Questions for the 1Z0-1055-24 were updated on : Dec 01 ,2025
SIMULATION
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.
See the
Explanation for Step-
by-Step Solution.
Explanation:
TASK 2: CREATE EXPENSE ITEMS
We need to create expense items with the following requirements:
✔
Effective Start Date: Set to current date.
✔
No tax implications.
✔
Projects are not used.
✔
Receipt and expense fields should match those from the expense report template created earlier.
✔
Dinner expense item must be linked to the Meal policy created in the previous task.
Step-by-Step Solution: Configuring Expense Items in Oracle Financials Cloud
Step 1: Navigate to the Expense Items Setup
Log in to Oracle Financials Cloud as an Expense Manager or Financial Administrator.
Navigate to Setup and Maintenance.
In the Search Bar, type "Manage Expense Items".
Click on Manage Expense Items.
Step 2: Create Expense Items
Click Create 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
✔
Click Save and Close.
Expense Item: Room Rate
Click Create New Expense Item again.
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
✔
Click Save and Close.
Expense Item: Dinner (Linked to Meal Policy)
Click Create New Expense Item again.
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 to Expense Policies.
Select the previously created Meal Policy.
Ensure that Dinner Expense Item is associated with this policy.
Set Limit Type: Warning Only (if applicable).
✔
Click Save 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.
✔
Click Submit and Activate.
Step 4: Test the Expense Items
Simulate an Expense Report Submission:
Select Internet, Room Rate, and Dinner as expense types.
Enter sample amounts.
Ensure that:
No tax implications appear.
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 created expense items that comply with all business
requirements.
SIMULATION
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.
See the
Explanation for Step-
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: Requires itemization with Internet, Room Rate, and Dinner.
✔
Expense Type: Associated with the respective GL account.
✔
Card Expense Type Mapping: Not enabled.
✔
Receipts Policy: Users can indicate missing receipts, and a warning should be displayed.
✔
Expense Fields: All fields should be optional.
Step-by-Step Solution
Step 1: Navigate to Expense Report Templates
Log in to Oracle Financials Cloud with the Expense Manager or Financial Administrator role.
Navigate to Setup and Maintenance.
In the Search Bar, type "Manage Expense Report Templates".
Click on Manage Expense Report Templates.
Step 2: Create a New Expense Report Template
Click Create 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)
Click Save.
Step 3: Define the Expense Type – Hotel with Itemization
Navigate to the Expense Types tab.
Click Add Expense Type.
Enter the following details:
Expense Type Name: "Hotel"
Expense Category: "Lodging"
✔
Requires Itemization:
(Check this box)
Under Itemization, click Add Itemization Categories:
Internet
Room Rate
Dinner
Click Save.
Step 4: Associate Expense Types with GL Accounts
Click on Edit Expense Type "Hotel".
Go to the Accounting section.
Select the appropriate GL Account for lodging expenses.
Repeat this process for other required expense types.
Click Save and Close.
Step 5: Disable Card Expense Type Mapping
Navigate to the Corporate Card Expense Mapping tab.
Ensure the "Enable Corporate Card Mapping" checkbox is unchecked.
Click Save.
Step 6: Configure Receipts Policy
Navigate to the Receipts tab.
Under Receipt Handling, set:
Company Policy: Employees must 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).
Click Save.
Step 7: Set Expense Fields as Optional
Navigate to the Fields Setup tab.
Ensure all Expense Fields are set to Optional.
Click Save and Close.
Step 8: Validate and Activate the Template
Review all configurations.
Click Submit and Activate.
Run the Validate and Deploy Expense Templates process to ensure all settings are applied.
Step 9: Testing the Expense Report Template
Simulate an Expense Report Submission:
Select Hotel Expense and enter details.
Verify if the system requires itemization (Internet, Room Rate, Dinner).
Submit without a receipt to check if a warning is displayed.
Ensure all fields remain optional.
Verify no corporate card expense mapping applies.
Expected Outcome:
✔
The Expense Report Template is successfully created for US1 Business Unit.
✔
Hotel expenses require itemization into Internet, Room Rate, and Dinner.
✔
Receipts are required, and a warning is displayed for missing receipts.
✔
GL Account mapping is correctly applied to 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 an Expense Report Template
that meets all business requirements for the US1 Business Unit.
SIMULATION
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 be ready to be associated
with an expense type within an expense report template.
See the
Explanation for Step-
by-Step Solution.
Explanation:
Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud
To configure this expense policy in Oracle Financials Cloud, follow these steps:
Step 1: Access the Expense Policies Setup Page
Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator
role.
Navigate to Setup and Maintenance.
Select the Task: Manage Policies by Expense Category.
Step 2: Create or Locate the Meal Expense Category
Search for the Meals expense category.
If the Meals category does not exist:
Click Create Expense Category.
Category Name: "Meals".
Category Type: "Meals and Entertainment".
Save the entry.
Step 3: Define a Policy Rule for Raising a Warning
Select the Meals Expense Category and click Edit.
Navigate to the Policies and Limits tab.
Under Amount Limits, click Add 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: Select Day (or another relevant time frame).
Applies To: Select All Employees.
Location-Based Rules: Leave blank if not location-specific.
Set Warning Behavior:
Select Raise a Warning if the expense exceeds the prescribed limit.
Ensure the policy does not block submission or approval.
Click Save and Close.
Step 4: Associate the Policy with an Expense Report Template
Navigate to Setup and Maintenance > Manage Expense Report Templates.
Search for the Expense Report Template where the Meals category should be included.
Click Edit and go to the Expense Types section.
Add the Meals Expense Type and associate it with the newly created Meals Expense Warning Policy.
Click Save and Close.
Step 5: Enable and Validate the Policy
Ensure the policy is marked as Active.
Click Submit to finalize the policy configuration.
Run the Validate and Deploy Expense Policies process.
Step 6: Testing the Policy
Simulate an Expense Report Submission:
Create a new expense report and select Meals as the expense type.
Enter an expense amount exceeding the limit (e.g., 55 USD).
Verify that a warning message appears, but the expense is still allowed to proceed.
Submit an expense below the limit (e.g., 45 USD) and ensure no warning appears.
Expected Outcome:
If the meal expense exceeds the limit, the system raises a warning but does not block the expense
submission.
If the meal expense is within the limit, the system processes it without warnings.
The policy is successfully associated with an expense type in an expense report template.
Conclusion
By following these steps, you successfully configure an expense policy that raises a warning for meals
exceeding a specified limit without blocking submission or processing. This ensures that employees
are notified about policy violations while allowing flexibility in expense approvals.
SIMULATION
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.
See the
Explanation for Step-
by-Step Solution.
Explanation:
Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud
To implement the expense policy for meals in Oracle Financials Cloud, follow these steps:
Step 1: Navigate to the Expense Policies Setup
Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator
role.
Go to the Setup and Maintenance work area.
Select Manage Policies by Expense Category (Task Name: Manage Expense Policies by Expense
Category).
Select the US1 Business Unit to ensure the policy applies to the correct entity.
Step 2: Create or Update the Meal Expense Category
Under Manage Policies by Expense Category, locate or create the Meals Expense Category.
If the Meals category does not exist:
Click Create Expense Category.
Enter Category Name: "Meals".
Category Type: "Meals and Entertainment".
Save the entry.
Step 3: Define Expense Limits for Evening Meals
Select the Meals Expense Category and click Edit.
Navigate to the Policies and Limits tab.
Under Amount Limits, click Add New Rule.
Description: "Evening Meal Limit".
Limit Type: "Maximum Allowed Amount".
Limit Amount: Enter 30 USD.
Per: Select Day.
Apply to All Employees (since this applies regardless of role and location).
Location-Based Rules: Leave blank since it applies universally.
Click Save and Close.
Step 4: Enable and Activate the Policy
Ensure the policy is enabled by selecting the checkbox for Active.
Click Submit to 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.
Select Meals as the expense category.
Enter an evening meal expense of 35 USD (which exceeds the policy limit).
Verify if a policy violation warning appears, restricting the claim to 30 USD.
Submit an expense of 30 USD and ensure no policy violation occurs.
Expected Outcome:
Employees can claim up to 30 USD per day for 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 an expense policy for meals that limits
evening meal claims to 30 USD per day. This ensures compliance with the company's expense
management guidelines while streamlining the expense approval process in Oracle Financials Cloud.
You have enabled Payment Approval for your Payment Process Requests (PPR). At what stage of the
PPR is the payment approval process automatically triggered?
A
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Financials Cloud, the Payment Process Request (PPR) undergoes several stages, each with
specific functions and potential user interventions. When Payment Approval is enabled, the system
incorporates an approval workflow to ensure that payments are reviewed and authorized before
disbursement.
Stages of Payment Process Request:
Installment Selection:
Description: The system selects invoice installments based on predefined criteria such as due dates,
payment methods, and supplier information.
User Action: Optional review if the "Review Installments" option is selected.
Document Validation:
Description: Validates the selected installments for completeness and correctness, ensuring all
necessary information is present.
User Action: Required if there are validation errors or missing information.
Build Payments:
Description: Groups validated installments into payments based on attributes like payment date,
disbursement bank account, and payment method.
User Action: None, this is an automated process.
Review Proposed Payments:
Description: Allows users to review and, if necessary, modify the proposed payments before
finalizing them.
User Action: Required if the "Review Proposed Payments" option is selected.
Payment Approval:
Description: If enabled, this stage involves routing the proposed payments to designated approvers
for authorization before disbursement.
User Action: Approvers must review and approve or reject the payments.
Create Payment Files:
Description: Generates the necessary payment files for disbursement, such as electronic funds
transfer (EFT) files or check print files.
User Action: None, unless issues arise during file creation.
Trigger Point for Payment Approval:
The Payment Approval process is automatically triggered at the Review Proposed Payments stage. At
this point, the system pauses to allow approvers to review the proposed payments and make
decisions regarding their authorization. This control mechanism ensures that all payments are vetted
before funds are disbursed, aligning with organizational policies and financial controls.
According to Oracle's documentation:
"If enabled, the payment process stops at the Review Proposed Payments stage. Approvers can then
optionally remove payments directly from a payment process request and approve it."
docs.oracle.com
Analysis of Options:
A . Review Proposed Payments: Correct. This is the stage where the payment approval process is
triggered, allowing approvers to review and authorize payments.
B . Create Payment Files: Incorrect. This stage occurs after payment approval and involves generating
the actual payment files for disbursement.
C . Review Installments: Incorrect. This is an earlier stage where selected installments are reviewed
before payments are built, but it does not involve the payment approval workflow.
D . Build Payments: Incorrect. This stage involves grouping validated installments into payments and
occurs before the Review Proposed Payments stage.
Conclusion:
Enabling Payment Approval in Oracle Financials Cloud introduces a critical control point at the
Review Proposed Payments stage of the Payment Process Request. This setup ensures that all
proposed payments undergo managerial review and authorization before the creation of payment
files and the actual disbursement of funds. Implementing this approval process helps maintain robust
financial oversight and compliance within the organization's payment workflows.
Reference:
Oracle Financials Cloud Documentation – How You Set Up Payment Approval
https://docs.oracle.com/en/cloud/saas/financials/24d/faipp/how-you-set-up-payment-approval.html
Topic 2, Challenges (Hands-on Performance Based)
An installment meets all the selection criteria of a Payment Process Request, but it still does not get
selected for payment processing.
What are the two reasons for this?
CD
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Financials Cloud, even when an installment meets the selection criteria of a Payment
Process Request (PPR), certain conditions can prevent it from being selected for payment processing.
Understanding these conditions is crucial for troubleshooting and ensuring a smooth payment
workflow.
Analysis of Each Option:
A . The pay-through date is in a future period.
The pay-through date in a PPR determines the latest due date of invoices to be included for
payment. Setting this date in the future is a common practice to include all invoices due up to that
date. Therefore, having a pay-through date in a future period would not prevent installments from
being selected; instead, it broadens the selection criteria. This is not a reason for an installment not
being selected.
B . The pay-through date is in a closed Payables period.
The pay-through date affects which invoices are selected based on their due dates, but it does not
directly relate to the status of accounting periods. While processing payments in a closed period is
not allowed, the pay-through date itself being in a closed period does not prevent installment
selection. Therefore, this is not a valid reason for an installment not being selected.
C . The invoice needs re-validation.
Invoices that have undergone changes affecting their payment attributes may require re-validation.
If an invoice is in a status indicating it needs re-validation, it will not be selected for payment
processing until the validation process is successfully completed. This ensures that all invoice data is
accurate and meets the necessary criteria for payment. According to Oracle documentation, an
installment might not get selected if "The invoice must be revalidated."
docs.oracle.com
D . The invoice requires approval.
Invoices often need to go through an approval workflow to ensure their legitimacy and accuracy. If
an invoice has not received the necessary approvals, it remains in a pending status and is excluded
from payment processing. Ensuring that all invoices are approved is essential for them to be selected
in a PPR. The Oracle documentation states that an installment might not get selected if "The invoice
requires approval."
docs.oracle.com
E . The invoice has not been accounted.
While accounting is a critical aspect of financial management, the accounting status of an invoice
does not typically prevent it from being selected for payment. Invoices can be selected and paid even
if they have not yet been accounted, with accounting entries being created subsequently. Therefore,
the lack of accounting is not a reason for an installment not being selected in a PPR.
Conclusion:
The two primary reasons an installment, despite meeting selection criteria, might not be selected for
payment processing are:
C . The invoice needs re-validation.
D . The invoice requires approval.
Ensuring that all invoices are validated and approved is essential for their inclusion in payment
processing.
Reference:
Oracle Financials Cloud Documentation – Why didn't an installment get selected for payment?
https://docs.oracle.com/en/cloud/saas/financials/24d/fappp/why-didn-t-an-installment-get-selected-for-payment.html
You are trying to use the Match in Full option for a purchase order, but your search for the PO is
returning no results.
Which two are the reasons for this?
BD
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Financials Cloud, the Match in Full feature allows users to create invoices by matching the
full amount of a purchase order (PO) efficiently. However, certain conditions can prevent a PO from
appearing in the Match in Full search results.
Analysis of Each Option:
A . The match approval level is set to 4-way matching
The match approval level determines the matching requirements between the PO, receipt,
inspection, and invoice. A 4-way matching requires that the PO, receipt, accepted quantities from
inspection, and invoice quantities all match within defined tolerances before payment approval. This
setting, however, does not impact the availability of the PO in the Match in Full search results.
Therefore, a 4-way matching configuration is not a reason for the PO not appearing in the search
results.
B . The Supplier or Purchase Order is set up for self-billing
Self-billing arrangements mean that the buyer generates the invoice on behalf of the supplier. In
such scenarios, the Match in Full feature is not applicable because the invoicing process is handled
differently. As per Oracle documentation, "Match in Full can't be used in the following
circumstances:... A supplier or the purchase order is set up for self-billing."
docs.oracle.com
Therefore, if the supplier or PO is configured for self-billing, the PO will not appear in the Match in
Full search results.
C . The match approval level is set to 3-way matching
Similar to 4-way matching, a 3-way matching requires that the PO, receipt, and invoice quantities
match within tolerances before payment approval. This setting ensures that the goods received and
invoiced align with the PO terms. However, the match approval level, whether 3-way or 4-way, does
not affect the PO's availability in the Match in Full search results. Thus, a 3-way matching
configuration is not a reason for the PO not appearing in the search results.
D . The Purchase Order is already partially matched to an invoice
The Match in Full feature is designed for situations where the supplier sends an invoice for the full
amount of the PO. If a PO has already been partially matched to an invoice, it indicates that some
portions of the PO have been invoiced, and the remaining amounts do not represent the full PO
value. According to Oracle documentation, "Match in Full can't be used in the following
circumstances:... The purchase order has already been partially matched to an invoice."
docs.oracle.com
Therefore, a PO that has been partially matched will not appear in the Match in Full search results.
Conclusion:
The two reasons preventing the purchase order from appearing in the Match in Full search results
are:
B . The Supplier or Purchase Order is set up for self-billing
D . The Purchase Order is already partially matched to an invoice
These conditions make the Match in Full feature inapplicable, thereby excluding the PO from the
search results.
Reference:
Oracle Financials Cloud Documentation – Overview of Creating Invoices Using Match in Full
https://docs.oracle.com/en/cloud/saas/financials/24b/fappp/overview-of-creating-invoices-using-match-in-full.html
Your company will be utilizing the Campaign Management for Early Payment Discount Offers feature
to maximize early payment discounts. This feature allows companies to send email-based campaigns
offering suppliers the opportunity to enroll in an early payment discounts program. There is a
predefined list of response options that suppliers can choose from, and such supplier responses are
then automatically processed and applied in the system.
Which two are predefined response options available to suppliers?
BD
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Financials Cloud, the Campaign Management for Early Payment Discount Offers feature
enables organizations to send email campaigns to suppliers, inviting them to participate in early
payment discount programs. Suppliers receiving these offers have predefined response options that
are automatically processed by the system.
Predefined Supplier Response Options:
Accept a One-Time Offer:
Suppliers can choose to accept a discount offer for specific invoices that are currently eligible for
early payment. This action applies the discount to the selected invoices, and they are processed for
early payment accordingly.
Enroll in a Standing Offer:
By selecting this option, suppliers agree to participate in an ongoing early payment discount
program. All future invoices that meet the agreed-upon criteria will automatically be eligible for
early payment discounts without the need for individual acceptances.
Decline the Offer:
Suppliers may opt to decline the current early payment discount offer. Declining does not prevent
them from receiving future offers; it simply indicates that they are not interested in the present offer.
Unsubscribe:
If a supplier chooses to unsubscribe, they will no longer receive email notifications regarding early
payment discount offers from the campaign. This action effectively removes them from the current
and any future campaigns.
Analysis of the Provided Options:
A . Accept All Offers:
There is no predefined response option that allows suppliers to accept all past and future offers in a
single action. Acceptance is either for a specific one-time offer or through enrollment in a standing
offer for future invoices.
B . Decline the Offer:
This is a valid predefined response. Suppliers can choose to decline the current offer, indicating they
are not interested in the proposed early payment discount for the specified invoices.
C . Subscribe:
While suppliers can unsubscribe from receiving future offers, there isn't a specific "Subscribe" option.
Suppliers are considered participants by default and can choose to enroll in standing offers or accept
individual offers.
D . Enroll in a Standing Offer:
This is a valid predefined response. Suppliers can enroll in a standing offer, agreeing to early payment
discounts on all future eligible invoices automatically.
Conclusion:
The correct predefined response options available to suppliers are B. Decline the Offer and D. Enroll
in a Standing Offer. These options provide suppliers with the flexibility to manage their participation
in early payment discount programs effectively.
Reference:
Oracle Help Center:
Early Payment Discount Offers
Oracle Help Center:
Email Campaigns
A Payables user creates a manual invoice, and a Withholding Tax Classification Code defaults on the
invoice line when the invoice is saved. Where does this Withholding Tax Classification Code default
from?
A
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Financials Cloud, when a Payables user creates a manual invoice, the Withholding Tax
Classification Code can default onto the invoice line from various sources depending on the system
configurations. The correct source for defaulting this code is from the Site Assignments of the
Supplier Site.
Explanation of Each Option:
A. From the Site Assignments of the Supplier Site (Correct Answer)
The Withholding Tax Classification Code can be assigned at the supplier site level in Oracle Financials
Cloud.
When a supplier site has a predefined withholding tax classification, this automatically defaults onto
the invoice line when an invoice is created for that supplier site.
This setup ensures that consistent withholding tax is applied to transactions related to that supplier.
According to Oracle documentation:
"For supplier sites that use withholding tax, the withholding tax classification that you define at the
supplier site assignment level is used to populate the default tax classification on the invoice."
(
Oracle Financials Cloud Payables Guide
)
B. From the Party Tax Profile of the Third Party Site (Incorrect Answer)
The Party Tax Profile contains tax-related settings for a supplier or third-party entity, including tax
registration details.
However, it does not directly default the Withholding Tax Classification Code onto invoice lines.
Instead, the Party Tax Profile provides high-level tax configurations that may influence tax
calculations but does not assign the default withholding tax classification.
C. From the Ship-to Location selected on the invoice (Incorrect Answer)
The Ship-to Location on an invoice is used for logistics and sales tax calculations based on where
goods are delivered.
It does not impact withholding tax, which is typically linked to the supplier or supplier site.
Therefore, the Withholding Tax Classification Code does not default from the Ship-to Location.
Final Conclusion:
The correct source of the default Withholding Tax Classification Code on an invoice line is the
Supplier Site Assignment.
This ensures that withholding tax is consistently applied to transactions involving that supplier,
reducing errors in tax calculations.
Reference:
Oracle Financials Cloud Documentation – Withholding Tax Classifications in Payables
(
Oracle Documentation Link
)
Your cloud customer wants to use AI to automate key processes in Payables. You are tasked with
setting up the required roles for AI apps.
When you create the user-defined AIAPPS_BIP_ROLE, which two role hierarchies should you add?
A, D
Explanation:
Comprehensive and Detailed In-Depth
Oracle Adaptive Intelligence (AI) for Payables integrates with Oracle Payables Cloud to enhance
automation and streamline invoice processing. To enable AI functionalities, certain roles must be
assigned to users to allow them to access and configure AI-based reporting and automation tools.
AIAPPS_Author (Option A):
This role allows users to create and modify AI-based reports, dashboards, and analytics in Oracle
Transactional Business Intelligence (OTBI) and BI Publisher.
Reference:
Oracle AI for Payables Setup Guide
AIAPPS_Data_Model_Developer (Option D):
This role is essential for developing AI-driven data models that power analytics and automation
within AI for Payables.
Reference:
Oracle AIAPPS Data Model Documentation
Options B, C, and E Analysis:
BI_Integration (Option B):
While BI Integration supports data extraction and reporting in BI Publisher, it is not specifically
required for AI-based automation in Payables.
Verdict: Not required for AIAPPS_BIP_ROLE.
BI_Author (Option C):
This role provides general BI report development access but does not grant access to AI-based
configurations or data models.
Verdict: Not required for AIAPPS_BIP_ROLE.
BIP_DataModelDeveloper (Option E):
This role is related to BI Publisher Data Model Development but does not include AI model
configuration.
Verdict: Not required for AIAPPS_BIP_ROLE.
Thus, the correct answers are A. AIAPPS_Author and D. AIAPPS_Data_Model_Developer.
You need to issue an off-cycle, single payment for a supplier before the next scheduled payment run.
The invoice you need to pay has been uploaded into the system, yet it is not available for selection on
the Create Payment page.
Select two potential reasons for this:
A, C
Explanation:
Comprehensive and Detailed In-Depth
For an invoice to be available for payment processing in Oracle Payables, it must meet specific
criteria. If an invoice is missing from the Create Payment page, the following could be the reasons:
The Invoice is Not Validated (Option A):
Invoices must be validated to ensure data accuracy and compliance with business rules. If an invoice
is not validated, it remains in an Incomplete status and is not available for payment.
Resolution: Run the Invoice Validation process to validate the invoice. Once validated, it will appear
in the Create Payment page for selection.
Reference:
Oracle Payables Invoice Processing Guide
The Payment Supplier Site Selected Differs from the Supplier Site on the Invoice (Option C):
Invoices are tied to a specific supplier site. If the supplier site selected when creating the payment
does not match the supplier site on the invoice, the invoice will not be available for selection.
Resolution: Ensure that the supplier site selected on the Create Payment page matches the supplier
site associated with the invoice.
Reference:
Oracle Fusion Payables: Understanding Supplier Sites
Options B and D Analysis:
The Invoice is Not Yet Due (Option B):
While an invoice’s due date impacts its eligibility for automatic payment processing (such as
Payment Process Requests), it does not prevent an invoice from being selected manually for an off-
cycle, single payment.
Verdict: Not a valid reason for invoice non-selection.
The Invoice is Not Accounted (Option D):
An invoice does not need to be accounted before payment; payment can be processed first, and
accounting entries can be created afterward.
Verdict: Not a valid reason for invoice non-selection.
Thus, the correct answers are A. The invoice is not validated and C. The supplier site on the invoice
does not match the supplier site selected during payment creation.
Adaptive Intelligence (AI), integrated with Oracle Payables Cloud, supports sophisticated data
science that drives early payment discount offers.
Which of these is NOT a feature of early payment discounts?
A
Explanation:
Comprehensive and Detailed In-Depth
Oracle Payables Cloud, enhanced with Adaptive Intelligence (AI), offers a feature known as Early
Payment Discounts. This functionality enables organizations to optimize their cash flow by taking
advantage of discounts offered for early invoice payments.
Key Features of Early Payment Discounts:
Variable Annual Percentage Rate (APR) Based on "Days Paid Early" (Option B):
The discount amount is calculated using a variable APR, which is determined based on the number
of days the payment is made ahead of the due date. The earlier the payment is made, the higher the
discount percentage applied.
Reference:
Early Payment Discount Offers
The Earlier the Payment, the Greater the Discount (Option C):
This principle aligns with the time value of money, where paying invoices earlier results in greater
discounts. The discount decreases as the payment date approaches the invoice due date.
Reference:
Early Payment Discount Offers
Clarification of Option A:
Eligible Discounts Decrease on a Sliding Scale Based on the Supplier's Discretion:
While the discount offered decreases over time, this scaling is typically predefined in the payment
terms agreed upon between the buyer and the supplier, rather than being adjusted at the supplier's
discretion on a case-by-case basis. The terms are set during the establishment of the early payment
discount program and are systematically applied, ensuring consistency and predictability in discount
calculations.
Therefore, Option A is not a feature of the early payment discounts as implemented in Oracle
Payables Cloud with Adaptive Intelligence.
Reference:
Early Payment Discounts
Early Payment Discount Offers
Once enrolled, a supplier discount is set and applies to all payments indefinitely, until supplier
unsubscribes.
You have created an approval rule as follows:
Rule 1: If the invoice amount > $1000, route it to User 1.
Rule 2: If the invoice amount < $1000, auto-approve it.
What will happen if a user creates an invoice for $1000 and routes it for approval?
D
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Payables, when configuring invoice approval rules, it's crucial to ensure that all possible
scenarios are accounted for to prevent workflow errors. In the given setup:
Rule 1: Invoices with an amount greater than $1000 are routed to User 1 for approval.
Rule 2: Invoices with an amount less than $1000 are auto-approved.
However, there is no rule defined for invoices equal to $1000. This omission creates a gap in the
approval process. When an invoice for exactly $1000 is submitted, the system doesn't find a matching
rule to apply, leading to a workflow failure. As a result, the approval process cannot proceed, and the
invoice remains unprocessed.
Best Practice: To avoid such issues, it's essential to define comprehensive and inclusive approval rules
that cover all possible scenarios. In this case, modifying the rules to include invoices equal to $1000
would resolve the problem. For example:
Revised Rule 1: If the invoice amount ≥ $1000, route it to User 1.
Revised Rule 2: If the invoice amount < $1000, auto-approve it.
This adjustment ensures that invoices with an amount of exactly $1000 are routed appropriately,
preventing workflow failures.
Reference:
How You Create Invoice Approval Rules Using a Spreadsheet
Predefined Invoice Approval Rules: Explained
You have been asked by the cloud customer to create some user-defined account derivation rules for
Payables invoices that were imported from lease accounting.
Which two lease accounting source attributes are predefined and can be used in rule creation?
A, D
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Lease Accounting, integration with Oracle Payables allows for the seamless import of lease-
related invoices. To ensure accurate financial reporting, it's essential to configure account derivation
rules that map specific lease attributes to the appropriate general ledger accounts. Oracle provides a
set of predefined source attributes that can be utilized in creating these rules.
Key Predefined Lease Accounting Source Attributes:
DFF Values on the Asset Tab (Option A):
Descriptive Flexfields (DFFs) on the Asset tab capture additional, user-defined information related to
leased assets. These fields can store bespoke data pertinent to an organization's reporting
requirements. When configuring account derivation rules, these DFFs can be referenced to derive
specific accounting treatments based on the custom attributes recorded.
Reference:
Accounting Configuration for Lease Accounting Invoices
ROU Flag Value (Option D):
The Right-of-Use (ROU) flag indicates whether an asset is recognized as a right-of-use asset under
lease accounting standards. This distinction is crucial for determining the appropriate accounting
treatment for lease-related transactions. In account derivation rules, the ROU flag can be used to
route transactions to the correct accounts, ensuring compliance with accounting standards.
Reference:
Accounting Configuration for Lease Accounting Invoices
Other Options Analysis:
DFF Values on the Schedule Tab (Option B):
While Descriptive Flexfields on the Schedule tab may capture additional information related to
payment schedules, they are not explicitly listed among the predefined source attributes available
for account derivation rule creation in Oracle Lease Accounting.
Lease Preparer (Option C):
The individual who prepares the lease (Lease Preparer) is not a predefined source attribute available
for configuring account derivation rules. Accounting rules typically rely on attributes directly
impacting financial transactions rather than user-specific data.
Which reference data sharing method can you use for Payables Payment Terms when working with
reference data sets in Payables?
C
Explanation:
Comprehensive and Detailed In-Depth
In Oracle Fusion Applications, reference data sharing (also known as SetID) 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 Terms in 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.
For Payables 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.
Reference:
Reference Data Sets and Sharing Methods
Payment Terms