Oracle Oracle Certifications 1Z0-508 Questions & Answers

• Question 91:

  XYZ Company has two departments: Marketing and Finance. The Finance Department has two Functional divisions: receivables and payables. Select the flow for establishing hierarchy.

  A. Hierarchy between functional divisions only

  B. Hierarchy between departments only

  C. Hierarchy between the organization and its departments, and between the departments and their respective functional divisions

  D. hierarchy between the organization and its departments and functional divisions only

  Correct Answer: C

• Question 92:

  To open a period without going into the Setup and Maintenance work area you can maintain the period statuses of ledger from the work area.

  A. General Ledger Journals

  B. Process Monitoring

  C. Manage Revaluations

  D. Account Monitoring

  Correct Answer: A

  Manage Allocations and Period Entries is a manual task in the implementation project. Use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Base formulas

  on multiple criteria.

  You must perform an external procedure outside the Setup and Maintenance work area to complete this task. In order to setup your allocations rules, navigate to the Journals work area and click the Create Allocations Rules task from the

  Tasks pane. This task navigates you to Allocation Manager, a framework that enables you define your allocation rules and formulas using a graphical interface and intuitive step-by-step wizards.

  Oracle: Oracle Fusion Applications Financials Implementation Guide, Manage Allocations and Period Entries

• Question 93:

  The company has four legal entities operating in US CA, US-NY, Canada and the UK. The chart of accounts and the accounting calendar are the same for US CA, US-NY and Canada but NOT for the UK.

  How many ledgers are needed?

  A. Four

  B. Two

  C. One

  D. three

  Correct Answer: B

  Note: Ledger Processing Options If there are legal entities that require any one of the below ledger processing options to be different, then define a separate primary ledger for each legal entity and therefore, a new accounting setup

  Ledger Processing Options are defined at the ledger level and refer to the following options that control how journals and transactions are processed for that ledger:

  First Ever Opened Period

  Number of Future Enterable Periods

  Retained Earnings Account

  Subledger Accounting Options, such as the subledger accounting method, journal description language, entered currency balancing account, cash basis accounting, and the ledger currency balancing account

  Option to track balances using a secondary segment Suspense Account Rounding Differences Tracking Account

  Intracompany Balancing option Journal Approval Journal Entry Tax Journal Reversal Criteria Set Default Period End Rate Type Default Period Average Rate Type Cumulative Translation Adjustment Account Journal Reconciliation Budgetary Control Reserve for Encumbrance Account Average Balance Processing Average Balance Consolidation Net Income Account Transaction Calendar Reference: Oracle Financials Implementation Guide , Overview of Accounting Setups

• Question 94:

  With which two options can Mapping Sets validate input values?

  A. Lookup Types

  B. Value Sets

  C. Accounting Segment

  D. FlexFields

  Correct Answer: AB

  Mapping sets enable you to assign a specific output value to an Accounting Flexfield or Accounting Flexfield segment. You use mapping sets when you set up account derivation rules. Account derivation rules determine the Accounting Flexfield values for subledger journal entries.

  Oracle Projects does not provide any predefined mapping sets. You can optionally define your own mapping sets. When you enter input values for mapping sets, you can select from a list of values based on either an existing lookup set or value set. You also specify the Accounting Flexfield segment and select segment values from a list of values.

  For example, you can select a lookup type of service type for the input and the Accounting Flexfield segment program as the output. You then select the service type and program segment values from lists of values as you define each pair

  Reference: Oracle Projects Implementation Guide, Mapping Sets

• Question 95:

  Which is an INCORRECT Function for Fusion intercompany?

  A. You can use a simple setup in which you define one rule for your chart of accounts.

  B. The rule defined in intercompany canbe used for all intercompany balancing of all ledgers that use the same chart of accounts.

  C. Intercompany enables you to have a more granular set of rules.

  D. You do NOT have the functionality to define rules for specific Journal and category combinations for intercompany transaction types.

  Correct Answer: D

  D (not C): You can have a more granular sset of rules. For example, you can define a different rule for each legal entity and one chart of accounts rule to cover any gaps in your rule definitions. You can gain even more granularity by defining rules for specific journal and/or category combinations or intercompany transaction types.

  Reference: Oracle Fusion Applications Financials Implementation Guide, Defining Intercompany Balancing Rules

• Question 96:

  The Profitability Dashboard providers visibility into a company's performance. Which indicator is via the Profitability Dashboard?

  A. Pipeline

  B. Budget

  C. Return on Equity

  D. Recruitment

  E. Suppliers

  Correct Answer: C

  Profitability Returns

  Return on Equity

  Return on Assets

  Return on Capital

  Margins

  Gross Margin Percent

  Operating Margin Percent

  EBT Margin Percent

  Net Income Margin Percent

  Product Profitability

  Revenue

  Product Gross Profit

  Product Operating Profit

  Customer Profitability

  Revenue

  Customer Gross Margin

  Note:

  *Financial Analytics Profitability Dashboard provides management a picture of key profitability indicators

  *

  Profitability Dashboards Identify most profitable customers, products, and channels, and understand profitability drivers across regions, divisions, and profit centers. Profitability Dashboards provide key datapertaining to profitability, including Profit and Loss Statements, Customer and Product profitability, Margin Analysis, ROA, and ROE

  *

  Profitability Dashboard Pages Overview PandL Margins Revenue Products Customers

• Question 97:

  Why would an end user use BI Composer?

  A. To bundletheentire catalog, specific folders, or multi component objects for archiving

  B. To restrict user access only to the data for which they are authorized

  C. To export report, KPI and analysis prompt values and data as PDF, MHTML, XLS and CVS files.

  D. To set a specific set of dimension values

  E. To leverage a wizard to create, edit orview analyses outside of the Analysis Editor

  Correct Answer: E

  BI Composer is a simple-to-use wizard that allows you to quickly and easily create, edit, or view analyses without the complexities of the "Analysis editor".

  Reference: Oracle Fusion Middleware User's Guide for Oracle Business Intelligence Enterprise Edition, Using BI Composer to Work with Analyses

• Question 98:

  The reconciliation report shows the Entered or transaction amount of the accounting entries booked to the intercompany receivables and payables accounts for .

  A. A pair of provider and receiver legal entities

  B. A legal entity only

  C. A provider only

  D. Business segment only

  Correct Answer: B

  Note:

  *intercompany reconciliation provides you with reports to assist you with reconciling your intercompany receivables and intercompany payables accounts, and to identify any differences.

  *

  Oracle Fusion Financials expedites the reconciliation process with interactive reconciliation reports that compare open receivables and open payables balances to the corresponding balances in Fusion General Ledger. If differences exist, it performs the labor-intensive process of matching each transaction to its respective accounting entry and automatically finds all transactions and accounting entries that contribute to the out-of-balance situation.

  *

  The Accrual Reconciliation Report is used to analyse un-invoiced receipts and to reconcile the balance of the Accounts Payable accrual accounts.

  This report enables you to identify the following problems in receiving, purchasing, inventory, work in process, or accounts payable transactions:

  Reference: Oracle Fusion Applications Financial Control and Reporting, Accounting Transactions, Tax Transactions, and Reporting Guide, Intercompany, Reconciliation: Explained

• Question 99:

  Event classes are transaction types used to group .

  A. Event Types

  B. Process Categories

  C. Journal Rule Sets

  D. Event Models

  E. Event Entities

  Correct Answer: A

  Accounting event classes group accounting event types into distinct, user-oriented groups. They typically represent the actions possible on a particular transaction or transaction type. Use event classes to group similar event types for sharing accounting definitions.

  Reference: Oracle Financial Services Accounting Hub Implementation Guide, Event Classes

• Question 100:

  In Oracle Fusion, you can NOT edit the period after it is set to .

  A. Open

  B. Pending Closed

  C. Open or Enterable

  D. Closed

  Correct Answer: D

  Note: After the Receivables period is set to status Close Pending or Closed the drilldown data is real-time and summary data is static.