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

A Blanket Purchase Agreement Is created with the following cumulative price break:
Quantity > 0: Unit Price = $5
Quantity > 20: Unit Price = $4
Single line, single distribution releases are created as follows:
Release# 1 with quantity 15
Release# 2 with quantity 10
What are the unit price values on the releases?


Options are :

  • Release1 $5, Release2 $4 (Correct)
  • Release1 $5, Release2 $4 for a quantity of 5 and $5 for a quantity of 5
  • Release1 $5, Release2 $5
  • It depends on the price tolerance for the line.
  • Release1 $4, Release2 $4

Answer : Release1 $5, Release2 $4

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 :

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

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

When implementing Purchasing at FGH Corp., you notice several administrative inefficiencies due
to a poorly maintained supplier list. Identify three inefficiencies. (Choose three.)
A. entering suppliers twice
B. issuing specific invoices
C. generating inaccurate returns
D. generating inaccurate receipts
E. generating accurate supplier reports
F. issuing more payments than necessary
G. issuing more purchase orders than necessary


Options are :

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

Answer : A,F,G

There are four tabbed regions In the Supplier Item Catalog window (Negotiated Sources, Prior
Purchases, Sourcing Rules, and Requisition Templates), but function security can be used to
determine whether a user will be able to see all of them.
In release R12, where is the requisition setup option that determines which of the tabbed regions
is the default?


Options are :

  • in the Requisition Preferences setup
  • in the Lookup Codes setup
  • in the Document Types setup
  • in the Expense Account Rules setup
  • in the Purchasing Options setup
  • in the Profile Options setup (Correct)

Answer : in the Profile Options setup

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


Options are :

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

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

Which two parameters facilitate cross organization reports in a Multi-Org environment? (Choose
two.)
A. Ledger
B. Legal Entity
C. Operating Unit
D. Reporting Level
E. Reporting Context


Options are :

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

Answer : D,E

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 :

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

Answer : Supplier-Item Attribute

Identify the four resources that Oracle Technology Network (OTM) provides. (Choose four.)
A. sample codes
B. Bug Database
C. technical articles
D. product downloads
E. product documentation
F. Applications Electronic Technical Reference Manuals (eTRM)


Options are :

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

Answer : A,C,D,E

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

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

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 :

  • 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 $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280
  • 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
  • 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

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

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 :

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

Answer : The new menu will overwrite the original menu.

Which three are valid setup options for purchasing document types? (Choose three.)
A. Archive On
B. Forward Method
C. Default Hierarchy
D. Security Access Level
E. Can Change Hierarchy
F. Owner Cannot Approve


Options are :

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

Answer : A,B,C

A multinational company is setting up the sourcing rules and approved supplier list (ASL) to source
inventory items across different organizations.
Which two statements are true? (Choose two.)
A. You do not need to create a local ASL if you create a Global ASL
B. Inventory organizations used in the sourcing rules must be set up in the Shipping Networks.
C. You need to match the supplier between a sourcing rule and an ASL, but not the supplier site.
D. The country of origin must be entered in the ASL, or it would not be available on the purchasing
document.
E. A commodity can be assigned to a supplier at both the global level and at the local level, and
the local level assignment takes precedence.


Options are :

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

Answer : B,E

An approved supplier list (ASL) is being defined in a multiorganization environment, which two
statements are valid?
A. Setting up a Global ASL is mandatory.
B. If a supplier item has a local ASL setup, you cannot set it up on a Global ASL.
C. The supplier for an item-supplier association must be global, while the supplier site can be
local.
D. Company X has set up Planning would source planned orders. The approval status of the
supplier can be set to New or Approved.


Options are :

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

Answer : C,D

A global company uses Oracle E-Business Suite Release 12 for Its operations In the U.S. and
Canada. The company Is now adding Mexico to the Oracle E-Business Suite Release 12
Applications. As a system administrator, you need to set the MO: Operating Unit profile option for
Mexico. Customer is not using Multi-Org Access Control.
You set the MO: Operating Unit profile option at the ____level.


Options are :

  • Responsibility (Correct)
  • Application
  • User
  • Site

Answer : Responsibility

Select three true statements about the default of sourcing Information for requisitions and
purchase orders. (Choose three.)
A. The item price on a requisition can be defaulted from the Item attribute setup.
B. Buyer name cannot be defaulted onto a requisition, but you can assign notes to a buyer.
C. You can modify the last name of the requester defaulting from the Human Resources employee
record.
D. You must use the Transfer From assignment on a sourcing rule for Item Information to default
onto an Internal requisition.
E. When you assign a commodity to an approved supplier list, you do not need to assign the
individual items in the commodity.
F. You can have the same item on a quotation and a blanket agreement but the supplier or
supplier site must be different, so that It can default onto a requisition line.


Options are :

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

Answer : A,D,E

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 suppliers are sequentially numbered
  • whether the month-end accrual process is run
  • whether invoices are matched to purchase orders and receipts (Correct)
  • whether Oracle Payables transactions are reconciled with Oracle General Ledger
  • whether journals are posted regularly

Answer : whether invoices are matched to purchase orders and receipts

Which two statements are true regarding approval workflows In Purchasing? (Choose two.)
A. You can limit approval levels in an Approval Group by Item Category.
B. Approval routing can cut across legal entities within a business group.
C. A Purchase Requisition and a Standard Purchase Order cannot have different approval levels.
D. The Hierarchy Forward Method routes the document to the first approver in the hierarchy who
has the required approval limits for that document.
E. 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.


Options are :

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

Answer : A,B

Select three true statements regarding the Workflow Document Creation prerequisite (PO Create
Documents workflow). (Choose three.)
A. Catalog quote must not be expired, but may be inactive.
B. Supplier and supplier site are required on the requisition related to a contract purchase order.
C. If a system Item is not associated with the requisition line, a supplier item number is required.
D. Sourcing rules are required If the requisition originates in Oracle Purchasing or {Procurement.
E. No source document is required for the PO Create Documents workflow to create a release or
purchase order.
F. The only time an approved supplier list is required is if your source document is a blanket
purchase agreement and you are using a system item.


Options are :

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

Answer : B,C,F

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 :

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

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

Select the best business practice for a supplier that is being newly added to the Approved Supplier
List.


Options are :

  • Allow PO Approval, Schedule Confirmation and Manufacturer Link but not Sourcing
  • Allow PO Approval, Sourcing, Schedule Confirmation and Manufacturer Link
  • Allow PO Approval, Sourcing and Manufacturer Link but not Schedule Confirmation (Correct)
  • Allow PO Approval, Sourcing and Schedule Confirmation but not Manufacturer Link

Answer : Allow PO Approval, Sourcing and Manufacturer Link but not Schedule Confirmation

When you enter a receipt; you first use the Find Expected Receipts window to locate the source
document for the receipt.
Select four valid source documents for a receipt. (Choose four.)
A. An approved internal requisition line
B. An intransit shipment within your Inventory
C. A shipment from a supplier based on a purchase order
D. A move order from Inventory for material storage relocation
E. A return from a customer based on a return material authorization (RMA)
F. A shipment from inventory backed by an internal safes order generated by an internal
requisition


Options are :

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

Answer : B,C,E,F

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
Select two statements that are true. (Choose two.)
A. If the user enters 6 each on an internal requisition, the quantity will be rounded to 0,
B. If the user enters 6 each on a purchase requisition, the quantity will be rounded to 0,
C. If the user enters 11 each on an internal requisition, the quantity will be rounded to 12 each,
D. If the user enters 11 each on a purchase requisition, the quantity will be rounded to 12 each,
E. An advisory message suggesting rounding and a suggested rounding quantity are displayed,
but you can override this.


Options are :

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

Answer : A,C

Identify the sequence of steps to determine the Descriptive Flexfield name on a form in Oracle EBusiness
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, 3, 4, 2
  • 4, 3, 1, 2
  • 1 4, 3, 2 (Correct)
  • 1, 2, 3, 4

Answer : 1 4, 3, 2

ABC Corp, has the following Organization Structure
1) Legal Entity: A
2) Operating Units: B end C
3) Balancing Entitles: 10. 20. and 30
Identify three correct statements regarding the Balancing Entity. (Choose three.)
A. Each Balancing Entity mutt balance within itself.
B. There can be multiple Balancing Entitles within an Operating Unit
C. Balancing Entity is the lowest postable unit in the Chart of Accounts.
D. Balancing Entitles can be automatically secured at the Legal Entity level.
E. Balancing Entities can be secured at the Operating Unit level through Security Rules


Options are :

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

Answer : A,B,E

While defining Approval Groups, which three objects can you define authorization rules for?
(Choose three.)
A. Buyer
B. Location
C. Commodity
D. Item Category
E. Account Range
F. Document Amount


Options are :

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

Answer : B,D,E

A Global Single Instance (GS1) provides the global enterprise with a single, complete data model,
Identify three features In Oracle Business Suite Release 12 that support a 6SL (Choose three.)
A. maintenance of third-party applications
B. automation of standardized documents and audit processes
C. decentralization of operations by regions, divisions, or processes
D. consolidation of data centers and lowering administrative overhead
E. capture of statutory and customary local requirements In the same database


Options are :

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

Answer : B,D,E

Which four are supported by the Receiving Open Interface (ROI)? (Choose four.)
A. Unordered receipt
B. Dynamic locators
C. Deliver transactions
D. Movement statistics
E. Correct transactions
F. Receive transactions
G. Transfer transactions


Options are :

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

Answer : C,E,F,G

Your customer wants to convert both RFQs and Quotations to have tracking for Small Business
Audit trail. The volume for Quotations is very high and only Approved RFQs and Quotations are
being converted. What would you recommend as the best conversion strategy for RFQs and
Quotations?


Options are :

  • Data Load both RFQs and Quotations.
  • Use the Purchase Documents Open Interface for both RFQs and Quotations.
  • Manually enter RFQs, and Data Load Quotations.
  • Manually enter RFQs, and use the Purchase Documents Open Interface for the loading of Quotations. (Correct)
  • Use the Purchase Documents Open Interface for RFQs and Data Load Quotations,
  • Manually enter both RFQs and Quotations.

Answer : Manually enter RFQs, and use the Purchase Documents Open Interface for the loading of Quotations.

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


Options are :

  • Viewer: Text (Correct)
  • None of the Above
  • Concurrent Report: Access Level
  • Concurrent: Report Copies
  • Flexfields: Open Key Window

Answer : Viewer: Text

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