1Z0-1074-21 Practice Questions

To configure expense items for period-end accrual, two distinct setups are required. First, the item itself must be defined as an expense item. This is achieved in Product Information Management by setting the 'Inventory Asset Value' attribute to "No". Second, the accrual behavior for expense items must be configured for the specific procurement business unit. This is done in 'Manage Common Options for Payables and Procurement', where the 'Accrue Expense Items' option is set to "Period End". These two configurations together meet the client's requirement.

C. Receipt Close Point determines when a purchase order is closed for receiving, not how accruals are handled.

D. Setting Inventory Asset Value to "Yes" defines an item as an asset item, which is the opposite of an expense item.

E. This option incorrectly refers to Receipt Close Point and sets the accrual method to "At Receipt," contradicting the requirement.

F. This sets the accrual method to "At Receipt," which is incorrect as the requirement is for "Period End" accrual.

1. Oracle Fusion Cloud SCM: Implementing Procurement

Release 21A

F33053-02

Chapter 6: Configure Procurement Business Function

Section: Procurement Business Unit Setup

Page 105.

2. Oracle Fusion Cloud SCM: Using Product Master Data Management

Release 21A

F33061-02

Chapter 4: Items

Section: Item Attributes

Subsection: Manufacturing Attributes.

Establishing standard costs for a manufactured item is a multi-step process. First, a cost scenario (F) must be created to serve as a container for the cost definitions. Within this scenario, standard costs for components, resources, and overheads are added (E). Next, the cost roll-up process (B) is executed, which calculates the total standard cost for the make item by aggregating the costs of its components and manufacturing processes defined in the work definition. Finally, the calculated costs are published (C), which updates the item's official standard cost in the cost organization.

A. Run preprocessor: The preprocessor is an internal part of the cost roll-up process, not a distinct, user-executed step in this high-level workflow.

D. Export item costs: Exporting is a data management action used to move cost data out of the system; it is not a required step for establishing the cost.

1. Oracle Fusion Cloud SCM

Using Cost Management

23D

Chapter 3: Standard Costs

Section: "Standard Costing Process". This section outlines the end-to-end flow: "Create cost scenarios

" "Define standard costs

" "Roll up costs

" and "Update standard costs" (Publish).

2. Oracle Fusion Cloud SCM

Implementing Cost Management

23D

Chapter 3: Standard Costs

Section: "Cost Roll-up: Explained". This document describes the roll-up process as a key step after defining costs in a scenario and before publishing.

An expense pool is a fundamental concept in overhead costing. It is a user-defined grouping of various General Ledger expense accounts (B) that represent costs to be absorbed into inventory, such as factory rent or utilities. By tracking the actual costs accumulated in the pool against the overhead amounts applied to production based on rates, companies can analyze any variance, which is known as under-absorption or over-absorption (A). This analysis is crucial for accurate inventory valuation and cost control.

C. You can define the name of your expense pool, but you cannot define more than one: This is incorrect. Organizations can and typically do define multiple expense pools to segregate and analyze different categories of overhead costs.

D. It is used only for analyzing gross margins on noninventory sales of services: This is incorrect. The primary purpose of expense pools in Cost Management is to capitalize overhead costs into inventory and work-in-process assets.

1. Oracle Fusion Cloud SCM

Using Cost Management

Release 21D

Chapter 3: Overhead Accounting

Section: Expense Pools. This section defines an expense pool as a "user-defined grouping of general ledger accounts" and explains its use in calculating and analyzing overhead absorption.

When an accounting method is assigned a specific Chart of Accounts (COA), it becomes COA-dependent. Consequently, it can only be used with journal entry rule sets that are compatible. There are two types of compatible rule sets: those that are also assigned to the exact same COA, ensuring all segment rules and constants are valid, and those that are not assigned to any COA at all. These COA-independent rule sets are generic and can be applied within the context of any COA, including the one specified on the accounting method.

A. Rule sets assigned to a different COA are incompatible because their segment definitions and value sets would not match the accounting method's COA.

B. Mapping sets are used for transformations (e.g., for secondary ledgers) but do not change the fundamental COA assignment of the rule set itself, making it incompatible if different.

D. Overriding rules is a feature of the accounting hierarchy, not a type of rule set defined by its relationship to a COA.

1. Oracle Fusion Cloud Financials

Implementing Subledger Accounting

Release 21D

F38259-02

Chapter 5: Manage Accounting Methods. The section "Journal Entry Rule Sets: Explained" states

"If the accounting method is assigned a chart of accounts

you can only select journal entry rule sets that are not associated with a chart of accounts

or are associated with the same chart of accounts."

When the Create Accounting process encounters an end-dated account combination, Oracle Subledger Accounting (SLA) provides mechanisms to handle the issue without halting the process. If an alternate account has been defined in the accounting rules, SLA will use this valid account for the journal line. This ensures that accounting can be completed successfully. For audit and reconciliation purposes, the original, invalid account that was initially derived is still stored on the subledger journal line, providing full traceability of how the final accounting was generated.

B. Suspense accounts can be used if no alternate account is defined and the ledger is configured to allow suspense posting for subledger journals.

D. An error will not always occur; the use of an alternate account is a standard mechanism to prevent an error and allow the process to complete.

E. The Create Accounting process itself validates the account, not a separate preprocessor. The validation and substitution happen during the main process run.

- Oracle Fusion Cloud Financials

Implementing Subledger Accounting

Chapter: Subledger Accounting Rules

Section: Alternate Accounts. (This section explains the setup and use of alternate accounts for invalid code combinations).

- Oracle Fusion Cloud Financials

Using Subledgers

Chapter: Subledger Accounting

Section: How Subledger Accounting Is Processed. (Describes the Create Accounting process flow

including validation steps).

Financial routes are created in Cost and Profit Planning (task: Manage Financial Routes). Once the route is saved, it must be assigned to a Trade Operations template so the Landed Cost application can select it while creating trade operations. Only this pairing (Cost and Profit Planning + Trade Operations Template) establishes the financial-route logic that diverges from the physical path.

B. Routes aren’t defined from Functional Setup Manager; the route object exists only in Cost and Profit Planning.

C. Manage Charge Invoice Associations links invoices to charge types, not to routes.

D. No route-creation UI exists inside Landed Costs; only association is possible there.

E. Association must be via a Trade Operations template, not directly to Trade Operations.

1. Oracle Fusion Cloud SCM: Using Landed Cost Management 21C

“Create Financial Routes”

p. 19-21 – defines route in Cost & Profit Planning then assign to Trade Operations template.

2. Oracle Fusion Cloud SCM: Implementing Cost Management 21C

ch. “Financial Routes”

p. 135 – confirms association step.

A Chart of Accounts (COA) must be assigned to a subledger accounting method when any of its components are COA-dependent. This makes the entire method specific to that COA structure. Segment rules, which derive a value for a specific named segment (e.g., 'Cost Center'), require a COA to identify that segment. Similarly, if an account combination rule uses a constant value for a segment, the COA is needed to validate that constant against the defined value set for that segment in that specific COA structure.

A. Unique accounting requirements are handled by different rule sets, which do not in themselves necessitate a COA on the parent accounting method unless they use COA-dependent features.

B. Account combination rules can be COA-independent if they only use sources and do not reference specific segments by name or use constants.

D. Accounting methods can be designed to be COA-independent for reusability across different ledgers with different COAs, so this is not a mandatory requirement for all methods.

1. Oracle Fusion Cloud Financials

Implementing Subledger Accounting

Release 21D

F38259-02

Chapter 5: Manage Accounting Methods. The section "Accounting Methods: Explained" states

"Assign a chart of accounts to an accounting method if any of its journal entry rule sets contain chart of accounts-dependent definitions

such as segment rules or account combination rules with constant values."

A cost profile is a fundamental setup in Cost Management that groups a set of policies to determine how items are costed within a specific valuation unit. Its primary characteristics include defining the core cost accounting policies (C) and specifying the cost method (e.g., Standard, Actual, FIFO). It also defines the mapping of cost components to cost elements (D), which dictates how costs are broken down and categorized. These settings collectively control the cost calculation and accounting for items associated with the profile.

A. It is used for calculating the estimated cost of manufactured items under different scenarios. This describes cost scenarios or simulations, which are separate from the fundamental cost profile setup that governs actual costing transactions.

B. It is used for Receipt Accounting. Receipt Accounting is a distinct subledger with its own configuration for managing receipt accruals, separate from the item costing policies defined in a cost profile.

1. Oracle Fusion Cloud SCM

Implementing Cost Management

Release 23D

Chapter: Costing Foundation

Section: Manage Cost Profiles. "A cost profile is a set of cost options that determines how an item is costed. It includes the cost method

and various other options such as the cost component group

and the basis for calculating the material acquisition cost."

2. Oracle Fusion Cloud SCM

Implementing Cost Management

Release 23D

Chapter: Costing Foundation

Section: Overview of Cost Management Setup. "Define cost profiles to set up the policies for costing items

such as the cost method..."

The requirement is to maintain detailed transactions in Subledger Accounting (SLA) for drill-down while posting summarized journals to the General Ledger (GL). This is achieved through two main settings. First, to ensure full detail is preserved in SLA, the "Merge Matching Lines" option in the Journal Line Rule must be turned off. This prevents SLA from combining lines that have the same attributes, thus preserving each transaction's detail. Second, the transfer to GL is configured to summarize these detailed SLA entries. Option A addresses the critical first step of ensuring the subledger data remains unsummarized.

B. Turn off the summarize flag in the journal line rule: There is no single "summarize flag" on a journal line rule; summarization is controlled by options like "Merge Matching Lines".

C. Write a custom report: This is a reporting solution and does not configure the actual posting behavior between the subledger and the general ledger.

D. Turn on detailed posting for GL in the ledger setup: This would accomplish the opposite of the requirement, as it would send detailed, unsummarized journals to the GL.

E. Extract distribution accounting entries: This describes a method for data analysis, not a configuration for controlling the summarization of GL posting.

1. Oracle Fusion Cloud Financials

Implementing Subledger Accounting

Release 21D

Chapter 5: Define Subledger Accounting Methods

Section: "Journal Line Rules". The documentation details the "Merge Matching Lines" option and its function in combining journal lines within the subledger entry itself.

2. Oracle Fusion Cloud Financials

Implementing Subledger Accounting

Release 21D

Chapter 3: Manage Subledger Accounting Options

Section: "Subledger Accounting Options". This section describes the "General Ledger Journal Entry Summarization" setting

which controls how SLA entries are summarized when transferred to GL

working in conjunction with the detail generated by the journal line rules.

The cost planning scenario will select a work definition that is effective on the scenario's effective date (January 1, 2016). In this case, the work definitions with effective dates of October 1, 2015, and December 1, 2015, are both valid candidates. The work definition dated January 2, 2016, is not yet effective. The application uses selection criteria to choose between the valid options. By default, it selects the work definition with the latest effective start date that is on or before the scenario effective date, which would be the December 1, 2015 version.

A. It will use the work definition with the January 2, 2016 effective date: This work definition is not effective as of the cost scenario's effective date of January 1, 2016.

C. It must always use the work definition with the October 1, 2015 effective date: The work definition with the December 1, 2015 effective date is more current and also valid.

D. You will receive an error because the application will detect that all three are plausible...: The application has a defined logic to select the most current valid work definition; it will not error out. Also, only two are plausible.

1. Oracle Fusion Cloud SCM

Using Cost Management

Release 23D

Chapter 6: Cost Planning

Section: "How Work Definitions are Processed in a Cost Scenario". The documentation specifies: "The cost scenario uses the work definition that's effective on the scenario effective date. If there are multiple work definitions that are effective on that date

the cost scenario uses the one with the latest effective start date."