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Oracle EBS R12: General Ledger and Payables Fundamentals Sample Questions:

1. ABC Enterprise has operations in the US, France, and Italy. The US, France, and Italy operations have separate legal and statutory requirements. The tax requirements also differ for each country. Identify the action you would perform to set up Oracle General Ledger.

A) Create three legal entities for each operation. Create one accounting setup forFrance and Italy, and one for the US.
B) Create a separate legal entity and accounting setup for each operation.
C) Create two legal entities: one forFrance and Italy, and one for the US. Create two accounting setups: one for France and Italy, and one for the US.
D) Create three legal entities for theUS, France, and Italy, and one accounting setup.
E) Create one legal entity and three accounting setups for theUS, France, and Italy.

2. ABC Corp. wants to allocate the gross amount of XYZ Co. invoices to fifty cost centers each time an invoice is received from them. The cost centers that are to be charged require minimal updating. Select the option you would recommend that requires minimal ongoing maintenance.

A) Create an invoice and use the prorate functionality to allocate the cost across accounts.
B) A customization may be created to allocate the charges at the end of the month.
C) Create a distribution set for all the desired accounts and associate it to all new invoices for this supplier.
D) Import predefined invoices from an Excel spreadsheet.
E) Make it an operational policy that all invoices of this type are created listing all the desired accounts.

3. Identify three statements that are correct for the multi-currency functionality of Oracle General Ledger. (Choose three.)

A) Enter transactions and reports in any currency.
B) Translate only actual but not budgeted balances.
C) Translate only budgeted but not actual balances.
D) Enter exchange rates online and automatically.
E) Use daily, period end, average, and historical rates.

4. Which key process is considered as a prerequisite for Transfer Journal Entries to GL Process?

A) Create Accounting
B) Invoice Audit Listing
C) Payables Posted Payment Register
D) Invoice Register

5. Identify three statements that describe Payment Terms. (Choose three.)

A) can be used to schedule payments for an invoice
B) automatically calculate due dates, discount dates, and discount amounts for each invoice
C) cannot be specified in import tables
D) can be used for electronic payments
E) default from the supplier site

Solutions: