1Z0-517 Oracle EBS R12.1 Payables Essentials Practice Exam Set 4

The companys two senior executives have different budget figures. They want Peter, the GL accountant, to prepare two current budgets in Oracle Financials and submit budgets to both of them. What would be your response? 


Options are :

  • The Require Budget Journal profile option must be set at the budget level if you want to have multiple current budgets.
  • Whether you can have multiple current budgets depends on the budget organization.
  • It is not possible to have more than one current budget. (Correct)
  • The Require Budget Journal profile option must be set at the set of books level if you want to have multiple current budgets.

Answer : It is not possible to have more than one current budget.

Which three statements are true about the revaluation process? (Choose three.)
A. You must post the revaluation journal entries.
B. The revaluation process must be executed after the translation process has completed.
C. This process revalues the foreign currency portion of the account balances by using the revaluation rate defined in the period rates table.
D. Revaluation calculates the differences between the current cumulative functional currency balance of the foreign transactions and the revalued functional currency balance calculated by using the revaluation rate. 


Options are :

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

Answer : A,C,D

With Oracle Cash Management, you can reconcile payments created in Payables to your bank statements. When you reconcile payments using Oracle Cash Management, Cash Management updates the status of payments. Select the new status. 


Options are :

  • negotiable
  • issued
  • reconciled (Correct)
  • updated

Answer : reconciled

You are implementing Oracle General Ledger (GL) at a client site. The client is based in the US, but they have a presence in many countries and transactions in multiple currencies. The implementation team decides that the GL multi-currency setup will be a part of the implementation. John, a junior consultant helping you in the implementation effort, tells you that he is testing the system and entering journals in USD, Yen, and Euros. He says that he is able to enter journals in USD and Euros, but not in Japanese Yen. What possible explanation can you provide to John for this? 


Options are :

  • Daily rates have not been entered for Yen.
  • Rate types have not been defined for Yen.
  • Workflow must be customized for journals to be entered in Yen.
  • Yen has not been enabled. (Correct)

Answer : Yen has not been enabled.

Select three statements that apply to the Global Consolidation System (GCS). (Choose three.)
A. It consolidates data from the legacy feeder system.
B. This system creates consolidated journal entries in both the parent and subsidiary sets of books.
C. GCS automatically generates journal entries to eliminate inter company balances based on defined rules.
D. It performs multidimensional analysis of consolidated financial data by using Oracle Enterprise Planning and Budgeting. 


Options are :

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

Answer : A,C,D

Select two restrictions that apply to consolidating budget balances. (Choose two.)
A. If the source and target budgets share the same calendar, you must consolidate a specific period to a specific period.
B. If the source and target budgets share the same start period, you must consolidate a specific period to a specific period.
C. If the source and target budgets do not share the same ledger, you must consolidate a specific period to a specific period.
D. If the source and target budgets do not share the same calendar, you must consolidate a specific period to a specific period.
E. If the source and target budgets do not share the same start period, you must consolidate a specific period to a specific period. 


Options are :

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

Answer : D,E

Which three activities would use summary accounts? (Choose three.)
A. creating a monthly recurring standard journal entry to amortize goodwill
B. allocating the total monthly costs of the Information Services department to other departments
C. estimating a sales commission accrual based on the total of all product sales for each division
D. formulating a budget for employee benefits in each company based on the total of all budgeted employee salaries 


Options are :

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

Answer : B,C,D

Identify the four setup options that control supplier defaults. (Choose four.)
A. financial options
B. payables options
C. receiving options
D. purchasing options
E. Payables system setup
F. Trading Community Architecture (TCA) 


Options are :

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

Answer : A,B,D,E

Identify the three actions that you can perform using the consolidation workbench. (Choose three.)
A. Access the state controller. 

B. Change the chart of accounts.
C. Create consolidations sets, which launch multiple consolidations in a single step.
D. Create multi-level hierarchies, which you can view using the graphical consolidation hierarchy viewer.


Options are :

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

Answer : A,C,D

Payables lists four seeded payment methods. They are check, outsourced check, electronic, and wire. Choose the correct description for wire.


Options are :

  • a funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier (Correct)
  • a paper check to print and send to a supplier
  • transmission of payment information to an external party, such as your bank, that prints checks on your behalf
  • an EFT, EDI, or XML to the bank of a supplier

Answer : a funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier

There are many fields with important data displayed on the main page of the Payables Overview window. Which three fields do NOT appear in the Payables Overview main window? (Choose three.)
A. Terms
B. Paygroup
C. Trading Partner
D. Settlement Date
E. Remit-To Bank Account Name 


Options are :

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

Answer : A,B,E

You are at a client site that has thousands of suppliers in their current legacy system that will end up in the Oracle Production system. Before conversion, you must perform a supplier cleanup on these numerous names and sites. Which three naming conventions would you use for "Best Practices" during the supplier cleanup? (Choose three.)
A. Use Last Name, First Name to identify employees as suppliers.
B. Create some supplier names in uppercase and others in mixed case. 

C. Use abbreviations in the supplier name even it is not abbreviated on the invoice.
D. Remove all punctuation marks (commas, periods, and so on) from the supplier name.
E. Use the exact spelling of a supplier name as it appears on the invoice for the naming convention.


Options are :

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

Answer : A,D,E

Select three types of Payables open interfaces that will import data into Payables from other applications or third-party solutions. (Choose three.)
A. PCard Open Interface
B. Supplier Open Interface
C. Matching Open Interface
D. Receiving Open Interface
E. Payments Open Interface 


Options are :

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

Answer : A,B,C

What is the effect of summary accounts on the efficiency of the posting process? 


Options are :

  • Use of summary accounts decreases the efficiency of the posting process. (Correct)
  • Use of summary accounts increases the efficiency of the posting process.
  • Use summary accounts in the posting process to not accumulate values.
  • Use summary accounts in the posting process to accumulate values.

Answer : Use of summary accounts decreases the efficiency of the posting process.

Identify two events that take place when an invoice is matched to a purchase order. (Choose two.)
A. Tolerances are enforced.
B. The quantity billed is updated.
C. The quantity received is updated.
D. The purchase order accounting information is copied to the invoice. 


Options are :

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

Answer : B,D

What are the three prerequisites for interfacing Payables invoice lines with Assets? (Choose three.)
A. The invoice has no holds.
B. The invoice must be posted to General Ledger.
C. The invoice has been transferred to General Ledger.
D. The invoice distribution has "Track as Asset" selected.
E. The distribution account is an Asset Clearing or CIP account. 


Options are :

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

Answer : C,D,E

The management segment qualifier must be attached to which key flexfield segment? 


Options are :

  • department segment (Correct)
  • account segment
  • future segment
  • company segment

Answer : department segment

There are numerous Oracle modules that are integrated into or out of the Payables module. Identify four Oracle modules that are directly integrated with Oracle Payables. (Choose four.)
A. Loans
B. Purchasing
C. Bill of Materials
D. E-Business Tax
E. Order Management
F. Cash Management
G. System Administrator 


Options are :

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

Answer : A,B,D,F

ABC Corp. wants to allocate the gross amount of XYZ Co. invoices to fifty cost centers each time an invoice is received from them. The cost centers that are to be charged require minimal updating. Select the option you would recommend that requires minimal ongoing maintenance. 


Options are :

  • Create a distribution set for all the desired accounts and associate it to all new invoices for this supplier. (Correct)
  • Create an invoice and use the prorate functionality to allocate the cost across accounts.
  • A customization may be created to allocate the charges at the end of the month.
  • Import predefined invoices from an Excel spreadsheet.

Answer : Create a distribution set for all the desired accounts and associate it to all new invoices for this supplier.

Sam, the CFO of XYZ Company, finds that in the expenditure budget of the current year, there are many funds available in the stationery account, whereas there is not much amount left for employee travel expenses. Sam instructs the budget analyst John to transfer 80% of the stationery account to the travel expenses account. While transferring the amount, John encountered errors and approached Sam for a resolution. Sam reviews the situation and clarifies it to John. 

Choose what Sam would have explained to John. 


Options are :

  • There must be some budgetary control enabled on the stationery and travel expenses accounts, and a transfer can be made only after a funds check.
  • There must be some budgetary control enabled on the travel expenses, and a transfer can be made only after a funds check.
  • It is not possible to transfer amount from one account to another unless the absolute amount is known. So John should have calculated 80% of the stationery account and then tried to make the transfer.
  • There must be some budgetary control enabled on the stationery account, and a transfer can be made only after a funds check. (Correct)

Answer : There must be some budgetary control enabled on the stationery account, and a transfer can be made only after a funds check.

The GL accountant tells you that he is running the tests to check the budget functionality. He says that the GL period was closed, but he was able to post the budget journal in a closed period. You check the setup and confirm that the GL period in which he was able to post the budget journal was closed. What explanation do you give? 


Options are :

  • The Require Budget Journal profile option is set at the set of books level.
  • The budget status is frozen.
  • The budget status is current.
  • The budget year is open. (Correct)

Answer : The budget year is open.

How do you know funds are available in the budgetary control summary account template? 


Options are :

  • when the result is less than one, regardless of the balance type
  • when the result is greater than one, regardless of the balance type
  • when the debit balance type has a negative amount, and the credit balance type has a positive amount
  • when the debit balance type has a positive amount, and the credit balance type has a negative balance (Correct)

Answer : when the debit balance type has a positive amount, and the credit balance type has a negative balance

When summary account templates are associated with the check-level advisory of budgetary control funds, what two actions must you perform? (Choose two.)
A. The formula must be identified.
B. The currency must be identified.
C. The amount type must be identified.
D. A debit or credit balance type must be assigned. 


Options are :

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

Answer : C,D

Client A has three legacy systems that contain this financial information: purchase orders, suppliers, receipts, invoices, accruals, and expense reports. The client must have much of this  information loaded into Oracle Accounts Payable daily until they can effectively retire these three systems. Identify the best approach that involves minimal customization. 


Options are :

  • Use Invoice Gateway to bring in invoice information, and Supplier Import for suppliers. The rest requires custom interfaces to be developed.
  • Develop custom interfaces for receipts and accruals, and use the invoice import process to bring in other information. (Correct)
  • Use Invoice Import to bring in invoice and invoice accrual information. The rest requires custom interfaces to be developed
  • Use Invoice Import to bring in all the above information after setting the correct profile options and defining the appropriate AP and non-AP transaction sources. No custom interfaces are needed.

Answer : Develop custom interfaces for receipts and accruals, and use the invoice import process to bring in other information.

What are the five steps for creating MassAllocation journal entries? (Choose five.)
A. posting journal entries
B. reviewing journal entries
C. validating cross-validation rules
D. freezing the accounting flex field 

E. generating MassAllocation journals
F. creating the MassAllocation definition
G. validating the Mass Allocation definition 


Options are :

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

Answer : A,B,E,F,G

Mark, the GL accountant, asks you whether he can use the constant (C) segment type with the parent segment values while defining the Mass Allocation formula. What would be your response? 


Options are :

  • You can do this only if there is a summary account associated with the parent. (Correct)
  • Whether you can do this depends on the formula.
  • Whether you can do this depends on the responsibility.
  • You can customize the workflow and then do this.

Answer : You can do this only if there is a summary account associated with the parent.

Scott, a consultant with a leading consulting firm, is implementing Oracle General Ledger at a client site and is setting up FSG reports to be used by different users. One of the customer requirements is that all users with modify access must not be able to modify privileges on FSG reports. Identify the correct option to meet customer requirements.


Options are :

  • Define security rules and specify what actions can be performed by each user or a group of users.
  • Exclude the assign access function for those definitions from the user's responsibility. (Correct)
  • Enable the security on definition by selecting the enable security check box.
  • Remove the security on definition by deselecting the enable security check box.

Answer : Exclude the assign access function for those definitions from the user's responsibility.

Oracle Payments is the central payment engine for Oracle E-Business Suite Release 12. Identify three modules that integrate with Oracle Payments. (Choose three.)
A. Assets
B. Payables
C. Receivables
D. Cash Management
E. Order Management 


Options are :

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

Answer : B,C,D

Peter, the GL accountant, tells you that he has defined the budget and that the budget amounts have been entered and approved by management. After approval, he wants his assistant accountants to NOT be able to update this budget. What would be your response? 


Options are :

  • The budget status must be current.
  • The Oracle General Ledger budget functionality cannot satisfy this requirement.
  • If the client wants to do this, customization of Oracle Workflow is the only option.
  • Set the budget status to frozen to meet this need. (Correct)

Answer : Set the budget status to frozen to meet this need.

Jack is hired as an Oracle General Ledger implementation consultant for XYZ Corporation. Select two options that are necessary to enable journal approval. (Choose two.)
A. key flexfields
B. Journal Sources form
C. Journal Categories form
D. Journal Encumbrance Types form
E. Journal approval on the Ledger Setup page 


Options are :

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

Answer : B,E

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