Oracle 1Z0-1054-22 Online Practice Questions and Exam Preparation

Oracle 1Z0-1054-22 Online Questions & Answers

• Question 1:

  What are the two possible reasons for encumbrance created on the purchase order to go back to the budget or funds availability? (Choose two.)

  A. The purchase order is canceled or finally closed or rejected without performing any receipt or invoice
  B. When the purchase order is set to accrue at receipt and partially received, then canceled or finally closed, encumbrance goes back to the extent of the unreceived amount
  C. The requisition reserved successfully undergoes amendment and is rejected in the reapproval
  D. When the requisition is set to accrue at period end and partially billed and then canceled or finally closed, encumbrance goes back to the budget to the extent of the unbilled amount
  A. The purchase order is canceled or finally closed or rejected without performing any receipt or invoice
  B. When the purchase order is set to accrue at receipt and partially received, then canceled or finally closed, encumbrance goes back to the extent of the unreceived amount

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  Explanation/Reference:

  "Encumbrance accounting is a method of accounting for funds that have been reserved for specific purposes. Encumbrance accounting enables you to track funds that have been committed but not yet spent." When a purchase order is created and reserved successfully, an encumbrance is created on the purchase order and reduces the funds availability. The encumbrance created on the purchase order can go back to the budget or funds

• Question 2:

  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
  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
  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

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  Explanation/Reference:

  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 3:

  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
  D. Application Developer Framework Desktop Integrator

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  Explanation/Reference:

  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 4:

  Your customer has a number of Chart of Account Mapping Rules for their Primary and Secondary ledgers. You decide to use the FBDI template to load the rules.

  Which two statements are true when using this method of entry? (Choose two.)

  A. You can download the template only from the Manage Chart of Accounts Mappings page.
  B. It supports external integration using REST services.
  C. You can create, update, and delete account rules for a chart of accounts mapping.
  D. You can create, update, and delete segment rules for a chart of accounts mapping.
  C. You can create, update, and delete account rules for a chart of accounts mapping.
  D. You can create, update, and delete segment rules for a chart of accounts mapping.

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  Explanation/Reference:

  According to Oracle documentation3, when using FBDI template to load Chart of Account Mapping Rules for their Primary and Secondary ledgers, you can create, update, and delete account rules for a chart of accounts mapping, and you can create, update, and delete segment rules for a chart of accounts mapping. FBDI enables you to import chart of accounts mapping rules from a spreadsheet template into General Ledger. You can use FBDI to manage both account rules and segment rules for a chart of accounts mapping. Therefore, options C and D are correct. Option A is incorrect because you can download the template from other pages besides the Manage Chart of Accounts Mappings page. Option B is incorrect because FBDI does not support external integration using REST services.

• Question 5:

  When creating financial reports which two tools use data from the General Ledger Balances Cube? (Choose two).

  A. Financial Reporting Studio
  B. Smart View
  C. Oracle Financial Statement Generator
  D. Financial Reporting Center
  A. Financial Reporting Studio
  B. Smart View

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  Explanation/Reference:

  According to Oracle documentation3, when creating financial reports, the two tools that use data from the General Ledger Balances Cube are Financial Reporting Studio and Smart View. Financial Reporting Studio is a graphical user interface that enables you to design and generate reports using data from various sources, including General Ledger Balances Cube. Smart View is an Excel add-in that enables you to access and analyze data from various sources, including General Ledger Balances Cube. Therefore, options A and B are correct. Option C is incorrect because Oracle Financial Statement Generator does not use data from the General Ledger Balances Cube. Option D is incorrect because Financial Reporting Center does not use data from the General Ledger Balances Cube.

• Question 6:

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

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  Explanation/Reference:

  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 7:

  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.
  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.

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  Explanation/Reference:

  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 8:

  All of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency. There is no minority interest or partial ownerships. What is Oracle's recommended approach to performing consolidations?

  A. Translate balances to the corporate currency, create a chart of accounts mapping to the corporate chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program
  B. Translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary.
  C. Create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then creates a ledger set across all ledgers and report on the ledger set.
  D. Use Oracle Hyperion Financial Management for this type of complex consolidation.
  C. Create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then creates a ledger set across all ledgers and report on the ledger set.

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  Explanation/Reference:

  The recommended approach to performing consolidations when all of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency is to create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency, and accounting method. Create a separate elimination ledger to enter intercompany eliminations. Then create a ledger set across all ledgers and report on the ledger set. This will allow you to maintain separate ledgers for each subsidiary with different reporting requirements and eliminate intercompany balances using the elimination ledger. The ledger set will enable you to report consolidated balances across all ledgers using General Ledger Cloud reporting tools. You do not need to translate balances to the corporate currency, create a chart of accounts mapping to the corporate chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program, as this is a complex and time-consuming process that involves multiple steps and data conversions. You do not need to translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary, as this is not a reliable or accurate way to perform consolidations and does not address different charts of accounts or calendars. You do not need to use Oracle Hyperion Financial Management for this type of consolidation, as this is an external application that requires additional integration and maintenance. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Consolidate Balances 12

• Question 9:

  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
  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

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  Explanation/Reference:

  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 10:

  After loading your budget data into General Ledger Cloud, you can view budget balances using these features. Which feature does not belong on the list?

  A. Application Development Framework Desktop Integration Budget Balances Report
  B. Account Monitor
  C. Smart View
  D. Account Inspector
  A. Application Development Framework Desktop Integration Budget Balances Report

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  Explanation/Reference:

  "The Application Development Framework Desktop Integration Budget Balances Report is a spreadsheet-based report that you can use to view budget balances for a selected budget and period range." This feature does not belong on the list of features that can be used to view budget balances after loading your budget data into General Ledger Cloud. The other features are Account Monitor, Smart View, and Account Inspector, which are all tools that can access Essbase balances cubes and display budget information.