Oracle Financials Cloud: Payables 2024 Implementation Professional Questions and Answers
Your company asks you to build new Payables reports. You will be using Oracle Transactional Business Intelligence (OTBI) and deep links. Deep links allow you to directly drill down from OTBI reports to purchase orders and view the related purchase order details. Which three predefined job roles allow you to use this drill-down feature?
Options:
Accounts Payable Analyst
Accounts Payable Manager
Account Payable Invoice Supervisor
Accounts Payable Agent
Accounts Payable Specialist
Answer:
A, B, EExplanation:
Comprehensive and Detailed In-Depth Explanation:
In Oracle Financials Cloud, Oracle Transactional Business Intelligence (OTBI) provides robust reporting capabilities, including the use of deep links that enable users to drill down from summary reports into detailed transactional data, such as purchase orders. Access to these drill-down features is governed by specific job roles that encompass the necessary privileges.
Predefined Job Roles with Drill-Down Capabilities:
Accounts Payable Analyst (Option A):
Role Overview:This role is primarily focused on analyzing payables data, including the ability to access and drill down into detailed transactions to support financial analysis and reporting.
Privileges:Includes access to OTBI reports and the capability to drill down into transactional details such as invoices and payments.
Oracle Cloud currently offers two invoice scanning solutions: Integrated Imaging and Intelligent Document Recognition (IDR). Both solutions function similarly.
In which two ways do these invoice scanning solutions operate in the cloud?
Options:
Customers scan the invoice on-premises and email the images.
Customers ask suppliers to send electronic invoices.
Customers ask their suppliers to scan and email the invoice.
Customers scan and store the invoice images on-premises and attach them during invoice entry.
Customers cannot use invoice imaging in the Cloud.
Answer:
A, CExplanation:
Comprehensive and Detailed In-Depth Explanation:
Oracle Cloud's Integrated Imaging and Intelligent Document Recognition (IDR) solutions streamline the processing of supplier invoices by automating data extraction and invoice creation. These solutions support multiple methods for capturing and importing invoice images into the cloud system.
A. Customers scan the invoice on-premises and email the images.
Organizations that receive paper invoices can digitize them by scanning the documents on-premises. Once scanned, these images are emailed to a designated address provided by Oracle Cloud. The Integrated Imaging or IDR system retrieves these images from the email inbox, processes them to extract relevant data, and automatically creates invoices within the Payables module. This method ensures that paper-based invoices are efficiently integrated into the cloud system without manual data entry.
docs.oracle.com
C. Customers ask their suppliers to scan and email the invoice.
To enhance efficiency, customers can request that their suppliers scan physical invoices and send the digital images directly via email. These emailed invoice images are received by the designated email account associated with the customer's Oracle Cloud instance. The Integrated Imaging or IDR solutions then process these images, extracting the necessary invoice data and creating corresponding entries in the Payables system. This approach reduces processing time and minimizes potential errors associated with manual data entry.
docs.oracle.com
B. Customers ask suppliers to send electronic invoices.
While encouraging suppliers to send electronic invoices (such as XML or EDI formats) is a best practice for streamlining invoice processing, this method does not involve the Integrated Imaging or IDR solutions, which are specifically designed for processing scanned invoice images. Electronic invoices are typically processed through different channels within Oracle Cloud, such as the Supplier Portal or electronic data interchange systems.
blogs.infosys.com
D. Customers scan and store the invoice images on-premises and attach them during invoice entry.
In this scenario, customers manually scan and store invoice images on their local systems and thenattach these images during manual invoice entry into the Oracle Cloud Payables module. This process does not utilize the automated capabilities of the Integrated Imaging or IDR solutions, which are designed to handle the import, recognition, and processing of invoice images sent via email.
docs.oracle.com
E. Customers cannot use invoice imaging in the Cloud.
This statement is incorrect. Oracle Cloud provides robust invoice imaging solutions, namely Integrated Imaging and Intelligent Document Recognition, enabling customers to process scanned invoices efficiently within the cloud environment.
docs.oracle.com
By leveraging these solutions, organizations can automate the extraction of invoice data from scanned images, reduce manual intervention, and improve the accuracy and efficiency of their accounts payable processes.
Which reference data sharing method can you use for Payables Payment Terms when working with reference data sets in Payables?
Options:
Assignment to one set only; no common values allowed
Assignment to multiple sets with common values allowed
Assignment to multiple sets; no common values allowed
Answer:
CExplanation:
Comprehensive and Detailed In-Depth Explanation:
In Oracle Fusion Applications,reference data sharing(also known asSetID) enables organizations to share common configuration data across various organizational units, such as business units, without unnecessary duplication. This approach streamlines maintenance and ensures consistency of reference data across the enterprise.
Payment Termsin Oracle Payables define the conditions under which a company pays its suppliers. These terms can vary between business units based on factors like regional practices or supplier agreements. To accommodate this variability, Oracle Payables employs a specific reference data sharing method for Payment Terms.
Reference Data Sharing Methods:
Assignment to One Set Only; No Common Values Allowed:
Each reference data object instance is assigned to a single set exclusively.
No sharing of values across multiple sets.
Example:Asset Prorate Conventions are defined and assigned to only one reference data set.
Assignment to One Set Only, with Common Values:
Reference data objects can be assigned to one set, but there's a common set whose values are accessible to all business units.
Example:Receivables Transaction Types are assigned to a common set that's available to all business units.
Assignment to Multiple Sets; No Common Values Allowed:
A reference data object instance can be assigned to multiple sets.
There's no common set; each set operates independently.
Example:Payables Payment Terms use this method, allowing each payment term to be assigned to one or more sets.
ForPayables Payment Terms, the applicable method is"Assignment to multiple sets; no common values allowed."This means that each payment term can be associated with one or more reference data sets, but there's no overarching common set that includes all payment terms. This flexibility allows organizations to define payment terms specific to certain business units while also sharing others across multiple units as needed.
Practical Application:
Shared Payment Terms:If multiple business units operate under similar payment conditions, a single payment term (e.g., "Net 30") can be assigned to multiple reference data sets corresponding to those units.
Specific Payment Terms:For unique business units with distinct payment agreements, specific payment terms (e.g., "Net 15") can be created and assigned exclusively to the relevant reference data set.
This approach ensures that each business unit has access to the payment terms relevant to its operations without unnecessary proliferation of identical terms across the system.
References:
Reference Data Sets and Sharing Methods
Payment Terms
You recently processed a payment for a vendor and later discovered that the payment was made in error and needs to be voided. While voiding the payment, you selected Cancel as the Invoice Action. After performing the invoice voiding, you notice that the invoice is not cancelled; instead, it has an Invoice Cancel hold applied to it.
What is the reason for this?
Options:
The invoice date is not in the current open period.
The invoice is already on hold.
The invoice has been partially paid by another payment.
Answer:
CExplanation:
Comprehensive and Detailed In-Depth Explanation:
In Oracle Payables, voiding a payment involves specific actions that affect the associated invoices. When a payment is voided, users have the option to select an Invoice Action, such as Cancel, Hold, or None. The chosen action determines the subsequent status of the invoice linked to the voided payment.
A. The invoice date is not in the current open period.
If an invoice's date falls outside the current open accounting period, certain actions may be restricted. However, this condition does not specifically result in an Invoice Cancel hold being applied when attempting to void a payment. Therefore, this is not the reason for the observed behavior.
B. The invoice is already on hold.
An invoice that is already on hold may have restrictions on further processing. However, the presence of an existing hold does not directly lead to the application of an Invoice Cancel hold during the voiding process. Thus, this is not the cause of the issue.
C. The invoice has been partially paid by another payment.
When an invoice has been partially paid by multiple payments, voiding one of the payments and selecting Cancel as the Invoice Action does not cancel the invoice. Instead, Oracle Payables applies an "Invoice Cancel" hold to the invoice. This hold indicates that the invoice cannot be fully canceled because it has been partially satisfied by another payment. To resolve this, the remaining payments must be addressed appropriately before the invoice can be canceled. This behavior is documented in Oracle's guidelines, which state that attempting to cancel an invoice partially paid by another payment results in an Invoice Cancel hold being applied.
docs.oracle.com
Understanding the conditions under which Invoice Actions apply is crucial for effective invoice and payment management in Oracle Payables. Recognizing that partially paid invoices cannot be canceled outright helps prevent processing errors and ensures accurate financial records.
MANAGE EXPENSE REPORT TEMPLATE
Task 2:
Create Expense Items, where:
a. The effective start date is the current date.
b. There is no tax implication.
c. Projects are not used.
d. Receipt and expense fields are the same as the expense report template.
e. The dinner expense item is associated with the Meal policy created in the previous challenge.
Options:
Answer:
Seethe Explanation forStep-by-Step Solution.
Explanation:
TASK 2: CREATE EXPENSE ITEMS
We need tocreate expense itemswith the following requirements:
✔Effective Start Date:Set tocurrent date.✔No tax implications.✔Projects are not used.✔Receipt and expense fieldsshould match those from theexpense report templatecreated earlier.✔Dinner expense itemmust be linked to theMeal policycreated in the previous task.
Step-by-Step Solution: Configuring Expense Items in Oracle Financials Cloud
Step 1: Navigate to the Expense Items Setup
Log intoOracle Financials Cloudas anExpense Manager or Financial Administrator.
Navigate toSetup and Maintenance.
In theSearch Bar, type"Manage Expense Items".
Click onManage Expense Items.
Step 2: Create Expense Items
ClickCreate 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
✔ClickSave and Close.
Expense Item: Room Rate
ClickCreate New Expense Itemagain.
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
✔ClickSave and Close.
Expense Item: Dinner (Linked to Meal Policy)
ClickCreate New Expense Itemagain.
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 toExpense Policies.
Select the previously createdMeal Policy.
Ensure thatDinner Expense Itemis associated with this policy.
SetLimit Type: Warning Only(if applicable).
✔ClickSave 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.
✔ClickSubmit and Activate.
Step 4: Test the Expense Items
Simulate an Expense Report Submission:
SelectInternet, Room Rate, and Dinneras expense types.
Enter sample amounts.
Ensure that:
No tax implicationsappear.
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 createdexpense itemsthat comply with all business requirements.
MANAGE EXPENSE REPORT TEMPLATE
Task 1:
Create an Expense Report Template for the US1 Business Unit, where:
a. The effective start date is the current date.
b. The hotel expense type requires itemization and should include Internet, Room Rate, and Dinner.
c. The expense type is associated with the respective account
d. Card Expense Type Mapping is not enabled.
e. Company policy states that receipts
f. Users can indicate receipts are missing in their expense report and a warning should be displayed for any missing receipts.
g. All Expense Fields are optional.
Options:
Answer:
Seethe Explanation forStep-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:RequiresitemizationwithInternet, Room Rate, and Dinner.✔Expense Type:Associated with the respectiveGL account.✔Card Expense Type Mapping:Not enabled.✔Receipts Policy:Users canindicate missing receipts, and awarning should be displayed.✔Expense Fields:All fields should beoptional.
Step-by-Step Solution
Step 1: Navigate to Expense Report Templates
Log intoOracle Financials Cloudwith theExpense ManagerorFinancial Administrator role.
Navigate toSetup and Maintenance.
In theSearch Bar, type"Manage Expense Report Templates".
Click onManage Expense Report Templates.
Step 2: Create a New Expense Report Template
ClickCreate 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)
ClickSave.
Step 3: Define the Expense Type – Hotel with Itemization
Navigate to theExpense Typestab.
ClickAdd Expense Type.
Enter the following details:
Expense Type Name:"Hotel"
Expense Category:"Lodging"
Requires Itemization:✔(Check this box)
UnderItemization, clickAdd Itemization Categories:
Internet
Room Rate
Dinner
ClickSave.
Step 4: Associate Expense Types with GL Accounts
Click onEdit Expense Type "Hotel".
Go to theAccountingsection.
Select theappropriate GL Accountfor lodging expenses.
Repeat this process for other requiredexpense types.
ClickSave and Close.
Step 5: Disable Card Expense Type Mapping
Navigate to theCorporate Card Expense Mappingtab.
Ensure the"Enable Corporate Card Mapping"checkbox isunchecked.
ClickSave.
Step 6: Configure Receipts Policy
Navigate to theReceiptstab.
UnderReceipt Handling, set:
Company Policy:Employeesmust 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).
ClickSave.
Step 7: Set Expense Fields as Optional
Navigate to theFields Setuptab.
Ensure allExpense Fieldsare set toOptional.
ClickSave and Close.
Step 8: Validate and Activate the Template
Review all configurations.
ClickSubmit and Activate.
Run theValidate and Deploy Expense Templatesprocess to ensure all settings are applied.
Step 9: Testing the Expense Report Template
Simulate an Expense Report Submission:
SelectHotel Expenseand enter details.
Verify if the systemrequires itemization(Internet, Room Rate, Dinner).
Submit without a receiptto check if awarning is displayed.
Ensure all fields remainoptional.
Verifyno corporate card expense mappingapplies.
Expected Outcome:
✔TheExpense Report Templateis successfully created forUS1 Business Unit.✔Hotel expenses require itemizationinto Internet, Room Rate, and Dinner.✔Receipts are required, and awarning is displayed for missing receipts.✔GL Account mapping is correctly appliedto 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 anExpense Report Templatethat meets all business requirements for theUS1 Business Unit.
MANAGE POLICIES BY EXPENSE CATEGORY
The US1 Business Unit has an expense policy on meals that allows an employee to claim 30 USD per day for an evening meal, regardless of their role and location.
Options:
Answer:
Seethe Explanation forStep-by-Step Solution.
Explanation:
Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud
To implement theexpense policy for mealsinOracle Financials Cloud, follow these steps:
Step 1: Navigate to the Expense Policies Setup
Log into Oracle Financials Cloud with the appropriateExpense ManagerorFinancial Administrator role.
Go to the Setup and Maintenance work area.
SelectManage Policies by Expense Category(Task Name: Manage Expense Policies by Expense Category).
Select theUS1 Business Unitto ensure the policy applies to the correct entity.
Step 2: Create or Update the Meal Expense Category
UnderManage Policies by Expense Category, locate or create theMeals ExpenseCategory.
If theMealscategory does not exist:
ClickCreate Expense Category.
EnterCategory Name: "Meals".
Category Type: "Meals and Entertainment".
Save the entry.
Step 3: Define Expense Limits for Evening Meals
Select the Meals Expense Categoryand clickEdit.
Navigate to thePolicies and Limitstab.
UnderAmount Limits, clickAdd New Rule.
Description: "Evening Meal Limit".
Limit Type: "Maximum Allowed Amount".
Limit Amount: Enter30 USD.
Per: SelectDay.
Apply to All Employees(since this applies regardless of role and location).
Location-Based Rules: Leave blank since it applies universally.
ClickSave and Close.
Step 4: Enable and Activate the Policy
Ensure the policy is enabledby selecting the checkbox forActive.
ClickSubmitto 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.
SelectMealsas the expense category.
Enter an evening meal expense of35 USD(which exceeds the policy limit).
Verify if a policy violation warning appears, restricting the claim to 30 USD.
Submit an expense of 30 USDand ensureno policy violationoccurs.
Expected Outcome:
Employees can claim up to 30 USD per dayfor 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 anexpense policy for mealsthatlimits evening meal claims to 30 USD per day. This ensures compliance with the company'sexpense management guidelineswhile streamlining theexpense approval processin Oracle Financials Cloud.
MANAGE POLICIES BY EXPENSE CATEGORY
Create an Expense Policy for meals that raises a warning, if the expense exceeds the prescribed limit, without blocking the expense processing. Your expense policy should beready to be associated with an expense type within an expense report template.
Options:
Answer:
Seethe Explanation forStep-by-Step Solution.
Explanation:
Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud
To configure thisexpense policyinOracle Financials Cloud, follow these steps:
Step 1: Access the Expense Policies Setup Page
Log into Oracle Financials Cloud with the appropriateExpense ManagerorFinancial Administratorrole.
Navigate toSetup and Maintenance.
Select the Task:Manage Policies by Expense Category.
Step 2: Create or Locate the Meal Expense Category
Search for theMealsexpense category.
If theMealscategory does not exist:
ClickCreate Expense Category.
Category Name:"Meals".
Category Type:"Meals and Entertainment".
Save the entry.
Step 3: Define a Policy Rule for Raising a Warning
Select theMealsExpense Category and clickEdit.
Navigate to thePolicies and Limitstab.
UnderAmount Limits, clickAdd 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:SelectDay(or another relevant time frame).
Applies To:SelectAll Employees.
Location-Based Rules:Leave blank if not location-specific.
Set Warning Behavior:
SelectRaise a Warningif the expense exceeds the prescribed limit.
Ensure the policydoes not block submission or approval.
ClickSave and Close.
Step 4: Associate the Policy with an Expense Report Template
Navigate toSetup and Maintenance > Manage Expense Report Templates.
Search for theExpense Report Templatewhere theMealscategory should be included.
ClickEditand go to theExpense Typessection.
Add the Meals Expense Typeand associate it with the newly createdMeals Expense Warning Policy.
ClickSave and Close.
Step 5: Enable and Validate the Policy
Ensure the policy ismarked as Active.
ClickSubmitto finalize the policy configuration.
Run theValidate and Deploy Expense Policiesprocess.
Step 6: Testing the Policy
Simulate an Expense Report Submission:
Create a new expense report and selectMealsas the expense type.
Enter an expense amount exceeding the limit (e.g.,55 USD).
Verify that a warning message appears, but the expense is stillallowed to proceed.
Submit an expense below the limit(e.g.,45 USD) and ensureno warning appears.
Expected Outcome:
If the meal expense exceeds the limit, the system raises awarningbutdoes not block the expense submission.
If the meal expense is within the limit, the systemprocesses it without warnings.
The policy issuccessfully associatedwith anexpense typein anexpense report template.
Conclusion
By following these steps, you successfully configure anexpense policythatraises a warningfor meals exceeding a specified limitwithout blocking submission or processing. This ensures that employees arenotifiedabout policy violations while allowing flexibility inexpense approvals.
