Oracle Financials Cloud Payables 2017 Implementation Essentials

Here you have the best Oracle 1z0-961 practice exam questions

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This questions were last updated on November 18, 2024

Question 1 of 64

An installment meets all of the selection criteria of a Payment Process Request but it still did not get selected for payment processing. Identify two reasons for this.

The installment was manually removed.

The invoice has not been accounted.

The pay-through date is in a future period.

The pay-through date is in a closed Payables period.

The invoices need revalidation.

Correct Answer: A, C

Two reasons an installment that meets all the selection criteria of a Payment Process Request might still not get selected for payment processing are: first, if the installment was manually removed, it will no longer be considered for payment despite meeting other criteria; second, if the pay-through date is in a future period, the payment process will not include it until the pay-through date is within the current or past periods.

Question 2 of 64

You are using the Payables Deferred Expense feature (also known as Multiperiod Accounting). You have entered an invoice for a three-month lease that is entered on Jan 10th. The total expense is $12,000 and it covers the rental period from Jan 1st to mar 31st.

Assuming that the rental expenses are split evenly per month and a monthly accounting calendar is used, what would the accounting entry be?

On Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000 and then On Jan 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Feb 28st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Mar 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000

On Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000

On Jan 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Feb 28st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000

On Mar 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000

Correct Answer: A

The correct accounting entry using the Payables Deferred Expense feature would involve initially debiting the Prepaid Expense account and crediting the Liability account for the total amount of $12,000 on Jan 10th, because the expense is to be allocated over multiple periods. Since the expense needs to be recognized evenly over three months, subsequent entries would involve debiting the Rental Expense account and crediting the Prepaid Expense account for $4,000 at the end of each month (Jan 31st, Feb 28th, and Mar 31st) to reflect the monthly expense incurred. This aligns with the principle of matching expenses with revenues in the appropriate accounting periods.

Question 3 of 64

Which statement is correct if the payment terms entered in the invoice differ from the payment terms on the purchase order?

The purchase order payment term cannot be overridden.

The user needs to manually change the payment term on the invoice to match the purchase order payment term.

The user needs to specify which payment term to use.

The payment term of the invoice overrides the purchase order payment term.

The payment term of the purchase order overrides the invoice payment term.

Correct Answer: D

In most systems, the payment term specified on the invoice takes precedence because the invoice reflects the final agreement between the buyer and the seller. Therefore, the payment term of the invoice overrides the purchase order payment term.

Question 4 of 64

Which two setups are required to ensure the same tax is applied on both intercompany payable and receivable invoice?

Payable options are receivable system options should have same tax application options.

Tax for inter-company is to be loaded using Create Taxable Transactions in Spreadsheet.

First enter Payable transaction to calculate tax and then for Receivable Transaction.

You should check if any specific rules defined should cover both Sales_transaction and purchase_transaction business category.

Ensure that both the receiver and provider business units and legal entities are subscribed to the applicable tax regime on the transaction date.

Correct Answer: D, E

To ensure the same tax is applied on both intercompany payable and receivable invoices, it is important to check if any specific rules defined should cover both SALES_TRANSACTION and PURCHASE_TRANSACTION business categories. Additionally, it is crucial to ensure that both the receiver and provider business units and legal entities are subscribed to the applicable tax regime on the transaction date. These setups help maintain consistency in tax application across both types of transactions.

Question 5 of 64

You want your expense auditors to audit only expenses reports for specific business units. How do you do this?

Create a custom duty role and assign the data roles to each auditor.

Assign the auditors specific data roles for the corresponding business units.

Create your own audit extension rules that correspond to the business unit.

Make auditors the managers of the corresponding business unit to route expense reports properly.

Correct Answer: B

To ensure auditors only review expense reports from specific business units, you need to assign them specific data roles that correspond to those business units. This allows precise control over which reports each auditor can access and audit, ensuring they can only review reports within their designated business units.