1Z0-520 Oracle EBS R12.1 Purchasing Essentials Practice Test Set 5

You match an un ordered receipt to_____.


Options are :

  • a purchase release shipment from the same organization for the same supplier (Correct)
  • a purchase order shipment from any organization
  • a Return Material Authorization (RMA. from any organization
  • a purchase order shipment from the same organization for any supplier

Answer : a purchase release shipment from the same organization for the same supplier

When a quotation is due to expire within the number of days you specified, then you receive the following message in the Notifications Summary window: Quotations active or approaching expiration: [number]. Where is this [number] set up in the system?


Options are :

  • in Purchasing Options on the 'Default' Tab - Quote Warning Delay field (Correct)
  • in the Systems Profile Options - PO: Quote Warning Delay
  • Lookup Code, which is an (LOV) list of Values, in the Quote Header - Warning Delay field
  • in the Quote Header - Warning Delay field

Answer : in Purchasing Options on the 'Default' Tab - Quote Warning Delay field

You receive a request to create a new menu. Instead of creating a new menu, you modify an existing menu and save It to a different User Menu Name. What happens after saving the menu with a different User Menu Name?


Options are :

  • There will be two menus.
  • The new menu will not contain any functions.
  • The original menu is disabled
  • The new menu will overwrite the original menu. (Correct)

Answer : The new menu will overwrite the original menu.

XYZ Corp. has operations In the U.S. and Canada. Within Canada, It has two separate Divisions due to Statutory requirements: one In Quebec and another In Ontario. How would you define the organization structure for XYZ Corp. from the Information given above?


Options are :

  • two Ledgers, two Legal Entitles, and two Operating Units
  • two Ledgers, two Legal Entities, and three Operating Units
  • two Ledgers, three Legal Entities, and two Operating Units
  • two Ledgers, three Legal Entities, and three Operating Units (Correct)

Answer : two Ledgers, three Legal Entities, and three Operating Units

Which three financial options can be defaulted when you enter a new supplier?


Options are :

  • Supplier Classification
  • RFQ-Only Site
  • Bill-To Location
  • Payment Bank Account
  • Default Buyer
  • Ship Via (Correct)

Answer : Ship Via

Which window in Purchasing would you use to copy on existing global Approved Supplier List entry and make it local to your organization?


Options are :

  • Sourcing Rule/Bill of Distribution Assignments
  • Supplier-Item Attribute (Correct)
  • Request For Quotation
  • Supplier Statue
  • Approved Supplier List Statuses

Answer : Supplier-Item Attribute

A recent shipment of item A was routed to the inspection department according to standard practice, but no receipt for item A is available in the system for inspection. What might have happened? 


Options are :

  • Receiving clerk changed the receipt routing to Standard Receipt at the time of receiving. (Correct)
  • Receiving clerk created an express receipt instead of a standard one.
  • Buyer changed the receipt routing to Standard Receipt in the purchase order line.
  • Requester set the receipt routing to Direct Delivery in the requisition,
  • Buyer changed the routing to Direct Delivery at the supplier site level for this supplier.

Answer : Receiving clerk changed the receipt routing to Standard Receipt at the time of receiving.

Price Tolerance (%) on the Purchasing Options Control section refers to the percentage by which ___________. 


Options are :

  • the purchase order line price cannot exceed the blanket amount
  • the purchase order line price cannot exceed a price quote
  • the invoice price cannot exceed the purchase order line price
  • the supplier catalog price cannot exceed purchase order line price
  • the purchase order line price cannot exceed the requisition line price (Correct)

Answer : the purchase order line price cannot exceed the requisition line price

Which four sources of information default records Into the Supplier Header?


Options are :

  • Receiving Options
  • Payables Options
  • Financial Options (Correct)
  • System Options
  • Invoice Options

Answer : Financial Options

Requisition Import groups all requisitions with the same group code under the same requisition header. If no group code is specified, Requisition Import groups requisitions according to five types of groups that can be optionally passed to the Requisition Import process.


Options are :

  • Group by Item.
  • Group by price.
  • Group by UOM.
  • Group by buyer. (Correct)

Answer : Group by buyer.

Your company often orders Items that are sourced from multiple suppliers. At any given time, thesupplier varies depending on the supplier's current production capability and price offering. Theprice varies throughout the year. For a particular Item, there is no single supplier that receives themajority of the orders.What is the best way to set up this Item?


Options are :

  • Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions onto standard purchase orders. (Correct)
  • Create a blanket purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier.
  • Create blanket purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries.
  • Create a contract purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier.
  • Create contract purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries.

Answer : Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions onto standard purchase orders.

Consider the following scenario for Inventory Item B
1) Standard Cost: $10
2) Purchase Order Line Quantity: 100; Purchase Order Line Price: $12
3) Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery
4) Received Quantity: 40
5) Invoice Price: $14; Invoiced Quantity: 20
Which option describes the effect on different accounts correctly?


Options are :

  • Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance Account $40; Credit Purchase Price Variance Account $80; Debit AP Liability Account $280
  • Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280 (Correct)
  • Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $80; Debit Purchase price Variance Account $40; Credit AP Liability Account $280
  • Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280

Answer : Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280

Identify the sequence of steps to determine the Descriptive Flex field name on a form in Oracle E Business Suite Release 12 with Diagnostics enabled

1) Select Help > Diagnostics > Examine.
2) The username of the DFF appears in the Value field.
3) Select the DFF name from the list of values in the "Field" field.
4) Select the "$DESCRIPTIVE_FUEXFIELD$B value for the Block name


Options are :

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

Answer : 1 4, 3, 2

You have been asked by the HR Manager to define Oracle Alert to show all employees terminated in the past six months. Identify three pieces of information that is required to define this Aler


Options are :

  • actions that you want Alert to perform (Correct)
  • frequency with which you want to run this Alert
  • name of the concurrent program to be run after Alert runs
  • database table name, which stores employee Information to specify In the Event Details section

Answer : actions that you want Alert to perform

Which control option prevents changes or additions to the purchase order or release, but maintains the ability to receive and match invoices?


Options are :

  • Close
  • Hold
  • Freeze (Correct)
  • Firm
  • Finally Close

Answer : Freeze

Which three are valid setup options for purchasing document types?


Options are :

  • Forward Method
  • Default Hierarchy
  • Security Access Level
  • Archive On (Correct)
  • Can Change Hierarchy

Answer : Archive On

A medium-sized multinational company based in US has two business groups (B6), BGI (for US) and B62 (for Europe), with position approval hierarchies HI and H2, respectively. The company has a policy that only the Controllers and those above them can approve capital Items on requisitions and purchase orders. However, the Purchase Manager (who reports to the
Controller) must also be able to authorize capital purchases. The account range for capital items is: 2000-2599. The relevant approval limits are:

Purchase Manager in both BGs: $100,000
2) Controller in BGI: $500,000
3) Controller in BG2: $200,000
Which two options represent a valid and efficient approval process?


Options are :

  • The Purchase Manager in BG2 raises a requisition for $5000 for computer equipment. The Controller in B62 approves it and instructs the buyer to ensure a 2-year warranty on this equipment. The buyer in BG2 places the order on the supplier.
  • An employee in B62 raises a requisition for $5000. This is verified by the employee's manager and forwarded to the group Controller in BGI who approves it.
  • A buyer in BG2 raises a purchase order for $10,000 with charge for inventory items to be stocked in an asset subinventory. The Purchase Manager in BG2 verifies and forwards it to the Controller in BG2. (Correct)
  • The buyer hi BGI raises a standard purchase order for $250,000 with the charge account 2106. The Purchase Manager verifies it and forwards it to the controller in BGI who approves it.
  • The shop floor supervisor in BGI raises a requisition for a new drilling machine for $250,000. The supervisor's manager (Production Manager) verifies the requisition and forwards it to the Controller in BGI for a final approval.
  • An employee in BG2 raises a capital requisition for $250,000, which is verified by the employee's manager and then forwarded to the group Controller in BG2 who approves it.

Answer : A buyer in BG2 raises a purchase order for $10,000 with charge for inventory items to be stocked in an asset subinventory. The Purchase Manager in BG2 verifies and forwards it to the Controller in BG2.

Which two statements are true regarding approval workflows In Purchasing?


Options are :

  • Approval routing can cut across legal entities within a business group. (Correct)
  • During Position Hierarchy setup, a constraint that must be considered is that the Subordinate must not be the manager of the Position Holder in their regular job roles.
  • A Purchase Requisition and a Standard Purchase Order cannot have different approval levels.
  • The Hierarchy Forward Method routes the document to the first approver in the hierarchy who has the required approval limits for that document.
  • You can limit approval levels in an Approval Group by Item Category.

Answer : Approval routing can cut across legal entities within a business group.

Select three true statements regarding the Workflow Document Creation prerequisite (PO Create Documents workflow).


Options are :

  • Supplier and supplier site are required on the requisition related to a contract purchase order. (Correct)
  • If a system Item is not associated with the requisition line, a supplier item number is required.
  • Sourcing rules are required If the requisition originates in Oracle Purchasing or {Procurement.
  • Catalog quote must not be expired, but may be inactive.

Answer : Supplier and supplier site are required on the requisition related to a contract purchase order.

Which four are supported by the Receiving Open Interface (ROI)?


Options are :

  • Deliver transactions (Correct)
  • Unordered receipt
  • Dynamic locators
  • Movement statistics

Answer : Deliver transactions

Identify two types of regions in Daily Business Intelligence


Options are :

  • table (Correct)
  • graph
  • folder
  • report
  • menu

Answer : table

Consider the following scenario for inventory item A:
1) Standard Cost $10 Purchase Order Line Price: $12, Purchase Order Line Quantity: 10
2) Receipt Routing: Direct Delivery
You created a receipt of 8 units for item A. Which option correctly describes the effect on different accounts?


Options are :

  • Credit Material Account $80; Debit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Credit Purchase Price Variance Account $16
  • Debit Material Account $80; Credit Inventory AP Accrual Account $80; No effect on Invoice Price Variance Account; Debit Purchase Price Variance Account $16
  • Debit Material Account $80; Credit Inventory AP Accrual Account $96; Debit Invoice Price Variance Account $16; No effect on Purchase Price Variance Account
  • Debit Material Account $80; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Debit Purchase Price Variance Account $16 (Correct)

Answer : Debit Material Account $80; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance Account; Debit Purchase Price Variance Account $16

Which setup profile option allows you to send a report directly to a browser window?


Options are :

  • Concurrent: Report Copies
  • Flexfields: Open Key Window
  • Viewer: Text (Correct)
  • Concurrent Report: Access Level

Answer : Viewer: Text

Which three are true about the Evaluated Receipt Settlement (ERS) proems?


Options are :

  • Invoice is always created for the supplier site.
  • Invoice is always created In unapproved status, (Correct)
  • Payment currency is always defaulted from the purchase order currency,
  • Invoice currency is always defaulted from the purchase order currency.

Answer : Invoice is always created In unapproved status,

Which two parameters facilitate cross organization reports in a Multi-Org environment?


Options are :

  • Reporting Level
  • Reporting Context (Correct)
  • Ledger
  • Operating Unit
  • Legal Entity

Answer : Reporting Context

Which two statements are true about using foreign currency? 


Options are :

  • Currency cannot be changed once a purchase order is approved. (Correct)
  • Currency can be changed even after a requisition is approved.
  • Requisition can automatically source blanket agreements or catalog quotations with foreign currency information.
  • A foreign currency reference can be specified for each purchase order line.
  • Requisition total is expressed in foreign currency.

Answer : Currency cannot be changed once a purchase order is approved.

While defining Approval Groups, which three objects can you define authorization rules for?


Options are :

  • Item Category
  • Account Range
  • Commodity
  • Location (Correct)
  • Buyer

Answer : Location

While implementing Oracle Payables, Oracle Purchasing, and Oracle General Ledger at GLO Ltd., you are informed by the accountant that the AP Clearing Account balance Is Increasing daily. To solve this issue, what would you check in the accounting process?


Options are :

  • whether invoices are matched to purchase orders and receipts (Correct)
  • whether suppliers are sequentially numbered
  • whether the month-end accrual process is run
  • whether journals are posted regularly

Answer : whether invoices are matched to purchase orders and receipts

Identify the  resources that Oracle Technology Network (OTM) provides


Options are :

  • sample codes
  • Bug Database
  • technical articles (Correct)
  • product downloads

Answer : technical articles

Consider the following setups:
1) Purchasing System Option enforce Full Lot Quantity * Mandatory
2) Rounding Factor at the item level = 75%
3) Unit of Issue at the item level = Dozen


Options are :

  • An advisory message suggesting rounding and a suggested rounding quantity are displayed, but you can override this.
  • If the user enters 6 each on an internal requisition, the quantity will be rounded to 0, (Correct)
  • If the user enters 11 each on a purchase requisition, the quantity will be rounded to 12 each,
  • If the user enters 6 each on a purchase requisition, the quantity will be rounded to 0,

Answer : If the user enters 6 each on an internal requisition, the quantity will be rounded to 0,

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