1Z0-520 Oracle EBS R12.1 Purchasing Essentials Practice Test Set 1

Select three true statements about inventory reservations.


Options are :

  • A reservation is a link between a supply source and a demand source. (Correct)
  • A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source
  • Reservations can be created only by Oracle applications or via forms. They cannot be imported from third-party applications.
  • For on-hand inventory supply, there is only one type of reservation called high-level reservation.
  • For on-hand inventory supply, there is only one type of reservation called low-level reservation.

Answer : A reservation is a link between a supply source and a demand source.

ABC Inc. is a semiconductor manufacturing organization. They have all possible inventory controls on items. Which controls are validated on sub inventory transfer transactions
1. Lot control

2. Locator control

3. Serial Number control
4. Revision Quantity control
5. Subinventory and locator restrictions for specific items


Options are :

  • 1, 2, and 3
  • 1 through 5 (Correct)
  • 1
  • 1 and 3
  • 1, 3, and 5
  • None

Answer : 1 through 5

Which data is received by Oracle Bill of Materials from Oracle Inventory?


Options are :

  • on-hand quantity only
  • item information only
  • units of measure and on-hand quantity
  • ATP supply only
  • item information and units of measure (Correct)

Answer : item information and units of measure

During implementation, there are various additional things that need to be considered for RFQs and Quotations. There are seven documented areas to consider, as well as some common sense considerations. Select five options that accurately depict these.


Options are :

  • RFQ and Quotation Usage is important. (Correct)
  • Data Cleanup of legacy RFQs and Quotes is important
  • Data Cleanup is not important.
  • Data Mapping for RFQs Open Interface is important.
  • RFQ and Quotation Conversion strategy is important.

Answer : RFQ and Quotation Usage is important.

Which are the three mandatory fields when defining a supplier bank header?


Options are :

  • Bank (Correct)
  • Bank branch
  • Bank account number
  • Bank operating account
  • Bank contact

Answer : Bank

Which three processes would help analyze supplier information before defining a new supplier record?


Options are :

  • Submit and review the Suppliers On Hold report.
  • Submit and review the Suppliers Report. (Correct)
  • Submit and review the Suppliers Audit Report.
  • Perform a Find or Query on the Supplier name

Answer : Submit and review the Suppliers Report.

Your customer is interested in implementing revision control for the finished goods model items. Which two requirements can be met by implementing revision control?


Options are :

  • tracking design changes in other modules (BOM, Work In Process) with a different model number
  • scrapping the old model and introducing a new model which has changes in functionality and features
  • accommodating a slight design change in the model, where functionality and features remain the same (Correct)
  • changing model functionality when on-hand quantity is available

Answer : accommodating a slight design change in the model, where functionality and features remain the same

A global manufacturing organization (GLO) has multiple sourcing rules and approved supplier lists (ASLs) that are set up correctly. Three of the inventory organizations are ITA, NYC, and GER. NYC is a manufacturing organization and the other two are distribution warehouses. The three organizations source items from each other. Which two statements are valid?


Options are :

  • One global location is sufficient for the three organizations.
  • . Three lines were set up on a sourcing rule and the sourcing rule was assigned to a single Assignment Set. (Correct)
  • A sourcing rule is set up for a supplier but no ASL. When an item is entered on a requisition for this supplier, the supplier information would not be defaulted.
  • The price for item A is set in ITA at P1 and in GER at P2. When you raise an internal requisition for item A in destination org ITA and source org GER, the defaulted price is P2.
  • ITA has a sourcing rule to source a part from GER. You also assign a bill of distribution to ITA to source the same part from the manufacturing plant NYC. The default source would be GER

Answer : . Three lines were set up on a sourcing rule and the sourcing rule was assigned to a single Assignment Set.

Your client wants approvals for Move Orders to occur after 30 days. Based on the Move Order approval workflow, how would you enter the values for Move Order Timeout Period and Move Order Timeout Action?


Options are :

  • Timeout Period = 30, Action = Reject Automatically
  • Timeout Period = 15, Action = Approve Automatically (Correct)
  • Timeout Period = 0, Action = Approve Automatically
  • Timeout Period = 15, Action = Reject Automatically

Answer : Timeout Period = 15, Action = Approve Automatically

Min-max planning can be used _____.


Options are :

  • only at the subinventory level
  • in Exponential Smoothing Forecast calculations
  • in Economic Order Quantity(EOQ) calculations
  • in place of MRP/MPS planning (Correct)

Answer : in place of MRP/MPS planning

Which three statements are true about ABC Analysis and cycle count Classes?


Options are :

  • The hit/miss% for the cycle count header overrides the hit/miss% of the Class.
  • In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the tolerance levels.
  • An ABC Analysis can be compiled for a subinventory that is defined as a non-quantity-tracked subinventory.
  • The hit/miss% for the Class overrides the hit/miss% of the cycle count header. (Correct)
  • An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are tracked

Answer : The hit/miss% for the Class overrides the hit/miss% of the cycle count header.

Which five actions can you perform on Requisitions?


Options are :

  • Cancel/Final Close requisitions.
  • Modify after the requisition has been approved.
  • Print requisitions.
  • Update requisitions. (Correct)
  • View the status and action history of requisitions.

Answer : Update requisitions.

Bonus Inc. implemented the ERS functionality in Oracle Purchasing. The Pay on Receipt process is run nightly. The Summary level is set to Pay Site at the supplier site and the Match Approval option on PO shipment is set to Four-Way. Purchase order #001 of 150 units at a unit price of $1 was received in total as Receipt #R-PO001, but not yet inspected and delivered. On the same day, from Purchase Order #002 of 100 units (at a unit price of $1), 50 units was initially received as Receipt #R-PO002, inspected, and delivered. Both purchase orders have the same item, supplier, and supplier sites. What would the Pay on Receipt process generate for these transactions?


Options are :

  • a $50 invoice
  • a $200 invoice with invoice validation on hold (Correct)
  • a $250 invoice
  • a $150 invoice and a $50 invoice
  • a $250 invoice with invoice validation for $50 on hold

Answer : a $200 invoice with invoice validation on hold

Which three statements are true about the item master?


Options are :

  • When an attribute control is set at the item master level, updates are not allowed at the item or organization level.
  • It is possible to associate items in one item master organization with another item master organization.
  • It is possible to copy items across item master organizations.
  • The item master organization is the centralized repository for all items in different organizations. (Correct)
  • There is no functional or technical difference between the item master organization and other organizations while transacting on an item.

Answer : The item master organization is the centralized repository for all items in different organizations.

Beyond the shelf life days, active lots become expired lots. Expired lots ______ .


Options are :

  • are not allowed to do subinventory transfer
  • are not considered as on-hand supply for min-max and re-order point planning (Correct)
  • are not included in inventory valuation reports
  • can be reserved

Answer : are not considered as on-hand supply for min-max and re-order point planning

Each UOM class must have a base unit specified. Which represents a base unit for the UOM Class Quantity?


Options are :

  • Case
  • Each (Correct)
  • Gross
  • One

Answer : Each

Your client's department administrative assistant (only) is allowed to self-approve the office supplies requisitions up to $5,000.00. For all other types of requisitions, there is no approval  authority. The company's location is Ann Arbor. The purchasing category for office supplies is Office.Supplies. The chart of accounts follows this format: Company.Business Group.Cost Center.Account.Future. Your client's company account code is "01," business group is "100," cost center (or department) is "560," the account for office supplies is "67549," and the future segment is always "000000."
Which approval group setup would enable this restrictive purchasing practice?


Options are :

  • Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000 Account Range: From: 01.100.560. 67549.000000 To: 01.100.560. 67549.000000 Category Range: Amount Limit = $5,000 Category Range: From: Office.Supplies To: Office.Supplies Requisition Document Type setup = 'Owner can Approve' (Correct)
  • Document Total: Amount Limit = $5,000.00 Location: Amount Limit = $5,000 and Location = Ann Arbor Category Range: Amount Limit = $10,000 Category Range: From x.Supplies To: Office.Supplies
  • Set the Document Total object to include an amount limit of $5,000.00 Set the Account Range object to include an amount limit of $5,000 and account range from 01.100.560.00000.000000 to 01.100.560.99999.000000. Set the Account Range object to include an amount limit of $5,000 and account range from 01.100.560.00000.000000 to 01.100.560.99999.000000. Set the Requisition Document Type setup to 'Owner can Approve'.
  • Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000. Account Range: From: 01.100.560. 67549.000000 To 01.100.560. 67549.000000 Category Range: Amount Limit = $5,000 Category Range: From Office.Supplies To: Office.Supplies
  • Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000 Account Range: From: 01.100.560. 00000.000000 To: 01.100.560. 99999.000000 Location: Amount Limit = $5,000 and Location = Ann Arbor

Answer : Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000 Account Range: From: 01.100.560. 67549.000000 To: 01.100.560. 67549.000000 Category Range: Amount Limit = $5,000 Category Range: From: Office.Supplies To: Office.Supplies Requisition Document Type setup = 'Owner can Approve'

Your client uses Average Costing to value the items in the inventory. A Miscellaneous Receipt transaction has been submitted for a quantity of 1 of an item. What are the two possible values that could have been added to the Material Account by this transaction?


Options are :

  • 1 x (Current Average Unit Cost)
  • 1 x (User-entered Unit Cost) (Correct)
  • 1 x (Average Cost Variance), calculated when the next Cost Manager program is executed
  • The transaction will not be costed until the next Cost Manager program is executed.

Answer : 1 x (User-entered Unit Cost)

Profile options can be either required or optional. All required options must have a value. Which two profile options are required when setting up Oracle Inventory?


Options are :

  • INV: Restrict Receipt of Serials
  • INV: Accounting Category Set (Correct)
  • INV: Validate Returned Lot
  • INV: Default Primary Unit of Measure

Answer : INV: Accounting Category Set

Which four are true about the Future Periods field in the Financials Options window?


Options are :

  • You can import/enter invoices in future periods but you cannot pay or create accounting entries for them.
  • You can import/enter invoices in future periods, pay and create accounting entries for them
  • None of the above
  • You cannot import or enter invoices in a future period.
  • You can change this number to the maximum number of future periods you want to allow in Payables (Correct)

Answer : You can change this number to the maximum number of future periods you want to allow in Payables

Which four responsibilities must be defined in order to perform the purchasing setup when the complete Oracle R12 E-Business Suite is installed?


Options are :

  • Payables Manager (Correct)
  • System Administrator
  • Receivables Manager
  • Inventory Manager

Answer : Payables Manager

What is the prerequisite for entering unscheduled entries in a cycle count?


Options are :

  • Run the count generation program for unscheduled entries. (Correct)
  • Run a manual schedule request to generate counts.
  • Generate cycle count requests before entering counts.
  • Run an automatic schedule request to generate counts.
  • Set the Unscheduled Entries flag to Yes in the cycle count header.

Answer : Run the count generation program for unscheduled entries.

Your ordering process starts with a requisition. Into which two documents must the purchase requisition document be transformed within Oracle Applications?


Options are :

  • Quotation
  • Receipt
  • Return
  • Request For Quotation
  • Purchase Order (Correct)

Answer : Purchase Order

Oracle Inventory interacts with other Oracle applications by sharing information. Which two pieces of information does Oracle Inventory receive from the Order Management application?


Options are :

  • on-hand information
  • UOM information
  • ATP supply information
  • shipping information
  • reservations information (Correct)

Answer : reservations information

What is the correct sequence when defining units of measure (UOM)?


Options are :

  • UOM Conversions, UOM Class, UOM
  • UOM Class, UOM Conversions, UOM
  • UOM Conversions, UOM, UOM Class
  • UOM Class, UOM, UOM Conversions (Correct)

Answer : UOM Class, UOM, UOM Conversions

The Account Alias Name flexfield cannot exceed _____ characters.


Options are :

  • 30
  • 20
  • 15
  • 25 (Correct)

Answer : 25

Company ABC is using serialization in all organizations that manage inventory. It wants each organization to determine the proper levels of serial control. The products in each organization are completely different, so having the same serial numbers on different products is acceptable. The only global requirement is that serial numbers be generated in advance, to prevent incorrect serial number types from being created. Using the table below, choose the cell that represents the correct parameter and attribute combination to meet Company ABC's needs.


Options are :

  • C
  • H
  • F
  • B (Correct)

Answer : B

Which two statements apply to a Physical Inventory Tag as defined by Inventory?


Options are :

  • It can contain a count for a group of a given item. (Correct)
  • It is unique for every stock locator/item/lot number/serial number combination
  • It is produced and printed by the Generate Physical Inventory Tags function.
  • Physical Inventory Tags cannot be bar coded.

Answer : It can contain a count for a group of a given item.

Your customer sets up an item with the wrong primary unit of measure (UOM) and transacts for a couple of years. Now the customer realizes that the unit of measure setup was incorrect. How can you correct the UOM after transactions have been made?


Options are :

  • You can easily correct the primary UOM by changing the value in the item master.
  • You cannot correct the primary UOM for the item after transactions. (Correct)
  • You can delete items using delete group and create the item again using the correct primary UOM.
  • You can change the UOM easily in the organization items.

Answer : You cannot correct the primary UOM for the item after transactions.

Which Approved Supplier List (ASL) entry would take precedence for an item?


Options are :

  • Both local and global entries that apply to your suppliers
  • Local entry that applies only to your organization (Correct)
  • Local entry that applies to your suppliers.
  • Global entry that applies to your suppliers.

Answer : Local entry that applies only to your organization

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions