1Z0-517 Oracle EBS R12.1 Payables Essentials Practice Exam Set 2

Identify the setup options that would allow the accounts payable supervisor to default an active expense report template. 


Options are :

  • Financial Options
  • System Options
  • Expense Report Payables Options (Correct)
  • Code Set Options

Answer : Expense Report Payables Options

When reconciling Payables and Cash Management, you may encounter clearing restrictions. Here are three clearing restrictions for Cash Management.
1. Oracle Cash Management cannot clear bills payable that have a status of _____.
2. Oracle Cash Management clears bills payable only if the payment status is _____.
3. On or after the maturity date of the payment, you can update the status to _____.
Identify the one status for the second clearing restriction. 


Options are :

  • issued
  • reconciled
  • negotiable (Correct)

Answer : negotiable

Choose the process that can be performed after a pay run has been formatted. 


Options are :

  • Print checks from the output file. (Correct)
  • Prevent payment of a particular invoice.
  • Prevent payment to a supplier.
  • Change an invoice amount.

Answer : Print checks from the output file.

Identify two exceptions that prevent you from closing the period in Payables. (Choose two.)
A. unpaid invoices
B. outstanding pay runs
C. invoices not validated
D. unaccounted invoices
E. unpaid expense reports


Options are :

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

Answer : B,D

To enter manual tax lines on invoices, enable manual tax options in E-Business Tax. You can set these options at the Event Class, Configuration Owner, or Tax level. Under the manual tax options (Event Class, Configuration Owner, or Tax level), which common
capability is found? 


Options are :

  • Allow Manual Tax Only Lines
  • Allow Withholding Tax
  • Allow Tax Recovery
  • Allow Override for Calculated Tax Lines (Correct)

Answer : Allow Override for Calculated Tax Lines

Identify the four reports you must run when reconciling invoices and payments to the Accounts Payable Trial Balance Report. (Choose four.)
A. Void Check Register
B. Posted Invoices Report
C. Posted Payments Report
D. Accounts Payable Trial Balance - prior period
E. Payables Transfer to General Ledger Reports
F. Accounts Payable Trial Balance - current period
G. Account Analysis - (132 Char) / Account Analysis - (180 Char)


Options are :

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

Answer : B,C,D,F

Which three reports can be used to reconcile Payables activities to General Ledger? (Choose three.)
A. Supplier Payment Report
B. Posted Payments Report
C. Cash Clearing Account Report
D. Accounts Payable Trial Balance Report
E. General Ledger Account Analysis Report 


Options are :

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

Answer : B,D,E

Your client, Company A, has these requirements:
1. Asset invoices are entered in the Payables daily, but assets are transferred to Oracle Assets only once per week.
2. Payables journal entries have to be transferred to GL at least once per month for reporting purposes.
3. Oracle Projects balances must be updated once every month.
4. Payment batches must be processed daily. On the basis of the above requirements, what would be the minimum recommended frequency of running the Transfer to GL program? 


Options are :

  • monthly
  • weekly (Correct)
  • once every two weeks
  • daily

Answer : weekly

Identify three key accounts to be considered during the implementation of Payables that impacts the reconciliation of the accounts payable liability accounts. (Choose three.)
A. AP liability account
B. accrual charge account
C. receiving accrual account
D. accrued Payables account
E. receiving inventory account
F. expense AP accrual account
G. inventory AP accrual account 


Options are :

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

Answer : A,F,G

Which key process is considered as a prerequisite for Transfer Journal Entries to GL Process? 


Options are :

  • Invoice Audit Listing
  • Invoice Register
  • Create Accounting (Correct)
  • Payables Posted Payment Register

Answer : Create Accounting

Identify two implementation considerations that impact Payables during the closing process. (Choose two.)
A. Determine how often you will run the Transfer Journal Entries to GL process.
B. Determine the number of clearing accounts to use for Projects, Assets, and Cash Management.
C. Choose the detail option to transfer details to General Ledger during the Create Accounting process.
D. Review the scheduling of the Create Accounting process to ensure that this is processed before processing pay runs.
E. Review the scheduling of the Mass Additions Create process to ensure that this is processed before the Create Accounting process. 


Options are :

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

Answer : A,B

To enter manual tax lines on invoices, enable manual tax options in E-Business Tax. Select three setup options for manual tax lines. (Choose three.)
A. Regime 

B. Event Class
C. Regime, Tax
D. Configuration Owner
E. Tax - Controls and Defaults
F. Regime, Tax, Tax Jurisdiction


Options are :

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

Answer : B,D,E

ABC Corporation has closed their APR-XX accounting period. The APR-XX period started on 27- MAR-20XX and ended on 26-APR-20XX. To ensure that all accounting from APR-XX has been sent to General Ledger, they must run two Trial Balance Reports, the Posted Invoice Register, and the Posted Payment Register. What dates must be used to run Accounts Payable Trial Balance Reports? 


Options are :

  • one run for 27-MAR-20XX and one for 26-APR-20XX
  • one run for 01-APR-20XX and one for 30-APR-20XX
  • one run for 26-MAR-20XX and one for 26-APR-20XX (Correct)
  • one run for 31-MAR-20XX and one for 30-APR-20XX

Answer : one run for 26-MAR-20XX and one for 26-APR-20XX

You are in the Tax Lines Summary window and you update the calculated tax amount of one of the taxable distributions. You must also adjust _____. 


Options are :

  • the amount of another distribution (Correct)
  • the number of invoice lines
  • the total header invoice amount
  • the self assessed taxes in the Tax Details window

Answer : the amount of another distribution

Select three processes that must be performed before closing the purchasing period. (Choose three.)
A. Process period-end receipt accruals.
B. Run the Purchasing Account Analysis Report.
C. Process the remaining inventory transactions.
D. Run and review the Uninvoiced Receipts Report.
E. Run Transfer Journal Entries to the GL program from Receiving. 


Options are :

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

Answer : A,D,E

Company A wants to use Oracle Internet Expenses with expense report templates.
Identify three true statements for the setup of expense report templates. (Choose three.)
A. The tax code assigned to an expense item must be Web enabled.
B. Each expense item must have an expense category assigned to it.
C. The expense report template must be enabled for Internet Expenses.
D. The GL account assigned to an expense item must have all accounting flex field segment values entered. 


Options are :

  • B,C,D
  • A,B,D
  • None
  • A,C,D
  • A,B,C (Correct)

Answer : A,B,C

Which statement is FALSE about the Stop Payments Report? 


Options are :

  • Payables lists stop payments that were voided at a later time. (Correct)
  • Use this report to review all current stop payments.
  • Payables does not list stop payments that were voided at a later time.
  • Payables does not list stop payments that were initiated, but then released at a later time.

Answer : Payables lists stop payments that were voided at a later time.

In the accrual process for perpetual accruals, which two events generate accounting entries that can be transferred to GL? (Choose two.)
A. processing a receipt
B. entering a purchase order
C. running the period-end accrual program
D. entering invoices and matching them in Payables 


Options are :

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

Answer : A,D

At your client site, the Payables period-close processes have been performed. The Payables transfer to GL has been completed, and the resulting journal entries have been posted to GL. The current Payables period has been closed. The Accounts Payable Trial Balance (last day of prior period) + Posted Invoices - Posted Payments equals the Accounts Payable Trial Balance (last day of current period). However, the balance in the AP liability account in GL for the current period does not equal the Accounts Payable Trial Balance (last day of the current period). What is the possible reason? 


Options are :

  • Inventory has not closed for the current period.
  • Period-end accrual journals have been reversed in GL.
  • Manual journals have been posted to the AP liability account in the current period in GL. (Correct)
  • Purchasing has not closed for the current period.

Answer : Manual journals have been posted to the AP liability account in the current period in GL.

Where does the expense AP accrual account used in the Period End Accrual process default from? 



Options are :

  • Receiving Options
  • Payables Options
  • Purchasing Options (Correct)
  • Financial Options

Answer : Purchasing Options

You are implementing Oracle General Ledger at a client site. The client is based in the US, but they have a global presence in many countries and transactions in multiple currencies. The implementation team decides that the Oracle General Ledger multi-currency setup will be a part of the implementation. The client's Chief Financial Officer wants a system that has these features:
1. Enter transactions and reports in any currency.
2. Enter exchange rates online or automatically.
3. Calculate realized and unrealized gains and losses. IV. Translate actual and budget balances.
4. Produce foreign currency financial statements and reports. 

Which requirements can be satisfied with the implementation? 


Options are :

  • 1, 2, 3, and 4 only
  • 1, 2, and 3 only
  • 1, 2, 4, and 5 only
  • All requirements from 1 through 5 can be satisfied. (Correct)

Answer : All requirements from 1 through 5 can be satisfied.

Select two actions available in Oracle General Ledger. (Choose two.)
A. deleting posted journals
B. exporting data to subsidiary ledgers
C. importing data from subsidiary ledgers
D. consolidating balances in subsidiary ledgers
E. consolidating balances from multiple ledgers 


Options are :

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

Answer : C,E

John, the rates manager at ABC Company in the USA, is in charge of maintaining currency rates for the entire company. John had defined the rates for GBP to USD and GBP to Indian Rupee (INR) only. Sam, the company accountant, is worried that he would not be able to execute
transactions involving USD and INR currencies. What does John say to help Sam? 


Options are :

  • Currency Rates Manager automatically converts all transactions entered in INR to USD.
  • Currency Rates Manager automatically performs the calculation between USD and INR on the basis of cross-rate rules (Correct)
  • Sam must manually define the USD to INR rates first, to be able to enter transactions involving USD and INR currency.
  • Currency Rates Manager automatically converts all transactions entered in INR to GBP first and then to USD.

Answer : Currency Rates Manager automatically performs the calculation between USD and INR on the basis of cross-rate rules

Isa Global Inc. is based in the United States with divisions in Europe and Asia. All journal imports, recurring journals, mass allocations, and manual journal entries have been posted for their European subsidiary. What is the next logical step in the period-close process? 


Options are :

  • revaluing foreign currency balances (Correct)
  • closing the current period
  • opening the next period
  • translating to the functional currency

Answer : revaluing foreign currency balances

Which two statements correctly describe the translation process? (Choose two.) 

A. You can rerun the translation process more than once per period.
B. With the translation process, you can translate only year-to-date amounts.
C. If you rerun the translation process, it adds more data to the previous translated amounts.
D. Translation for a subsidiary can be initiated from the parent by clicking the state controller translate button.


Options are :

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

Answer : A,D

Which event reverses an accrual for an item set to accrue on receipt? 


Options are :

  • paying an invoice
  • matching an invoice in Payables to a purchase order (Correct)
  • running the Receipt Accruals - Period-end process
  • delivering goods to a final destination

Answer : matching an invoice in Payables to a purchase order

Which two are true about elimination? (Choose two.)
A. You can define balancing options for eliminating entries.
B. You can define an elimination set to contain one elimination entry.
C. Currency is an optional component when defining an elimination set.
D. You must specify an elimination company in the Elimination Sets window. 


Options are :

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

Answer : A,B

Select the correct sequence of tasks required for period closing in Oracle General Ledger. 

1. Verify that all journals are posted.
2. Close the period of each subledger.
3. Run the Trial Balance report and other month-end reports.
4. Close the period and open the next period.
5. Perform reconciliation of subsidiary ledgers.
6. Transfer and import data from all sub ledgers. 


Options are :

  • 6, 5, 1, 3, 2, 4
  • 6, 5, 2, 1, 3, 4 (Correct)
  • 6, 5, 2, 1, 4, 3
  • 3, 2, 1, 6, 4, 5

Answer : 6, 5, 2, 1, 3, 4

Select three activities that must be performed to complete the setup of the key accounting flexfield. (Choose three.)
A. Create aliases.
B. Define a value set.
C. Define security rules.
D. Define an account structure.
E. Define valid segment values.
F. Create account combinations. 


Options are :

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

Answer : B,D,E

What is a benefit of the secondary tracking segment? 


Options are :

  • Additional security ensures that correct accounts are selected while entering transactions.
  • More details are provided to retained earnings, cumulative translation adjustments, and revaluation gains/losses accounts. (Correct)
  • The Management segment is enabled automatically when the secondary segment is defined.

Answer : More details are provided to retained earnings, cumulative translation adjustments, and revaluation gains/losses accounts.

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