1Z0-520 Oracle EBS R12.1 Purchasing Essentials Practice Test Set 6

Which profile option controls whether a flexfield window automatically opens when you navigate to a customized descriptive flexfield?


Options are :

  • Flexfields: Open List of Values
  • Flexfields: Open Key Window (Correct)
  • Flexfields: Shorthand Entry
  • Flexfields: Open Descr Window

Answer : Flexfields: Open Key Window

ABC Company uses serial numbers for the following transactions:
1. Purchase order receipt
2. Miscellaneous receipt
3. Account alias receipt
The company wants to reuse the same serial numbers for work order completion transactions. Which setup would allow it to reuse the same serial numbers? 


Options are :

  • INV: Validate Returned Serial: No
  • INV: Validate Returned Serial: Yes
  • INV: Restrict Receipt of Serials: yes
  • INV: Restrict Receipt of Serials: No (Correct)

Answer : INV: Restrict Receipt of Serials: No

Your client has an item that is used globally. The site in Colorado is evaluating a local source for the item. The buyer requires the incoming goods from the local source to be separated from the goods received from nonlocal sources. Which three actions should be performed to meet this requirement? 


Options are :

  • Change the PO Line receipt routing to Inspection Required.
  • Modify organization item attributes to default a subinventory.
  • Enter the item in the subinventory form
  • Create a separate subinventory to stock goods from the local source (Correct)
  • Modify master item attributes to default a subinventory.

Answer : Create a separate subinventory to stock goods from the local source

Which two statements are true regarding lot-based unit of measure (UOM) conversions? 


Options are :

  • You cannot update existing on-hand balances for lot-based UOM conversions.
  • You can create lot-specific UOM conversions for on-hand lots or lots with a zero balance. (Correct)
  • You cannot create lot-specific UOM conversions for on-hand lots or lots with a zero balance.
  • Updating the on-hand balance on a lot-based UOM conversion requires a cycle count transaction with the lot number provided in the count record.
  • During a PO receipt, the lot-based conversion cannot be updated if the lot does not match existing conversion rates.

Answer : You can create lot-specific UOM conversions for on-hand lots or lots with a zero balance.

The Direct Forward method routes documents _____.


Options are :

  • to the next employee in the hierarchy who has the requisite approval authority to approve the document (Correct)
  • to the next position that has approval authority, regardless of whether it has the requisite authority to approve
  • to the position with the highest approval authority
  • to the person with the highest approval authority
  • to the employee's supervisor, regardless of whether that person has the authority to approve

Answer : to the next employee in the hierarchy who has the requisite approval authority to approve the document

Which two statements are true about setting up an Approved Supplier List?


Options are :

  • You do not need to set the profile option PO: Automatic Document Sourcing to Yes, in order to get the source document information for a service (as opposed to an inventory item).
  • A Global Agreement cannot be set up as a source document for a requisition.
  • An Approved Supplier List is used only for items and not for services.
  • You can get the price breaks to default to a requisition from a quotation or a blanket purchase agreement.
  • A blanket purchase agreement cannot be set up as a source for an item in a purchase order line. (Correct)

Answer : A blanket purchase agreement cannot be set up as a source for an item in a purchase order line.

A multinational company operates in three countries, with one operating unit (OU) in each. Each OU is linked to one inventory organization. One of the inventory organizations is a manufacturing plant. Which two statements are correct? 


Options are :

  • The Ship-To location and Ship-To site for the same inventory location can be in different countries. (Correct)
  • A location is unique to a specific OU responsibility when the Global check box is selected.
  • You cannot set a default receiving location in the Receiving Options for each inventory organization
  • When a location is flagged as local, you must assign the local inventory organization to it.
  • A location is a legal address, it cannot be a Ship-To site for more than one country.

Answer : The Ship-To location and Ship-To site for the same inventory location can be in different countries.

Revision control is set at the organization level. Both Colorado and New York sites have item Aunder revision control. Item A was shipped from the Colorado site to the New York site on Internal Order using Revision B. Since that time, revision control at the Colorado site has been changed to a numeric value and the current revision is 3. Now, New York is returning item A on an Internal Order with Revision B. What would happen when Colorado attempts to receive this unit?


Options are :

  • The transaction can be processed as normal. Old revisions that were issued are still valid. (Correct)
  • Colorado would have to temporarily change revision control to allow receipt.
  • New York would have to change revision control to match Colorado for transaction to be successful
  • Receipt can be transacted, but the new revision number would have to be assigned upon receipt.

Answer : The transaction can be processed as normal. Old revisions that were issued are still valid.

Identify three valid processes or steps in implementing approved supplier lists and sourcing rules


Options are :

  • Define the item attribute "Use Approved Supplier" for relevant items in the item master.
  • Review the timeliness of supplier deliveries. (Correct)
  • Establish sourcing rules while converting source documents from legacy systems into Oracle
  • Map business requirements for reports using standard Oracle reports.

Answer : Review the timeliness of supplier deliveries.

BMC is preparing to convert purchase orders (POs) from their legacy system into Oracle.Their legacy system had intelligent numbering with leading characters, which they want to beconverted. However, after conversion, they want to have nonintelligent numbering; therefore, thesystem is set up for nonintelligent numbering.During conversion, the sequence of PO conversion is to be as follows:
1) Manually enter two weeks of POs because the legacy system was shut down with the new PO
numbering method.
2) Convert the legacy POs.
What is correct in this situation?


Options are :

  • The system is set up for nonintelligent numbering; therefore, the legacy POs cannot be converted with intelligent numbering.
  • Switch setups from Automatic to Manual, then enter the manual POs, and then switch setups back to Automatic and automatically convert all legacy POs.
  • Leave the setups as is, but convert the legacy POs first, then the manual POs.
  • No setup changes are necessary as long as you ensure that the next automatic number is larger than the largest legacy PO number.
  • Enter the manual POs, then change the PO numbering options to Manual (alphanumeric), convert legacy POs, and then change the PO numbering options back to Automatic. (Correct)

Answer : Enter the manual POs, then change the PO numbering options to Manual (alphanumeric), convert legacy POs, and then change the PO numbering options back to Automatic.

At BBC Inc., you are implementing Oracle Work in Process, Oracle Advanced Supply Chain Planning, Oracle Bill Of Materials, Oracle Inventory, and Oracle Engineering. When creating requisitions, which two modules do NOT feed data into Oracle Purchasing?


Options are :

  • Oracle Bill Of Materials
  • Oracle Engineering (Correct)
  • Oracle Work in Process
  • Oracle Advanced Supply Chain Planning
  • Oracle Inventory

Answer : Oracle Engineering

Which table stores the categories assigned to a system item?


Options are :

  • MTL_CATEGORIES_TL
  • FND_ITEM_CATEGORIES
  • MTL_ITEM_CATEGORIES (Correct)
  • MTL_CATEGORIES_B

Answer : MTL_ITEM_CATEGORIES

RFQs and Quotations have setups in the following areas: Purchasing Control Options, Lookup Codes, and Profile Options. Select the two options that contain correct setups, for both the Purchasing Control Options and the Profile Options


Options are :

  • Purchasing Control Options: Quotation Numbering, Line Type, and Quotation Required
  • Purchasing Control Options: RFQ Numbering, Quote Warning Delay, and RFQ Required (Correct)
  • Purchasing Control Options: RFQ Quotation Numbering, Quote Warning Delay, and Quotation Required
  • Profile Options: PO: Write Server Output to File, and PO: Warning Delay Days Number
  • Profile Options: PO: Display AutoCreated Quotation, and PO: Warning Delay Days Number

Answer : Purchasing Control Options: RFQ Numbering, Quote Warning Delay, and RFQ Required

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


Options are :

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

Answer : Viewer: Text

A supplier is not required on a _____.


Options are :

  • Requisition (Correct)
  • Invoice
  • Receipt
  • Quotation

Answer : Requisition

Select two conditions which will permit the transfer of lot-controlled items between inventory organizations


Options are :

  • Item is lot-controlled in both the shipping and receiving organizations. (Correct)
  • Item is lot-controlled in the receiving organization, but not the shipping organization.
  • Item is lot-controlled in the shipping organization, but not the receiving organization.
  • Item is lot-controlled in either the shipping or receiving organizations.
  • Item is lot-controlled at the subinventory level.

Answer : Item is lot-controlled in both the shipping and receiving organizations.

Your client requires Org A to supply Org B with inventory on a need basis. The Internal Order flag is checked. An internal requisition has been created and approved. What type of receipt would Org B have to perform to receive the goods?


Options are :

  • Purchase Order receipt
  • RMA receipt
  • Account Alias receipt
  • Inter-Org Transfer
  • Receipt by Shipment Number (Correct)

Answer : Receipt by Shipment Number

For the profile option TP: INV Cycle Count Entries form to Background processing, what are the system requirements for it to be effective?


Options are :

  • The Material Transaction interface manager must be active. (Correct)
  • The Cost Manager interface manager must be active.
  • The Move Transaction interface manager must be active.
  • The Receiving Transaction manager must be active.

Answer : The Material Transaction interface manager must be active.

Your client has two inventory organizations (INV ORG 1 and INV ORG 2). The organizations have
different business requirements for stock locator control:
INV ORG 1:
Locators must have:
Building identified
Stockroom designated
Row
Rack
Bin
INV ORG 2:
Locators must have:
Row
Rack
Bin
Position within Bin
Which solution would meet both organizations' requirements?


Options are :

  • Establish stock locator flexfields as five segments. INV ORG 2 can use the first segment as Row.
  • Establish stock locator flexfields as four segments. INV ORG 1 can create DFF and use that as Building identifier.
  • Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value. (Correct)
  • Establish stock locator flex fields as four segments. INV ORG 2 can use DFF for Position within Bin.
  • Establish stock locator flexfields as six segments. INV ORG 1 can create locators where the sixth segment can be a default value.

Answer : Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value.

You want Oracle Inventory to automatically create move orders while performing min-max planning. To enable that functionality, you would need to define the ____. 


Options are :

  • Move Order Timeout Action to a value greater than zero
  • subinventory supply source type at the subinventory or item level (Correct)
  • Move Order Timeout period to a value greater than zero
  • subinventory supply source type at the pull level

Answer : subinventory supply source type at the subinventory or item level

You applied a subassembly template for an item at the master level. Four main attributes of the
subassembly template are:
- primary unit of measure (UOM): EA
- minimum order quanity: 5
- maximum order quantity: 10
- fixed lead time: 2
After applying the template, you find that the attributes are not correct. You correct the template
with these attributes:
- primary UOM: LB
- minimum order quantity: 7
- maximum order quantity: 12
- fixed lead time: 4
You reapply the template.
Which attributes are updated in the item?


Options are :

  • primary UOM: EA, minimum order quantity: 5, maximum order quantity: 12, fixed lead time: 2
  • primary UOM: EA, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 4
  • primary UOM: EA, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4 (Correct)
  • primary UOM: LB, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4
  • primary UOM: LB, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 2

Answer : primary UOM: EA, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4

Consider the following scenario:
1) Receipt Days Early = 5; Receipt Days Late = 10; Receipt Days Exceed-Action =
Reject
2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject
3) Receipt Close Point = Received; Receipt Close Percent = 5%
A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007. Which receipt
transaction(s) can occur?


Options are :

  • A receipt of 60 for item A is created on Oct-12-2007. Another receipt of 65 for item A is created on Oct-17-2007.
  • A receipt of 108 for item A is created on Oct-16-2007.
  • A receipt of 70 for item A is created on Oct-12-2007. Another receipt of 28 for item A is created on Oct-17-2007. (Correct)
  • A receipt of 90 for item A is created on Oct-27-2007.
  • A receipt of 95 for item A is created on Oct-09-2007.

Answer : A receipt of 70 for item A is created on Oct-12-2007. Another receipt of 28 for item A is created on Oct-17-2007.

Which three fields can be set in the requisition preferences phase of the requisition life cycle?


Options are :

  • Requestor (Correct)
  • Charge Account
  • Preparer
  • Description
  • Category

Answer : Requestor

The client has decided that Quality and Discrete Manufacturing will be implemented at a future stage, so new supply from current manufacturing will be added to current inventory on hand by the Open Transactions Interface. The immediate requirement is to go-live with Inventory and Order Management. Which three seeded transaction types can be omitted for material status control?


Options are :

  • miscellaneous issues and receipts
  • average cost update
  • all internal transactions
  • backflush subinventory transfer (Correct)
  • all transaction types related to Work in Process

Answer : backflush subinventory transfer

Some move orders are pre-approved requests for subinventory transfers that bring material from a source location to a staging subinventory within the organization. Identify the correct move order type


Options are :

  • Replenishment move orders
  • Move order requisitions
  • Shipping move orders
  • Pick wave move order (Correct)

Answer : Pick wave move order

ACME requires cycle counting variance approval tolerances and the Approval Required option is set to: If out of tolerance. When the actual count falls within tolerance, Inventory __________ .


Options are :

  • holds the cycle count adjustment for approval and posts it after approval
  • automatically approves and posts the cycle count adjustment (Correct)
  • automatically approves, but does not post the cycle count adjustment
  • holds the cycle count adjustment for a recount and does not post the adjustment

Answer : automatically approves and posts the cycle count adjustment

Consider the following setup: Receipt Close Point = Accepted; Receipt Close Percent = 5%. A shipment of 100 units for item A was scheduled to be delivered today. The shipment status changed to Closed for Receiving after processing the delivery. Which statement is true about this delivery?


Options are :

  • 110 units of A are received and 103 are delivered to the inventory. (Correct)
  • 95 units of A are received and waiting in the receiving dock.
  • 99 units of A are received and 5 are rejected after inspection.
  • 102 units of A are received and then 10 are returned to the vendor due to damage.
  • 110 units of A are received and 94 are accepted.

Answer : 110 units of A are received and 103 are delivered to the inventory.

Which three statements are true about the Move Order process?


Options are :

  • If no planner is specified for the item, the requisition line is automatically approved
  • Replenishment and pick wave move orders are preapproved. (Correct)
  • Requisition and pick release orders are preapproved and require inspection.
  • Requisition and pick release orders are preapproved.

Answer : Replenishment and pick wave move orders are preapproved.

The Direct Forward method routes documents _____.


Options are :

  • to the person with the highest approval authority
  • to the position with the highest approval authority
  • to the employee's supervisor, regardless of whether that person has the authority to approve
  • to the next employee in the hierarchy who has the requisite approval authority to approve the document (Correct)

Answer : to the next employee in the hierarchy who has the requisite approval authority to approve the document

How can you create reservations for the material based on scheduled demand for a Complex Maintenance Repair and Overhaul (CMRO) work order when the material does not exist in the onhand inventory? 


Options are :

  • CMRO creates reservation against a purchase order or any other supply source. (Correct)
  • CMRO requires inventory on hand to support reservation.
  • CMRO work orders are not eligible for reservations.
  • CMRO creates a WIP job to make the material before you can create the reservation.

Answer : CMRO creates reservation against a purchase order or any other supply source.

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