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

• Question 81:

  You have exported data from your budgeting application into a .csv file.

  What should you use to load that data into General Ledger?

  A. The budget journal spreadsheet

  B. Enterprise Resource Budget Integrator

  C. File Based Data Import

  D. Application Developer Framework Desktop Integrator

  Correct Answer: D

  According to Oracle documentation3, you should use Application Developer Framework Desktop Integrator (ADFdi) to load data from your budgeting application into a .csv file into General Ledger. ADFdi enables you to use Excel spreadsheets to load data into General Ledger using web services. You can use ADFdi to create budget journals or budget balances from your .csv file. Therefore, option D is correct. Option A is incorrect because the budget journal spreadsheet is not a tool to load data into General Ledger. Option B is incorrect because Enterprise Resource Budget Integrator is not a tool to load data into General Ledger. Option C is incorrect because File Based Data Import is not a tool to load data into General Ledger.

  Reference: https://docs.oracle.com/en/cloud/saas/financials/20b/faigl/budgets.html#FAIGL817044

• Question 82:

  Which two statements are true regarding how Intercompany Balancing Rule are defined? (Choose two.)

  A. All ledgers engaged in an intercompany transaction must share the same chart of accounts in order to define balancing rules.

  B. You can only define balancing rules for different journals' sources. You cannot define balancing rules for different journal categories.

  C. You can define different balancing rules for different combinations of journal sources, journal categories, and transaction types.

  D. You can define different rules for different charts of accounts, ledgers, legal entities, and primary balancing segment values.ys

  Correct Answer: CD

• Question 83:

  Which three objectives must be considered when designing the chart of accounts? (Choose three.)

  A. Anticipate growth and maintenance needs as organizational changes occur

  B. Effectively manage an organization's financial business

  C. Try to use all 30 segments and 25 characters per segment because you cannot change it later

  D. Consider implementing a single, global chart of accounts

  E. Limit the number of segments to those you need today to reduce data entry

  Correct Answer: ABD

  These are some of the objectives that must be considered when designing the chart of accounts, according to Oracle documentation1. Anticipating growth and maintenance needs as organizational changes occur helps to design a flexible and scalable chart of accounts that can accommodate future business requirements. Effectively managing an organization's financial business requires a chart of accounts that can provide accurate and timely financial reporting and analysis. Considering implementing a single, global chart of accounts can simplify consolidation and standardization across multiple ledgers and currencies.

• Question 84:

  There is a business requirement for a subsidiary company to report to the parent company on a monthly basis.

  Given that:

  The subsidiary is in another country from the parent.

  There is no requirement to have daily balances.

  The objective is to minimize the data stored in the reporting currency.

  Which data conversion level should you recommend?

  A. Subledger level

  B. Journal Level

  C. Adjustment only level

  D. Balances Level

  E. Spreadsheet level

  Correct Answer: D

  According to Oracle documentation, when there is a business requirement for a subsidiary company to report to the parent company on a monthly basis with different currencies and no requirement to have daily balances, you should recommend Balance level as the data conversion level. A Balance level data conversion level enables you to translate balances from one currency to another at month-end or quarter-end for reporting purposes. A Balance level data conversion level minimizes the data stored in the reporting currency because it does not store daily balances or journal details. Therefore, option D is correct. Option A is incorrect because a Subledger level data conversion level stores daily balances and journal details in the reporting currency. Option B is incorrect because a Journal Level data conversion level stores journal details in the reporting currency. Option C is incorrect because an Adjustment only level data conversion level does not translate balances from one currency to another. Option E is incorrect because a Spreadsheet level data conversion level does not exist.

• Question 85:

  You defined a tree or hierarchy, but you are unable to set its status to Active. What is the reason?

  A. Two tree versions were not defined

  B. An Audit process needs to be successfully performed before a tree version can be set to Active

  C. Accounting Configuration was not submitted

  D. Chart of accounts was not deployed

  Correct Answer: B

  https://docs.oracle.com/cd/E51367_01/financialsop_gs/OAACT/F1005378AN156C9.htm The reason why you are unable to set a tree or hierarchy status to Active is that an Audit process needs to be successfully performed before a tree version can be set to Active. The Audit process validates the tree structure and checks for errors or inconsistencies. If the Audit process fails, you need to correct the errors and run the Audit process again until it succeeds. Then you can set the tree version status to Active. The number of tree versions does not affect the ability to set a tree status to Active, as long as there is at least one tree version defined. Accounting Configuration does not need to be submitted before setting a tree status to Active, as this is a separate task that involves submitting all accounting configuration changes for deployment. Chart of accounts does not need to be deployed before setting a tree status to Active, as this is a separate task that involves deploying flexfield metadata changes for validation and activation. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Chart of Accounts 12

• Question 86:

  Your ledger currency is USD. At month end you have a balance on the Accounts Payable Liability Account of 100,000 Euros which is equivalent to USD 136,550. This balance needs to be revalued.

  The month end exchange rate for revaluation is 1 Euro = 1.3755 USD.

  What two statements are true for the resulting revaluation run? (Choose two.)

  A. The original journal entry in Euros is updated.

  B. There is no unrealized exchange gain or loss calculated.

  C. The original journal entry in Euros remains the same.

  D. You have an unrealized exchange gain recorded.

  E. You have an unrealized exchange loss recorded.

  Correct Answer: DE

  The two true statements for the resulting revaluation run are that you have an unrealized exchange gain recorded and you have an unrealized exchange loss recorded. Revaluation is a process that adjusts foreign currency balances to reflect current exchange rates at period end. Revaluation creates journal entries to record unrealized exchange gains or losses on foreign currency balances based on revaluation rates defined for each currency. In this scenario, you have a balance on the Accounts Payable Liability Account of 100,000 Euros which is equivalent to USD 136,550 at month end. The month end exchange rate for revaluation is 1 Euro = 1.3755 USD. Therefore, after revaluation, your balance on the Accounts Payable Liability Account will be USD 137,550 (100,000 x 1.3755). This means you have an unrealized exchange gain of USD 1,000 (137,550-136,550) on your Accounts Payable Liability Account because your liability in foreign currency has decreased in terms of your ledger currency due to exchange rate fluctuations. Revaluation will create a journal entry to debit your Accounts Payable Liability Account by USD 1,000 and credit your Unrealized Exchange Gain Account by USD 1,000 to record this gain. The original journal entry in Euros is not updated by revaluation, as revaluation only creates new journal entries to adjust foreign currency balances in terms of ledger currency based on revaluation rates. There is no unrealized exchange gain or loss calculated by revaluation, as revaluation does calculate unrealized exchange gains or losses on foreign currency balances based on revaluation rates.

• Question 87:

  Your enterprise structure has one ledger and two business units. Business unit one wants to enable budgetary control for Requisitioning only on Procure-to-Pay Business Functions and business unit two wants to enable budgetary control for Payable Invoicing only in Procure-to-Pay Business Functions. Which two statements are correct? (Choose two.)

  A. While defining control for business unit two, enable control at Requisitioning and define the exceptions to only include invoicing

  B. While defining control for business unit one, enable control at purchasing and define the exceptions to only include requisitioning

  C. Define budgetary control at ledger level with Budgetary Control Exceptions for each business unit

  D. While defining control for business unit one, disable control for Purchasing, Payable Invoicing, and Receiving

  E. Define budgetary control at ledger level and only encumbrance control at the business units

  F. Define control for business unit two to disable control for Requisitioning, Purchasing, and Receiving

  Correct Answer: BF

  To enable budgetary control for Requisitioning only on Procure-to-Pay Business Functions for business unit one, you need to enable control at purchasing and define the exceptions to only include requisitioning. This will allow budgetary control to check funds availability only when requisitions are created or modified. To enable budgetary control for Payable Invoicing only in Procure-to-Pay Business Functions for business unit two, you need to define control to disable control for Requisitioning, Purchasing, and Receiving. This will allow budgetary control to check funds availability only when invoices are created or modified. You do not need to define budgetary control at ledger level with Budgetary Control Exceptions for each business unit, as this is not a supported option. You do not need to enable control at Requisitioning and define the exceptions to only include invoicing for business unit two, as this will not achieve the desired result. You do not need to disable control for Purchasing, Payable Invoicing, and Receiving for business unit one, as this will not achieve the desired result. You do not need to define budgetary control at ledger level and only encumbrance control at the business units, as this is not a supported option. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure Budgetary Control 12

• Question 88:

  Budgetary control for accounts 5020 and 5021 has a budget of $90,000USD each for the year 2012. The accounts also have balances on obligation of $10,000 USD for each and an expenditure of $20,000 USD for each. A Fund of $50,000 USD is available for account 5010 only. You have run the Encumbrance Year End Carry Forward process for obligation from the last period of the year 2012 to the first period of year 2013. Which statement is true?

  A. If you have included 5020 and 5021 in the encumbrance rule, then budget balances $90,000 USD, obligation $10,000 USD, and expenditure $20,000 USD, and the funds available $50,000 USD will be carried forward

  B. The Encumbrance Year End Carry Forward process will run for all the accounts to carry forward the general ledger balances

  C. If you have included 5020 and 5021 in the encumbrance rule, then obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

  D. If you have included 5020 and 5021 in the encumbrance rule, the budget balances $90,000 USD, obligation $10,000 USD and expenditure $20,000 USD only will be carried forward.

  E. If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward

  Correct Answer: E

  If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward. This is based on the Oracle documentation that states:

  You can carry forward year-end encumbrances into the following year. You can also carry forward an equivalent budget amount or funds available. When you carry forward year-end encumbrances, the Carry Forward rule you specify

  determines how General Ledger calculates the amount to be carried forward. You can choose one of the following Carry Forward rules:

  Encumbrances Only: General Ledger calculates the year-to-date encumbrance balance as of the end of the year and carries that balance forward into the beginning balance of the first period of the next fiscal year. Encumbrances and

  Encumbered Budget: General Ledger calculates the year-to-date encumbrance balance as of the end of the year and carries forward that balance, plus an equivalent budget amount, into the beginning balance of the first period of the next

  fiscal year.

  Funds Available: General Ledger calculates the funds available as the year-to-date budget balance less year-to-date actual and encumbrance balances. General Ledger then carries forward that amount into the beginning balance of the first

  period of the next fiscal year1.

  In this case, if you have used the Encumbrances Only rule, then only the obligation of $10,000 USD for each account will be carried forward. The budget balances, expenditure balances, and funds available will not be carried forward. The

  other options are incorrect because they do not match any of the Carry Forward rules described in the documentation.

• Question 89:

  Your company has two legal entities in the US (Balancing Segment Values [BSV] 101 and 102), one legal entity in France (BSV 401), and one legal entity in the UK (BSV 402).

  Both US legal entities share the same ledger, whereas the UK and France have their own ledgers.

  Assuming intercompany transactions are not being entered, what is the minimal action you can take and still configure the ledgers correctly?

  A. You should assign a balancing segment value to identify each legal entity in the US Ledger and assign the balancing segment values to the ledger in the UK and France.

  B. You should assign a balancing segment value to identify each legal entity in the US ledger.

  C. You should assign a balancing segment value to identify each legal entity in each ledger.

  D. You should assign the balancing segment value to the ledger in the US and assign a balancing segment value to identify each legal entity in the UK and France ledgers.

  Correct Answer: A

  According to Oracle documentation1, the minimal action you can take and still configure the ledgers correctly when your company has two legal entities in the US (Balancing Segment Values [BSV] 101 and 102), one legal entity in France (BSV 401), and one legal entity in the UK (BSV 402) is to assign a balancing segment value to identify each legal entity in the US Ledger and assign the balancing segment values to the ledger in the UK and France. A balancing segment value is a segment value that represents a legal entity or a business unit that must balance independently. Therefore, option A is correct. Option B is incorrect because you should also assign the balancing segment values to the ledger in the UK and France. Option C is incorrect because you should also assign the balancing segment values to the ledger in the UK and France. Option D is incorrect because you should also assign a balancing segment value to identify each legal entity in the US ledger.

• Question 90:

  Journal Description Rules are assigned to Subledger Journal Entry Rule Sets.

  What are the other three subcomponents of a Subledger Journal Entry Rule Set? (Choose three.)

  A. Accounting Date

  B. Chart of Accounts

  C. Journal Line Rules

  D. Account Rules

  E. Supporting References

  Correct Answer: CDE

  According to Oracle documentation3, the subcomponents of a Subledger Journal Entry Rule Set are Journal Line Rules, Account Rules, and Supporting References. A Subledger Journal Entry Rule Set defines how subledger journal entries are created for each event class and event type. A Journal Line Rule defines how subledger journal lines are created for each event class and event type. An Account Rule defines how accounts are derived for each journal line. A Supporting Reference stores additional information for journal lines. Therefore, options C, D, and E are correct. Option A is incorrect because Accounting Date is not a subcomponent of a Subledger Journal Entry Rule Set. Option B is incorrect because Chart of Accounts is not a subcomponent of a Subledger Journal Entry Rule Set.