Oracle 1Z0-1057-23 Online Practice Questions and Exam Preparation

Oracle 1Z0-1057-23 Online Questions & Answers

• Question 121:

  Your customer wants to automatically allocate unassigned asset lines and common costs across multiple assets based on the construction-in-process cost of each asset. Identify the asset allocation method that you must use as the default method while configuring project types to meet this requirement. (Choose the best answer.)

  A. Standard Unit Cost
  B. Actual Unit
  C. Current Cost
  D. Estimated Cost
  E. Spread Evenly
  C. Current Cost

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  Explanation/Reference:

  Ref: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19a/oapfm/project-foundation-configuration-manage-project-types.html#OAPFM220111

  Topic ?Asset Cost Allocation Methods: Explained

  The asset cost allocation method determines how indirect or common costs incurred on a project are allocated to multiple assets.

  You can specify an asset cost allocation method to enable Oracle Fusion Project Costing to automatically allocate unassigned asset lines and common costs across multiple assets. Unassigned asset lines typically occur when more than one

  asset is assigned to an asset grouping level.

  Projects and project templates inherit a default asset cost allocation method from the associated project type. You can override the default at the project level. If you use capital events to allocate costs, then you can also override the asset

  cost allocation method at the event level.

  The following table describes the available asset cost allocation methods.

  Method

  Basis of Cost Allocation

  Actual Units

  Number of units defined for each asset

  Current Cost

  Construction-in-process (CIP) cost of each asset

  Estimated Cost

  Estimated cost of each asset

  Standard Unit Cost

  Combination of the standard unit cost and the number of units defined for each asset Spread Evenly

  Equal allocation of cost to each asset

• Question 122:

  A consulting services company is currently working on a business transformation project for your client that spans over 10 months. The total contract amount is 250000 USD. They have generated a revenue of 25000 USD and an Invoice of 10000 USD at the end of the first period.

  The accounting entry for revenue is:

  

  and accounting entry for invoice is:

  

  What will be the accounting entry when you reclassify the billing offset balances in the first period?

  A. Dr Deferred Revenue 10000Cr Unbilled Receivables 10000
  B. Dr Accounts Receivables 10000Cr Unbilled Receivables 10000
  C. Dr Unbilled Receivables 10000Cr Accounts Receivables 10000
  D. Dr Accounts Receivables 10000Cr Revenue 10000
  B. Dr Accounts Receivables 10000Cr Unbilled Receivables 10000

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  Explanation/Reference:

  When you reclassify the billing offset balances in the first period, the accounting entry is:

  Dr Accounts Receivables 10000-Cr Unbilled Receivables 10000 This entry reduces the unbilled receivables balance and increases the accounts receivables balance by the invoice amount. This is because the invoice has been created and

  sent to the customer, and the billing offset account is no longer needed. Reference:

  https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-invoices.html#OAPFM2356091

• Question 123:

  When setting up capitalization options on a project type, you have decided to enable the Require Complete Asset Definition option. If this option is enabled, the "Transfer Assets to Oracle Fusion Assets" process will place asset lines with complete definition into which queue in Oracle Fusion Assets?

  A. New
  B. Hold
  C. Posted D. Post
  B. Hold

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  Explanation/Reference:

  If the Require Complete Asset Definition option is enabled on a project type, the "Transfer Assets to Oracle Fusion Assets" process will place asset lines with complete definition into the Hold queue in Oracle Fusion Assets. This queue holds the asset lines that require manual review and approval before they can be posted to the asset register. Asset lines with incomplete definition will be placed into the Error queue in Oracle Fusion Assets. This queue holds the asset lines that have errors or missing information that need to be corrected before they can be transferred to the Hold queue. Reference: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/20c/oapfm/manage-project-assets.html#OAPFM2356041

• Question 124:

  Your customer wants to perform billing based on the Percent Spent invoice method. Identify two setups that are required in project contracts for calculating invoice amounts as per their requirement. (Choose two.)

  A. billing events
  B. bill plan
  C. expenditure items
  D. billing controls
  E. invoice method
  B. bill plan
  D. billing controls

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  Explanation/Reference:

  Ref: https://docs.oracle.com/en/cloud/saas/project-portfolio-management/19b/oapjb/create-customer-contract.html#OAPJB70183 Bill Plan ?Create a bill plan within a contract that uses the invoice method you require. Assign the bill plan to

  one or more contract lines. A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans. Invoice Method is used in creating Bill Plan ?not a separate

  setup.

  Billing Controls ?Contract feature that controls the types of transactions, dates, and amounts a customer may be invoiced for and revenue can be recognized for a contract or contract line. Define billing controls at the contract or contract line

  level.

  Topic-Creating a Contract for Percent Spent Invoice and Revenue Methods: Worked Example

  This example describes a scenario where transactions for a contract line need to be invoiced and the revenue recognized using the percent spent method. What are the revenue and invoice method classifications?Percent Spent What is the

  billing extension calculation level for the contract line and project association?Project level

  Summary of the Tasks

  Create a contract, create the percent spent contract lines, create the bill plan, create the revenue plan.

  Prerequisites

  Create a project.

  Create the project plan for percent spent revenue. Specify the plan type on the percent spent billing extension.

  Create an approved cost budget.

  Create cost and burden rates.

  Enter labor and expense transactions for the project.

  Collect costs for the transactions.

  Configuration Steps

  Creating the Contract

  Creating the Percent Spent Contract Lines

  Creating the Bill Plan-A set of instructions on a contract that define how to invoice a customer. Multiple contract lines on a contract can use the same or different bill plans.

  Creating the Revenue Plan-Common set of instructions for recognizing revenue within a contract. Multiple contract lines on a contract can use the same or different revenue plans.

  Invoice method classifications determine how transactions are invoiced. The invoice method determines how invoice amounts are derived. Enter an invoice method on a bill plan, which you create for a contract and assign to contract lines to

  provide a set of instructions for creating an invoice. Create billing controls for a contract or contract line to define the valid transaction dates, billing resources, and amount limits for transactions associated with the contract.

  Generate invoices to calculate the invoice amounts for a contract. The following figure illustrates the components of a project and a contract that determine invoice amounts, and the relationships between the components.

  

  Project and contract components used to determine invoice amounts and generate invoices.

• Question 125:

  Which two statements are true about the borrowed and lent cross charge method? (Choose two.)

  A. Internal Invoice is not generated with this method.
  B. This method allows you to process cross charge transactions across legal entities.
  C. This method creates accounting entries that move an amount equal to the transfer price between the provider and receiver organizations
  D. You must set up a contract business unit to use this method.
  A. Internal Invoice is not generated with this method.
  B. This method allows you to process cross charge transactions across legal entities.

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  Explanation/Reference:

  The borrowed and lent cross charge method is a method that allows you to process cross charge transactions between provider and receiver organizations that belong to different legal entities within the same primary ledger. This method does not generate internal invoices or intercompany accounting entries for cross charge transactions. Instead, this method creates accounting entries that move an amount equal to the transfer price between the provider and receiver organizations using borrowed and lent accounts. Two statements that are true about this method are: Internal Invoice is not generated with this method. This method does not create internal invoices for cross charge transactions, as these transactions are accounted within the same primary ledger using borrowed and lent accounts. This method allows you to process cross charge transactions across legal entities. This method allows you to process cross charge transactions between provider and receiver organizations that belong to different legal entities within the same primary ledger, as long as they share the same chart of accounts, calendar, currency, and subledger accounting method.

• Question 126:

  Identify two attributes for which you can enter budgets that will be considered for Budgetary Controls in Project Portfolio Management. (Choose two.)

  A. project
  B. expenditure item
  C. project classification
  D. project plan type
  E. resource
  A. project
  E. resource

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  Explanation/Reference:

  Reference https://docs.oracle.com/cloud/latest/projectcs_gs/OAPJF/OAPJF1121937.htm#OAPJF1121