Oracle 1Z0-511 Online Practice Questions and Exam Preparation

Oracle 1Z0-511 Online Questions & Answers

• Question 21:

  A customer has two operating units: US and Ireland. A project that is set in the Ireland operating unit requires the services of employees from the US operating unit.

  Identify three mandatory steps that must be completed for the employees in the US to enter their time on the project and for costs to be successfully distributed.

  A. Set up Internal Billing Implementation optionsin US and Ireland.
  B. Define providercontrolsin US and receiver controlsin Ireland.
  C. Setup a new transaction source to receive Intercompany transactions in Ireland.
  D. For theprojectinIreland, select "Allow Cross Charges to all Operating Units within Legal Entity".
  E. For the projectin Ireland,set up transaction controls to allow charges from other operating units.
  B. Define providercontrolsin US and receiver controlsin Ireland.
  C. Setup a new transaction source to receive Intercompany transactions in Ireland.
  D. For theprojectinIreland, select "Allow Cross Charges to all Operating Units within Legal Entity".

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  B:Provider and Receiver Controls Setup

  For each provider operating unit or receiver operating unit involved in the cross charge, the Provider/Receiver Controls window Provider Controls and Receiver Controls tabs specify:

  The cross charge method to use to process intercompany cross charges and to override default cross charge method for inter-operating unit cross charges.

  Attributes required for the provider operating unit to process intercompany billing to each receiver operating unit. This includes the Intercompany Billing Project and Invoice Group.

  Attributes required for the receiver operating unit to process intercompany billing from each provider operating unit. This includes the supplier site, expenditure type and expenditure organization.

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  (C)Intercompany Billing Accounting Companies choose the intercompany billing method largely due to legal and statutory requirements. When you use this method, Oracle Projects generates physical invoices and corresponding accounting entries at legal transfer prices between the internal seller(provider) and buyer (receiver) organizations when they cross a legal entity boundary or operating units.

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  (D)Overview of Cross Charge When projects share resources within an enterprise, it is common to see those resources shared across organization and country boundaries. Further, project managers may also divide the work into multiple projects for easier execution and management. The legal, statutory, or managerial accounting requirements of such projects often present complex operational control, billing, and accounting challenges.

  Oracle Projects enables companies to meet these challenges by providing timely information for effective project management. Project managers can easily view the current total costs of the project, while customers receive bills as costs are incurred, regardless of who performs the work or where it is performed.

  References:

• Question 22:

  A project has two customer billing elements. One part of the project is based on a fixed fee and the other part is a variable based on a cost plus basis. The customer requires separate invoices for fixed fee elements and variable works elements. How can agreements be used to provide separate invoices?

  A. Createeach element as a top task and implement top task billing for the project.
  B. Create each element as a top task on the project and create an agreement for variable works and onefor fixed fee.Then fund the project at the top task level.
  C. Have one agreement and create an invoice grouping rule in Accounts Receivable.
  D. Create oneagreement and fund the project.
  E. Use billing events and create separate events per purchase order.
  B. Create each element as a top task on the project and create an agreement for variable works and onefor fixed fee.Then fund the project at the top task level.

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  One Customer, Multiple Agreements

  Use multiple agreements when you have one customer, but a requirement to create a separate invoice for each top task.

  You can use this method to accrue revenue cost-to-cost or impose hard or soft revenue limits by task, as well as automatically create separate invoices by task.

  To create separate invoices by task, you must use a different agreement to fund each task. If you use more than one agreement for a single task, the agreements are used according to the precedence described earlier for projects.

• Question 23:

  A customer needs to enable all employees to enter timecards through the web against projects and tasks. What needs to be implemented to allow time to be recorded in Projects?

  A. Project CostingOracleTime andLaborHuman Resources
  B. OracleTime andLaborPayrollPurchasing
  C. Project CostingProject ManufacturingHuman Resources
  D. Projects Resource ManagementOracleTime and LaborHuman Resources
  E. Project CostingOracle Time and LaborHuman ResourcesPayroll
  E. Project CostingOracle Time and LaborHuman ResourcesPayroll

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  Note:

  * Payroll

  *Time and Labor.

  There are many reports within Oracle Time and Labor to gather data about timecards entered through self-service and to gather data about timecards that you have transferred to the professional forms timecard window.

• Question 24:

  Your company wants to define all its equipments as Non-Labor resources to track the cost incurred on the usage of these equipments, when defining the equipment. When defining the equipment as a Non- Labor resource in the system, you

  need to assign an expenditure type to it. What kind of expenditure type to it.

  What kind of expenditure type can be assigned to a Non-Labor resource?

  A. expenditure type defined withExpenditureType Class as Work in Process
  B. expenditure type defined with ExpenditureType Class as Burden transactions
  C. expenditure type defined withExpenditure Type Class as Supplier Invoices
  D. expenditure type defined with Expenditure Type Class as Miscellaneous Transactions
  E. expenditure type defined with Expenditure Type Class as Usages
  D. expenditure type defined with Expenditure Type Class as Miscellaneous Transactions

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  Oracle Projects uses the following expenditure type classes to process non-labor project costs: *Usages - Asset usage costs are interfaced to Oracle General Ledger. *Supplier Invoices - Oracle Payables supplier invoices are interfaced from Oracle Payables to Oracle Projects. *Miscellaneous Transaction - Miscellaneous Transactions are used to track miscellaneous project costs. This expenditure type class is similar to usages. The difference is that, for miscellaneous transactions expenditure items, you are not required to specify a non-labor resource or a non-labor resource organization, as you are for usage expenditure items. Miscellaneous transactions may be used for the following costs: Fixed assets depreciation Allocations Interest charges *Burden Transaction - Burden transactions track burden costs that are calculated in an external system or calculated as separate, summarized transactions. These costs are created as a separate expenditure item that has a burdened cost amount, but has a quantity and raw cost value of zero. Burden transactions are interfaced to Oracle General Ledger. As with any other transaction in Oracle Projects, you can adjust and capitalize burden transactions, or accrue revenue or generate invoices for these transactions. *Work In Process - This expenditure type class is used for Project Manufacturing WIP transactions that are interfaced from Manufacturing to Oracle Projects. You can also use this expenditure type class when you import other manufacturing costs via Transaction Import or when you enter transactions via pre-approved batch entry.

• Question 25:

  Which three Project foundation setups are shared across Operating Units in a multi-organization setup?

  A. Project Classifications categories
  B. ProjectTypes
  C. Project Templates
  D. Project numbers
  E. ExpenditureTypes
  A. Project Classifications categories
  B. ProjectTypes
  E. ExpenditureTypes

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  A:Project Classifications (Class Categories and Class Codes)

  You define project classifications to group your projects according to categories you define. A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category.

  B:In a multi-organization environment, you must set up project types for each operating unit. It is possible to have the same project type names in multiple operating units. However, each project type has it own attributes to control project processing by operating unit.

  E:In a multi-organization environment, expenditure types are set up once and are shared across all operating units.

• Question 26:

  Identify two predefined transaction sources that Oracle Projects uses to import the transactions generated within Oracle Projects.

  A. Oracle Interproject Supplier Invoices
  B. Oracle Projects Intercompany Supplier Invoices
  C. Project Allocations
  D. Capitalized Interest
  E. Oracle Interprojed Customer Invoices
  C. Project Allocations
  D. Capitalized Interest

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  Oracle Projects uses predefined transaction sources to import project allocations and capitalized interest transactions that it generates internally.

• Question 27:

  Identify three transactions for which Oracle Project Costing enforces budgetary controls.

  A. project-related purchase requisitions and purchase orders entered in Oracle Purchasing
  B. expense reports entered In Oracle iExpenses
  C. supplier invoices entered in Oracle Payables
  D. contingent worker purchase orders entered in Oracle Purchasing
  E. employee timecards entered in Oracle Time and Labor
  A. project-related purchase requisitions and purchase orders entered in Oracle Purchasing
  C. supplier invoices entered in Oracle Payables
  D. contingent worker purchase orders entered in Oracle Purchasing

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  Note:

  *Enable Budgetary Controls and Encumbrance Accounting

  To use budgetary controls, you must implement budgetary control and encumbrance accounting for the ledger in Oracle General Ledger and enable encumbrance accounting in Oracle Payables or Oracle Purchasing.Encumbrance

  accounting automatically creates encumbrances for requisitions, purchase orders, and invoices.

  *PSA: Budgetary Control Report Template

  This profile option can be set at the site, application, responsibility, and user levels. You must select Budgetary Control Results Template as the value for this profile option to enable users to view funds check results from Oracle Purchasing

  and Oracle Payables after a funds check.

• Question 28:

  A customer enables transaction controls at the Project level. Oracle Project Costing checks the control when the customer ________.

  A. transfers an expenditure item to another task of the same project
  B. runs the PRC: Distribute Labor Costs concurrent program
  C. runsthe PRC: Transaction Import concurrent program
  D. entersaproject-related invoice distributionin Oracle Payables
  E. enters an online or preapproved expenditureitem
  E. enters an online or preapproved expenditureitem

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  Expenditure Item Validation

  When you enter expenditure items, you are charging cost to a project and a task. Oracle Projects validates expenditure items against predefined criteria and any transaction controls and transaction control client extensions that you set up during the implementation.

• Question 29:

  A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May. What are the accounting entries at the end of May?

  A. Debit: Cost of Goods SoldCredit: Unbilled Receivables
  B. Debit: Unearned RevenueCredit: Revenue
  C. Debit:ReceivableCredit:Bank
  D. Debit:ReceivableCredit: Unearned Revenue
  E. Debit: BankCredit: Revenue
  D. Debit:ReceivableCredit: Unearned Revenue

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  Invoice

  When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.

  The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:

  AccountDebitCredit Receivables200.00 Unbilled Receivables and/or Unearned Revenue200.00

• Question 30:

  You are setting up an AutoAccounting rule and trying to use "Class Code" as the parameter for that rule. Which setup must exist in order to use "Class Code" as one of the parameters?

  A. Enable AutoAccountingfor one ClassCode ofaClassCategory.
  B. EnableAutoAccountingforall the Class Codes ofaClassCategory.
  C. Enable AutoAccounting for the Class Category.
  D. Enable AutoAccountingfor both Class Category and Class Code.
  A. Enable AutoAccountingfor one ClassCode ofaClassCategory.

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  *AutoAccounting Parameter: ClassCode

  AutoAccounting class code on the project.

  Note: Since you can define many project classification categories, the Class Code parameter always corresponds to the one classification category that you specified as the AutoAccounting classification category.