1Z0-517 Oracle EBS R12.1 Payables Essentials Practice Exam Set 5

Which two are the mandatory flexfield qualifiers in Oracle General Ledger? (Choose two.)
A. balancing segment
B. cost center segment
C. management segment
D. natural account segment
E. secondary tracking segment 


Options are :

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

Answer : A,D

Suppliers play an important part in the Procure-to-Pay process. Select three activities that you must perform using a supplier. (Choose three.)
A. You receive goods or services from suppliers.
B. You need supplier information for entering purchase orders.
C. You must pay the supplier for the goods or services purchased.
D. You need a supplier as the criterion to search for a payment in the system.
E. You need a supplier as the criterion to search for purchase orders in the system. 


Options are :

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

Answer : A,B,C

When structuring the summary accounts hierarchy, what fact must you take into consideration? 


Options are :

  • You must include every parent value that is defined in the chart of accounts to a rollup group.
  • General Ledger will not automatically maintain roll up relationships from the summary level to the lowest detail level.
  • Grand parenting is not allowed (parents cannot become children).
  • You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels. (Correct)

Answer : You can drill down only on balances from the summary level to the lowest detail level, and not to intermediate detail levels.

A manager wants to review the cash balance by company. He has asked you to create the summary account template. The company's accounting flexfield has four segments: 

Company (5 values) Cost Centers (30 values) Region (4 values) Account (180 values) The total number of cash accounts is five that are associated with two parents: Three accounts are associated with the parent called Checking. Two accounts are identified with the parent called Savings. To combine the cash parents, you created a rollup group named Cash. How many accounts would the summary account template generate?



Options are :

  • 10 (Correct)
  • 40
  • 240
  • 60

Answer : 10

Jack, the CFO of ABC Company, wants to prepare the annual capital expenditure budget for the current year where the company plans to grow in the last quarter of the year. The capital expenditure budget is subdivided in multiple items, and the corporate calendar used at ABC
Company has thirteen periods. Identify the three budget rules that Jack must use to minimize the effort. (Choose three.)
A. Use the divide evenly rule with the 4/4/4 spread.
B. Use the divide evenly rule with the 4/5/4 spread.
C. Use the divide evenly rule with the 5/4/4 spread.
D. Use the divide evenly rule with the 4/4/5 spread. 


Options are :

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

Answer : B,C,D

The client's GL accountant comes to you with a problem. A journal cannot be posted because it has not been approved. The preparer cannot submit the journal for approval because the Approve button is disabled in the Enter Journals form and the supervisor has not received a notification requesting the approval. What could be the possible cause for this problem? 


Options are :

  • The profile option GL: Allow Preparer Approval must be reset.
  • Budgetary control has been enabled for the set of books and funds have not been reserved for the journal. (Correct)
  • Authorization limits have not been defined properly and the GL period is closed.
  • One of the GL account code combinations in the journal is invalid.

Answer : Budgetary control has been enabled for the set of books and funds have not been reserved for the journal.

Purchasing has numerous activities that are performed as a key part of the Procure-to-Pay process. Select three activities that are performed in the Purchasing module that will integrate into Payables. (Choose three.)
A. canceling invoices
B. performing receiving
C. scheduling payments
D. creating purchase orders
E. creating purchase order detailed accounting information 


Options are :

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

Answer : B,D,E

Sam, the CFO of XYZ Company, wants to prepare the annual capital expenditure budget for the current year with reference to the capital expenditure budget of the previous year. The capital expenditure budget is subdivided into multiple items, and the corporate calendar used at XYZ Company has thirteen periods. Which budget rule must Sam use to minimize the effort. 


Options are :

  • prior year budget monetary and prior year budget statistical (Correct)
  • current year actual monetary and current year actual statistical
  • prior year actual monetary and current year budget statistical
  • prior year budget monetary and current year budget statistical

Answer : prior year budget monetary and prior year budget statistical

You are implementing Oracle E-Business Suite Release 12 General Ledger for ABC Corporation. Identify two setups required for journal approval. (Choose two.)
A. Enable journal approval for the Journal Category window.
B. Disable the Journal: Find Approver Method profile option.
C. Enable the Journal: Allow Preparer Approval profile option.
D. Configure the GL journal approval process in Oracle Workflow Builder. 


Options are :

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

Answer : C,D

Identify the two invoice types processed by the Payables Open Interface process. (Choose two.)
A. standard
B. prepayment
C. debit memos
D. credit memos 


Options are :

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

Answer : A,D

Company Z has implemented Payables, General Ledger, and Project Accounting. Both Transfer to GL and Interface Supplier Costs are processed each night. A descriptive flexfield called SAI Value has been defined on the invoice header to capture additional information, and is used in conjunction with the accounting on the invoices. This is not a required field. There is a corresponding user-defined hold called SAI Hold, which is manually applied whenever an invoice is created and the SAI Value has not been provided to Company Z by the supplier. During weekly reviews of accounting, users have found that invoice transactions that are on SAI Hold are displayed in Project Accounting but not in General Ledger. Select what is causing this issue. 


Options are :

  • The current Project Accounting period is closed
  • The current General Ledger period is closed
  • Invoices have not been validated.
  • Accounting is not being created by the user-defined hold. (Correct)

Answer : Accounting is not being created by the user-defined hold.

During the testing phase of your implementation, you find that you are unable to delete a journal batch, though it is not yet posted. You ask the technical consultant for help and he emails you a checklist of scenarios in which the batches cannot be deleted. Select three scenarios that would be on the checklist. (Choose three.)
A. The source is frozen.
B. The journal batch has not been posted.
C. Funds have been reserved for the batch.
D. The journal batch has not been approved.
E. Funds are in the process of being reserved for the batch. 


Options are :

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

Answer : A,C,E

To achieve the maximum summary account functionality for total (T), how must the value sets for each segment of the accounting key flex field be set?


Options are :

  • The maximum size of each segment of the accounting key flex field must be five characters.
  • The list type must be set to long list of values.
  • The format type must be set to character, and the additional option of numbers only must not be selected. (Correct)
  • Precision must be set to one.

Answer : The format type must be set to character, and the additional option of numbers only must not be selected.

You are on a phased-approach implementation. Payables and Purchasing are being implemented in Phase One, and Assets in Phase Two. Identify three choices in the process for the best way to discuss supplier naming conventions and supplier site naming conventions. (Choose three.)
A. Agree upon naming conventions.
B. Gather only the Payables and Purchasing personnel.
C. Document conventions and obtain the sign-off by authorized approvers later.
D. Document conventions and obtain the sign-off by authorized approvers immediately.
E. Gather all interested parties for requirements-including Assets, Payables and Purchasing. 


Options are :

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

Answer : A,D,E

Sub ledger Accounting is a rule-based accounting engine that centralizes accounting for Oracle E Business Suite Release 12 products. Select the Oracle application that is NOT a Sub ledger Accounting module. 


Options are :

  • Assets
  • General Ledger (Correct)
  • Payables
  • Purchasing

Answer : General Ledger

You need to verify that your system has enough resources to handle the volume of accounts that would be generated by the summary account template. The template has been designed as follows: D-Region-D The first segment is company, which has ten values. The second segment is division, which is represented by the roll up group region. It has six parent values. The last segment is account, which has 500 values. How many summary accounts would be generated by the template? 


Options are :

  • 60
  • 30000 (Correct)
  • 500
  • 3000

Answer : 30000

You have the following information: The Accounting flexfield structure is "company, department, product, account." Product has two
rollup groups: domestic and international. Department has one rollup group: manufacturing. All accounting flexfield segment values can use alphanumeric characters. Which summary account template would Oracle General Ledger fail to create? (D: Detail)(T: Total)


Options are :

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

Answer : D-D-D-D

To set up and use Multiple Organization Access Control (MOAC) most effectively, you need to define three profile options. (Choose three.)
A. MO: Operating Unit
B. HR: Security Profile
C. MO: Security Profile
D. HR: Business Group
E. MO: Default Operating Unit 


Options are :

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

Answer : A,C,E

A manager wants to review the cash balance by company. He has asked you to create the summary account template. The company's accounting flexfield has four segments: company (5 values) cost centers (30 values) region (4 values) account (180 values)  The total number of cash accounts is five that are associated with two parents: Three accounts are associated with the parent called Checking. Two accounts are identified with the parent called Savings. To combine the cash parents, you create a rollup group named Cash. Which summary account template would you create to review the cash balances by company? (D: Detail) (T: Total) 



Options are :

  • T-T-T-Cash
  • . D-T-T-Cash (Correct)
  • D-T-D-Cash
  • D-D-D-Cash

Answer : . D-T-T-Cash

Select four options that can be set at the supplier site level. (Choose four.)
A. surveys
B. tax details
C. accounting
D. bank details
E. business classification 


Options are :

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

Answer : A,B,C,D

Company K has identified these business requirements for their Payables operations:
1. All invoices must be part of a batch.
2. Discounts must be taken in all situations.
3. Invoices must be numbered by the system.
4. Accounting entries must be created for all invoice types.
5. All credit memos above a certain dollar amount must be approved before entry.
6. Four-way matching is enforced. Select the profile option to be configured that will satisfy the above requirements. 


Options are :

  • AP: Invoice Match
  • AP: AP Discounts Interface Start Date
  • AP: Enable Invoice Auto numbering
  • AP: Use Invoice Batch Controls (Correct)

Answer : AP: Use Invoice Batch Controls

Jane, the GL accountant, asks you whether she could delete the budget after it has been defined. She also wants to know whether she could delete the budget organization after it has been defined. What would be your response? 


Options are :

  • You cannot delete the budget or the budget organization after either has been defined.
  • You can delete the budget and the budget organization after they have been defined.
  • You cannot delete a budget after it has been defined. However, you can delete a budget organization. (Correct)
  • You cannot delete a budget organization after it has been defined. However, you can delete a budget.

Answer : You cannot delete a budget after it has been defined. However, you can delete a budget organization.

Identify four interface tables that are available in Oracle Payables. (Choose four.)
A. Payables Open Interface
B. Suppliers Open Interface
C. Payables PCard Interface
D. Payables Payments Interface
E. Payables PO Matching Interface
F. Payables Invoice Open Interface


Options are :

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

Answer : A,B,C,E

The rate variance Gain/Loss accounts specified in the Financial Options - Accounting region are used to account for _____. 


Options are :

  • exchange rate variance for expense items in purchase orders and invoices
  • exchange rate variance in invoices and payments
  • exchange rate variance for inventory items in purchase orders and invoices (Correct)
  • invoice price variance in purchase orders and invoices

Answer : exchange rate variance for inventory items in purchase orders and invoices

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


Options are :

  • Summary account balances can be viewed in the Account Inquiry form, whereas parent account balances cannot be viewed in that form. (Correct)
  • Summary accounts cannot be used in budget formulas, whereas parent accounts can be used in budget formulas
  • Summary accounts speed up the posting process, whereas parent accounts require additional time for the Posting process.
  • Summary accounts use the summing segment type for Mass Allocations, whereas parent accounts use the looping segment type.

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

There are five major business functions that occur sequentially during the natural flow of the Payables processes. Consider this list of five steps:
1. Invoice Payment
2. Invoice Validation
3. Invoice and Payment Accounting
4. Supplier Entry 

5. Invoice Import/Entry
What is the order in which these steps must be performed?


Options are :

  • 5, 3, 1, 2, 4
  • 1, 2, 3, 4, 5
  • 3, 1, 4, 2, 5
  • 4, 5, 2, 1, 3 (Correct)

Answer : 4, 5, 2, 1, 3

The GL accountant has defined the budget and wants the assistant accountants to enter and update the budget. The GL accountant wants this budget to be the default. What would be your response? 


Options are :

  • The Oracle General Ledger budget functionality cannot satisfy this requirement.
  • If the client wants to do this, customization of Oracle Workflow is the only option.
  • If the client wants to do this, the budget status must be open.
  • If the client wants to do this, the budget status must be current. (Correct)

Answer : If the client wants to do this, the budget status must be current.

Identify three types of entities that can be defined and related to one another in Oracle Applications. (Choose three.)
A. ledger
B. paygroups
C. legal entities
D. responsibilities
E. business groups 


Options are :

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

Answer : A,C,E

Select two reasons to use reporting hierarchies instead of summary accounts. (Choose two.)
A. Use summarized data in journal formulas.
B. Summary relationships are not permanent.
C. Inquiry of summary amounts is done online.
D. The primary use for summarization is only for reports.
E. You can easily reorganize summary views in the future.of the posting process. 


Options are :

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

Answer : D,E

Jane, the GL accountant, comes to you with a requirement: the recurring journals batches must be automatically generated at specified intervals. What would be your response? 


Options are :

  • Allow Dynamic Insert must be enabled to satisfy this requirement.
  • It is possible to satisfy this requirement by using the auto allocation functionality. (Correct)
  • Cross-validation rules must be defined to satisfy this requirement.
  • It is not possible to satisfy this requirement; recurring journals must be created manually.

Answer : It is possible to satisfy this requirement by using the auto allocation functionality.

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions