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

• Question 61:

  You want to automatically post journal batches imported form subledger sources to prevent accidental edits or deletions of the subledger sources journals, which could cause an out-of-balance situation between your subledgers and general ledger. Which two aspects should you consider when defining your AutoPost Criteria? (Choose two.)

  A. Use the All option for category and accounting period to reduce maintenance and ensure that all imported journals are included in the posting process

  B. Create your AutoPost criteria using minimal sources and categories

  C. Include all of your subledger sources in the AutoPost CriteriA. Divide up criteria sets by subledger source only if you need to schedule different posting times

  D. Schedule your AutoPost Criteria set to run during off-peak hours only

  Correct Answer: AC

  According to Oracle documentation2, when defining your AutoPost Criteria to automatically post journal batches imported from subledger sources, you should consider the following aspects: Use the All option for category and accounting period to reduce maintenance and ensure that all imported journals are included in the posting process, and include all of your subledger sources in the AutoPost Criteria. Divide up criteria sets by subledger source only if you need to schedule different posting times. Therefore, options A and C are correct. Option B is incorrect because you should create your AutoPost criteria using as many sources and categories as needed. Option D is incorrect because you can schedule your AutoPost Criteria set to run at any time, not only during off-peak hours.

• Question 62:

  The Create Accounting program could not determine the debit side of the journal entry.

  Which component of Subledger Accounting determines the debit or credit side of a journal entry?

  A. Journal Balances Rule

  B. Journal Entry Rule Set

  C. Journal Line Rule

  D. Journal Accounting Rule

  E. Account Rule

  Correct Answer: C

  The component of Subledger Accounting that determines the debit or credit side of a journal entry is the Journal Line Rule. A Journal Line Rule defines the conditions for creating a journal line for a subledger transaction and specifies whether the journal line is a debit or credit line. A Journal Line Rule also references other components such as Account Rules, Journal Entry Rule Sets, and Journal Accounting Rules to derive other attributes of a journal entry. A Journal Balances Rule is not a component of Subledger Accounting, but a feature of General Ledger that enables you to define how balances are calculated for reporting purposes. A Journal Entry Rule Set is not a component of Subledger Accounting that determines the debit or credit side of a journal entry, but a group of Journal Line Rules that define how journal entries are created for subledger transactions. A Journal Accounting Rule is not a component of Subledger Accounting that determines the debit or credit side of a journal entry, but a rule that defines how accounting amounts are derived for journal lines based on different date ranges or periods. An Account Rule is not a component of Subledger Accounting that determines the debit or credit side of a journal entry, but a rule that defines how accounting flexfield values are derived for journal lines based on various sources.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure Subledger Accounting 12

• Question 63:

  You operate in a country whose unstable currency makes it unsuitable for managing your day-to-day business. As a consequence, you need to manage your business in a more stable currency while retaining the ability to report in the unstable local currency. What would be your recommendation when defining ledgers?

  A. Run Revaluation as often as you need to the more stable currency and report on the more stable currency's balances

  B. Run Revaluation to translate into Statistical Currency

  C. Create a secondary ledger that uses a different chart of accounts that is denominated in the more stable currency

  D. Use Journal-Level or Subledger-Level Reporting Currencies denominated in the more stable currency

  Correct Answer: D

  The recommendation when defining ledgers for a country whose unstable currency makes it unsuitable for managing your day-to-day business is to use Journal-Level or Subledger-Level Reporting Currencies denominated in the more stable currency. Reporting currencies are representations of a primary or secondary ledger in another currency that share the same chart of accounts, accounting calendar, and accounting method as their related ledger. You can use reporting currencies for online inquiries, reporting, and consolidation. Journal-Level or Subledger-Level Reporting Currencies capture transactional balances at the journal or subledger level and convert them to the reporting currency using daily rates. This allows you to manage your business in a more stable currency while retaining the ability to report in the unstable local currency. You do not need to run Revaluation as often as you need to the more stable currency and report on the more stable currency's balances, as this is a process that adjusts foreign currency balances to reflect current exchange rates, not a way to define ledgers. You do not need to run Revaluation to translate into Statistical Currency, as this is not a supported option. You do not need to create a secondary ledger that uses a different chart of accounts that is denominated in the more stable currency, as this is an optional ledger that is linked to a primary ledger for the purpose of tracking alternative accounting representations of the same transactions.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Consolidate Balances 12

• Question 64:

  While creating a Journal Entry Rule Set, you are not able to use an Account Rule recently created. Which two options explain that? (Choose two.)

  A. The Account Rule's conditions are not defined

  B. The Account Rule's chart of accounts has no account values assigned

  C. The Account Rule is defined with a different chart of accounts form the Journal Entry Rule Set

  D. The Account Rule is using sources assigned to different event classes from that of the associated Journal Entry Rule Set

  Correct Answer: CD

  you are not able to use an Account Rule recently created while creating a Journal Entry Rule Set if the Account Rule is defined with a different chart of accounts from the Journal Entry Rule Set or if the Account Rule is using sources assigned to different event classes from that of the associated Journal Entry Rule Set. Therefore, options C and D are correct. Option A is incorrect because the Account Rule's conditions are not a factor that prevents you from using it while creating a Journal Entry Rule Set. Option B is incorrect because the Account Rule's chart of accounts having no account values assigned is not a factor that prevents you from using it while creating a Journal Entry Rule Set.

• Question 65:

  How do Cross Validation Rules (CVRs) handle existing violations in the Code Combinations Identification (CCID) table?

  A. Nothing has changed. If you have an invalid account combination existing in the table, you must deactivate it to prevent further usage

  B. CVRs are assigned to the end user role; therefore controlling what account code combination individuals can leverage in the General Ledger and the subledgers

  C. CVRs only test new account combinations being inserted into the table. They ignore any invalid account combinations already existing in the table

  D. If CVR determines that an invalid combination exists in the CCID table, it will automatically disable that account code combination.

  Correct Answer: C

  cross-validation rules only test new account combinations being inserted into the table. They ignore any invalid account combinations already existing in the table. Therefore, option C is correct. Option A is incorrect because deactivating the value will not prevent further usage of the invalid account combination. Option B is incorrect because cross-validation rules are not assigned to the end user role. They are defined at the chart of accounts level. Option D is incorrect because cross-validation rules do not automatically disable that account code combination.

• Question 66:

  Your customer is planning to have three balancing segments for generating balance sheets and income statements at cost center segment and program segment levels.

  Which two recommendations would you give your customer? (Choose two.)

  A. Additional intercompany rules will need to be defined for the two additional balancing segments

  B. Every journal where debits do not equal credits across the three balancing segments will result in the system generating extra journal lines to balance the entry

  C. Additional intercompany balancing and clearing options will need to be defined

  D. When entering journals manually, the customer will need to make sure that debits and credits are equal across all balancing segments because the system will not automatically balance the journal

  Correct Answer: AB

  Oracle's recommended approach to performing consolidations when you have three balancing segments for generating balance sheets and income statements at cost center segment and program segment levels is to use additional intercompany rules for the two additional balancing segments and additional intercompany balancing and clearing options. Intercompany rules define how intercompany transactions are accounted for across different balancing segments. Intercompany balancing and clearing options define how intercompany balances are eliminated or cleared during consolidation. Therefore, options A and B are correct. Option C is incorrect because you don't need to run balance transfer programs for this scenario. Option D is incorrect because you don't need to manually balance the journal entries across all balancing segments for this scenario.

  https://docs.oracle.com/cd/E25178_01/fusionapps.1111/e20375/F350915AN26721.htm

• Question 67:

  You are defining intercompany balancing rules that are applied to a specific source and category, such as payable and invoices, or a specific intercompany transaction type, such as Intercompany Sales.

  Which two statements are correct? (Choose two.)

  A. You can create a rule for all sources and categories by selecting the source "Other" and the category "Other".

  B. If you choose to have rules at various levels, then intercompany balancing evaluates the rules in this order: Ledger, Legal Entity, chart of accounts, and primary balancing segment value.

  C. You must define rules for every combination of specific categories and sources. Otherwise, the intercompany balancing will not work.

  D. Set up a chart of accounts rule for every chart of accounts structure you have in order to ensure that Intercompany Balancing will always find a rule to use to generate balancing accounts.

  Correct Answer: AB

  you can define intercompany balancing rules at various levels, such as primary balancing segment, legal entity, ledger, and chart of accounts. The rules are evaluated in the order shown, so the primary balancing segment rule has the highest precedence and the chart of accounts rule has the lowest precedence. Therefore, option B is correct. You can also create a rule for all sources and categories by selecting the source "Other" and the category "Other"1. Therefore, option A is correct. Option C is incorrect because you don't need to define rules for every combination of specific categories and sources. If no rule is found for a specific combination, then the rule for all sources and categories is used1. Option D is incorrect because you don't need to set up a chart of accounts rule for every chart of accounts structure. You can set up a rule for a specific chart of accounts or for all charts of accounts1.

• Question 68:

  Your customer has many eliminating entries to eliminate intercompany balances. The General Ledger does not include a purpose-built Consolidation feature.

  How would you automate the process of creating eliminating entries, assuming your customer is not using Oracle Hyperion Financial Close Management?

  A. Use the General Ledger's Calculation Manager to define an allocation definition to eliminate entries that you can generate every period

  B. Use the spreadsheet template that is accessed from the "Create Journal in Spreadsheet" task and import the spreadsheet with the eliminating entries every period

  C. There is no way to automate this process if the customer is not using Oracle Hyperion Financial Close Management

  D. Create a manual journal that includes the eliminating entries, and then create a copy of the journal batch every period

  Correct Answer: A

  The Calculation Manager is a tool that enables you to create and manage allocation definitions that can be used to automate the process of creating eliminating entries for intercompany balances. You can use the Calculation Manager to define allocation rules, formulas, drivers, and conditions for your eliminating entries. You can also schedule the allocation definitions to run every period or on demand1.

• Question 69:

  On which three occasions are Essbase balances updated? (Choose three.)

  A. every time the tree version is published

  B. every time you run the batch program called "Update Essbase Balances"

  C. every time you open a new period

  D. every time journals are posted to the general ledger

  E. at report run-time

  Correct Answer: BCD

  Essbase balances are updated on three occasions: every time you run the batch program called "Update Essbase Balances", every time you open a new period, and every time journals are posted to the general ledger. The Update Essbase Balances program updates the balances cube with the latest account balances from General Ledger Cloud. You can run this program manually or schedule it to run periodically. When you open a new period, Essbase balances are updated automatically with the opening balances of the new period. When journals are posted to the general ledger, Essbase balances are updated automatically with the posted journal amounts. Essbase balances are not updated every time the tree version is published, as this does not affect account balances. Essbase balances are not updated at report run-time, as this would affect performance and accuracy of reporting. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Use Oracle Transactional Business Intelligence (OTBI) 12

• Question 70:

  Encumbrance accounting is enabled for your ledger. An encumbrance journal dated 3/15/19 was recorded for a purchase order.

  The invoice was entered on 5/5/19, but the invoice accounting date was 4/20/19. The encumbrance journal for liquidating the purchase order encumbrance is dated 5/5/19.

  What is causing this?

  A. The actual accounting date was set up under the encumbrance accounting Default Date Rule

  B. The current transaction accounting date was set up under the encumbrance accounting Default Date Rule

  C. The subledger accounting option is set to system date

  D. The system date was set up under the encumbrance accounting Default Date Rule

  E. The prior related transaction accounting date was set up under the encumbrance accounting Default Date Rule

  Correct Answer: A

  The Default Date Rule determines how the encumbrance accounting date is derived for transactions that do not have an encumbrance accounting date. The actual accounting date option uses the invoice accounting date as the encumbrance accounting date1. In this case, the invoice accounting date was 4/20/19, so the encumbrance journal for liquidating the purchase order encumbrance was dated 4/20/19 as well.