1Z0-1056-26 Practice Questions

The receipt rule “One per Customer” consolidates every eligible transaction for a customer into a single automatic receipt, regardless of site or due date, thereby generating the fewest possible payments.

A. Creates a separate receipt for each invoice, producing the most payments.

B. Groups by both customer and due date, so multiple receipts are created per customer.

D. Splits by site and due date; more receipts than any customer-level rule.

1. Oracle Fusion Cloud Financials: Using Receivables (24A), “Define Automatic Receipt Rules”, Table 7-3: “One per Customer – creates a single receipt for all transactions.”

2. Oracle Fusion Cloud Financials: Implementing Receivables (23D), Chap. 12.4, para. 2.

RAINTERFACEDISTRIBUTIONSALL is an optional interface table. If it is left empty, AutoInvoice derives all accounting distributions at import time from the AutoAccounting rules that were configured for Receivables. Consequently, the transaction is created successfully and, when the Create Accounting process is later run, journal entries are produced without error.

A. AutoInvoice does not require the interface-Distributions table; no error occurs.

B. Transactions are still built; accounting can also be built from AutoAccounting.

C. Accounting is produced because AutoAccounting supplies the missing distributions.

1. Oracle Fusion Cloud Financials, Implementing Receivables (24A), “Use AutoInvoice Interface Tables”, Table: RAINTERFACEDISTRIBUTIONSALL – Optional; AutoAccounting supplies accounts if not populated (Section 10.5.3).

2. Oracle Fusion Cloud Financials, Using Receivables (24A), “Create Accounting for Receivables Transactions”, paragraph “AutoAccounting Derivation” (Chapter 19, p. 19-6).

The report parameters allow users either to include or exclude intercompany transactions or to reconcile solely by intercompany activity, giving flexibility when balancing Receivables with the General Ledger.

A. Parameters exist to include/exclude on-account, unapplied, and unidentified items as well—so the statement is incomplete.

B. All three activity types can, in fact, be excluded via parameters.

D. The report can be run for any Open or Closed period; it is not limited to Closed periods.

1. Oracle Fusion Cloud Financials: Receivables User Guide 23C, “Run the Receivables to Ledger Reconciliation Report,” Table 5-3 Report Parameters.

2. Oracle Cloud Readiness – Receivables to Ledger Reconciliation (Release 13), p. 2, “Intercompany Filter Option.”

In Revenue Management the contract transaction price equals the sum of the observable selling prices of all performance obligations. Extended SSP amounts are used only to derive allocation percentages; they do not represent the consideration promised by the customer.

A. Extended SSP totals are a benchmark, not the contractual consideration.

B. SSP (unit) omits quantity; not the negotiated price.

D. Allocated amounts are derived after the transaction price is known.

E. Billing amounts may exclude un-billed promised consideration.

1. Oracle Fusion Cloud Financials, Revenue Management Implementation Guide 24D, “Determine the Transaction Price”, 1st para (Doc ID E96294-02, p. 157).

2. IFRS 15 & ASC 606 Concepts in Oracle Revenue Management White Paper, Section 3.2 “Contract Transaction Price” (March 2023, p. 7).

Balance Forward Billing (BFB) groups all eligible bill-to sites that are enabled at the account or site level for the same customer account into a single balance-forward bill. Because only sites 1 and 2 are BFB-enabled, their transactions are consolidated; site 3, which isn’t BFB-enabled, is excluded.

A. Site 3 is not BFB-enabled, so its activity is never included in the balance-forward bill.

B. Site 3 lacks BFB enablement; site 2 alone can’t be grouped with it.

D. Site 3 isn’t enabled for BFB; therefore, it cannot be grouped with site 1.

1. Oracle Financials Cloud, Using Receivables (24A) “Balance Forward Billing: How It Works”, pp. 1792-1793.

2. Oracle Financials Cloud, Implementing Receivables (24A) “Enable Balance Forward Billing at Account or Site Level”, p. 317.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Transaction Types icon in the Receivables work area.

Click on the Create button.

In the Transaction Type window, enter the following information:

Name: XXinvoice

Class: Invoice

Transaction Action: Create

Transaction Source Type: Customer

Print Customer Bills: Yes

Allow Freight Charges: Yes

Allow Cash Applications: Yes

Accounting:

Reference Account: 41000

Company Segment: 120 Supremo

Fitness Click on the Save button.

The new transaction type will be created and the customer bills associated with this transaction type will

be printed. The balances will also be maintained for invoices associated with this transaction type. Freight

charges will be allowed and cash applications to invoices assigned to this transaction type must not

exceed the invoice balance due. The invoices associated with this transaction type will be accounted for

in the General Ledger application. The revenue GL account 41000 will be assigned as a reference

account for the business unit in question and the company segment must be 120 Supremo Fitness.

Steps to confirm the Oracle Applications Cloud version:

Click on the Settings and Actions menu under your profile in the Oracle Applications Cloud window.

Click on About This Application in the Settings and Actions menu.

Copy the complete version number from the About this Application pop-up in the Oracle Application Cloud

window.

Paste the version number in the box below.

Click Confirm.

Version Number: 21A

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Receipt Methods icon in the Receivables work area.

Click on the Create button.

In the Receipt Method window, enter the following information:

Name: XXCheck (Replace XX with your allocated user ID.)

Effective Date: January 1, 2023

Receipt Class: XXReceipt Class (The receipt class that you created in the previous step.)

Bank Account: The bank account that will be used to clear receipts for this receipt method.

Click on the Save button.

The new receipt method will be created.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Aging Methods icon in the Receivables work area.

Click on the Create button.

In the Aging Method window, enter the following information:

Name: XXAging Method (Replace XX with your allocated user ID.)

Description: Custom aging method for reporting purposes.

Aging Buckets:

1: 0 to 45 days

2: 46 to 90 days

3: 91 to 135 days

4: 136 to 180 days

Last Bucket: 181 days

Available to All Business Units: Yes

Click on the Save button.

The new aging method will be created.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Payment Terms icon in the Receivables work area.

Click on the Create button.

In the Payment Terms window, enter the following information:

Name: XXNet 30 (Replace XX with your allocated user ID.)

Description: Net 30 payment terms

Billing Cycle: All Cycles

Due Date: Next Business Day

Discount Days: 30

Discount Amount: 2%

Discount Type: Percentage

Discount Allowed: Yes

Discount Allowed Even If Partial Payment: Yes

Effective Date: January 1, 2023

Click on the Save button.

The new balance forward payment terms will be created.

To make the payment terms accessible to all business units:

Click on the Business Units tab.

Select the check box next to All Business Units.

Click on the Save button.

The payment terms will now be accessible to all business units.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Receipt Classes icon in the Receivables work area.

Click on the Create button.

In the Receipt Class window, enter the following information:

Name: XXReceipt Class (Replace XX with your allocated user ID.)

Creation Method: Manual

Remittance Method: No Remittance

Bank Account: The bank account that will be used to clear receipts for this receipt class.

Click on the Save button.

The new manual receipt class will be created.

To make sure that receipts using this receipt class will not be remitted:

Click on the Remittance Methods tab.

Select the check box next to No Remittance.

Click on the Save button.

The receipts using this receipt class will now not be remitted.