 to be paid in two months. The USD-to-INR rate when the
transaction was done was 47.5. Now the USD-to-INR rate has changed from 47.5 to 40.5. 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 is not impacted at all by this rate change.
B. XYZ Company has a positive impact by this rate change.
C. ABC Company is not impacted at all by this rate change.
D. ABC Company has a positive impact by this rate change.

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

Answer : A,D

While you are attempting to post entries, you receive this error message:
Number of updated GL_BALANCES rows does not equal the number of rows in the
GL_POSTING_INTERIM_24697 table.
A subsequent SQL script identifies that duplicates have arisen from a summary template ID.
What must you do?


Options are :

  • Run the Maintain Summary Template program because a detail account has been added.
  • Run the Optimizer program because it would improve the performance of the posting program.
  • Run the Incremental Add/Delete Summary Templates program because there has been a change in the hierarchy structure. (Correct)
  • Run the Inherit Segment Values Attribute program because a valid code combination has been preserved.

Answer : Run the Incremental Add/Delete Summary Templates program because there has been a change in the hierarchy structure.

All manual journal entries are defaulting to a non-current period. Which step was omitted from the
accounting cycle?


Options are :

  • Reversing journal entries
  • Updating the period (Correct)
  • Posting journal entries
  • Translating foreign balances
  • Consolidating financials

Answer : Updating the period

Identify two AR transaction types that correspond to the GL category sales nvoice. (Choose two.)
A. Deposits
B. Guarantee
C. Adjustments
D. Chargebacks
E. On-account credit
F. Miscellaneous transactions

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

Answer : A,B

What does the concurrent program Automatic Reversal do? (Choose two.)
A. Generates reversals for all journals in a date range
B. Generates reversals for the journal batches that you specify
C. Generates reversal journals for all journal categories that have AutoReverse enabled
D. Generates and posts reversal journals if the journal reversal criteria has the AutoReverse and
AutoPost reversals enabled for the category

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

Answer : C,D

A summary account template is being created to perform a flash inquiry on cash balances for a
chart of accounts consisting of three segments: company, department, and account. Which
combination would result in zero balance?
D = Detail
T = Total


Options are :

  • T-T-T (Correct)
  • D-T-D
  • T-T-D
  • D-D-D
  • T-D-D

Answer : T-T-T

Which statement is correct about the differences between the functionalities of parent
accountsand summary accounts?


Options are :

  • Summary accounts use the summing segment type for MassAllocations, whereas parent accounts use the looping segment type.
  • Summary accounts slow down the generation of Financial Statement Generators, whereas parent accounts help generate quicker results.
  • Summary accounts cannot be used in budget formulas, whereas parent accounts can be used in budget formulas.
  • Summary account balances can be viewed in the Account Inquiry form, whereas parent account balances cannot be viewed in that form. (Correct)
  • Summary accounts speed up the posting process, whereas parent accounts require additional time for the Posting process.

Answer : Summary account balances can be viewed in the Account Inquiry form, whereas parent account balances cannot be viewed in that form.

For any scoring model, you can define a set of automation rules to guide the implementation of
credit decisions without user intervention. Under what situation are automation rules preferred?


Options are :

  • When credit risk defined by an enterprise's policies is high
  • When credit risk defined by an enterprise's policies is minimal (Correct)
  • When credit risk defined by an enterprise's policies is unrated
  • When credit risk defined by an enterprise's policies is moderate

Answer : When credit risk defined by an enterprise's policies is minimal

Identify two reasons why ABC Company would use Oracle Business Intelligence (BIS) as one of
their reporting tools. (Choose two.)
A. Perform ad hoc query, reporting, analysis, and Web publishing.
B. Provide a secured and centralized location to produce and manage point-in-time reports.
C. Executive-level information about earnings per share and current ratios can be obtained.
D. Monitor the business at a high level and obtain performance measures by using business
metrics.
E. Create consolidated reports and perform consolidation for companies that share the same
ledger.

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

Answer : C,D

The Receivables Quick Cash functionality enables you to_____.


Options are :

  • Apply receipts at invoice line level
  • Apply receipts using Mass Apply window
  • Apply receipts at invoice header level only (Correct)
  • Create adjustments and chargebacks for debit items with applied receipts

Answer : Apply receipts at invoice header level only

Identify four discount basis options available that define how Receivables calculates discounts.
(Choose four.)
A. Gross amount
B. Freight amount
C. Invoice amount
D. Lines only amount
E. Lines and tax amount
F. Lines, freight, and tax amount

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

Answer : C,D,E,F

Journal source, journal category, balance type, period, and effective date are used to define the
_____ criteria set.


Options are :

  • Mass Allocations
  • AutoPost (Correct)
  • Recurring Journals

Answer : AutoPost

You want an invoice to be due in four stages. What should you do when creating the invoice to
accomplish this?


Options are :

  • Assign an invoicing rule with four schedules.
  • Assign payment terms that have four discount periods defined.
  • Assign an accounting rule with four schedules.
  • Create four lines and assign different payment terms to each line.
  • Assign payment terms that have four payment schedules. (Correct)

Answer : Assign payment terms that have four payment schedules.

The organization that Receivables uses to validate items is set up using _____.

Options are :
  • The AR: Item Validation Organization profile option
  • The AR: Allow Manual Invoice Lines profile option
  • Item validation organization in the OM Parameters window (Correct)
  • The AR: Items Flexfield Mode profile option

Answer : Item validation organization in the OM Parameters window

The customer service department identified an order that was shipped and not invoiced. Identify
four potential causes for this occurring. (Choose four.)
A. AutoInvoice was not run.
B. The invoice lacks an accounting rule.
C. An AutoInvoice validation error exists.
D. Order Management workflow is stuck.
E. The order line has a back order credit hold.

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

Answer : A,C,D,E

Which form can you use to set up automatic transaction numbering?


Options are :

  • System Options
  • Transaction Types
  • Profile Options
  • Transaction Sources (Correct)

Answer : Transaction Sources

Symba Manufacturing International has a requirement to match Cost of Goods Sold (COGS) and
Revenue. They have asked your help in implementation. In this context, which two dependencies
and interactions are true? (Choose two.)
A. Cost Management performs COGS recognition (or Cost Accounting).
B. Cost Management integrates with Oracle Receivables for invoice creation.
C. Cost Management integrates with Oracle Receivables for revenue information.
D. Cost Management provides order and return information to Oracle Receivables.
E. Cost Management notifies Oracle Receivables when an order is closed without billing.

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

Answer : A,C

You are implementing Oracle Receivables and Oracle Trade Management for claim investigation.
You often need to create chargebacks to handle short payments and overpayments on invoices
sent to your customers. You have a business need to manually number the chargeback
transactions in Oracle Receivables to match a chargeback case number. What is true about
meeting this requirement?


Options are :

  • Chargebacks in Oracle Receivables always need to be automatically numbered. (Correct)
  • Chargebacks in Oracle Receivables need to be automatically numbered only when document sequencing option of manual is not selected.
  • Chargebacks in Oracle Receivables can be manually numbered.
  • Chargebacks in Oracle Receivables can be manually numbered if the base numbering option of manual is selected.

Answer : Chargebacks in Oracle Receivables always need to be automatically numbered.

For transaction-related activities such as adjustments and discounts, Receivables derives the
balancing segment value from the _____ account that is associated with the transaction.


Options are :

  • Un billed receivables
  • Receivables (Correct)
  • Un earned revenue
  • Revenue
  • Earned and unearned discounts
  • Un applied cash

Answer : Receivables

You mail your customer John Doe an invoice for $1000 for the supplies he ordered. John has the
option of making his payment either by check or by credit card. John elects to use his credit card.
This receipt is identified as a(n) _____ .


Options are :

  • Automatic receipt (Correct)
  • Autolockbox receipt
  • Quickcash receipt
  • Manual receipt
  • Miscellaneous receipt

Answer : Automatic receipt

Identify the sequence of the steps that are required for performing the accounting setup from this
list.
1. Define accounting options.
2. Define primary ledger.
3. Define legal entities.
4. Assign legal entities to accounting setup.
5. Complete accounting setup.
6. Define secondary ledgers.

Options are :
  • . 1, 2, 3, 4, 5, 6
  • 1, 3, 2, 4, 5, 6
  • 3, 4, 2, 6, 1, 5 (Correct)
  • 3, 4, 2, 6, 5, 1

Answer : 3, 4, 2, 6, 1, 5

Identify two credit memo options that are available in Oracle Receivables. (Choose two.)
A. Tax only
B. Advance
C. Paid freight
D. Invoice lines
E. Paid amount only

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

Answer : A,D

AutoLockbox uses attributes to identify a customer for each AutoLockbox receipt. Which five
attributes for AutoLockbox are used to identify the customer? (Choose five.)
A. MICR number
B. Customer number

C. Sales order number
D. Receipt number (which is often the check number)
E. Transaction number using the auto associate option
F. Balance forward bill number using the auto associate option

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

Answer : A,B,C,E,F

In order for supplementary data sources to be registered in Oracle Bill Presentment Architecture
(BPA), they must be interfaced with which Oracle Application?


Options are :

  • Oracle Receivables (Correct)
  • Oracle Order Management
  • Oracle Projects
  • Oracle Service Contract

Answer : Oracle Receivables

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