Curious about Actual Oracle Cloud (1Z0-1055-24) Exam Questions?

Correct : A

Comprehensive and Detailed In-Depth Explanation:

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.

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

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)

Correct : A

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.

Correct : A

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.

Correct : A

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.

Correct : A

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.