1Z0-517 Oracle EBS R12.1 Payables Essentials Practice Exam Set 10

Which types of invoices can be automatically generated (without any manual intervention), if the appropriate setup steps have been performed? (Choose three.)
A. Interest Invoices
B. Recurring Invoices
C. Purchase order (PO) matched invoices
D. Pay on receipt invoices
E. Withholding tax invoices


Options are :

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

Answer : A,D,E

Assume that the withholding tax is calculated at the invoice payment time and the withholding tax rate is 20%. Identify three statements with the correct withholding tax calculations. (Choose three.)
A. invoice amount $500, withholding tax $100 (20% of $500)
B. invoice amount $400, prepayment invoice for $200, withholding tax $4 (20% of $200)
C. invoice amount $600, prepayment invoice for $100, withholding tax $12 (20% of $600)
D. invoice amount $500, prepayment invoice for $250, withholding tax $50 (20% of $500 - $250)
E. invoice amount $600, prepayment invoice for $100, withholding tax $100 (20% of $600 - $100) 


Options are :

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

Answer : A,D,E

The period-close processes of which Oracle Applications can be directly affected by the Payables period-close activities and processes? (Choose all that apply)
A. Purchasing
B. Installed Base
C. Advanced Pricing
D. Assets
E. Enterprise asset Management (EAM)


Options are :

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

Answer : A,D

At the ABC.com site, Cash Management is installed along with Oracle Payables. The payables option for payment accounting is set to account for a payment both on issue and clearing. The cash clearing accounts and cash accounts are different. What accounting happens when a payment is issued?


Options are :

  • Debit AP Liability, Credit Cash
  • Debit AP Liability, Credit Cash Clearing (Correct)
  • Debit Cash Clearing, Credit Cash
  • Debit Cash, Credit Cash Clearing

Answer : Debit AP Liability, Credit Cash Clearing

Multiple Reporting Currencies (MRC) has been enabled for your client Company A. Which method would you recommended to your client for transferring accounting entries to GL using the payables transfer to GL process?


Options are :

  • None
  • Transfer to GL without journal import for the primary set of books and all associated reporting sets of books together. Submit Journal import from GL for the primary set of books and all associated reporting books together
  • Transfer to GL without journal import for the primary set of books. Submit journal import for the primary set of books. Repeat these steps for each reporting set of books
  • Transfer to GL with Journal import for the primary set of books and all associated Reporting sets of books together (Correct)
  • Transfer to GL with journal import for the primary set of Books. Repeat the process for each Reporting set of books individually

Answer : Transfer to GL with Journal import for the primary set of books and all associated Reporting sets of books together

E-Business Tax calculates the amount of tax that is recoverable on the basis of the tax setup. To implement accrual-based accounting recoverable tax, four setups are needed. (Choose four.)
A. Enable "Set as offset tax."
B. Enable "Allow tax recovery."
C. Set the default recovery settlement option to "Deferred."
D. Define tax accounts, tax expense, recoverable tax, and interim tax.
E. Enable the default recovery settlement options at the regime, tax, tax status, or tax rate levels. 


Options are :

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

Answer : B,C,D,E

Which two statements are true regarding the Payables Options region in the Bank Account Window? (Choose two.)
A. You can Enter the Payables options information for supplier bank accounts
B. The maximum Payment field controls the largest payment amount that you allow in a payment batch
C. The maximum payment filed controls the largest currency outlay that you allow for a payment batch for this bank account
D. The Minimum Payment field controls whether you would allow zero amount payments from this bank account 

E. If the bank account is a foreign currency or multiple currency account, realized gain and realized loss accounts would be displayed by default in the Payables options window


Options are :

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

Answer : B,E

ABC.com wants to create invoices for suppliers on the basis of purchase order (PO) receipts. Which three steps should the company take in Payables? (Choose three.) 

A. Enable Gapless numbering
B. Enable the invoice match option
C. Enable pay on receipt at site level
D. Submit the pay on Receipt Auto Invoice Program


Options are :

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

Answer : A,C,D

Which three statements are true regarding the setting up of a bank? (Choose three.)
A. Each bank can have multiple branches
B. Each branch can have multiple accounts
C. Each account can be associated with multiple Payables payment documents and multiple receivables payment methods
D. Each account can be associated with only one payables payment document and receivables payment method
E. Each account can be associated with multiple payables payment documents OR multiple Receivables payment methods but not both 


Options are :

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

Answer : A,B,E

Which four lookups can be added with additional values at the time of implementation and also after implementation? (Choose four.)
A. Free on Board (FOB)
B. Invoice Type
C. Bank Branch
D. Automatic Withholding Tax (AWT) Rate Type
E. Automatic Withholding Tax (AWT) Certificate Types


Options are :

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

Answer : A,C,D,E

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 :

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

Answer : B,C,D

Which three events would cause accounting to be generated when the payables accounting process is run? (Choose three.)
A. Paying an invoice
B. Validating an invoice
C. Entering an purchase order
D. Clearing a payment with Cash Management
E. Delivering goods to a final destination when accruing receipts at period end


Options are :

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

Answer : A,B,D

Which two statements regarding receipt accruals are true? (Choose two.)
A. For accruals generated at period end, the accrual is sent to General Ledger after the Receipt Accruals - Period End process is run and the accrual is cleared when the journal entry is reserved in General Ledger
B. For accruals generated at receipt, the accrual is automatically sent to General Ledger and subsequently cleared when the journal entry is reserved in General Ledger
C. For accruals generated at period end, the accrual is sent to General Ledger after the Receipt Accruals – Period-End process is run and subsequently cleared when an invoice in entered and matched to the purchase order
D. For accruals generated at receipt, the accrual is automatically sent to General Ledger and subsequently cleared when an invoice is entered and matched to the purchase order


Options are :

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

Answer : A,D

From which three areas do the defaults come when you enter a supplier? (Choose three.)
A. Items
B. Operating Unit
C. Financial Options
D. Payables Options
E. Receiving Options


Options are :

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

Answer : C,D,E

Payables leverages E-Business Tax to set up, calculate, and manage transaction taxes, such as Sales, VAT and Offset taxes. Which two taxes are NOT calculated and managed by Payables? (Choose two.)
A. excise
B. property
C. customs duty
D. vehicle license
E. recoverable tax 


Options are :

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

Answer : B,D

You are working on an implementation for Accounts Payable. Many payments for small suppliers will be made outside of the system, but your client does not want to manually record them because that would be too time consuming. What would be the best solution?


Options are :

  • Create electronic payment batches using an electronic payment method, such as Electronic Funds Transfer (EFT), for those multiple suppliers and then do not send the resulting electronic file to the bank
  • Create Electronic Payment batches using a check payment method for those multiple suppliers and destroy those checks
  • Create electronic payment batches using a clearing payment method for those multiple suppliers, because this payment method does not generate a file
  • Create electronic payment batches using a wire payment method for those multiple suppliers and then delete the resulting electronic file (Correct)

Answer : Create electronic payment batches using a wire payment method for those multiple suppliers and then delete the resulting electronic file

Which type of transaction uses the expenses clearing account defined in Financial Options?


Options are :

  • Credit Card Transactions (Correct)
  • Expense-Related AP Invoices
  • Expense Reports
  • Miscellaneous Expenses

Answer : Credit Card Transactions

You are working on a multi organization accounts payable implementation with several payable entities. You client will not set up supplier bank accounts and will use payment batch, quick payments and manual payments. Which payment methods can your client use?
(Choose that all apply)
A. Clearing
B. Check
C. Wire
D. Electronic


Options are :

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

Answer : A,B,C

Identify three statements that are true for creating the withholding tax for standard, recurring, and prepayment invoices. (Choose three.)
A. The Withholding Tax Report is prepared by suppliers.
B. The Withholding Tax Group defaults in from the supplier or supplier site.
C. There can be multiple withholding tax codes with multiple tax authorities assigned to a group.
D. You can set up a special calendar to define periods that Payables uses for automatic withholding tax.
E. The Withholding Tax Invoice Description field does NOT include the invoice that the withholding tax invoice is associated with. 


Options are :

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

Answer : B,C,D

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 :

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

Answer : A,B,C,D

When you use invoice Approval workflow, which setup options in the Payables options form are related to invoices? (Choose three.)
A. Allow Force Approval
B. Use Invoice Approval Workflow
C. Require Validation Before Approval
D. Allow Document Sequencing Override
E. Build Discount Accounts when matching


Options are :

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

Answer : A,B,D

The bank account in the Payment Batches and Payments window defaults from _____________.


Options are :

  • Supplier Site Level
  • Bank Accounts
  • Supplier Level
  • Payables Options – Payments region (Correct)

Answer : Payables Options – Payments region

What are the three options available for the parameter ‘Transfer to GL interface’ when running the request ‘Payables Transfer to General Ledger’ ? (Choose three.)
A. In Detail
B. Summarize by Invoice Date
C. Summarize by Payment Date
D. Summarize by Accounting Date
E. Summarize by Accounting Period


Options are :

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

Answer : A,D,E

Identify three statements that are true for E-Business Tax. (Choose three.)
A. E-Business Tax transactions are strictly controlled and cannot be changed.
B. E-Business Tax provides seeded tax registration types for local organizations.
C. E-Business Tax provides a single point solution for managing your transaction-based tax requirements.
D. E-Business Tax provides a common model for setting up tax data for tax determination and tax calculation.
E. E-Business Tax uniformly delivers tax services to all E-Business Suite business flows through one application interface. 


Options are :

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

Answer : C,D,E

To process a payment you must complete __________.


Options are :

  • Only the invoice validation process (Correct)
  • Only the create Accounting process
  • The payables accounting process
  • Both the invoice Validation and Create Accounting processes

Answer : Only the invoice validation process

Which three statements are true regarding voucher numbers and document sequences? (Choose three.)
A. After you create and save a sequence, you can change it
B. Assigning unique voucher numbers to documents is called document sequencing
C. You can select a sequence of numbers that you would assign to a document category
D. Document sequencing for all the documents you use in all your Oracle applications comes automatically set up with your installation


Options are :

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

Answer : B,C,D

Tax Content Services store and maintain the master and reference data that are needed to support the other components in E-Business Tax. You use the E-Business Tax application to model details about the tax setup for all your company tax requirements. Identify the two that are
NOT a subcomponent of Tax Content Services. (Choose two.)
A. tax jurisdictions
B. tax condition sets
C. basic tax configuration
D. determining factor sets
E. country default controls
F. exemptions and exceptions 


Options are :

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

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

Answer : C,D,E

ABC.com's, European operations accrue all the expenses items on receipt (perpetual accrual) without any exceptions. Which statement is true about the period close for payables and purchasing?


Options are :

  • Closing of Payables automatically closes purchasing
  • Payables and purchasing can close independently of each other (Correct)
  • Purchasing has to close before payables
  • Payables has to close before purchasing

Answer : Payables and purchasing can close independently of each other

ABC.com has closed its APR-XX Accounting period. The APR-XX period started on 27-MAR-20- 20XX and ended on 26-APR-20XX. It has run the posted invoice register, the posted payments register and two accounts payable trail balance reports (as of 30-MAR-20XX and 30-APR-20XX). Unfortunately, the accounts do not balance. Which two actions should be taken? (Choose two.)

A. Check to make sure that all invoices for the period are paid
B. Check the dates on the accounts payable Trail Balance reports
C. Check to ensure that invoice and payment journals are posted in General Ledger
D. Check to make sure that there are no unaccounted transactions in APR-XX by using the Unaccounted Transactions report


Options are :

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

Answer : B,C

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