1Z0-1055-21 Real Exam Questions and Verified Answers

Question 1 Single choice

Which two statements are true when you are using the Intercompany Reconciliation Reports? (Choose two.)

A
You must run the prepare Intercompany Reconciliation Reporting Information process.
B
The reconciliation period summary report will not show the intercompany receivables and intercompany payables lines generated for the provider and receiver of each intercompany transaction.
C
The reports will show the intercompany receivable and the intercompany payable lines generated by the intercompany balancing feature.
D
The reports will include Ledger balancing lines generated when the primary balancing segment value is in balance but either the second balancing segment or the third balancing segment is out of balance.
E
You can drill down on the links in the Period Summary report to view the balances by Intercompany Organization.

Show answer and explanation

Correct answer: B

Explanation

A (not C): The Reconciliation Period Summary report displays the intercompany receivables and intercompany payables balances in summary for a period, and any differences between them.
D:Ledger balancing lines generated when the primary balancing segmentvalue is in balance but either the second balancing segment or the third balancing segment is out of balance

Question 2 Single choice

You have invoices with distributions across primary balancing segments that represent different companies.

What feature should you use if you want the system to automatically balance your invoice's liability amount across the same balancing segments on the invoice distributions?

A
Payable's Automatic Offset
B
Intercompany Balancing
C
Subledger Accounting's Account Rules
D
Suspense Accounts
E
Payables' Allow Reconciliation Accounting

Show answer and explanation

Correct answer: B

Explanation

If you do not enable Automatic Offsets, Payables records the invoice liability using the liability account on the invoice, which defaults from the supplier site. When you distribute invoice distributions across multiple balancing segments, the invoice will not balance by balancing segment. However, General Ledger can automatically create intercompany balancing entries when you post the invoice if you have enabled the Balance Intercompany Journals option for your set of books.
References:
https://docs.oracle.com/cd/A60725_05/html/comnls/us/ap/autoff01.htm

Question 3 Single choice

An invoice for $200 USD and a credit memo for $225 USD are due for payment and the "Apply credits up to zero amount" option is enabled for the payment process request.

Which statement is correct?

A
The payment process request pays only $200 USD alone.
B
The payment process request applies $200 USD of the credit memo to the invoice, leaving a remaining credit of $25 USD, and creates a payment for $0 USD.
C
The payment process request creates a refund for $225 USD and leaves the invoice unpaid.
D
The payment process request doesn't select the invoice or credit memo for payment because the credit reduces the payment to - $25 USD, which is below zero.

Show answer and explanation

Correct answer: B

Explanation

When you submit a "payment process request", you can enable the Apply credits up to zero amount payment option. Enablingthe option causes the payment process to apply credits when the credits reduce the payment amount below zero.
The following scenario illustrate the impact of this option.
Credit Amount Greater Than Invoice Amount
An invoice for 200 USD and a credit memofor 225 USD are due for payment. The following table describes the payment processing that occurs based on the setting for the Apply credits up to zero amount payment option.
Assume that the "Apply Credits Up to Zero Amount" option is enabled. Payment processing applies 200 USD of the credit memo to the invoice and creates a payment for 0 USD. The remaining credit is 25 USD.
References:
https://fusionhelp.oracle.com/helpPortal/topic/TopicId_P_9F438E13CC89BA0CE040D30
A68816F77

Question 4 Single choice

XYZ Supplier has third party relationships defined with ABC Supplier and ACME Corporation. However, when reviewing the invoice installments for XYZ Supplier the payables specialist is unable to override the remit-to supplier name and address on the Invoice installments.

What is the reason for this?

A
The option 'Allow remit-to supplier override for third-party payments' is not checked in the Invoice Options page for the business unit.
B
The option 'Allow remit-to supplier override for third-party payments' is not checked in the Common Options for Payables and Procurement page for the business unit.
C
The option 'Allow remit-to supplier override for third-party payments' is not checked in the Payment Options page for the business unit.
D
The option 'Allow remit-to supplier override for third-party payments' is not checked in the Disbursement System Options page for the business unit.

Show answer and explanation

Correct answer: A

Question 5 Multiple choice

Your intercompany transaction type is active and enabled for invoicing.

What are the two prerequisites to generate intercompany receivables and intercompany payable transactions after the Generate Intercompany Allocations process is run? (Choose two.)

A
For the Legal Jurisdiction, Legal function: "Generate intercompany invoice" should be assigned.
B
Schedule create accounting for the intercompany process.
C
Supplier site primary pay flag and customer account bill to primary flag should be enabled.
D
Run the processes Create Intercompany transactions to Receivables and Create Intercompany transactions to Payables.
E
Run the processes Transfer Intercompany transactions to Receivables and Transfer Intercompany transactions to Payables.
F
Manual Approvals should be allowed for the transaction type.

Show answer and explanation

Correct answers: C, E

Explanation

References:
https://docs.oracle.com/cloud/latest/financialscs_gs/FAUGL/FAUGL1476872.htm

Question 6 Single choice

You want your expense auditors to audit only expense reports for specific business units.

How do you do this?

A
Create a custom duty role and assign the data roles to each auditor.
B
Create your own audit extension rules that correspond to the business unit.
C
Make auditors the managers of the corresponding business unit to route expense reports properly.
D
Assign the expense auditors job role and business unit security context and value to the user.

Show answer and explanation

Correct answer: D

Question 7 Multiple choice

Which three are invoice types that can be entered using the Supplier Portal? (Choose three.)

A
Invoices that are automatically created when the supplier creates an ASN for drop shipments
B
B2B XML invoices
C
Non purchase order matched invoices
D
Invoices that are created from the Evaluated Receipt Settlement (ERS) process
E
Purchase order matched invoices

Show answer and explanation

Correct answers: B, D, E

Question 8 Multiple choice

Which two statements are true about the Invoice Validation process? (Choose two.)

A
opens the relevant accounting period
B
validates project information
C
updates supplier balances
D
creates tax lines and distributions
E
creates accounting entries in draft

Show answer and explanation

Correct answers: B, D

Explanation

Invoice validations
Etc.
References:
https://docs.oracle.com/cloud/farel9/financialscs_gs/FAPPP/F1011878AN100C4.htm

Question 9 Multiple choice

Which three reports are generated by the export setup data process? (Choose three.)

A
Exported Business Object Report
B
Process Results Report
C
Process Results Summary Report
D
Process Results Detail Listing Report
E
Setup Data Report

Show answer and explanation

Correct answers: B, C, E

Question 10 Single choice

During your business trip to the UK, you took a taxi ride and paid for it by using your personal Visa credit

card. While entering your expenses, you get a warning that a different conversion rate was applied to the taxi expense by Visa that the one used by your company.

How do you handle this situation?

A
Do not enter the taxi expense and call your Finance Department so that they can make changes in the conversion rate settings and you do not violate the allowable limit.
B
Call Visa to address the issue and tell them to make adjustments to their conversion rate. Then, wait to get a revised statement.
C
Overwrite the conversion rate with the one Visa provided and enter a justification that Visa used a different conversion rate.
D
Use the corporate-defined conversion rate even if it means you will not be reimbursed fully.

Show answer and explanation

Correct answer: C

Explanation

Payables uses five types of exchange rates. Payables uses exchange rates to convert invoice and payment amounts into your ledger currency.
* User. Used to manually enter your own exchange rate during invoiceentry or at payment time. If you use the User exchange rate type, if the Payables option Calculate User Exchange Rate is enabled, and if you are using the Invoices window or the open interface table, then Payables calculates the invoice exchange rate if you provide the Ledger Currency amount.
Etc.
References:
https://docs.oracle.com/cd/E18727_01/doc.121/e12797/T295436T368341.htm