1Z0-511 | The Secret of Oracle 1Z0-511 exam dumps
Q1. A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May. What are the accounting entries at the end of May?
A. Debit: Cost of Goods SoldCredit: Unbilled Receivables
B. Debit: Unearned RevenueCredit: Revenue
C. Debit:ReceivableCredit:Bank
D. Debit:ReceivableCredit: Unearned Revenue
E. Debit: BankCredit: Revenue
Answer: D
Explanation: Invoice
When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.
The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:
AccountDebitCredit Receivables200.00 Unbilled Receivables and/or Unearned Revenue200.00
Reference:
Oracle Project Billing User Guide
Q2. A customer has gone into bankruptcy and is unable to pay their bills. This means that the project revenue is now overstated. How can the customer reduce the revenue on the project to accurately reflect the amount of collectable revenue?
A. Create a revenue write-off event forthe uncollectable element andinterface to General Ledger.
B. Create a negative funding line and assign to the project thus reducing its revenue.
C. Createacost adjustment on the project using preapproved batches.
D. Createa credit memo in Oracle Projects and interface to Accounts Receivable.
E. Entera transaction control against the expendituretypes and regenerate the draft invoice.
Answer: A
Q3. Which three options would result in a billing event being excluded from an invoice?
A. No taskisassigned to the event.
B. No event date has been entered.
C. The event dateis later than the invoice date when the process for draftinvoicegeneration issubmitted.
D. The event has been placed on hold.
E. No revenue amount has been entered on the event.
Answer: B,C,E
Explanation:
Note:
*Events: To be included on an invoice, an event must meet the following criteria:
/Event must not be already invoiced
/ (C)Event completion date must be on or before the bill through date
/Event must be revenue distributed (for write-on revenue events only)
/If the Date-Effective Funds Consumption option is selected, then the event date must be
within the agreement start and expiration dates
*Billing Events: Billing events are events for which there is no associated revenue. Because
billing events have not accrued revenue against an agreement, a billing event can be billed
against any agreement that has sufficient funding to cover the entire amount of the event
(unless an agreement was specified on the event).
Reference:Oracle Project Billing User Guide, Invoicing
Q4. Identify the correct setup to Integrate Project costing with Oracle Inventory.
A. In Oracle Inventory, enable Project Cost Collection for each organization. In Oracle Projects, define an expenditure type with class "Inventory." Define the project related transaction source in Oracle Inventory.
B. Set up Oracle Project Manufacturing.
In Oracle Projects, define an expenditure type with class "Inventory."
Define the project-relatedtransaction source in Oracle Inventory.
C. In Oracle Inventory, enable Project Cost Collection for each organization. In Oracle Projects, define an expenditure type with class "Inventory." Define the project-related transaction type in Oracle Inventory.
D. Oracle Project Manufacturing must be set up.
In Oracle Inventory, enable Project Cost Collection for each organization.
Define the project-related transaction source inOracle Inventory
Answer: C
Explanation:
*Integrating Projects with Inventory without Project ManufacturingYou can implement Inventory to Projects integration so that you can issue from inventory to projects without installing Project Manufacturing. To implement this integration, follow these steps:
. Enable Project Cost Collection..In the Organization Parameters window in Oracle Inventory, enable the Project Cost Collection Enabled box. See Defining Costing Information,Oracle Inventory User's Guide.
. Create a Project-Enabled Transaction Type..
. Set the INV: Project Miscellaneous Transaction Expenditure Type Profile Option..In Oracle Inventory, set the value of this profile option to.User Entered. With this setting, You must enter expenditure types for project miscellaneous transactions.
. Create an Inventory Expenditure Type..In Oracle Projects, create an expenditure type with the transaction type class.Inventory..
*Oracle Inventory Integration
The following stepsarerequired for Oracle Inventory integration: . Install and implement Oracle Inventory . Define project-related transaction types in Oracle Inventory
Reference:
Oracle Projects Implementation Guide
Q5. A client requires a project definition that allows for charging expenditures to the project at a higher Work Breakdown Structure level than where the manually entered percentage complete progress is captured. Which three Shared Structure relationships will support this requirement?
A. Shared
B. Partially shared
C. Mapped
D. Not shared
E. Vertical
Answer: A,B,D
Explanation: Structure Integration Setup
If you enable both a workplan structure and a financial structure for your project or project template, you can decide whether or not they are integrated, and if so, to what degree. You do this by choosing one of the following options on the Structures setup page:
*Shared Structures: Enables you to generate a financial structure with a task hierarchy that is fully shared by the workplan structure task hierarchy. Workplan and financial structures are fully shared by default.
*Partially Shared Structures: Enables you to generate a financial structure that is partially shared by the workplan structure hierarchy.
*Non-Shared: Task-Based Mapping: Enables you to map individual workplan structure tasks to individual financial structure tasks.
*Non-Shared: No Mapping: Choose this if you do not want to integrate your project workplan and financial structures in any way.
Reference:Oracle Projects Fundamentals
Q6. A company generates revenue at period end, but bills monthly in arrears. The first project revenue is due to be recognized at the end of May and the first invoice sent to the customer in June. What are the accounting entries at the end of May?
A. Debit: Cost of Goods SoldCredit: Unbilled Receivables
B. Debit: BankCredit: Revenue
C. Debit: Unearned RevenueCredit: Revenue
D. Debit: RevenueCredit: Accounts PayableLiability Account
E. Debit:UnbilledReceivablesCredit: Revenue
Answer: E
Explanation: Revenue
Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.
AccountDebitCredit Unbilled Receivables and/or Unearned Revenue200.00 Revenue200.00
Q7. Which three statements are true about Multi-Currency Billing?
A. Agreements, Events, and Bill Rates have to be in the same current as the Project Functional Currency.
B. Agreements,Events, and Bill Rates can all be different currencies than the ProjectFunctionalCurrency.
C. The Project Currency can be different from theFunctional Currency of the operating unitthat owns the project.
D. The ProjectCurrency has tobe the same as the Functional Currency of the operating unit that owns the project.
E. An agreementcan fund invoices in more than one currency.
Answer: B,C,E
Explanation: C:The multi-currency billing option can be set both at the operating unit level and at the project level. To enter agreements and rate schedules in any currency for a project, you must enable the multi-currency billing functionality for the operating unit. To enter events in any currency for a project, you can enable the functionality at the project level only. This value defaults from the project template You can override the default value for an individual project template or project.
Note:
Oracle Projects gives you the option to bill in a global environment when the multi-currency billing is enabled for an operating unit and for a project. When multi-currency billing is enabled, you can:
*Enter agreements, bill rates, and events in any currency regardless of the project functional currency(B)
*Designate the project functional currency, project currency, or funding currency as the invoice processing currency for a project
*Designate the project functional currency and the invoice transaction currency as the revenue transaction currency
*Define currency conversion attributes for converting revenue and invoicing amounts to the project currency, project functional currency, and funding currency
*Define currency conversion attributes for converting funding amounts to the project functional currency, and the project currency
*Define a default invoice currency for a project customer that is different from the project functional currency and assign conversion attributes for deriving revenue in this currency
Reference:Oracle Project Billing User Guide
Q8. A US-based company is providing resources to a UK subsidiary and has implemented Oracle Projects intercompany billing solutions. How would the US company create the Accounts Payable invoice in the UK operating unit?
A. when the draft intercompany invoiceis approvedin the us Projects ledger
B. when the draftintercompanyrevenue is approved in the US Projectsledger
C. Invoice automatically createdas part of the PRC: Tieback Invoices fromReceivables in the USProject ledger
D. when the draftintercompanyinvoice is released in the US Projects Ledger
E. on creation ofthe Intercompany revenue in the US General Ledger
Answer: C
Explanation: The provider operating unit runs the process PRC: Tieback Invoices from
Receivables, which automatically creates corresponding intercompany invoice supplier
invoices ready to be interfaced to Oracle Payables in the receiver operating unit.
Note:
See step 6 below.
Intercompany Billing Processing FlowIntercompany billing processing requires the following steps: . The provider operating unit enters or imports cross charge transactions. . The provider operating unit distributes costs of the cross charges, which are identified as cross charge transactions by the cost distribution processes. Thedistribution of the costs is independent of revenue generation and are distributed even if revenue has not been generated. The provider operating unit also imports project-related supplier costs from Oracle Purchasing and Oracle Payables and project-related expense report costs from Oracle Payables. . The provider operating unit runs the process PRC: Generate Intercompany Invoices for a Single Project, or the process PRC: Generate Intercompany Invoices for a Range of Projects, to generate draft intercompany invoices with the associated intercompany receivable and revenue accounts, and the transfer price. . The provider operating unit reviews, approves, and releases the intercompany invoices. . The provider operating unit interfaces the approved intercompany invoices to Oracle Receivables. You can include the following activities in this process: . The provider operating unit runs the process PRC: Tieback Invoices from Receivables, which automatically creates corresponding intercompany invoice supplier invoices ready to be interfaced to Oracle Payables in the receiver operating unit. Use Oracle Receivables to print the invoice as well as to create accounting for Oracle Subledger Accounting. . If cost reclassification is enabled, the provider operating unit performs the following processing steps: . The receiver operating unit imports the intercompany supplier invoices into Oracle Payables. This import process calculates recoverable and non-recoverable tax amounts. Upon review and approval in Oracle Payables, the receiver operating unit runs the process Create Accounting to create subledger accounting entries for the supplier invoices in Oracle Subledger Accounting. When you run the process
in final mode, you can optionally choose to transfer the accounting to Oracle General Ledger.
. The receiver operating unit interfaces the supplier invoice to Oracle Projects, which pulls in the non-recoverable tax amounts as additional project costs.
. (Optional) You can require the receiver operating unit to run additional customized processes to create additional accounting entries in Oracle Subledger Ac
Reference:Oracle Project Costing User Guide,Cross Charge
Q9. A company has multi-currency projects and tasks. What is the hierarchy in which the currency attributes are allocated to a transaction?
A. Project,Task
B. Implementation Options, Project,Task
C. Task,Project, Implementation Options
D. Task,Implementation Options, Project
Answer: B
Explanation:
Note:
Setting up Multi-Currency Transactions
To set up your system to process multi-currency transactions, perform the following steps:
*Implementation Options
Use the Currency Implementation Options to control the default values for currency
attributes at the operating unit level. Oracle Projects uses the currency attributes to
calculate currency exchange rates. See: Currency Implementation Options.
*Currency For each project for which you want to process multi-currency transactions, set up the
Currency options in the project and task options window. This option enables you to enter default currency attributes for a project. See: Currency, Oracle Projects Fundamentals. *Cross Charge You can use the Cross Charge Options to specify whether the project can accept charges from other operating units. See: Cross Charge Setup, Oracle Projects Fundamentals.
*Task Currency and Cross Charge Options
*You can use the Task Currency and Cross Charge Options to override the costing currency conversion attributes and cross charge options in a lowest task. See: Currency, Oracle Projects Fundamentals and Cross Charge Setup, Oracle Projects Fundamentals.
*Transaction Entry and Transaction Import
During Transaction Entry and Transaction Import, you can override the project and task currency attributes. See: Entering Expenditures, Oracle Project Billing User Guide and Currency Conversion Attributes for Imported Transactions, Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.
Reference:Oracle Projects Implementation Guide
Q10. In which two circumstances would it be appropriate to deselect the "Interface Revenue to GL" option in System Implementation Options, before you run the Interface to GC?
A. During data migration ifRevenue is already in General Ledger
B. When Revenueis handled in Accounts Receivable
C. WhenAutoAccounting isincorrect and the Revenue interfacing to GeneralLedger needs to be puton hold.
D. When Financewants to reconcile Unbilled Receivables/Unearned Revenue
E. When Revenuewas generated in errorforallprojects in Released status, and needs to becorrected.
Answer: A,B
Explanation: A: If the revenue amounts are already interfaced to General Ledger (GL) through a different interface, then uncheck the ‘Interface Revenue to GL’ option in the implementation options and run the ‘Interface Revenue to GL’ process in Oracle projects. This will turn the flags in the revenue records as accepted in GL, though it is not interfaced. Once this is done, revert back the implementation option back to its original state.