1Z0-520 Oracle EBS R12.1 Purchasing Essentials Practice Test Set 2

Which four must be set up to implement a position hierarchy for document approvals?


Options are :

  • Approval Groups
  • Security Hierarchy
  • Employee Positions
  • Buyers
  • Employee Jobs (Correct)

Answer : Employee Jobs

If the PO: Allow Buyer Override in AutoCreate Find profile option is set to No, what would happen if the buyer, Pat Stock, uses the AutoCreate form?


Options are :

  • Pat would not be able to view requisitions assigned to other buyers, but would be able to view unassigned requisitions.
  • Pat would be able to view requisitions assigned to other buyers, but not view unassigned requisitions.
  • Pat would be able to view requisitions assigned to other buyers and unassigned requisitions.
  • Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions. (Correct)

Answer : Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions.

Your client does not want to implement account alias issues or receipts. When performing setups, mwhat should you do about the account alias flexfield? 


Options are :

  • Ignore the account alias flexfield because it would not be required.
  • Define default account aliases that can be used at a later date, but ensure they are disabled now.
  • Define segments, but do not compile.
  • Compile the flexfield structure because it is required by Oracle Inventory. (Correct)
  • Create at least one alias, compile, then disable the alias.

Answer : Compile the flexfield structure because it is required by Oracle Inventory.

ACME is using cycle counting and the quantity variance approval tolerances are specified at the cycle count header level, cycle count Class level, and cycle count item level. When tolerances are set up at all the levels, which tolerance is considered first by Inventory?


Options are :

  • Cycle count item level (Correct)
  • Cycle count class level
  • Unit cost level
  • Subinventory level

Answer : Cycle count item level

What two conditions prevent you from reserving the inventory?


Options are :

  • The inventory is in a Standard Cost inventory organization
  • The items have a nonreservable material status. (Correct)
  • The inventory is in an Average Cost inventory organization.
  • The reservation will cause the on-hand quantity to be negative
  • The inventory module is installed as Shared.

Answer : The items have a nonreservable material status.

ACME is implementing Inventory in a make-to-order manufacturing environment, where there is,on-hand inventory for 200 different motors. For these purchasable items, given the proper profile setup, Min-max can automatically create _____


Options are :

  • an expense account
  • an encumbrance account
  • an invoice price variance account
  • records in the Purchase Order Requisition interface table (Correct)
  • an inventory Accounts Payable accrual account

Answer : records in the Purchase Order Requisition interface table

Identify three valid sources of Inventory Demand


Options are :

  • Approved Purchase Order Lines
  • Sales Order Lines in Entered status
  • Miscellaneous Transactions
  • Approved Requisition Lines
  • Scheduled CMRO Work Orders (Correct)

Answer : Scheduled CMRO Work Orders

A client often orders an item by the case but stocks the item as individual units by using the Each unit of measure (UOM). The client orders the item from three suppliers, and the case sizes differ by supplier (10, 12, and 50). What is the proper way to set up these units of measure?


Options are :

  • Create a Case UOM and an Each UOM, and assign them to different UOM classes.
  • Create a Case UOM and an Each UOM, and assign both of them to the same UOM class.
  • Always use the Each UOM and do not create purchase orders for cases.
  • Create multiple CaseX UOMs, where X is the quantity per case, and an Each UOM, and assign them to the same UOM class (Correct)

Answer : Create multiple CaseX UOMs, where X is the quantity per case, and an Each UOM, and assign them to the same UOM class

Which statement is true regarding inventory transactions?


Options are :

  • Transaction reasons can be used in all transaction forms. (Correct)
  • Inventory adjustments are not part of inventory transactions.
  • Work in Process would not affect inventory transactions.
  • You can designate, by transaction type, which transaction reasons are available.

Answer : Transaction reasons can be used in all transaction forms.

An item has its Lot Control attribute set to Full Control. The Active material status does not have any transaction types related to lot control enabled for material status control. This status is assigned to all lot numbers associated with the item. The subinventory where the item's lot numbers are all located also has the Active material status. How will the application respond when a user tries to submit a subinventory transfer transaction?


Options are :

  • The transaction will be accepted. (Correct)
  • The transaction will be accepted, but the item cost update will have to be processed separately by the user.
  • The transaction will be accepted, but will be registered as a transfer to and from the same subinventory.
  • An error message will be generated.

Answer : The transaction will be accepted.

Your customer completes two discrete jobs. Each job completes with a quantity of 100. After job completion, the business user found that 10 components used in Job1 were bad. All the components are serial-controlled items. Job1 reopened so that they could return the WIP Component for the 10 quantities back to inventory. The list of values (LOV) shows all the serial numbers irrespective of the component used in the specific discrete job. Which setup or process would restrict the component serial numbers specific to their discrete job from appearing in the LOV that is used?


Options are :

  • Setup INV: Restrict Receipt of Serial: Yes
  • Setup INV: Validate Returned Serial: Yes (Correct)
  • Setup INV: Geneology Delimited: Yes
  • Serial Control at the item level: Predefined

Answer : Setup INV: Validate Returned Serial: Yes

Identify two instances when an approved supplier list is redundant for automatic sourcing. 


Options are :

  • You need to source information from a global agreement to a standard purchase order and the profile option PO: Automatic Document Sourcing is set to Yes.
  • A sourcing rule exists for an item-supplier-supplier site combination.
  • You need to default source information on an item that is on a blanket purchase agreement and a quotation.
  • You need to source service lines and Oracle Sourcing is implemented. (Correct)
  • Items are sourced from a manufacturing plant across countries/operating units in a multinational company.

Answer : You need to source service lines and Oracle Sourcing is implemented.

Which two statements are correct about defining inventory organizations and locations?


Options are :

  • You can restrict a location tagged as Global to a specific inventory organization. (Correct)
  • The item master is always the validation organization in a multiorganization structure
  • When the location is tagged as Global, it is NOT mandatory to select an international address style (where available)
  • A subinventory can be shared across two inventory organizations.

Answer : You can restrict a location tagged as Global to a specific inventory organization.

What is the significance of the Shrinkage Rate item attribute?


Options are :

  • The expected decrease in the rate of production of units during manufacturing
  • The average loss of material during manufacturing or storage (Correct)
  • The expected percentage (%) loss of quality of an item during the manufacturing process or storage
  • The expected reduction in demand within the planning fence

Answer : The average loss of material during manufacturing or storage

The client wants to implement reorder point planning for some items in the organization. They currently use min-max planning. What is the minimum amount of information that needs to be changed on the items the client wants to plan?


Options are :

  • Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost
  • Safety Stock Quantity and Forecast
  • Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order Cost (Correct)
  • Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, Order Cost, and Maximum Order Quantity

Answer : Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order Cost

Receiving Open Interface (ROI) is typically a three-step process. Identify the correct sequence of the steps.


Options are :

  • Load - Confirm - Process
  • Receive - Inspect- Deliver
  • Validate - Confirm - Process
  • Load - Process - Confirm (Correct)
  • Load - Accrue - Process

Answer : Load - Process - Confirm

ABC is a laptop manufacturing company. On an average, the company completes 10 discrete jobs daily. ABC has the following requirements:
1. When the customer returns the laptop, ABC should be in a position to identify the laptop's
manufacture date and batch number.
2. Each laptop should be identified with a unique number and this should be tagged with the batch
number.
3. When a customer returns a laptop, ABC decides whether it can replace it with a new laptop or
repair it, by considering the age of the laptop.
ABC needs to identify the aging period of the laptop. Which setup would meet the above
requirements?


Options are :

  • Enable parent lot and child lots at the organization item level. Enter the shelf life days in the item.
  • Enable parent lot and grade control at the organization item level. Enter the shelf life days in the item
  • Enable lot control at the organization item level. Set up uniqueness within inventory items in the organization parameters.
  • Enable lot and serial control at the organization item level. Enter the shelf life days in the item. (Correct)
  • Using the discrete job form, the manufactured date and batch number can be identified.

Answer : Enable lot and serial control at the organization item level. Enter the shelf life days in the item.

XYZ is a metal fabrication company. It wants to classify all metals and plastics into two major groups. There are many subgroups in metals and plastics. All the subgroups are linked to their major group. This group classification is extensively used in all the reports in the organization. Which Oracle functionality can meet the above requirement?


Options are :

  • Catalogs
  • Category Set and Categories (Correct)
  • Catalog and Categories
  • Categories

Answer : Category Set and Categories

Company X is a global company with operations in three regions: North America, Europe, and Asia. Each region has a separate business group, and one legal entity attached to each business group. North America has two operating units (OU) and the other two regions (Europe and Asia)have one OU each. Identify two correct statements regarding purchasing document approval and routing processes. 


Options are :

  • North America can have two sets of Approval Groups, one for each OU. (Correct)
  • Each region can have a different type of hierarchy: Employee/Supervisor or Position Hierarchy
  • All three regions must share the same approval hierarchy.
  • North America can have only one set of Approval Groups to share across each OU.

Answer : North America can have two sets of Approval Groups, one for each OU.

You and your client determined that forecasting methods included with inventory will be sufficient to meet the client's needs. You and the customer have decided to use Focus Forecasting to begin with and move to Exponential Smoothing after one year. Along the way, your customer noticed some definite trends in demand and has requested your help to re-evaluate the forecasting method. What do you recommend as a forecasting method? What additional information is needed, if any?


Options are :

  • Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients (Correct)
  • Focus Forecasting
  • Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta Coefficients
  • Exponential Smoothing

Answer : Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta Coefficients

Which  option would you use to restrict the functionality provided by a responsibility?


Options are :

  • constructing a new menu hierarchy (Correct)
  • creating an appropriate role
  • defining rules to exclude specific functions
  • creating an appropriate group

Answer : constructing a new menu hierarchy

Oracle Daily Business Intelligence functions are secured using standard Oracle Applications function security. Choose  dashboards that are secured by the Inventory Organization.


Options are :

  • Customer Fulfillment Management
  • Warehouse Management
  • Procurement Management
  • Inventory Management (Correct)
  • Commodity Supplier Management

Answer : Inventory Management

ABC Corp. uses Oracle E-Business Suite Release 12 and wants to design an Order Status Web inquiry screen to make order statuses visible to its customers online. How can ABC Corp. ensure that customers view only their individual order statuses?


Options are :

  • by assigning a separate attribute value for INTERNAL_CONTACT_ID
  • by assigning the same attribute value for CUSTOMER_CONTACT_ID
  • by securing attributes for each customer (Correct)
  • by excluding attributes for individual customers

Answer : by securing attributes for each customer

ABC Corp. has set up the Asset Category Key Flex field. It has also set up a Descriptive Flex field to store vehicle Information associated with the asset category "Vehicle." Identify  correct statements 


Options are :

  • The setting up of the Descriptive Flex field is mandatory.
  • The Descriptive Flex field attributes are associated with tables in the Oracle Assets module.
  • Only the Asset Category Key Flex field is associated with tables in the Oracle Assets module.
  • The Asset Category Flex field is owned by the Oracle Assets module. (Correct)

Answer : The Asset Category Flex field is owned by the Oracle Assets module.

Shared entities are used throughout Oracle E-Business Suite Release 12. Identify the four entities that are shared


Options are :

  • Ledger
  • Unit of Measure
  • Invoice Sources
  • Sales Force (Correct)
  • Oracle Application Object Library (AOL)

Answer : Sales Force

Employee Information in Oracle E-Business Suite Release 12 is partitioned by_______.


Options are :

  • Legal Entity
  • Business Group (Correct)
  • HR Organization
  • Operating Unit

Answer : Business Group

You have Purchase Order approval authority In Oracle E-Business Suite Release 12. You are planning to go on vacation for three weeks without access to email. Select four ways in which you can manage Workflow notifications using Advanced Work list options in your absence


Options are :

  • Create a Vacation Rule to automatically close all notifications from a specific FYI notification
  • Create a Vacation Rule to reassign ail notifications for all Workflow Item Types to your assistant using the "Action my notifications" option
  • Grant your Worklist Access for all Workflow Item Types to your assistant
  • Grant your Worklist Access for selected Workflow Item Types to your assistant. (Correct)
  • Create a Vacation Rule to automatically close all FYI notifications for all Workflow Item Types.

Answer : Grant your Worklist Access for selected Workflow Item Types to your assistant.

The warehouse has received new stock from an internal distribution warehouse. Which two receiving transactions can be used to put stock into the warehouse's inventory using the In transit Inventory? 


Options are :

  • Standard Receipt and Delivery
  • Inter organization Receipt and Delivery (Correct)
  • Direct Receipt
  • Inter organization Direct Receipt
  • Inter organization Miscellaneous Receipt

Answer : Inter organization Receipt and Delivery

You are creating an interorganization transfer. The standard shipping lead time defined for the transfer is 14 days. You want to move the inventory from the source and put it in Intransit. You made a mistake and did not choose the option to have Intransit Inventory. When you initiate the process for interorganization transfer, what is the result of the transaction?


Options are :

  • The inventory would not be moved from the source organization, because there is a lead time of 14 days defined.
  • The inventory would be moved from the source organization, but it would be moved directly to the destination organization. (Correct)
  • You would get an error for the transaction, because it violates referential integrity.
  • The inventory would be moved from the source organization, but it would be moved to Intransit Inventory, because there is a lead time of 14 days defined.

Answer : The inventory would be moved from the source organization, but it would be moved directly to the destination organization.

ABC Corp. is in the business of manufacturing laptops. They run marketing, campaigns to attract and secure orders, and then produce a forecast based on the safes order history. Identify the two business flows hi Oracle E-Business Suite Release 12 that meet their requirements


Options are :

  • Forecast to Plan (Correct)
  • Campaign to Order
  • Order to Cash
  • Demand to Build
  • Contract to Renewal

Answer : Forecast to Plan

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