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

Oracle 1Z0-1054-22 Online Questions & Answers

• Question 51:

  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
  B. While defining control for business unit one, enable control at purchasing and define the exceptions to only include requisitioning
  F. Define control for business unit two to disable control for Requisitioning, Purchasing, and Receiving

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  Explanation/Reference:

  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 52:

  Your Financial Analyst needs to interactively analyze General Ledger balances with the ability to drill down to originating transactions. Which three features facilitate this? (Choose three.)

  A. Sunburst reports
  B. Online Transactional Business Intelligence
  C. Account Inspector
  D. Account Monitor
  E. Smart View
  C. Account Inspector
  D. Account Monitor
  E. Smart View

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  Explanation/Reference:

  The three features that facilitate interactive analysis of General Ledger balances with the ability to drill down to originating transactions are Account Inspector, Account Monitor, and Smart View. Account Inspector is a tool that allows you to

  select an account or an account group and view its balance and components, such as subledger details, journal lines, and supporting references. You can also drill down to the underlying transactions and subledger applications. Account

  Monitor is a tool that allows you to monitor key account balances in real time and compare them to predefined thresholds. You can also drill down to the underlying transactions and subledger details. Smart View is an Excel add-on that allows

  you to view and analyze financial data from General Ledger Cloud using Essbase cubes. You can also drill down from summary balances to journal details and subledger transactions. Sunburst reports are not a feature that facilitates

  interactive analysis of General Ledger balances with the ability to drill down to originating transactions, as they are graphical reports that show data distribution across different dimensions and hierarchies, but do not provide drill down

  capabilities. Online Transactional Business Intelligence (OTBI) is not a feature that facilitates interactive analysis of General Ledger balances with the ability to drill down to originating transactions, as it is a reporting tool that allows you to

  create custom reports using real-time transactional data from various sources, but does not provide drill down capabilities.

  Reference: Oracle Financials Cloud:

  General Ledger 2022 Implementation Professional Objectives-Use Oracle Transactional Business Intelligence (OTBI) 12

• Question 53:

  Your customer wants to use a clearing company to automatically balance intercompany entries.

  Which three statements are true regarding the use of a clearing company value? (Choose three.)

  A. You must map legal entities to balancing segment values in order to use a clearing company
  B. If you do not map legal entities to balancing segment values, then a clearing company can be applied to any journal within the ledger
  C. Clearing companies are not supported
  D. If you map legal entities to balancing segment values, then a clearing company can only be applied within a legal entity
  E. If you choose to use a clearing company, you can define a default clearing company value or select the clearing company value directly in the general ledger journal
  A. You must map legal entities to balancing segment values in order to use a clearing company
  C. Clearing companies are not supported
  E. If you choose to use a clearing company, you can define a default clearing company value or select the clearing company value directly in the general ledger journal

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  Explanation/Reference:

  According to Oracle documentation1, the following statements are true regarding the use of a clearing company value: You must map legal entities to balancing segment values in order to use a clearing company, if you do not map legal entities to balancing segment values, then a clearing company can be applied to any journal within the ledger, and if you choose to use a clearing company, you can define a default clearing company value or select the clearing company value directly in the general ledger journal. Therefore, options A, C, and E are correct. Option B is incorrect because clearing companies are supported by Oracle. Option D is incorrect because if you map legal entities to balancing segment values, then a clearing company can be applied across legal entities, not only within a legal entity.

• Question 54:

  Management wants to use the budget transfer function available on the Review Budgetary Control Balances page. Which privilege is required to perform the budget transfer?

  A. Import Budget Amounts from Spreadsheet (XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV)
  B. Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV)
  C. Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV)
  D. Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV)
  C. Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV)

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  Explanation/Reference:

  The privilege required to perform the budget transfer function available on the Review Budgetary Control Balances page is Manage Control Budgets (XCC_MANAGE_CONTROL_BUDGETS_PRIV). This privilege allows users to create, modify, or delete control budgets and perform budget transfers. Import Budget Amounts from Spreadsheet (XCC_IMPORT_BUDGET_FROM_SPREADSHEETS_PRIV) is a privilege that allows users to import budget amounts from a spreadsheet using ADFdi. Import Budget Amounts (XCC_IMPORT_BUDGET_PRIV) is a privilege that allows users to import budget amounts from a flat file using file-based data import. Budget Loading (XCC_BUDGET_LOADING_DUTY_PRIV) is a duty role that includes privileges related to importing budget amounts from various sources. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Process Budget Journals

• Question 55:

  Which two allow access to the BI Catalog for creating an Oracle Transactional Business Intelligence analysis? (Choose two.)

  A. Universal Content Management Workspace
  B. Reports and Analytics
  C. Business Process Management Workspace
  D. Enterprise Performance Management Workspace
  E. Scheduled Processes
  B. Reports and Analytics
  D. Enterprise Performance Management Workspace

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  Explanation/Reference:

  The two options that allow access to the BI Catalog for creating an Oracle Transactional Business Intelligence analysis are Reports and Analytics and Enterprise Performance Management Workspace. Reports and Analytics is a tool that

  allows users to access, create, edit, and share reports and analyses using data from various sources, including Oracle Transactional Business Intelligence. Users can access Reports and Analytics from various pages in Oracle Fusion

  Applications or from Oracle Fusion Cloud Service Console. Enterprise Performance Management Workspace is a tool that allows users to access, create, edit, and share reports and analyses using data from various sources, including Oracle

  Transactional Business Intelligence. Users can access Enterprise Performance Management Workspace from Oracle Fusion Cloud Service Console or from a web browser. Universal Content Management Workspace is not an option that

  allows access to the BI Catalog for creating an Oracle Transactional Business Intelligence analysis, as this is a tool that allows users to manage documents and other digital content in Oracle Fusion Applications. Business Process

  Management Workspace is not an option that allows access to the BI Catalog for creating an Oracle Transactional Business Intelligence analysis, as this is a tool that allows users to monitor and manage business processes in Oracle Fusion

  Applications. Scheduled Processes is not an option that allows access to the BI Catalog for creating an Oracle Transactional Business Intelligence analysis, as this is a tool that allows users to submit, monitor, and manage scheduled

  processes in Oracle Fusion Applications.

  Reference: Oracle Financials Cloud:

  General Ledger 2022 Implementation Professional Objectives-Use Oracle Transactional Business Intelligence (OTBI) 12

• Question 56:

  You have redesigned your chart of accounts and need to update your existing cross-validation rules. There is a requirement for new rules; some simply need to be updated and others need to be deleted. What is the most efficient way to achieve this?

  A. by using the Manage General Ledger Security page.
  B. by creating Cross-Validation Rules desktop-integrated spreadsheet.
  C. by using Cross-Validation Rules Import file-based data import (FBDI).
  D. by using the Manage Cross-Validation Rules page.
  C. by using Cross-Validation Rules Import file-based data import (FBDI).

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  Explanation/Reference:

  According to Oracle documentation1, the most efficient way to update your existing cross-validation rules when you have redesigned your chart of accounts is to use Cross-Validation Rules Import file-based data import (FBDI). FBDI enables you to import cross-validation rules from a spreadsheet template into General Ledger. You can use FBDI to create new rules, update existing rules, or delete rules. Therefore, option C is correct. Option A is incorrect because using the Manage General Ledger Security page does not enable you to update cross-validation rules. Option B is incorrect because creating Cross-Validation Rules desktop-integrated spreadsheet does not enable you to update cross-validation rules. Option D is incorrect because using the Manage Cross-Validation Rules page does not enable you to update cross-validation rules efficiently.

• Question 57:

  The Delete Translated Balances process provides the ability to completely reset translations in the event that significant changes are made to the accounting configuration.

  Once the deletion process completes, what additional process must you run?

  A. Submit the Update General Ledger Balances Cube process to ensure that the balances cube maintains translated balances that are consistent with future translations.
  B. Submit the Create General Ledger Balances Cube process to ensure that the balances cube maintains translated balances that are consistent with future translations.
  C. Submit the Create Currency Dimension Members process to ensure that the balances cube maintains translated balances that are consistent with future translations.
  D. Submit the Create Scenario Dimension Members process to ensure that the balances cube maintains translated balances that are consistent with future translations.
  B. Submit the Create General Ledger Balances Cube process to ensure that the balances cube maintains translated balances that are consistent with future translations.

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  Explanation/Reference:

  The Delete Translated Balances process deletes all previously translated balances for a given ledger, currency, and period range. After running this process, you must submit the Update General Ledger Balances Cube process to rebuild the balances cube and ensure that the translated balances are consistent with future translations. This process also updates the account hierarchies and dimension members in the balances cube. Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Translate Balances 12

• Question 58:

  Your customer uses Financials Cloud, Projects, Inventory and Procurement.

  Which two statements are true regarding intercompany accounting for these products? (Choose two.)

  A. Each product has its own Intercompany Accounting feature that needs to be set up separately
  B. Within Financials Cloud, Intercompany Balancing Rules are used to balance both cross-ledger intercompany transactions and single-ledger Intercompany journals
  C. Intercompany Balancing Rules are defined centrally and applied across Financials and Project Portfolio Management D. They need to license a separate stand-alone Intercompany product that acts as the Intercompany Accounting Hub
  B. Within Financials Cloud, Intercompany Balancing Rules are used to balance both cross-ledger intercompany transactions and single-ledger Intercompany journals
  C. Intercompany Balancing Rules are defined centrally and applied across Financials and Project Portfolio Management D. They need to license a separate stand-alone Intercompany product that acts as the Intercompany Accounting Hub

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  Explanation/Reference:

  Intercompany Balancing Rules are used to automatically create balancing entries for intercompany transactions that span different ledgers or legal entities within a ledger. They are defined centrally in the Manage Intercompany Balancing Rules task and can be applied across Financials and Project Portfolio Management products. Intercompany Balancing Rules can also be used to balance single-ledger intercompany journals that have different balancing segment values for the debit and credit lines.

  Reference: Oracle Financials Cloud: General Ledger 2022 Implementation Professional Objectives-Configure and Process Intercompany 12

• Question 59:

  Your customer has three legal entities, 50 departments, and 10,000 natural accounts. They use intercompany entries. What is Oracle's recommended practice when implementing a new chart of accounts? How many segments and what segment qualifiers should be used?

  A. Define three segments for the company, department, and natural account. The qualifiers for the first segment should be primary balancing segment and intercompany segment, cost center segment, and natural account segment, respectively.
  B. Define four segments for the company, department, natural account, and intercompany segment. The qualifiers should be primary balancing segment, cost center segment, and natural account segment, and intercompany segment, respectively.
  C. Define three segments for the company, department, and natural account. The qualifiers should be primary balancing segment, cost center segment, and natural account segment, respectively.
  D. Define five segments for the company, department, natural account, intercompany, and future use segment. The qualifiers should be primary balancing segment, cost center segment, natural account segment, intercompany segment, and no qualifier, respectively.
  B. Define four segments for the company, department, natural account, and intercompany segment. The qualifiers should be primary balancing segment, cost center segment, and natural account segment, and intercompany segment, respectively.

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  Explanation/Reference:

  "A chart of accounts segment is a component of the account combination. Each segment has a value set attached to it to provide formatting and validation of the set of values used with that segment." The qualifiers are used to identify the segments for reporting and processing purposes2. In this case, the company segment should be the primary balancing segment, which is used to balance journal entries and create trial balances. The department segment should be the cost center segment, which is used to track costs by organizational units. The natural account segment should be the natural account segment, which is used to classify transactions by account type. The intercompany segment should be the intercompany segment, which is used to identify transactions between different legal entities or business units.

• Question 60:

  When creating your financial statements, you would like to have a chart, such as a bar graph, included in the report output.

  Which two reporting tools allow you to achieve this? (Choose two.)

  A. Financial Reporting Studio
  B. Account Inspector
  C. Smart View
  D. Financial Statement Generator
  A. Financial Reporting Studio
  C. Smart View

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  Explanation/Reference:

  According to Oracle documentation3, when creating financial statements, you would like to have a chart, such as a bar graph, included in the report output, you can use Financial Reporting Studio and Smart View as two reporting tools that allow you to achieve this. Financial Reporting Studio enables you to design and generate reports with charts using data from various sources. Smart View enables you to access and analyze data with charts from various sources using Excel. Therefore, options A and C are correct. Option B is incorrect because Account Inspector does not allow you to create charts in financial statements. Option D is incorrect because Financial Statement Generator does not allow you to create charts in financial statements.

  Reference: https://docs.oracle.com/en/cloud/saas/financials/20d/faigl/financial-reporting.html#FAIGL513446