Oracle Oracle Certifications 1Z0-1054-22 Questions & Answers

• Question 111:

  You need to define a chart of accounts that includes an intercompany segment. Your customer plans to use segment value security rules for the Company segment.

  What is Oracle's recommended method to define this chart of accounts?

  A. Define the company segment only and qualify it as both the primary balancing segment and intercompany segment

  B. Define two different charts of accounts

  C. Share the same value set for the company and intercompany segments to reduce chart of accounts maintenance D. Use two different value sets for the company and intercompany segment because segment value security rules are at the value set level

  Correct Answer: D

  Oracle's recommended method to define a chart of accounts that includes an intercompany segment when your customer plans to use segment value security rules for the Company segment is to use two different value sets for the company and intercompany segment because segment value security rules are at the value set level. This allows you to restrict access to specific values within a segment based on the value set assigned to that segment. Therefore, option D is correct. Option A is incorrect because you cannot qualify the same segment as both the primary balancing segment and intercompany segment. Option B is incorrect because you don't need to define two different charts of accounts for this scenario. Option C is incorrect because you don't want to share the same value set for the company and intercompany segments if you plan to use segment value security rules for the Company segment.

• Question 112:

  How can your Accounting Manager expedite journal processing during the time-critical month-end close?

  A. by creating an ad hoc query on journals using Oracle Transactional Business Intelligence (OTBI)

  B. by running the Journals report using Business Intelligence Publisher

  C. by using the Journals region to view journals Requiring Attention, Requiring Approval, and Pending Approval from Other

  D. by using the Close Status monitor to drill down on the close status across ledgers

  Correct Answer: C

  Your Accounting Manager can expedite journal processing during the time-critical month-end close by using the Journals region to view journals Requiring Attention, Requiring Approval, and Pending Approval from Other. The Journals region provides a dashboard view of the journals that need attention or approval from the user or other users. The user can quickly review and approve journals from this region or drill down to the journal details for more information. The user can also filter journals by status, source, category, or period. Creating an ad hoc query on journals using Oracle Transactional Business Intelligence (OTBI) is not an efficient way to expedite journal processing, as this involves creating a custom report that may not provide all the necessary information or actions for journal approval. Running the Journals report using Business Intelligence Publisher is not an efficient way to expedite journal processing, as this involves running a predefined report that may not provide all the necessary information or actions for journal approval. Using the Close Status monitor to drill down on the close status across ledgers is not an efficient way to expedite journal processing, as this involves viewing the overall status of the close process across different ledgers and subledgers, but not the individual journals that need attention or approval. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure Journal Approval 12

• Question 113:

  The general accountant is trying to update the cost center for the Default Suspense Account in the Ledger Options to match the cost center for the Rounding Account.

  The rounding account is showing as 01-110-7699-00; however, 110 is not appearing in the List of Values for the accountant to select in the Suspense Account.

  What is the reason for this?

  A. The general accountant does not have the Financials Application administrator role assigned and, therefore, has view-only privileges on this page

  B. The general accountant has a segment value security rule assigned which restricts access to that cost center

  C. There is a primary balancing segment attached to the legal entity of the primary ledger

  D. A cross validation rule is in place to prevent the resulting combination from being created

  Correct Answer: B

  According to Oracle documentation1, the reason why the general accountant is not able to see the cost center 110 in the List of Values for the Suspense Account is that the general accountant has a segment value security rule assigned which restricts access to that cost center. Segment value security rules enable you to control user access to specific segment values or ranges of values. Therefore, option B is correct. Option A is incorrect because the general accountant does not need the Financials Application administrator role assigned to update the cost center for the Default Suspense Account. Option C is incorrect because there is no primary balancing segment attached to the legal entity of the primary ledger. Option D is incorrect because there is no cross validation rule in place to prevent the resulting combination from being created.

  Reference: https://docs.oracle.com/en/cloud/saas/financials/20c/faiac/implementing-accounting-hub.pdf

• Question 114:

  You have three ledgers that use the same chart of accounts with one intercompany payable and one intercompany receivable account.

  The chart of accounts also has an intercompany segment.

  Each ledger has one legal entity assigned to it and each legal entity is associated with one balancing segment value.

  At what level should you define the default intercompany balancing rule?

  A. Primary balancing segment rule

  B. Chart of Accounts rule

  C. Legal entity level rule

  D. Ledger level rule

  Correct Answer: B

  According to Oracle documentation2, you should define the default intercompany balancing rule at the chart of accounts level when you have three ledgers that use the same chart of accounts with one intercompany payable and one intercompany receivable account. The chart of accounts level rule applies to all ledgers that share the same chart of accounts. Intercompany balancing rules are used to generate the accounts required to balance journals that are out of balance by legal entity or primary balancing segment values. Therefore, option B is correct. Option A is incorrect because the primary balancing segment level rule applies only to journals that are out of balance by primary balancing segment values within a ledger. Option C is incorrect because the legal entity level rule applies only to journals that are out of balance by legal entity within a ledger. Option D is incorrect because the ledger level rule applies only to journals that are out of balance by ledger.

• Question 115:

  Your customer requires physical invoices to be generated in Payables Cloud and Receivables Cloud for the Intercompany payables and receivables transactions. Which two statements are correct with regards to setting this up? (Choose two.)

  A. You only need to assign the Legal Entity and Organization Contact

  B. You can only associate one Intercompany Organization per Legal Entity

  C. You must have implemented Payables Cloud and Receivables Cloud

  D. You must assign the corresponding Receivables and Payables Business Units

  Correct Answer: CD

  To generate physical invoices for intercompany payables and receivables transactions, you must have implemented Payables Cloud and Receivables Cloud. You must also assign the corresponding Receivables and Payables Business Units to the intercompany organizations that participate in the intercompany transactions. You do not need to assign the legal entity and organization contact, as these are optional fields. You can associate multiple intercompany organizations per legal entity, as long as they belong to different business units. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure and Process Intercompany 12

• Question 116:

  You are using Oracle General Ledger (GL), Oracle Payables and Oracle Receivables and would like to prevent the closure of the GL period if the corresponding subledger period is not closed.

  How will you achieve this?

  A. Opt in to the Prevent Period Close option for the offering

  B. Set the relevant option on the Specify Ledger Options page

  C. Nothing, this option is enabled automatically

  D. Set the ORA_GL_INCLD_STRICT_PRD_CLOSE profile option to yes

  Correct Answer: B

  you can prevent the closure of the GL period if the corresponding subledger period is not closed by setting the relevant option on the Specify Ledger Options page. You can select the Prevent General Ledger Period Closure When Open Subledger Periods Exist option to enable this feature. Therefore, option B is correct. Option A is incorrect because there is no such option for the offering. Option C is incorrect because this option is not enabled automatically. Option D is incorrect because there is no such profile option.

• Question 117:

  You have a requirement to have invoices generated for certain Intercompany transactions.

  Where do you enable invoicing?

  A. the transaction batch

  B. the transaction category

  C. the transaction source

  D. the transaction type

  Correct Answer: D

  According to Oracle documentation2, you enable invoicing for certain Intercompany transactions on the transaction type. The transaction type defines the characteristics of an intercompany transaction, such as whether it requires approval, whether it generates invoices, and what accounting rules apply. You can enable invoicing for a transaction type by selecting the Invoicing Options tab and choosing the invoice method, invoice source, invoice batch source, and invoice rule. Therefore, option D is correct. Option A is incorrect because you do not enable invoicing on the transaction batch. Option B is incorrect because you do not enable invoicing on the transaction category. Option C is incorrect because you do not enable invoicing on the transaction source.

• Question 118:

  You have enabled budgetary control and have a control budget set to Advisory control level. For September 2016, your budget for a given account combination is $5,000 USD. In the same month, there is an approved requisition for that

  account of $900 and an approved purchase order for that account of $2,500 USD. There is also a General Ledger adjustment journal entry for that account of $1,600 USD. An approved purchase order line of $400 USD is then cancelled. And

  an invoice is matched to the purchase order for $2,100 USD.

  Which two statements are true? (Choose two.)

  A. No change

  B. Purchase order encumbrance will be released for $2,100 USD

  C. Funds reservation only happens for non-matched invoices, so the system will not reserve funds

  D. As there are cancellations for $400 USD, the system will partially reserve the funds in September 2016 and fully reserve it in October 2016

  E. The system always consumes budget of future periods if the limit for the current period is expired, so October 2016 budget will be considered for reservation

  Correct Answer: BC

  When a purchase order is matched to an invoice, the purchase order encumbrance is released for the matched amount. In this case, the purchase order encumbrance of $2,500 USD will be reduced by $2,100 USD, leaving a balance of $400 USD. The system will not reserve funds for the invoice because it is matched to a purchase order that has already reserved funds. Funds reservation only happens for non-matched invoices or invoices that are matched to a purchase order with no encumbrance. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Process Budget Journals 12

• Question 119:

  You want to specify Intercompany System Options. Which three factors should you consider? (Choose three.)

  A. whether to enforce an enterprise-wide currency or allow intercompany transactions in local currencies

  B. whether to allow receivers to reject intercompany transactions

  C. automatic or manual batch numbering and the minimum transaction amount

  D. automatic or manual batch numbering and the maximum transaction amount

  E. the approvers who will approve intercompany transactions

  Correct Answer: ABE

  The Intercompany System Options page allows you to specify various settings for intercompany transactions, such as whether to enforce an enterprise-wide currency or allow intercompany transactions in local currencies, whether to allow receivers to reject intercompany transactions, and the approvers who will approve intercompany transactions3.

• Question 120:

  You need to define a chart of accounts that includes an intercompany segment. Your customer plans to use segment value security rules for the Company segment.

  What is Oracle's recommended method to define this chart of accounts?

  A. Define the intercompany segment with a default value.

  B. Share the same value set for the company and intercompany segments.

  C. Define the company segment and assign both the primary balancing segment and intercompany segment labels.

  D. Create two different value sets for the company and intercompany segments.

  Correct Answer: B

  According to Oracle documentation3, Oracle's recommended method to define a chart of accounts that includes an intercompany segment when your customer plans to use segment value security rules for the Company segment is to share the same value set for the company and intercompany segments. Sharing the same value set enables you to use segment value security rules for both segments and ensures that the values in both segments are consistent. Therefore, option B is correct. Option A is incorrect because defining the intercompany segment with a default value does not enable segment value security rules for the intercompany segment. Option C is incorrect because defining the company segment and assigning both the primary balancing segment and intercompany segment labels does not enable segment value security rules for the intercompany segment. Option D is incorrect because creating two different value sets for the company and intercompany segments does not ensure that the values in both segments are consistent.