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

• Question 121:

  The current implementation project covers Financials (with Fixed Assets and Expenses) with operations planned in three countries (USA, Italy, and India).

  Which three labels are required when designing the chart of account structure for this project? (Choose three.)

  A. Primary Balancing

  B. Intercompany Segment

  C. Secondary Balancing

  D. Cost center

  E. Natural Account

  Correct Answer: ADE

  The three labels that are required when designing the chart of account structure for this project are Primary Balancing, Cost center, and Natural Account. A chart of account structure is composed of segments that represent different dimensions of accounting information, such as company, department, account, or project. Each segment has a label that indicates its function or purpose within the chart of accounts. The Primary Balancing label is required for the segment that identifies the legal entity or business unit for which financial statements are prepared and balanced. The Cost center label is required for the segment that identifies the organizational unit or function that incurs expenses or generates revenues. The Natural Account label is required for the segment that identifies the nature of an account, such as asset, liability, revenue, or expense. The Intercompany Segment label is not required when designing the chart of account structure for this project, as this is an optional label for the segment that identifies intercompany transactions between different legal entities or business units within the same enterprise. The Secondary Balancing label is not required when designing the chart of account structure for this project, as this is an optional label for the segment that identifies an additional balancing dimension other than the primary balancing segment, such as fund or region. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Chart of Accounts 12

• Question 122:

  You want to enter budget data in General Ledger Cloud. Which method is not supported?

  A. Entering budget journals

  B. Application Development Framework Desktop Integration (ADFdi)

  C. Direct budget balance updates from a Financial Statement in Smart View

  D. File-based Data Import

  Correct Answer: C

  General Ledger Cloud supports four methods for entering budget data: entering budget journals, using ADFdi, using file-based data import, and using source budget integration. Direct budget balance updates from a Financial Statement in Smart View is not a supported method for entering budget data. Smart View is a tool that allows you to view and analyze financial data in Excel, but it does not allow you to directly update budget balances. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Process Budget Journals 12

• Question 123:

  You are implementing a multipillar implementation of both HCM Cloud and ERP Cloud. You are implementing ERP first followed by HCM Cloud. You want to ensure your ledgers and chart of accounts are correctly defined. What should you do? (Choose three)

  A. Deploy your chart of accounts

  B. Use HCM's Enterprise Structure Configurator (ESC) first

  C. Create your chart of accounts in the following order: value sets, COA structure, and instance before assigning values to the value sets

  D. Use file-based spreadsheet loaders using UCM to mass load and maintain chart of accounts segment values and hierarchies

  E. Use the Rapid Implementation spreadsheet when creating your enterprise structure

  Correct Answer: ABD

  According to Oracle documentation1, you should do the following things when you are implementing a multipillar implementation of both HCM Cloud and ERP Cloud: Deploy your chart of accounts, use HCM's Enterprise Structure Configurator (ESC) first, and use file-based spreadsheet loaders using UCM to mass load and maintain chart of accounts segment values and hierarchies. Therefore, options A, B, and D are correct. Option C is incorrect because you should create your chart of accounts in the following order: value sets, COA structure instance, and then assign values to the value sets. Option E is incorrect because you should use the Rapid Implementation spreadsheet when creating your chart of accounts, not your enterprise structure.

• Question 124:

  Your customer has enabled budgetary control for purchase orders. They have a purchase order for $1,000 USD which is fully reserved. An invoice for $600 is entered and matched to the purchase order, and the purchase order is closed for further invoicing.

  What happens to the remaining $400 USD?

  A. Invoice type will have less funds available by $400 USD

  B. $400 USD will be expired and not available for use

  C. $400 USD will be added back to available funds

  D. Only obligation type will have $400 USD funds available

  E. Manual encumbrance journal needs to be entered in General Ledger to release the budget amount of $400 USD

  Correct Answer: C

  When a purchase order is closed for invoicing, any remaining encumbrance amount is liquidated automatically. This means that the reserved funds are released and added back to the available funds for the budget. You do not need to enter a manual encumbrance journal or perform any other action to release the budget amount. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Process Budget Journals 12

• Question 125:

  The Accounting Manager requests that a schedule be created to automatically post journals from subledgers at different times. Which journal attribute should you use to set the automatic posting criteria?

  A. Journal Source

  B. Journal Category

  C. Journal Batch

  D. Journal Description

  Correct Answer: A

  The Journal Source attribute is used to set the automatic posting criteria for journals from subledgers. You can specify whether to post journals automatically or manually based on their source, such as Payables, Receivables, or Projects4.

• Question 126:

  You are planning to create an Income Statement using Smart View.

  Which Smart View tool should you use for this?

  A. Smart Queries

  B. Smart Slices

  C. Ad Hoc Analysis

  D. Query Designer

  Correct Answer: C

  To create an Income Statement using Smart View, you should use Ad Hoc Analysis. Ad Hoc Analysis is a Smart View tool that allows users to view and analyze financial data from General Ledger Cloud using Essbase cubes. Users can create reports such as Income Statements or Balance Sheets by selecting dimensions and members from Essbase cubes and retrieving data into Excel worksheets. Users can also perform actions such as drilling down, pivoting, zooming in or out, or expanding or collapsing members

• Question 127:

  During implementation, a consultant accidentally designated the cost center segment as the natural account. Values have already been assigned and journals have been posted.

  Select the process that allows you to change the qualifier back to cost center qualifier.

  A. Create a new chart of accounts.

  B. Delete the segment and create a new segment with the correct qualifier.

  C. Change and save the segment qualifier.

  D. Delete the chart of accounts and create a new one.

  Correct Answer: C

  The process that allows you to change the qualifier back to cost center qualifier after a consultant accidentally designated the cost center segment as the natural account is to change and save the segment qualifier. You can change the segment qualifier using the Manage Chart of Accounts Structures task in Setup and Maintenance. You can only change segment qualifiers before deploying flexfield metadata changes for validation and activation. You do not need to create a new chart of accounts, as this is not necessary and will increase complexity and maintenance. You do not need to delete the segment and create a new segment with the correct qualifier, as this will affect existing values and journals. You do not need to delete the chart of accounts and create a new one, as this will affect existing structures and instances. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Define Chart of Accounts 12

• Question 128:

  You are reconciling your subledger balances and you need a report that includes beginning and ending account balances and all transactions that constitute the account's activities.

  What type of report will provide this type of information?

  A. Account Analysis Reports

  B. Aging Reports

  C. an Online Transactional Business Intelligence (OTBI) report to create ad hoc queries on transactions and balances

  D. Journals Reports

  Correct Answer: A

  Account Analysis Reports are reports that provide detailed information about the transactions and balances of an account or a range of accounts. They include beginning and ending balances, debits and credits, subledger details, and drilldown capabilities. They can be used to reconcile subledger balances and investigate account anomalies. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Reconcile Subledger Balances 12

• Question 129:

  Your company has complex consolidation requirements with multiple general ledger instances. You are using Oracle Hyperion Financial Management to consolidate the disparate General Ledgers. You can typically map segments between your general ledger segment to a Hyperion Financial Management segment, such as Company to Entity, Department to Department, and Account to Account. What happens to segments in your source general ledger, such as Program, that cannot be mapped to Hyperion Financial Management?

  A. Data is summarized across segments that are not mapped to Hyperion Financial Management

  B. The unmapped segments default to future use segments in Hyperion Financial Management

  C. No data is transferred

  D. Errors occur for unmapped segments. You must map multiple segments from source general ledgers to the target segment in Hyperion Financial Management

  Correct Answer: A

  When you have segments in your source general ledger, such as Program, that cannot be mapped to Hyperion Financial Management, data is summarized across those segments. For example, if you have a Program segment with values A, B, and C in your source general ledger, but no corresponding segment in Hyperion Financial Management, the data for those values will be aggregated and mapped to a default member in Hyperion Financial Management. The unmapped segments do not default to future use segments in Hyperion Financial Management, as these segments are reserved for future expansion. No data is transferred is not a correct statement, as data is transferred but summarized across unmapped segments. Errors do not occur for unmapped segments, as data is transferred but summarized across unmapped segments. You cannot map multiple segments from source general ledgers to the target segment in Hyperion Financial Management, as this is not a supported option. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Consolidate Balances 12

• Question 130:

  What is the most efficient way to add a new year to the accounting calendar?

  A. Import the periods from a spreadsheet

  B. The application automatically populates the next year when you open the first period of a new fiscal year

  C. Add the periods manually

  D. Use the Add Year button

  Correct Answer: D

  you can use the Add Year button to add years to the calendar. You can enter the number of years to add to the calendar and confirm whether to add years after the end year or before the start year. Therefore, option D is correct. Option A is incorrect because you cannot import the periods from a spreadsheet. Option B is incorrect because the application does not automatically populate the next year when you open the first period of a new fiscal year. Option C is incorrect because adding the periods manually is not the most efficient way to add a new year to the accounting calendar.