Oracle Oracle Financials Cloud 1Z0-1054-22 Questions & Answers

• Question 1:

  Which subject area has been enhanced to allow you to drill down from OTBI General Ledger Reports to a General Ledger journal?

  A. General Ledger-Journal Transaction Balances Real Time

  B. General Ledger -Journal Balances Real Time

  C. General Ledger -Summary Journals Real Time

  D. General Ledger -Journals Real Time

  Correct Answer: D

  you can use the General Ledger-Journals Real Time subject area to drill down from OTBI General Ledger Reports to a General Ledger journal. This subject area provides information about journal entries and journal batches. Therefore, option D is correct. Option A is incorrect because the General Ledger-Journal Transaction Balances Real Time subject area provides information about journal transaction balances by ledger, chart of accounts, and currency. Option B is incorrect because the General Ledger-Journal Balances Real Time subject area provides information about journal balances by ledger, chart of accounts, and currency. Option C is incorrect because the General Ledger-Summary Journals Real Time subject area provides information about summary journals by ledger, chart of accounts, and currency.

  https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/r13-2018-financials-wn.htm#F4376

• Question 2:

  You need to define multiple allocation rules as efficiency as possible. Which three components can be reused across allocation rules? (Choose three.)

  A. Point of View (POV)

  B. Formulas

  C. Run Time Prompts (RTP)

  D. RuleSets

  Correct Answer: BCD

  "Formulas are reusable components that you can use across allocation rules." Therefore, formulas can be reused across allocation rules. Similarly, run time prompts (RTP) are reusable components that enable you to enter values at run time for segments or variables in your allocation rules. RuleSets are also reusable components that enable you to group multiple allocation rules or RuleSets together and run them sequentially. The only component that cannot be reused across allocation rules is point of view (POV), which is used to specify the source and target of an allocation rule.

• Question 3:

  You are creating financial statements and want to have charts, such as a bar graph, automatically inserted to improve the understanding financial results. How would you achieve this?

  A. Use Smart View, which is an Excel Add-on

  B. Use Account Inspector that automatically creates graphs on financial balances

  C. When viewing the report, download to Excel and use Excel's Charting features to create your bar graph

  D. When designing your financial statement using Financial Report (FR), embed a chart into your report

  Correct Answer: D

  Financial Report (FR) is a tool that allows you to create financial statements and reports using data from General Ledger Cloud. FR supports embedding charts into your reports to enhance the presentation and understanding of financial results. You can choose from different types of charts, such as bar graphs, pie charts, line graphs, etc., and customize their appearance and properties. You can also link the charts to the report data and drill down to the underlying details.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Create Financial Reports 12

• Question 4:

  You set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. Which two actions should you now perform? (Choose two.)

  A. Ensure that the Accounting Calendar and Currency are the same as the Primary Ledger

  B. Define Journal Conversion Rules that include subledgers in order to transfer subledger transactions

  C. Define Journal Conversion Rules that exclude subledgers

  D. Assign a Subledger Accounting Method to the secondary ledger

  E. Define Supporting References with balances

  Correct Answer: BD

  you need to define journal conversion rules that include subledgers in order to transfer subledger transactions when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. Journal conversion rules define how journal entries are converted from one ledger to another ledger. Therefore, option B is correct. You also need to assign a Subledger Accounting Method to the secondary ledger when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. A Subledger Accounting Method defines how accounting entries are generated for subledger transactions. Therefore, option D is correct. Option A is incorrect because you don't need to ensure that the Accounting Calendar and Currency are the same as the Primary Ledger when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. You can have different Accounting Calendar and Currency for your secondary ledger. Option C is incorrect because you don't need to define journal conversion rules that exclude subledgers when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. You need to include subledgers in your journal conversion rules. Option E is incorrect because you don't need to define Supporting References with balances when you set up a secondary ledger using the Manage Secondary Ledger task and selected a data conversion level of subledger. Supporting References are used to store additional information for journal lines.

• Question 5:

  You need to set up a calendar for fiscal year Apr-XX to March-YY where YY is the following year, and you would like the periods to be named according to the year they fall in.

  What Calendar format should you choose?

  A. Calendar

  B. Fiscal

  C. Year

  D. Period

  Correct Answer: B

  According to Oracle documentation, when you need to set up a calendar for fiscal year Apr-XX to March-YY where YY is the following year, and you would like the periods to be named according to the year they fall in, you should choose Fiscal as the Calendar format. A Fiscal calendar format enables you to define periods based on fiscal years that span two calendar years. Therefore, option B is correct. Option A is incorrect because a Calendar format defines periods based on calendar years that start on January 1st and end on December 31st. Option C is incorrect because a Year calendar format defines periods based on calendar years that start on any month other than January and end on any month other than December. Option D is incorrect because a Period calendar format defines periods based on any number of days or weeks.

• Question 6:

  Your customer wants to create fully balanced balance sheets for the Company, Line of Business, and Product segments for both financial and management reporting.

  What is Oracle's recommended method for doing this?

  A. Create a segment that acts as the primary balancing segment and create values that represent a concatenation of all three business dimensions

  B. Use account hierarchies to create different hierarchies for different purposes and use those hierarchies for reporting

  C. Create three segments for the Company, Line of Business, and Product segments and qualify them as primary balancing segment, second, and third balancing segments, respectively

  D. Create two segments where the first segment represents the concatenation of Company and Line of Business, and then enable secondary tracking for the Product segment

  Correct Answer: C

  This is the recommended method for creating fully balanced balance sheets for multiple segments. By qualifying the segments as balancing segments, you can ensure that each segment value has a balanced set of asset, liability, and equity accounts. You can also use segment value security rules to restrict access to segment values based on user roles. This method also allows you to use different currencies for each segment value and perform currency translation at the segment level. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure Enterprise and Financial Reporting Structures-Define Chart of Accounts Segments 12

• Question 7:

  You want to be notified of anomalies in certain account balances in real time. What is the most efficient way to do this?

  A. Create an Account Group using Account Monitor

  B. Use Account Inspector

  C. Open a Smart View file saved on your desktop

  D. Perform an account analysis online

  Correct Answer: A

  The most efficient way to be notified of anomalies in certain account balances in real time is to create an Account Group using Account Monitor. Account Monitor is a tool that allows you to monitor key account balances in real time and compare them to predefined thresholds. You can set up alerts to notify you when an account balance exceeds or falls below a certain percentage or amount. You can also drill down to the underlying transactions and subledger details to investigate the cause of the account anomalies. Using Account Inspector is not an efficient way to be notified of anomalies in certain account balances in real time, as this involves selecting an account or an account group and viewing its balance and components manually. Opening a Smart View file saved

• Question 8:

  What are the two benefits of having the Essbase cube embedded in General Ledger Cloud? (Choose two.)

  A. Posting performance is much faster

  B. Integrating with third-party systems is easier because the Essbase cube provides chart of accounts mapping rules

  C. General ledger balances are multidimensional, allowing you to perform robust reporting and analysis

  D. You can access real-time results for reporting and analysis because every time a transaction is posted in General Ledger, multidimensional balances are also updated simultaneously

  E. You no longer need to create and maintain hierarchies because the Essbase cubes are created when you create your chart of accounts

  Correct Answer: CD

  The benefits of having the Essbase cube embedded in General Ledger Cloud are that general ledger balances are multidimensional, allowing you to perform robust reporting and analysis using different dimensions and hierarchies, and that you can access real-time results for reporting and analysis because every time a transaction is posted in General Ledger, multidimensional balances are also updated simultaneously. Posting performance is not faster because of the Essbase cube, as posting still involves updating the relational tables. Integrating with third-party systems is not easier because of the Essbase cube, as this involves using web services or file-based data import. You still need to create and maintain hierarchies because the Essbase cubes are not created when you create your chart of accounts, but when you complete the accounting configuration. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Use Oracle Transactional Business Intelligence (OTBI) 12

• Question 9:

  You have set up a supporting reference with balances to capture revenue by account manager.

  Which option should you use to view the supporting reference balances?

  A. an Account Group

  B. an OTBI analysis

  C. a SmartView analysis

  D. General Ledger inquiries and reports

  Correct Answer: D

  According to Oracle documentation2, the option you should use to view the supporting reference balances is General Ledger inquiries and reports. Supporting reference balances are maintained at the account combination level for each supporting reference that you define. You can view these balances using General Ledger inquiries and reports, such as Account Inspector, Account Monitor, Smart View, Financial Reporting Studio, and OTBI. Therefore, option D is correct. Option A is incorrect because an Account Group is not an option to view the supporting reference balances. Option B is incorrect because an OTBI analysis is not an option to view the supporting reference balances. Option C is incorrect because a SmartView analysis is not an option to view the supporting reference balances.

• Question 10:

  A subsidiary company, in a highly regulated country, where there is a legal requirement to produce fiscal reports under local GAAP, is about to configure their General Ledger.

  Given the following:

  1.

  Subledgers transferring to general ledger must use the local currency.

  2.

  There is a requirement to report to the parent company (not local currency) using International Financial Reporting Standards (IFRS).

  Which two ledger types should be configured to address this reporting requirement? (Choose two.)

  A. a primary ledger with the local accounting convention

  B. a reporting currency with the IFRS accounting convention

  C. a primary ledger with the IFRS accounting convention

  D. a secondary ledger with the IFRS accounting convention

  E. a reporting currency with the local accounting convention

  Correct Answer: AD

  According to Oracle documentation4, when you have a subsidiary company in a highly regulated country where there is a legal requirement to produce fiscal reports under local GAAP, you should configure the ledgers using these two ledger types: a primary ledger with the local accounting convention, and a secondary ledger with the IFRS accounting convention. A primary ledger represents your main accounting books that comply with local GAAP. A secondary ledger represents an alternative accounting representation that complies with IFRS. Therefore, options A and D are correct. Option B is incorrect because a reporting currency with the IFRS accounting convention does not represent an alternative accounting representation. Option C is incorrect because a primary ledger with the IFRS accounting convention does not comply with local GAAP. Option E is incorrect because a reporting currency with the local accounting convention does not represent an alternative accounting representation.