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

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

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