Oracle Accounting Hub Cloud 2024 Implementation Professional - 1z0-1060-24 Exam Practice Test
Question 1
SIMULATION
Challenge 3: Manage User Define Formulas
TASK
Create User Defined Formula for Admin Charges
Subledger Application: AHC Billing
Process Category: AHC Billing
Event Class: AHC Billing
Event Type: Customer Billing, Customer Pay In, Customer Refund, Customer Settlement
Challenge 3: Manage User Define Formulas
TASK
Create User Defined Formula for Admin Charges
Subledger Application: AHC Billing
Process Category: AHC Billing
Event Class: AHC Billing
Event Type: Customer Billing, Customer Pay In, Customer Refund, Customer Settlement
Correct Answer:
See the Explanation below for all the solution
Explanation:
Step-by-Step Guide to Create a User Defined Formula for Admin Charges in Oracle Fusion Step 1: Navigate to Manage User Defined Formulas Log in to Oracle Fusion with privileges to configure Subledger Accounting.
Go to Setup and Maintenance.
In the Functional Setup Manager (FSM), navigate to:
Financials
Subledger Accounting
Manage User Defined Formulas.
Step 2: Create a New User Defined Formula
Click Create to define a new formula.
Enter the following details:
Name: Admin Charges Formula
Subledger Application: AHC Billing
Process Category: AHC Billing
Event Class: AHC Billing
Event Type: Customer Billing, Customer Pay In, Customer Refund, Customer Settlement Data Type: Number Description: Formula to calculate admin charges for billing events.
Click Save, then proceed to define the logic.
Step 3: Define the Formula Logic
Example Formula for Admin Charges:
Assume Admin Charges are calculated as 5% of Transaction Amount, with a minimum charge of $10.
Enter the formula using Oracle's formula syntax:
CASE
WHEN {Transaction Amount} * 0.05 >= 10 THEN {Transaction Amount} * 0.05 ELSE 10 END Click Validate to check for errors.
Step 4: Assign the Formula to the Required Accounting Rules
Navigate to Manage Account Rules.
Find the Admin Charges Account Rule (or create one if needed).
In the Condition Definition, select User Defined Formula as the Source.
Choose Admin Charges Formula as the value.
Click Save and Close.
Step 5: Validate and Deploy the Formula
Click Validate to ensure correctness.
Deploy the formula by submitting the changes.
Attach the formula to relevant Journal Entry Rule Sets (if applicable).
Step 6: Test the User Defined Formula
Navigate to Subledger Accounting > Accounting Entries.
Generate accounting for different test transactions:
Example 1: If Transaction Amount = $500, Admin Charges = $25 (5% of 500).
Example 2: If Transaction Amount = $100, Admin Charges = $10 (since 5% of 100 = $5, but the minimum is $10).
Verify that the Admin Charges are correctly derived in accounting entries.
Explanation:
Step-by-Step Guide to Create a User Defined Formula for Admin Charges in Oracle Fusion Step 1: Navigate to Manage User Defined Formulas Log in to Oracle Fusion with privileges to configure Subledger Accounting.
Go to Setup and Maintenance.
In the Functional Setup Manager (FSM), navigate to:
Financials
Subledger Accounting
Manage User Defined Formulas.
Step 2: Create a New User Defined Formula
Click Create to define a new formula.
Enter the following details:
Name: Admin Charges Formula
Subledger Application: AHC Billing
Process Category: AHC Billing
Event Class: AHC Billing
Event Type: Customer Billing, Customer Pay In, Customer Refund, Customer Settlement Data Type: Number Description: Formula to calculate admin charges for billing events.
Click Save, then proceed to define the logic.
Step 3: Define the Formula Logic
Example Formula for Admin Charges:
Assume Admin Charges are calculated as 5% of Transaction Amount, with a minimum charge of $10.
Enter the formula using Oracle's formula syntax:
CASE
WHEN {Transaction Amount} * 0.05 >= 10 THEN {Transaction Amount} * 0.05 ELSE 10 END Click Validate to check for errors.
Step 4: Assign the Formula to the Required Accounting Rules
Navigate to Manage Account Rules.
Find the Admin Charges Account Rule (or create one if needed).
In the Condition Definition, select User Defined Formula as the Source.
Choose Admin Charges Formula as the value.
Click Save and Close.
Step 5: Validate and Deploy the Formula
Click Validate to ensure correctness.
Deploy the formula by submitting the changes.
Attach the formula to relevant Journal Entry Rule Sets (if applicable).
Step 6: Test the User Defined Formula
Navigate to Subledger Accounting > Accounting Entries.
Generate accounting for different test transactions:
Example 1: If Transaction Amount = $500, Admin Charges = $25 (5% of 500).
Example 2: If Transaction Amount = $100, Admin Charges = $10 (since 5% of 100 = $5, but the minimum is $10).
Verify that the Admin Charges are correctly derived in accounting entries.
Question 2
You are designing an income statement report with the help of Financial Reporting Studio. You add row numbers 3, 4, and 5 to reflect the balances for three different expense accounts and row number 6 to reflect the sum of row numbers 3, 4, and 5.
Which formula should be used on row number 6 to calculate the sum?
Which formula should be used on row number 6 to calculate the sum?
Correct Answer: A
Question 3
Which is an alternate way to implement a mapping set rule?
Correct Answer: D
Question 4
Your customer has four external systems to manage their home loan, auto loan, consumer loan, and personal loan businesses. They have decided to implement Accounting Hub to import the transactional data for generating journal entries from these source systems. While evaluating different possibilities, they ask you to provide your suggestion on sharing accounting rules for these external systems.
Which implementation setup allows the sharing of accounting rules for all four external systems?
Which implementation setup allows the sharing of accounting rules for all four external systems?
Correct Answer: C
Question 5
Your client has operations in both the US and the UK, and they currently use a third-party billing system to process transactions like Complete an Invoice, Record a Payment, Record Late Charges, and Recognize Revenue. You are part of the implementation team of the Accounting Hub solution, and they request you to generate a dynamic description based on the following scenario:
"When Invoice Date is greater than or equal to 1st January 2018, concatenate Project Number and Invoice Number else concatenate Customer Name and Invoice Number." In which format would you enter the date in the user-defined formula to achieve this requirement?
"When Invoice Date is greater than or equal to 1st January 2018, concatenate Project Number and Invoice Number else concatenate Customer Name and Invoice Number." In which format would you enter the date in the user-defined formula to achieve this requirement?
Correct Answer: B
Question 6
The Insurance for Homes company provides home insurance services in the USA, the UK, France, and Italy. It is headquartered in the USA.
The entities in the UK, France, and Italy are subsidiaries of the USA entity.
The company decides to configure four primary ledgers, one each for the USA, the UK, France, and Italy. It also plans to configure three secondary ledgers under the UK, France, and Italy primary ledgers.
Which TWO statements are true about setting up secondary ledgers?
The entities in the UK, France, and Italy are subsidiaries of the USA entity.
The company decides to configure four primary ledgers, one each for the USA, the UK, France, and Italy. It also plans to configure three secondary ledgers under the UK, France, and Italy primary ledgers.
Which TWO statements are true about setting up secondary ledgers?
Correct Answer: B,C
Question 7
Given the business use case:
"New Trucks" runs a fleet of trucks in a rental business in the U.S. The majority of the trucks are owned; however, in some cases, "New Trucks" may procure other trucks by renting them from third parties to their customers. When trucks are leased, the internal source code is 'L'. When trucks are owned, the internal source code is 'O'. This identifies different accounts used for the journal entry. Customers sign a contract to initiate the truck rental for a specified duration period. The insurance fee is included in the contract and recognized over the rental period. For maintenance of the trucks, the "New Trucks" company has a subsidiary company "Fix Trucks" that maintains its own profit and loss entity. "New Trucks" and "Fix Trucks" are located in the same country and share a chart of accounts and accounting conventions.
How many ledgers are required to be set up?
"New Trucks" runs a fleet of trucks in a rental business in the U.S. The majority of the trucks are owned; however, in some cases, "New Trucks" may procure other trucks by renting them from third parties to their customers. When trucks are leased, the internal source code is 'L'. When trucks are owned, the internal source code is 'O'. This identifies different accounts used for the journal entry. Customers sign a contract to initiate the truck rental for a specified duration period. The insurance fee is included in the contract and recognized over the rental period. For maintenance of the trucks, the "New Trucks" company has a subsidiary company "Fix Trucks" that maintains its own profit and loss entity. "New Trucks" and "Fix Trucks" are located in the same country and share a chart of accounts and accounting conventions.
How many ledgers are required to be set up?
Correct Answer: A
Question 8
Apart from a mapping set-based account rule, which is the other way to retrieve segment values for journal entries?
Correct Answer: C
Question 9
To create journal entries, the Create Accounting process takes source data used in accounting rules from tables or views.
What are the tables or views called?
What are the tables or views called?
Correct Answer: D
