1Z0-1055-26 Practice Questions

When voiding a payment and selecting the 'Cancel' invoice action, the system attempts to change the invoice status to 'Canceled'. However, if the invoice has other payments applied to it (i.e., it was partially paid by the payment being voided and also by another payment), it cannot be canceled. Canceling it would create a data integrity issue, as a portion of the invoice would remain legitimately paid. In this scenario, the system prevents the cancellation and instead applies a system-generated "Invoice Cancel" hold, signaling that manual review and resolution are required.

A. An invoice date in a closed period would prevent accounting but not necessarily the cancellation itself; the system would post accounting in the next open period.

B. While an existing hold would prevent payment, it would not be the primary reason the system applies a specific "Invoice Cancel" hold during a void action.

1. Oracle Fusion Cloud Financials Documentation

"Using Payables Invoice to Pay

" Chapter: "Processing Payments

" Section: "Voiding Payments." (Explains the outcomes of voiding payments and the associated invoice actions).

2. Oracle Fusion Cloud Financials Documentation

"Using Payables Invoice to Pay

" Chapter: "Processing Invoices

" Section: "Invoice Holds and Releases." (Describes the different types of system-generated holds

including those related to payment actions).

Adaptive Learning for Invoice Lines enhances Intelligent Document Recognition (IDR) by learning from user corrections made in the interactive invoice viewer. This feature specifically applies to certain line-level attributes. When a user corrects the Amount, Quantity, or Description on an invoice line, the system's machine learning algorithms are trained. This improves the accuracy of data extraction for these fields on future invoices from the same supplier, leading to increased touchless processing rates. Other correctable line-level attributes not listed as options include Unit Price and UOM (Unit of Measure).

C. Supplier is a header-level attribute, not a line-level attribute. Adaptive learning for suppliers is a separate capability.

E. Invoice Date is a header-level attribute, and corrections are learned at the invoice header level, not the line level.

F. Invoice Number is a key header-level attribute, not a line-level attribute.

G. Invoice Requestor is a routing attribute, not a standard line-level attribute extracted from the invoice image for learning.

1. Oracle Fusion Cloud Financials

What's New in Oracle Cloud: Financials 21D

Document ID F45903-01

December 2021

"Payables" section

"Adaptive Learning for Invoice Lines" feature description. The document states

"When you make corrections to the following invoice line-level attributes in the interactive invoice viewer

the application learns from them to improve recognition for future invoices: Amount

Quantity

Unit Price

UOM

Description."

A Payables Supervisor can use the 'Manage Invoices' page to directly query for invoices with an 'Incomplete' status, and can also filter by other attributes like the creation source (e.g., Supplier Portal). This provides a real-time, interactive method for identification. Additionally, during the period close process, the 'Payables Period Close Exception Report' is run. This report explicitly lists all transactions, including incomplete invoices, that are preventing the period from being closed. Both are standard tools for this task.

A. Query the Payables Invoice Register: This report primarily lists validated and accounted invoices, making it unsuitable for finding incomplete ones which have not passed validation.

B. Run the Period Invoice Audit Report: This report tracks changes made to invoices (auditing), rather than identifying invoices based on their current status like 'Incomplete'.

1. Oracle Fusion Cloud Financials

"Invoices". Section: "How You Manage Invoices". The documentation describes using the Manage Invoices page to search for invoices based on status

including 'Incomplete'.

2. Oracle Fusion Cloud Financials

"Period Close". Section: "Payables Period Close Exceptions Report". This document explains that the report is the primary tool for identifying transactions

such as unvalidated invoices

that hold up the period close.

The keyword audit feature in Oracle Fusion Expenses is designed to automatically flag expense reports for audit based on specific words found in free-text fields. The system specifically scans the Merchant Name, Description, and Justification fields of expense items. When a word from the configured keyword list is found in any of these fields, the expense report is automatically selected for audit, streamlining the compliance process and helping to detect potential policy violations or fraud.

B. Itemization Type: This is a predefined value selected from a list and is not a free-text field scanned for keywords.

D. Location: While this can be a free-text field, it is not one of the fields the keyword audit feature is configured to scan.

E. Expense Type: This is a category selected from a predefined list, not a free-text field where keywords would be entered by the user.

Oracle Fusion Cloud Financials

Implementing Expenses Guide

Release 24B

Chapter: Expense Policies and Audit

Section: "Audit Expense Reports for Keywords". The guide states

"The application searches for keywords in the Merchant Name

Description

and Justification fields of expense items."

The expense delegate digest notification is designed to prompt action on expense items that are pending and not progressing through the approval workflow. It aggregates outstanding items to help delegates manage them efficiently. The notification specifically includes expense reports with statuses that require intervention from the employee or their delegate. These statuses are 'Saved' (draft), 'Withdrawn' (recalled by user), 'Rejected' (denied by approver), and 'Returned' (sent back by auditor). Each of these statuses indicates that the report is not in an active approval or payment cycle and needs to be edited and resubmitted.

A. This is too restrictive; other statuses like Saved, Withdrawn, and Returned also represent outstanding reports requiring action.

B. 'Submitted' reports are actively in an approval queue and do not require action from the delegate, so they are not included in this specific notification.

D. This is too narrow. Reports that are Saved, Rejected, or Returned also require delegate action and are included in the digest.

1. Oracle Financials Cloud

Implementing Expenses

24A

Chapter: Expenses Administration

Section: "Overview of Expenses Notifications". This section describes the "Actionable Expense Items in Digest Email for Delegates" and clarifies that it includes reports requiring action.

2. Oracle Financials Cloud

Using Expenses

24A

Chapter: Expense Reports

Section: "Expense Report Statuses". The definitions of Saved

Withdrawn

Rejected

and Returned statuses confirm they are states where the report requires user/delegate action to proceed.

Oracle Fusion Cash Management provides specific predefined reports to monitor cash positions. The Cash to General Ledger Reconciliation Report identifies discrepancies by listing subledger transactions accounted in the General Ledger but not yet reconciled in Cash Management. The Bank Statement Report provides exact balance and transactional data for specified bank statements, aiding in granular statement verification. The Cash in Transit Report identifies funds that are in process by securely listing transactions remitted to the bank but not yet cleared. Finally, the Bank Statement Analysis Report provides a broader analytical view, displaying the bank statements utilized to analyze overall balances and transaction details. These functions correspond directly to official Oracle Cloud Financials parameters.

Oracle Help Center. "Cash to General Ledger Reconciliation Report", Oracle Fusion Cloud Financials (Release 26A). (Confirms the GL vs. Cash Management unmatched transaction mapping).

Oracle Help Center. "Oracle Fusion Cash Management Predefined Reports", Oracle Fusion Cloud Financials (Release 26A), Chapter: Financial Reporting and Analysis. (Defines Cash in Transit Report and Bank Statement Analysis Report mappings).

Oracle Corporation. "Oracle Financials Reports List (Financials-Reports-R10.xls)", Document ID: R10, Tabs: Cash Management & Reports and Analyses. (Verifies the definition for Bank Statement Report vs Bank Statement Analysis Report).

for Step-

by-Step Solution.

Explanation:

Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud

To implement the expense policy for meals in Oracle Financials Cloud, follow these steps:

Step 1: Navigate to the Expense Policies Setup

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator

role.

Go to the Setup and Maintenance work area.

Select Manage Policies by Expense Category (Task Name: Manage Expense Policies by Expense

Category).

Select the US1 Business Unit to ensure the policy applies to the correct entity.

Step 2: Create or Update the Meal Expense Category

Under Manage Policies by Expense Category, locate or create the Meals Expense Category.

If the Meals category does not exist:

Click Create Expense Category.

Enter Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define Expense Limits for Evening Meals

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Description: "Evening Meal Limit".

Limit Type: "Maximum Allowed Amount".

Limit Amount: Enter 30 USD.

Per: Select Day.

Apply to All Employees (since this applies regardless of role and location).

Location-Based Rules: Leave blank since it applies universally.

Click Save and Close.

Step 4: Enable and Activate the Policy

Ensure the policy is enabled by selecting the checkbox for Active.

Click Submit to finalize the configuration.

Run the "Validate and Deploy Expense Policies" process to apply changes.

Step 5: Testing the Policy

Simulate an Expense Report Submission:

Have an employee create a new expense report.

Select Meals as the expense category.

Enter an evening meal expense of 35 USD (which exceeds the policy limit).

Verify if a policy violation warning appears, restricting the claim to 30 USD.

Submit an expense of 30 USD and ensure no policy violation occurs.

Expected Outcome:

Employees can claim up to 30 USD per day for an evening meal.

Any claim above 30 USD triggers a policy violation warning.

The rule applies to all employees regardless of role and location.

Conclusion

By following the above steps, you successfully configure an expense policy for meals that limits

evening meal claims to 30 USD per day. This ensures compliance with the company's expense

management guidelines while streamlining the expense approval process in Oracle Financials Cloud.

for Step-

by-Step Solution.

Explanation:

Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud

To configure this expense policy in Oracle Financials Cloud, follow these steps:

Step 1: Access the Expense Policies Setup Page

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator

role.

Navigate to Setup and Maintenance.

Select the Task: Manage Policies by Expense Category.

Step 2: Create or Locate the Meal Expense Category

Search for the Meals expense category.

If the Meals category does not exist:

Click Create Expense Category.

Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define a Policy Rule for Raising a Warning

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Configure the Expense Policy Rule:

Description: "Meal Expense Warning Policy".

Limit Type: "Warning Only".

Limit Amount: Enter the prescribed limit (e.g., 50 USD).

Per: Select Day (or another relevant time frame).

Applies To: Select All Employees.

Location-Based Rules: Leave blank if not location-specific.

Set Warning Behavior:

Select Raise a Warning if the expense exceeds the prescribed limit.

Ensure the policy does not block submission or approval.

Click Save and Close.

Step 4: Associate the Policy with an Expense Report Template

Navigate to Setup and Maintenance > Manage Expense Report Templates.

Search for the Expense Report Template where the Meals category should be included.

Click Edit and go to the Expense Types section.

Add the Meals Expense Type and associate it with the newly created Meals Expense Warning Policy.

Click Save and Close.

Step 5: Enable and Validate the Policy

Ensure the policy is marked as Active.

Click Submit to finalize the policy configuration.

Run the Validate and Deploy Expense Policies process.

Step 6: Testing the Policy

Simulate an Expense Report Submission:

Create a new expense report and select Meals as the expense type.

Enter an expense amount exceeding the limit (e.g., 55 USD).

Verify that a warning message appears, but the expense is still allowed to proceed.

Submit an expense below the limit (e.g., 45 USD) and ensure no warning appears.

Expected Outcome:

If the meal expense exceeds the limit, the system raises a warning but does not block the expense

submission.

If the meal expense is within the limit, the system processes it without warnings.

The policy is successfully associated with an expense type in an expense report template.

Conclusion

By following these steps, you successfully configure an expense policy that raises a warning for meals

exceeding a specified limit without blocking submission or processing. This ensures that employees

are notified about policy violations while allowing flexibility in expense approvals.

for Step- by-Step Solution. Explanation: TASK 2: CREATE EXPENSE ITEMS We need to create expense items with the following requirements: Effective Start Date: Set to current date. No tax implications. Projects are not used. Receipt and expense fields should match those from the expense report template created earlier. Dinner expense item must be linked to the Meal policy created in the previous task. Step-by-Step Solution: Configuring Expense Items in Oracle Financials Cloud Step 1: Navigate to the Expense Items Setup Log in to Oracle Financials Cloud as an Expense Manager or Financial Administrator. Navigate to Setup and Maintenance. In the Search Bar, type "Manage Expense Items". Click on Manage Expense Items. Step 2: Create Expense Items Click Create New Expense Item. Enter the following details: Expense Item: Internet Name: "Internet" Expense Category: "Meals and Entertainment" Effective Start Date: Current Date Tax Classification Code: None (No tax implications) Projects Used? No (Uncheck "Enable for Projects") Receipt Required? Follow Template Policy Expense Fields? Set as Optional Click Save and Close. Expense Item: Room Rate Click Create New Expense Item again. Enter the following details: Name: "Room Rate" Expense Category: "Lodging" Effective Start Date: Current Date Tax Classification Code: None Projects Used? No Receipt Required? Follow Template Policy Expense Fields? Set as Optional Click Save and Close. Expense Item: Dinner (Linked to Meal Policy) Click Create New Expense Item again. Enter the following details: Name: "Dinner" Expense Category: "Meals and Entertainment" Effective Start Date: Current Date Tax Classification Code: None Projects Used? No Receipt Required? Follow Template Policy Expense Fields? Set as Optional Link to the Meal Policy Created Earlier: Navigate to Expense Policies. Select the previously created Meal Policy. Ensure that Dinner Expense Item is associated with this policy. Set Limit Type: Warning Only (if applicable). Click Save and Close. Step 3: Validate and Confirm the Expense Items Review the created expense items. Ensure that: No tax classification codes are applied. Projects are disabled. Receipt and expense fields match those in the Expense Report Template. Dinner Expense Item is correctly linked to the Meal Policy. Click Submit and Activate. Step 4: Test the Expense Items Simulate an Expense Report Submission: Select Internet, Room Rate, and Dinner as expense types. Enter sample amounts. Ensure that: No tax implications appear. Projects field is disabled. Receipt rules match the Expense Report Template. A warning is displayed if the Dinner Expense exceeds the Meal Policy limit. Expected Outcome: Expense items are successfully created. No tax implications are applied. Projects are not enabled. Receipts and expense fields match the template. Dinner expense item is linked to the Meal Policy and displays a warning if the limit is exceeded. Conclusion By following these steps, we have successfully created expense items that comply with all business requirements.

for Step- by-Step Solution. Explanation: Task 1: Create an Expense Report Template for the US1 Business Unit The following configurations need to be implemented: Effective Start Date: The current date. Hotel Expense Type: Requires itemization with Internet, Room Rate, and Dinner. Expense Type: Associated with the respective GL account. Card Expense Type Mapping: Not enabled. Receipts Policy: Users can indicate missing receipts, and a warning should be displayed. Expense Fields: All fields should be optional. Step-by-Step Solution Step 1: Navigate to Expense Report Templates Log in to Oracle Financials Cloud with the Expense Manager or Financial Administrator role. Navigate to Setup and Maintenance. In the Search Bar, type "Manage Expense Report Templates". Click on Manage Expense Report Templates. Step 2: Create a New Expense Report Template Click Create New Template. Enter the following details: Name: "US1 Business Unit Expense Report" Business Unit: US1 Business Unit Effective Start Date: (Set to current date) Enable for Use: (Check this box) Click Save. Step 3: Define the Expense Type – Hotel with Itemization Navigate to the Expense Types tab. Click Add Expense Type. Enter the following details: Expense Type Name: "Hotel" Expense Category: "Lodging" Requires Itemization: (Check this box) Under Itemization, click Add Itemization Categories: Internet Room Rate Dinner Click Save. Step 4: Associate Expense Types with GL Accounts Click on Edit Expense Type "Hotel". Go to the Accounting section. Select the appropriate GL Account for lodging expenses. Repeat this process for other required expense types. Click Save and Close. Step 5: Disable Card Expense Type Mapping Navigate to the Corporate Card Expense Mapping tab. Ensure the "Enable Corporate Card Mapping" checkbox is unchecked. Click Save. Step 6: Configure Receipts Policy Navigate to the Receipts tab. Under Receipt Handling, set: Company Policy: Employees must provide receipts. Allow users to indicate missing receipts? (Check this box). Action for Missing Receipts: Raise a Warning (so that expense submission is not blocked). Click Save. Step 7: Set Expense Fields as Optional Navigate to the Fields Setup tab. Ensure all Expense Fields are set to Optional. Click Save and Close. Step 8: Validate and Activate the Template Review all configurations. Click Submit and Activate. Run the Validate and Deploy Expense Templates process to ensure all settings are applied. Step 9: Testing the Expense Report Template Simulate an Expense Report Submission: Select Hotel Expense and enter details. Verify if the system requires itemization (Internet, Room Rate, Dinner). Submit without a receipt to check if a warning is displayed. Ensure all fields remain optional. Verify no corporate card expense mapping applies. Expected Outcome: The Expense Report Template is successfully created for US1 Business Unit. Hotel expenses require itemization into Internet, Room Rate, and Dinner. Receipts are required, and a warning is displayed for missing receipts. GL Account mapping is correctly applied to each expense type. Card Expense Type Mapping is disabled. All fields are optional, allowing flexible data entry. Conclusion By following these steps, we have successfully created and configured an Expense Report Template that meets all business requirements for the US1 Business Unit.