1Z0-520 Oracle EBS R12 Purchasing Essentials Practice Exam Set 4

Identify three valid processes or steps in implementing approved supplier lists and sourcing rules.
(Choose three.)
A. Review the timeliness of supplier deliveries.
B. Map business requirements for reports using standard Oracle reports.
C. Define the item attribute "Use Approved Supplier" for relevant items in the item master.
D. Establish sourcing rules while converting source documents from legacy systems into Oracle.
E. Match the supplier site information for every item on an approved supplier list to the supplier
header information on a sourcing rule.


Options are :

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

Answer : A,C,D

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


Options are :

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

Answer : Viewer: Text

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? (Choose two.)
A. Oracle Inventory
B. Oracle Engineering
C. Oracle Bill Of Materials
D. Oracle Work in Process
E. Oracle Advanced Supply Chain Planning


Options are :

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

Answer : B,C

Which two statements are true regarding lot-based unit of measure (UOM) conversions? (Choose
two.)
A. You cannot update existing on-hand balances for lot-based UOM conversions.
B. You can create lot-specific UOM conversions for on-hand lots or lots with a zero balance.
C. You cannot create lot-specific UOM conversions for on-hand lots or lots with a zero balance.
D. During a PO receipt, the lot-based conversion cannot be updated if the lot does not match
existing conversion rates.
E. 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.


Options are :

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

Answer : B,D

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 :

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

Answer : automatically approves and posts the cycle count adjustment

Your client wants to ensure that backflush operations can continue even if the inventory level is
driven below zero. At the same time, they want typical inventory transactions to be prevented from
driving inventory levels below zero. Which configuration meets this requirement?


Options are :

  • Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = Yes.
  • Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = No.
  • Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = No.
  • Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes. (Correct)
  • None

Answer : Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes.

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 be
converted. However, after conversion, they want to have nonintelligent numbering; therefore, the
system 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 :

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

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.

Select two conditions which will permit the transfer of lot-controlled items between inventory
organizations. (Choose two.)
A. Item is lot-controlled at the subinventory level.
B. Item is lot-controlled in either the shipping or receiving organizations.
C. Item is lot-controlled in both the shipping and receiving organizations.
D. Item is lot-controlled in the receiving organization, but not the shipping organization.
E. Item is lot-controlled in the shipping organization, but not the receiving organization.


Options are :

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

Answer : C,E

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 :

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

Answer : Receipt by Shipment Number

A supplier is not required on a _____.


Options are :

  • Receipt
  • Quotation
  • Requisition (Correct)
  • Request For Quotation
  • Invoice
  • Purchase Order

Answer : Requisition

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


Options are :

  • Gross
  • Case
  • Dozen
  • Each (Correct)
  • One

Answer : Each

What two conditions prevent you from reserving the inventory? (Choose two.)
A. The inventory module is installed as Shared.
B. The items have a nonreservable material status.
C. The inventory is in a Standard Cost inventory organization.
D. The inventory is in an Average Cost inventory organization.
E. The reservation will cause the on-hand quantity to be negative.


Options are :

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

Answer : B,E

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 :

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

Answer : Cycle count item level

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. (Choose two.)
A. All three regions must share the same approval hierarchy.
B. North America can have two sets of Approval Groups, one for each OU.
C. North America can have only one set of Approval Groups to share across each OU.
D. Each region can have a different type of hierarchy: Employee/Supervisor or Position Hierarchy.
E. Each region can have a different approval hierarchy, but all three regions must use the same
type of hierarchy: Employee/Supervisor or Position Hierarchy.


Options are :

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

Answer : B,D

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

Answer : The transaction will be accepted.

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

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

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? (Choose two.)
A. INV: Validate Returned Lot
B. INV: Accounting Category Set
C. INV: Restrict Receipt of Serials
D. INV: Default Primary Unit of Measure
E. INV: Replenishment Move Order Grouping


Options are :

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

Answer : B,D

Your customer is interested in implementing revision control for the finished goods model items.
Which two requirements can be met by implementing revision control? (Choose two.)
A. changing model functionality when on-hand quantity is available
B. tracking design changes in other modules (BOM, Work In Process) with a different model
number
C. scrapping the old model and introducing a new model which has changes in functionality and
features
D. accommodating a slight design change in the model, where functionality and features remain
the same
E. tracking design changes in all other functions, such as Bill of Materials, Routings, Work in
Process, and so on, using the same model number


Options are :

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

Answer : D,E

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 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)
  • Create multiple CaseX UOMs, where X is the quantity per case, and an Each UOM, and assign them to different UOM classes.
  • Create a Case UOM and an Each UOM, and assign them to different UOM classes.

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

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 = $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. 00000.000000 To: 01.100.560. 99999.000000 Location: Amount Limit = $5,000 and Location = Ann Arbor
  • 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 = $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

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'

Which two statements are correct about defining inventory organizations and locations? (Choose
two.)
A. A subinventory can be shared across two inventory organizations.
B. You can restrict a location tagged as Global to a specific inventory organization.
C. The item master is always the validation organization in a multiorganization structure.
D. When the location is tagged as Global, it is NOT mandatory to select an international address
style (where available).
E. While defining a location that is local, you must ensure that the Ship Location and Ship-To site
are always the same.


Options are :

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

Answer : B,D

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

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

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? (Choose two.)
A. 1 x (User-entered Unit Cost)
B. 1 x (Current Average Unit Cost)
C. The transaction will not be costed until the next Cost Manager program is executed.
D. 1 x (Average Cost Variance), calculated when the next Cost Manager program is executed


Options are :

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

Answer : A,B

Which four responsibilities must be defined in order to perform the purchasing setup when the
complete Oracle R12 E-Business Suite is installed? (Choose four.)
A. Inventory Manager
B. Payables Manager
C. Receivables Manager
D. System Administrator
E. Purchasing Super User
F. General Ledger Super User
G. Advanced Supply Chain Planner


Options are :

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

Answer : B,D,E,F

Which three statements are true about the item master? (Choose three.)
A. It is possible to copy items across item master organizations.
B. The item master organization is the centralized repository for all items in different organizations.
C. It is possible to associate items in one item master organization with another item master
organization.
D. When an attribute control is set at the item master level, updates are not allowed at the item or
organization level.
E. There is no functional or technical difference between the item master organization and other
organizations while transacting on an item.
F. When an attribute control is set at the item master level, updates can still be made at the item or
organization level but these updates would not propagate back up to the item master level.


Options are :

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

Answer : B,D,E

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


Options are :

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

Answer : Set the Unscheduled Entries flag to Yes in the cycle count header.

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

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

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? (Choose two.)
A. One global location is sufficient for the three organizations.
B. Three lines were set up on a sourcing rule and the sourcing rule was assigned to a single
Assignment Set.
C. 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.
D. 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.
E. 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.


Options are :

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

Answer : B,E

Which four must be set up to implement a position hierarchy for document approvals? (Choose
four.)
A. Buyers
B. Employee Jobs
C. Approval Groups
D. Security Hierarchy
E. Employee Positions
F. Employee Locations
G. Approval Assignments


Options are :

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

Answer : B,C,E,G

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 :

  • H
  • B (Correct)
  • F
  • L
  • K
  • C

Answer : B

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions