Oracle E-Business Suite R12: General Ledger and Payables Fundamentals

Question: 1

Identify three statements that are true about bank and supplier payment. (Choose three.)

A. Primary bank account can be only at the supplier site.

B. Credit and debit memos are examples of payment documents.

C. Supplier's payment requires a bank account with at least one payment document.

D. Use the Banking Details page to create bank accounts for making payments to suppliers.

E. If bank accounts for a supplier site are entered, Payables defaults the supplier's active bank accounts.

Answer: C, D, E

Question: 2

Which four attributes are validated during the Journal Import process?

(Choose four.)

A. period

B. approval level

C. balanced journal

D. cross-validation rule

E. account combination

F. journal sequence number

Answer: A, C, D, E

Question: 3

Identify three ways that an invoice can be submitted for validation. (Choose three.)

A. online by clicking the Validate button in the Invoice Batches window

B. online by clicking the Validate and Account button in the Invoice Batches window

C. in batch by submitting the Payables Invoice Validation program from the Invoice Workbench

D. in batch by submitting the Payables Invoice Validation program from the Submit Request window

E. online by selecting either the Validate check box or the Validate Related Invoices check box in the Invoice Actions window

Answer: A, D, E

Question: 4

During the entry or update of expense reports in the Payables Expense Report window, holds can be applied on an expense report. These holds are carried forward to the invoice created from the expense report in Payables. Which statement is true?

A. Only one user-defined hold and no system hold can be applied on one expense report in the Payables Expense Report window.

B. Any number of user-defined holds and only one system hold can be applied on one expense report in the Payables Expense Report window.

C. Only one user-defined hold and any number of system holds can be applied on one expense report in the Payables Expense Report window.

D. Any number of user-defined holds and any number of system holds can be applied on one expense report in the Payables Expense Report window.

Answer: A

Question: 5

Identify three statements that are true for setting up withholding tax for a supplier and supplier site. (Choose three.)

A. Withholding tax is an account distribution process.

B. The withholding tax option can be overwritten at the invoice level.

C. If a supplier does not allow withholding tax, you cannot allow withholding tax for any of the supplier's sites.

D. Payables defaults the withholding tax group from the supplier site to the invoice and then to invoice distribution.

E. The Payables setup option, allow withholding tax, can make suppliers and supplier sites subject to withholding tax.

Answer: C, D, E

Question: 6

In the accrual process for period-end accruals, which two events generate accounting entries that can be transferred to General Ledger? (Choose two.)

A. processing a receipt

B. entering a purchase order

C. running the period-end accrual program

D. entering invoices and matching them in Payables

Answer: C, D

Question: 7

Select three activities that must be performed to complete the setup of the key accounting flexfield. (Choose three.)

A. Create aliases.

B. Define a value set.

C. Define security rules.

D. Define an account structure.

E. Define valid segment values.

F. Create account combinations.

Answer: B, D, E

Question: 8

Identify the four reports you must run when reconciling invoices and payments to the Accounts Payable Trial Balance Report. (Choose four.)

A. Void Check Register

B. Posted Invoices Report

C. Posted Payments Report

D. Accounts Payable Trial Balance - prior period

E. Payables Transfer to General Ledger Reports

F. Accounts Payable Trial Balance - current period

G. Account Analysis - (132 Char) / Account Analysis - (180 Char).

Answer: B, C, D, F

Question: 9

You have a new employee in the buying department. She set up a number of item numbers and chose not to flag them for invoicing. Several transactions have been completed in Order Management by using these new item numbers. What effect would this event have on the Receivables closing process?

A. The transactions would be flagged as exceptions.

B. The transactions would be deleted from the system.

C. The transactions would prevent Receivables from being closed.

D. The transactions would prevent Order Management from being closed.

Answer: A

Question: 10

Identify what three considerations must be executed before creating a report by using the financial statement generator. (Choose three.)

A. Download Web ADI.

B. Create the database link.

C. Determine the data to be reported.

D. Define attributes for rows and columns.

E. Decide which rows and columns will make up the report.

Answer: C, D, E

Question: 11

Before you can pay or create accounting entries for an invoice, the Invoice Validation process must validate the invoice. After this process is run, there is data that cannot be updated, modified, or changed. Choose three data fields that cannot be updated, modified, or changed after the Invoice Validation process has run and this invoice has a prepayment applied to it. (Choose three.)

A. invoice date

B. supplier site

C. trading partner

D. supplier number

E. invoice description

Answer: A, C, D

Question: 12

XYZ Company is implementing Oracle at its headquarters in the US. It has operations in Australia, the UK, and China. The Australian and the US operations can share the same chart of accounts segments, and the UK and China operations can share the same chart of accounts segments. All operations share the same calendar or period-type combination, but not the currency. Each country requires that a separate accounting data be maintained. Identify the number of legal entities to be created and the number of accounting setups.

A. Create one legal entity and four accounting setups.

B. Create four legal entities and one accounting setup.

C. Create two legal entities and four accounting setups.

D. Create four legal entities and four accounting setups.

Answer: D

Question: 13

Creating multiple scheduled payments allows you to issue partial payment of an invoice or to pay an invoice over multiple dates. Identify the one invoice field that is NOT used on the Scheduled Payments tabbed page.

A. due date

B. bank account

C. gross amount

D. trading partner

E. payment method

F. system hold reason

Answer: D

Question: 14

The Quick Payment method is best described as the method of _____.

A. creating a payment without an invoice

B. manually writing a check outside of Payables

C. recording a payment made outside of Payables

D. creating and printing a computer-generated payment to pay a supplier for one or more invoices

Answer: D

Question: 15

Scott, a consultant with a leading consulting firm, is implementing Oracle General Ledger at a client site and is setting up FSG reports to be used by different users. One of the customer requirements is that all users with modify access must not be able to modify privileges on FSG reports. Identify the correct option to meet customer requirements.

A. Enable the security on definition by selecting the enable security check box.

B. Remove the security on definition by deselecting the enable security check box.

C. Exclude the assign access function for those definitions from the user's responsibility.

D. Define security rules and specify what actions can be performed by each user or a group of users.

E. Set up profile options against each user and specify what actions can be performed by each user or a group of users.

Answer: C

Question: 16

Company K has identified these business requirements for their Payables operations:

1. All invoices must be part of a batch.

2. Discounts must be taken in all situations.

3. Invoices must be numbered by the system.

4. Accounting entries must be created for all invoice types.

5. All credit memos above a certain dollar amount must be approved before entry.

6. Four-way matching is enforced.

Select the profile option to be configured that will satisfy the above requirements.

A. AP: Invoice Match

B. AP: Use Invoice Batch Controls

C. AP: Enable Invoice Autonumbering

D. AP: AP Discounts Interface Start Date

E. AP: Use Invoice Accounting For Credit Memos

Answer: B

Question: 17

Identify three statements that are true for supplier's bank details. (Choose three.)

A. Suppliers maintain their bank details.

B. Bank details are required only for manual check payments.

C. Bank accounts can be added at any time for a supplier or supplier site.

D. Payables uses bank account information to generate an electronic payment for a supplier.

E. Updating bank accounts for a supplier will not affect bank accounts for existing supplier sites.

Answer: C, D, E

Question: 18

Select two valid statements that apply to chart of accounts structures for a global company. (Choose two.)

A. A segment of different chart of accounts structures can share the same value set.

B. A global chart of accounts is possible only if all sets of books for companies worldwide use the same chart of accounts structure.

C. If the same value set is used for two or more chart of accounts structures, the same security rules for that segment cannot be assigned to multiple structures.

D. It is possible to have multiple companies in the same set of books provided that they share the same chart of accounts structure, accounting calendar, and reporting currency.

Answer: A, B

Question: 19

You initiated a pay run by entering criteria for invoices that you want to pay. In which order would you perform these steps to complete the pay run process?

1. Review proposed payments.

2. Print payments.

3. Create payment instructions.

4. Select and build proposed payments.

5. Mark payments as complete.

A. 4, 2, 1, 5, 3

B. 4, 1, 3, 2, 5

C. 2, 4, 1, 3, 5

D. 5, 4, 1, 2, 3

Answer: B

Question: 20

Jack, the CFO of ABC Company, wants to prepare the annual capital expenditure budget for the current year where the company plans to grow in the last quarter of the year. The capital expenditure budget is subdivided in multiple items, and the corporate calendar used at ABC Company has thirteen periods. Identify the three budget rules that Jack must use to minimize the effort. (Choose three.)

A. Use the divide evenly rule with the 4/4/4 spread.

B. Use the divide evenly rule with the 4/5/4 spread.

C. Use the divide evenly rule with the 5/4/4 spread.

D. Use the divide evenly rule with the 4/4/5 spread.

Answer: B, C, D

Question: 21

Which two statements are true about defining payment documents? (Choose two.)

A. Checks and electronic payments are examples of payment documents.

B. Credit and debit memos and checks are examples of payment documents.

C. You can create only one payment document for each internal bank account.

D. You must create at least one payment document before you can use a bank account to create invoice payments.

E. Use the Payment Documents window to define payment documents for internal, customer, and supplier bank accounts.

Answer: A, D

Question: 22

You are on a phased-approach implementation. Payables and Purchasing are being implemented in Phase One, and Assets in Phase Two. Identify three choices in the process for the best way to discuss supplier naming conventions and supplier site naming conventions. (Choose three.)

A. Agree upon naming conventions.

B. Gather only the Payables and Purchasing personnel.

C. Document conventions and obtain the sign-off by authorized approvers later.

D. Document conventions and obtain the sign-off by authorized approvers immediately.

E. Gather all interested parties for requirements-including Assets, Payables and Purchasing.

Answer: A, D, E

Question: 23

Identify the setup options that would allow the accounts payable supervisor to default an active expense report template.

A. System Options

B. Financial Options

C. Code Set Options

D. Payables Options

E. Expense Report Payables Options

Answer: E

Question: 24

Company Z has implemented Payables, General Ledger, and Project Accounting. Both Transfer to GL and Interface Supplier Costs are processed each night. A descriptive flexfield called SAI Value has been defined on the invoice header to capture additional information, and is used in conjunction with the accounting on the invoices. This is not a required field. There is a corresponding user-defined hold called SAI Hold, which is manually applied whenever an invoice is created and the SAI Value has not been provided to Company Z by the supplier. During weekly reviews of accounting, users have found that invoice transactions that are on SAI Hold are displayed in Project Accounting but not in General Ledger. Select what is causing this issue.

A. Invoices have not been validated.

B. The current General Ledger period is closed.

C. The current Project Accounting period is closed.

D. The Payables Accounting process has not been run.

E. Accounting is not being created by the user-defined hold.

F. The descriptive flexfield field must be a required field, and not an optional field.

Answer: E

Question: 25

Identify two events that take place when an invoice is matched to a purchase order. (Choose two.)

A. Tolerances are enforced.

B. The quantity billed is updated.

C. The quantity received is updated.

D. The purchase order accounting information is copied to the invoice.

Answer: B, D

Question: 26

Which three activities would use summary accounts? (Choose three.)

A. creating a monthly recurring standard journal entry to amortize goodwill

B. allocating the total monthly costs of the Information Services department to other departments

C. estimating a sales commission accrual based on the total of all product sales for each division

D. formulating a budget for employee benefits in each company based on the total of all budgeted employee salaries

Answer: B, C, D

Question: 27

Peter, the GL accountant, tells you that he has defined the budget and that the budget amounts have been entered and approved by management. After approval, he wants his assistant accountants to NOT be able to update this budget. What would be your response?

A. The budget status must be current.

B. Set the budget status to frozen to meet this need.

C. The Oracle General Ledger budget functionality cannot satisfy this requirement.

D. If the client wants to do this, customization of Oracle Workflow is the only option.

Answer: B

Question: 28

Where do you define the attribute that determines whether you will accrue expense items at receipt or at period end?

A. System Options

B. Financial Options

C. Payables Options

D. Purchasing Options

E. Payables System Setup Options

Answer: D

Question: 29

Select the four activities that are NOT part of the Payables closing process. (Choose four.)

A. confirm payment batches

B. close the Payables period

C. close the General Ledger period

D. process period-end receipt accruals

E. review the Uninvoiced Receipts Report

F. process the remaining Inventory transactions

Answer: C, D, E, F

Question: 30

Purchasing has numerous activities that are performed as a key part of the Procure-to-Pay process. Select three activities that are performed in the Purchasing module that will integrate into Payables. (Choose three.)

A. canceling invoices

B. performing receiving

C. scheduling payments

D. creating purchase orders

E. creating purchase order detailed accounting information

Answer: B, D, E

Question: 31

ABC Systems is headquartered in Toronto with a branch in New Delhi. The Toronto office uses a weekly calendar, whereas the New Delhi office uses a monthly calendar. The GL journals of New Delhi must be reflected in Toronto's books. What conversion method would you use?

A. Use journal-level secondary ledger conversion.

B. Use subledger-level secondary ledger conversion.

C. Use adjustment-level secondary ledger conversion.

D. Use both subledger-level and adjustment-level secondary ledger conversion.

Answer: A

Question: 32

XYZ Corporation has five segments in its accounting flexfield. For a special profit-and-loss report, they want to sort by the fourth segment, which is "product." Select the element that would meet this need.

A. row set

B. row order

C. content set

D. column set

Answer: B

Question: 33

What are the three prerequisites for interfacing Payables invoice lines with Assets? (Choose three.)

A. The invoice has no holds.

B. The invoice must be posted to General Ledger.

C. The invoice has been transferred to General Ledger.

D. The invoice distribution has "Track as Asset" selected.

E. The distribution account is an Asset Clearing or CIP account.

Answer: C, D, E

Question: 34

There are numerous Oracle modules that are integrated into or out of the Payables module. Identify four Oracle modules that are directly integrated with Oracle Payables. (Choose four.)

A. Loans

B. Purchasing

C. Bill of Materials

D. E-Business Tax

E. Order Management

F. Cash Management

G. System Administrator

Answer: A, B, D, F

Question: 35

Which is the final step in processing a payment batch?

A. Cancel the payment batch.

B. Confirm the payment batch.

C. Validate the payment batch.

D. Run the create accounting process.

E. Transfer the batch to General Ledger.

Answer: B