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

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


Options are :

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

Answer : Load - Process - Confirm

Which three processes would help analyze supplier information before defining a new supplier
record? (Choose three.)
A. Submit and review the Suppliers Report.
B. Submit and review the Suppliers Audit Report.
C. Perform a Find or Query on the Supplier name.
D. Submit and review the Suppliers On Hold report.
E. Submit and review Purchase Price Variance report.
F. Submit and review the Purchasing Activity Register report.
G. Submit and review Open Purchase Orders By Buyer report


Options are :

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

Answer : A,B,C

The Account Alias Name flexfield cannot exceed _____ characters.


Options are :

  • 30
  • 180
  • 15
  • 25 (Correct)
  • 45
  • 20

Answer : 25

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 = 15, Action = Approve Automatically (Correct)
  • Timeout Period = 30, Action = Approve Automatically
  • Timeout Period = 15, Action = Reject Automatically
  • Timeout Period = 0, Action = Approve Automatically
  • Timeout Period = 10, Action = Approve Automatically
  • Timeout Period = 30, Action = Reject Automatically

Answer : Timeout Period = 15, Action = Approve Automatically

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. (Choose five.)
A. Data Cleanup is not important.
B. RFQ and Quotation Usage is important.
C. Data Mapping for RFQs Open Interface is important.
D. RFQ and Quotation Conversion strategy is important.
E. Data Cleanup of legacy RFQs and Quotes is important.
F. Data Mapping from the legacy RFQs and Quotes is important.
G. Quotation Usage and RFQ Usage does not matter because RFQs cannot be converted.
H. The method by which RFQs are delivered to potential suppliers (Printed Forms) is important.
I. Training on RFQ and Quotations is not necessary because the quotations are automatically
created into Requisitions.
J. You should just create new RFQs in the new system so that the linkage between RFQs and
Requisitions can be maintained.


Options are :

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

Answer : B,D,E,F,H

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


Options are :

  • Compile the flexfield structure because it is required by Oracle Inventory. (Correct)
  • Create at least one alias, compile, then disable the alias.
  • 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.

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

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


Options are :

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

Answer : Local entry that applies only to your organization.

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


Options are :

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

Answer : UOM Class, UOM, UOM Conversions

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

Answer : a $200 invoice with invoice validation on hold

Oracle Inventory interacts with other Oracle applications by sharing information. Which two pieces
of information does Oracle Inventory receive from the Order Management application? (Choose
two.)
A. UOM information
B. shipping information
C. on-hand information
D. ATP supply information
E. reservations information


Options are :

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

Answer : B,E

Identify two instances when an approved supplier list is redundant for automatic sourcing. (Choose
two.)
A. A sourcing rule exists for an item-supplier-supplier site combination.
B. You need to source service lines and Oracle Sourcing is implemented.
C. Items are sourced from a manufacturing plant across countries/operating units in a
multinational company.
D. You need to default source information on an item that is on a blanket purchase agreement and
a quotation.
E. 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.


Options are :

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

Answer : B,E

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 :

  • Group descriptive flexfield enabled in the reports
  • Category Set and Categories (Correct)
  • Group key flexfield enabled in the reports
  • Categories
  • Catalog and Categories
  • Catalogs

Answer : Category Set and Categories

Which five actions can you perform on Requisitions? (Choose five.)
A. Print requisitions.
B. Update requisitions.
C. Cancel/Final Close requisitions.
D. Modify after the requisition has been approved.
E. View the status and action history of requisitions.
F. Delete requisition lines after the requisition has been approved.
G. Only Finally Close requisitions; Cancel is not an available action.
H. Review requisition assignments and assign/reassign requisitions to buyers.
I. Printing requisitions is not an available action until the client has created a company form.
J. Requisition Management is not a valid action for requisitions; assigning/reassigning can be
performed only on POs.


Options are :

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

Answer : A,B,C,E,H

What is the significance of the Shrinkage Rate item attribute?


Options are :

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

Answer : The average loss of material during manufacturing or storage

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 :

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

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

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 viewunassigned requisitions.
  • Pat would be able to view requisitions assigned to other buyers and unassigned requisitions.
  • Pat would be able to view requisitions assigned to other buyers, but not view unassigned requisitions.
  • Pat would be able to view all requisitions in the AutoCreate form, but would be prevented from placing requisitions on a purchase order if they reference another buyer.
  • 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.

Which three statements are true about ABC Analysis and cycle count Classes? (Choose three.)
A. The hit/miss% for the Class overrides the hit/miss% of the cycle count header.
B. The hit/miss% for the cycle count header overrides the hit/miss% of the Class.
C. An ABC Analysis can be compiled for a subinventory that is defined as a non-quantity-tracked
subinventory.
D. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities
are tracked.
E. In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the
tolerance levels.
F. Positive and negative tolerances can be entered for each class, which will override the
tolerance at the cycle count header level.


Options are :

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

Answer : A,D,F

Min-max planning can be used _____.


Options are :

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

Answer : in place of MRP/MPS planning

Which are the three mandatory fields when defining a supplier bank header? (Choose three.)
A. Bank
B. Bank branch
C. Bank contact
D. Bank account number
E. Bank operating account


Options are :

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

Answer : A,B,D

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


Options are :

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

Answer : item information and units of measure

Your ordering process starts with a requisition. Into which two documents must the purchase
requisition document be transformed within Oracle Applications? (Choose two.)
A. Return
B. Receipt
C. Quotation
D. Purchase Order
E. Request For Quotation


Options are :

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

Answer : D,E

Which two statements apply to a Physical Inventory Tag as defined by Inventory? (Choose two.)
A. Physical Inventory Tags cannot be bar coded.
B. It can contain a count for a group of a given item.
C. It is produced and printed by the Generate Physical Inventory Tags function.
D. It is unique for every stock locator/item/lot number/serial number combination.
E. It is used to indicate to the warehouse staff that a count has been recorded for that location, so
that a duplicate count is not performed.


Options are :

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

Answer : B,D

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


Options are :

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

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

ABC Inc. is a semiconductor manufacturing organization. They have all possible inventory controls
on items. Which controls are validated on subinventory 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
  • 1 through 5 (Correct)
  • 1 and 3
  • 1, 2, 3, and 5
  • 1, 3, and 5
  • 1, 2, 3, and 4
  • 1, 2, and 3

Answer : 1 through 5

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: Geneology Delimited: Yes
  • Serial Control at the item level: Predefined
  • Setup INV: Restrict Receipt of Serial: Yes
  • Serial number assigned during WIP assembly return
  • The system automatically defaults the serial numbers respective to their discrete jobs.
  • Serial number assigned during WIP completion
  • Setup INV: Validate Returned Serial: Yes (Correct)

Answer : Setup INV: Validate Returned Serial: Yes

Identify three valid sources of Inventory Demand. (Choose three.)
A. Approved Requisition Lines
B. Miscellaneous Transactions
C. Scheduled CMRO Work Orders
D. Approved Purchase Order Lines
E. Sales Order Lines in Entered status
F. WIP Work Orders in Released status
G. Sales Orders Lines in Scheduled status


Options are :

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

Answer : C,F,G

Which statement is true regarding inventory transactions?


Options are :

  • Inventory adjustments are not part of inventory transactions.
  • You must create at least one user-defined transaction reason for each inventory organization.
  • Work in Process would not affect inventory transactions.
  • You can designate, by transaction type, which transaction reasons are available.
  • Transaction reasons can be used in all transaction forms. (Correct)

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

Select three true statements about inventory reservations. (Choose three.)
A. A reservation is a link between a supply source and a demand source.
B. For on-hand inventory supply, there is only one type of reservation called high-level reservation.
C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.
D. Reservations can be created only by Oracle applications or via forms. They cannot be imported
from third-party applications.
E. 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.
F. Item reservations prevent the allocation of material you previously set aside for a sales order,
account, account alias, inventory allotment, user-defined source, process batch components or,
Oracle Complex Maintenance and Repair Overhaul work order components.
G. Item reservations allow the allocation of material you previously set aside for a sales order,
account, account alias, inventory allotment, user-defined source, process batch components or,
Oracle Complex Maintenance and Repair Overhaul work order components as long as the
quantity is not negative.


Options are :

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

Answer : A,E,F

Which four are true about the Future Periods field in the Financials Options window? (Choose
four.)
A. You cannot import or enter invoices in a future period.
B. You can import/enter invoices in future periods, pay and create accounting entries for them.
C. You can change this number to the maximum number of future periods you want to allow in
Payables.
D. You can import/enter invoices in future periods but you cannot pay or create accounting entries
for them.
E. The first time you enter this field, Payables defaults the number of future periods you use in
your Ledger as a default.
F. Payables uses this value to limit the number of future periods you can maintain in the Control
Payables Periods window.
G. After you change the status of a future period to Open, you can change it back to Future only if
you did not create any transactions in that period.


Options are :

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

Answer : C,D,E,F

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 invoice price variance account
  • an encumbrance account
  • an expense 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

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