101. What is the impact of setting the profile option INV: Updateable Item Name = Yes?
A. You would be able to update the item name at any point in timE.
B. You would be able to update the item name after the initial/first-time savE.
C. You would be able to update the item name even after many transactions.
D. You would be able to update both the item name and description after many transactions.
E. You would be able to update the item name multiple times after the initial save and before transactions.
Answer: B
102. A beverage manufacturing company wants to view the on-hand stock of soda in liters. For all the shipping
transactions, it wants to track the soda quantity in cartons and liters.
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What type of unit of measure (UOM) setup is required to meet this requirement?
A. Enable only the primary unit of measurE.
B. Enable primary and pricing units of measurE.
C. Enable intraclass conversion at the organization level.
D. Enable interclass conversion at the organization level.
E. Set tracking UOM to primary and secondary at the item level.
F. An item stocked in liter cannot show in carton during shipment.
Answer: E
103. Your customer sets up an item with the wrong primary unit of measure (UOM) and transacts for a couple of
years. Now the customer realizes that the unit of measure setup was incorrect.
How can you correct the UOM after transactions have been made?
A. You can change the UOM easily in the organization items.
B. You cannot correct the primary UOM for the item after transactions.
C. You can easily correct the primary UOM by changing the value in the item master.
D. You can delete items using delete group and create the item again using the correct primary UOM.
Answer: B
104. Your customer has intelligence built into the item-naming convention. Each code in the item has a certain
meaninG.
For example: 01100200
01 – Business Group
100 – Division
200 – Product
The customer does not want to take the chance of adding a wrong product to a wrong division. How do you
implement this?
A. The item code can be validated through Item Folders.
B. Enable the item descriptive flexfield to capture item segment information.
C. Capture the item-naming convention information in each item description.
D. Enable the item key flexfield for each segment in system items and the cross-validation rules.
Answer: D
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105. Which two statements are true about lot numbers? (Choose two.)
A. Lot numbers can be user defineD.
B. Lot numbers have to be numeric only.
C. Lot numbers have to be of a fixed lengtH.
D. Lot numbers can be generated only at the organization level.
E. Before turning lot control on for an item, your on-hand quantity for that item should be zero.
Answer: AE
106. Your customer completes four production orders on a daily basis. One of the production orders has quality
problems on some finished-good items. The requirements for this situation are:
i) Isolate the defective material from the regular production order output.
ii) The system should prevent this material from being included in external customer order shipments.
What setup or process can achieve these objectives?
A. Enable lot control for the item. Store the lot in an isolated subinventory.
B. Define the lot number as a rejected lot. Store this lot in an isolated subinventory.
C. Create a reject locator. Move the items to this locator that prevents customer shipment.
D. Enable lot control for the item. Assign material status that disallows shipping transactions.
E. Enable serial control for the item. Store the serial control item in a separate subinventory that prevents
customer shipment.
Answer: D
107. The Child Lots check box is enabled at the organization item level. Which two statements are true? (Choose
two.)
A. The lot splitting process is enabled by this featurE.
B. The system would maintain lot genealogy with child and parent lots.
C. Child lot characteristics are completely different from that of parent lots.
D. Child lots are unique and independent lots. They are not linked with parent lots.
E. Short expiry lots are child lots. Child lots generate unique numbers across items.
F. Child lots are a subdivision of the parent lots and maintain integrity with the parent lots.
Answer: BF
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108. The Copy Lot Attributes checkbox is enabled at the organization item level. Which two statements are true?
(Choose two.)
A. This feature is specific to child lots.
B. This feature is specific to parent lots.
C. Lot attributes are copied between child lots.
D. Parent lot inherits the lot attributes of the chilD.
E. Child lots inherit the attributes of the parent lot.
F. Lot attributes are copied from parent to parent lot.
G. The feature is applicable to both child and parent lots.
H. Lot attributes are copied from the child to the parent lot.
Answer: AE
109. XYZ company scheduled receipt from a vendor on a weekly basis. Each batch received from the vendor has
fixed shelf life days. XYZ company’s requirements are:
1. Manual entry of shelf life days should not be allowed during the receipt.
2. The system should calculate the expiry date by considering the shelf life days and the receipt datE.
What is the correct setup or process to meet the above requirement?
A. Enable grade control to calculate the expiry date automatically.
B. Enable lot control. Enter the shelf life days at the organization item level.
C. Disable lot control. Enter the shelf life days at the organization item level.
D. Enable grade control. Disable lot control. Enter the shelf life days at the item level.
E. Enable serial control at the organization item level. Enter the shelf life days at the subinventory.
Answer: B
110. Beyond the shelf life days, active lots become expired lots. Expired lots______.
A. can be reserved
B. are not allowed to do subinventory transfer
C. are not included in inventory valuation reports
D. cannot be transacted and included in on-hand quantities
E. are not included in cycle and physical counting adjustments
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F. are not considered as on-hand supply for min-max and re-order point planning
Answer: F
111. You are implementing Oracle Inventory for XYZ Motor Mfg (XYZ). XYZ want to track all the motors
shipped to customer ABC. They would like to generate and assign a unique number for each motor during the
sales order shipment. This would be useful for them to track the motors easily during the return process.
What is the setup or process to achieve this objective?
A. Enable lot control at the item level. Prefix the lot with AB and ship those lots to ABC customer.
B. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation at receipt.
C. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation as no
control.
D. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation as
predefineD.
E. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation at the sales
order issuE.
Answer: E
112. Your customer has two manufacturing plants. Plant1 reuses serial numbers across all items. Plant2 requires
unique serial numbers across all items in the Plant2 enterprisE.
Which type of serial control setup meets the requirement?
A. Plant1: within an organization, Plant2: across organization
B. Plant1: within inventory items, Plant2: across organization
C. Plant1: across organization, Plant2: within an organization
D. Plant1: across organization, Plant2: within inventory items
E. Plant1: within an organization, Plant2: within inventory items
F. Plant1: within inventory items, Plant2: within an organization
Answer: F
113. Your customer completes two discrete jobs. Each job completes with a quantity of 100.
After job completion, the business user found that 10 components used in Job1 were baD. All the components
are serial-controlled items. Job1 reopened so that they could return the WIP Component for the 10 quantities back
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to inventory.
The list of values (LOV) shows all the serial numbers irrespective of the component used in the specific discrete
joB.
Which setup or process would restrict the component serial numbers specific to their discrete job from appearing
in the LOV that is used?
A. Setup INV: Geneology Delimited: Yes
B. Setup INV: Validate Returned Serial: Yes
C. Setup INV: Restrict Receipt of Serial: Yes
D. Serial Control at the item level: Predefined
E. Serial number assigned during WIP completion
F. Serial number assigned during WIP assembly return
G. The system automatically defaults the serial numbers respective to their discrete jobs.
Answer: B
114. XYZ is a chemical manufacturing company. On a daily basis, it produces 100 kilos of Item A from a single
production batcH.
100 kilos of item A manufactured from a single batch has a single expiration datE. However, the purity of item A
varies as follows:
Category 1: 95%
Category 2: 85%
Category 3: 50%
From an implementation perspective, which setup or process would meet this requirement?
A. Enable lot control. Map three categories as coproducts.
B. Enable lot control for item A. Create three lots to represent the categories.
C. Enable lot control for item A. Create three child lots and link them with the parent lot.
D. Enable lot and grade control for item A. Have three categories mapped with grades.
E. Enable lot and serial control for item A. Create one lot and three categories that are mapped with serial
numbers.
Answer: D
115. ABC is a laptop manufacturing company. On an average, the company completes 10 discrete jobs daily. ABC
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has the following requirements:
1.When the customer returns the laptop, ABC should be in a position to identify the laptop’s manufacture date and
batch number.
2.Each laptop should be identified with a unique number and this should be tagged with the batch number.
3.When a customer returns a laptop, ABC decides whether it can replace it with a new laptop or repair it, by
considering the age of the laptop. ABC needs to identify the aging period of the laptop.
Which setup would meet the above requirements?
A. Using the discrete job form, the manufactured date and batch number can be identifieD.
B. Enable lot and serial control at the organization item level. Enter the shelf life days in the item.
C. Enable parent lot and child lots at the organization item level. Enter the shelf life days in the item.
D. Enable parent lot and grade control at the organization item level. Enter the shelf life days in the item.
E. Enable lot control at the organization item level. Set up uniqueness within inventory items in the organization
parameters.
Answer: B
116. XYZ is a food processing plant. It wants its system to show a warning message after a product becomes
expireD. The warning message should also explain what action needs to be taken on the expired lot.
Which setup would achieve this requirement?
A. Enable lot and serial control. Enter the shelf life days at the item level.
B. Enable lot control at the item level. Enter the shelf life days and retest interval.
C. Enable lot control at the item level. Enter the shelf life days, retest interval and hold days.
D. Enable lot control at the item level. Enter the shelf life days, “expiration action” code and hold days.
E. Enable lot control at the item level. Enter the shelf life days, expiration action interval and hold days.
F. Enable lot control at the item level. Enter the shelf life days. Assign the “expiration action” code to the
particular item.
Answer: F
117. You are moving items from locator A to locator B within the same inventory organization.
Which two types of inventory transactions are required? (Choose two.)
A. Move Order
B. Locator transfer
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C. Subinventory transfer
D. WIP component issue
E. Miscellaneous Receipt
F. WIP assembly completion
G. Interorganization transfer direct
Answer: AC
118. Some move orders are pre-approved requests for subinventory transfers that bring material from a source
location to a staging subinventory within the organization.
Identify the correct move order typE.
A. Shipping move orders
B. Pick wave move order
C. Move order requisitions
D. Replenishment move orders
E. Automatic move order requisitions
Answer: B
119. Company XYZ has portable bar code readers that are used to scan and read data regarding the amount of
time charged on a resource that has been utilized on the manufacturing floor.
This data about utilization is then processed in the Oracle Work in Process module by using a _____.
A. concurrent manager
B. cost transaction manager
C. move transaction manager
D. material transaction manager
E. lot move transaction manager
Answer: E
120. Which three statements are true regarding inventory transactions? (Choose threE. )
A. The user can define new source types.
B. The user can define new transaction actions.
C. Transaction types are used to classify a transaction for reporting and querying purposes.
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D. A transaction source type is the combination of a transaction type and a transaction action.
E. Transaction types identify certain transactions to be included in historical usage calculations for ABC analysis
or forecastinG.
Answer: ACE
121. Which statement is true regarding inventory transactions?
A. Transaction reasons can be used in all transaction forms.
B. Work in Process would not affect inventory transactions.
C. Inventory adjustments are not part of inventory transactions.
D. You can designate, by transaction type, which transaction reasons are availablE.
E. You must create at least one user-defined transaction reason for each inventory organization.
Answer: A
122. You completed an inventory transaction and a work-in-process transaction. Then you checked the on-hand
quantity and found that both the inventory and work-in-process transactions were not processeD.
Which manager is responsible for processing quantity-based transactions?
A. cost transaction manager
B. move transaction manager
C. material transaction manager
D. lot move transaction manager
Answer: C
123. Which three actions are performed using picking rules? (Choose threE. )
A. Restrict subinventories from being allocated against.
B. Place locators on hold if the on-hand quantity is not correct.
C. Remove a locator from hold if required during allocation process.
D. Create new transaction type if demand requires a unique picking situation.
E. Control whether allocations can occur for a quantity less than the total availablE.
F. Control whether allocations can occur for single lots only or across multiple lots.
Answer: AEF
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124. For which three transaction types can picking rules be created? (Choose threE. )
A. PO Receipt
B. Sales Order
C. Cycle Count
D. Work-in-process jobs
E. Miscellaneous Receipt
F. Move Order Replenishment
G. Physical Inventory Adjustment
Answer: BDF
125. Company XYZ manufactures three different types of PC monitors.
Type 1 is a unique requirement for the local college called Northern CollegE.
Shipments of Type 1 to other customers are not alloweD.
This item is stored only in a subinventory called MODEL 1.
Other models are also stored in this same subinventory.
The other two types (Type 2 and Type 3) can be shipped to any other customer, including Northern CollegE.
Which conditions are mandatory for the Picking rule (rule) to meet these requirements?
A. Transaction type of Sales Order. Rule assigned to Northern CollegE.
B. Subinventory as MODEL 1. Rule assigned to customer Northern CollegE.
C. Subinventory as MODEL 1. Rule assigned to Type 1, and customer as Northern CollegE.
D. Subinventory as MODEL 1. Rule assigned to Type 1, and transaction type as Sales Order.
E. Subinventory as MODEL 1. Rule assigned to Type 1, transaction type as Sales Order, and customer Northern
CollegE.
Answer: E
126. The Account Alias Name flexfield cannot exceed _____ characters.
A. 20
B. 15
C. 25
D. 30
E. 45
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F. 180
Answer: C
127. Which two statements are true when performing an Account Alias Receipt? (Choose two.)
A. The alias names can be defined by the user.
B. The alias transaction would go through the workflow approval process.
C. Account alias transactions require two events: first Entry, then Transact.
D. The General Ledger account linked to the Account Alias is required to be ActivE.
E. Account Alias Receipt transactions would always be considered an inventory adjustment.
F. Account Alias Receipt transactions can dynamically create a new receipt if the General Ledger account is
provideD.
Answer: AD
128. Your client does not want to implement account alias issues or receipts.
When performing setups, what should you do about the account alias flexfield?
A. Define segments, but do not compilE.
B. Create at least one alias, compile, then disable the alias.
C. Ignore the account alias flexfield because it would not be requireD.
D. Compile the flexfield structure because it is required by Oracle Inventory.
E. Define default account aliases that can be used at a later date, but ensure they are disabled now.
Answer: D
129. You are setting up a move order requisition for which approval is requireD. At the organization level, you
have defined the following:
1) Move Order Timeout Period
2) Move Order Timeout Action
However, the approval process is not enabled for the organization item. What is the reason?
A. A planner has not been assigned to the organization item.
B. The subinventory source type has not been set to Pull Level.
C. The Move Order Timeout Action has been set to a value greater than zero.
D. The Move Order Timeout Period has been set to a value greater than zero.
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Answer: A
130. For which type of move order is approval required?
A. Planning Move order
B. Shipping Move Order
C. Production Move order
D. Requisition Move Order
E. Replenishment Move Order
Answer: D
131. Your customer wants to create move orders automatically using Kanban system.
Which setup should be enabled to achieve this?
A. Subinventory source type at the item level.
B. Master Item source type at the pull sequence level.
C. Organization source type at the pull sequence level.
D. Subinventory source type at the pull sequence level.
E. Organization item source type at the pull sequence level.
Answer: D
132. ABC company closed the accounting period for the month of October. Their current inventory accounting
period is November and all their day-to-day transactions fall under the November perioD.
The goods were physically received on Oct 26th, but the details were not entered into the system. On Nov 5th,
they found a missing receipt transaction for Oct 26tH.
The business user then tried to enter the missing receipt on Nov 5th with the transaction date of Oct 26tH.
How would the system respond?
A. The system would post the transaction with the date of Oct 26tH.
B. If they adjust the closed period tolerances, the system would allow them to post the transaction.
C. The system would not allow the transaction to be posted because Oct 26th is in a closed perioD.
D. If they reopen the inventory accounting period, the system would allow them to post the transaction.
E. A warning message would appear because the period is closeD. They can override it and post the transaction.
Answer: C
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133. Which three modules use the inventory calendar for considering working days and holidays? (Choose
threE. )
A. Oracle Planning
B. Oracle Inventory
C. Oracle Payables
D. Oracle Bill of Materials
E. Oracle General Ledger
Answer: ABD
134. Your customer is planning to close the accounting period in Inventory. Before closing the period, the
customer would like to view the total number of pending transactions in one form.
Which form would provide this information?
A. Pending Status
B. View Material Transactions
C. Find Pending Transactions
D. Transaction Open Interface
E. Inventory Accounting Period
Answer: E
135. Which three values are applicable for the transaction profile option Miscellaneous Issue and Receipt?
(Choose threE. )
A. Online Processing
B. Concurrent Processing
C. Form-Level Processing
D. Background Processing
E. Record-Level Processing
Answer: ABD
136. You created an internal requisition to move material between two organizations. The destination is locator
controlleD. The shipping network between these two locations has been defined as Direct. The shipment
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transaction fails.
What could be the reason for the failure?
A. Locator default has not been set up in the transaction default.
B. Internal requisitions cannot be used for Direct shipping networks.
C. You did not indicate the locator of the destination on the requisition.
D. Locator-controlled destinations cannot be used for Direct shipping networks.
Answer: A
137. Which four statements are true about subinventory transfer transactions for a Warehouse Management
System (WMS) -enabled organization? (Choose four.)
A. Inventory control is validateD.
B. A user-defined transaction type can be useD.
C. Storage Locator information is optional for a subinventory transfer.
D. Storage Locator information is mandatory for a subinventory transfer.
E. General Ledger account needs to be entered during subinventory transfer.
F. Goods can be transferred across storage locators within the subinventory.
G. Inventory value of an item is transferred from one inventory organization to another.
Answer: ABDF
138. Inventory organizations B1 and M1 each have five unique physical separations of material inventory area,
which are under locator control. Customer shippable goods are stored in the Finished Goods Inventory (FGI)
storage areA. The raw material storage area is called Stores.
B1 wants to transfer customer goods from one locator to another. Identify the transaction that will accomplish the
transfer.
A. Subinventory transfer
B. Direct interorganization transfer
C. Account Alias Issue and Receipt
D. Miscellaneous Issue and Receipt
E. Interorganization transfer by way of intransit
Answer: A
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139. ABC InC. is a medical equipment manufacturer. The company wants its finished goods item to be restricted
to a locator assigned to a subinventory for transactions.
Which setup step needs to be performed?
A. Set up item transaction default.
B. Restrict subinventories at the item-organization level.
C. Restrict locator control at the organization parameter.
D. Set up subinventories and locator restriction at the item-organization level.
E. Train the user to transact the specific item from the specific subinventory and locator.
Answer: D
140. ABC InC. is a semiconductor manufacturing organization. They have all possible inventory controls on
items.
Which controls are validated on subinventory transfer transactions?
1. Lot control
2. Locator control
3. Serial Number control
4. Revision Quantity control
5. Subinventory and locator restrictions for specific items
A. 1
B. 1 and 3
C. 1, 3, and 5
D. 1, 2, and 3
E. 1 through 5
F. 1, 2, 3, and 5
G. 1, 2, 3, and 4
Answer: E
141. The warehouse has received new stock from an internal distribution warehousE.
Which two receiving transactions can be used to put stock into the warehouse’s inventory using the Intransit
Inventory? (Choose two.)
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A. Direct Receipt
B. Standard Receipt and Delivery
C. Inter organization Direct Receipt
D. Inter organization Receipt and Delivery
E. Inter organization Miscellaneous Receipt
Answer: CD
142. Select two conditions which will permit the transfer of lot-controlled items between inventory organizations.
(Choose two.)
A. Item is lot-controlled at the subinventory level.
B. Item is lot-controlled in either the shipping or receiving organizations.
C. Item is lot-controlled in both the shipping and receiving organizations.
D. Item is lot-controlled in the receiving organization, but not the shipping organization.
E. Item is lot-controlled in the shipping organization, but not the receiving organization.
Answer: CE
143. Your client has inventory organizations that belong to different operating units. All items are manufactured in
one operating unit and shipped to distribution warehouses that belong to other operating units. On an exception
basis, transfers may be arranged between distribution warehouses in different operating units.
All transfers between operating units are at the shipping organization’s standard cost plus a transfer charge
percentagE.
Identify three inventory setup steps that are required for allowing the receiving inventory organization to correctly
process receipts from inventory organizations belonging to another operating unit. (Choose threE. )
A. Define an Intercompany Price List.
B. Define the correct Unit of Measure conversions for Dual UOM.
C. Define Intercompany Relations for each pair of operating units.
D. Define a separate Item Master Organization for each operating unit.
E. Define Receiving Options for each inventory organization in each operating unit.
F. Define Shipping Networks for each pair of shipping and receiving inventory organizations.
G. Ensure that the Receiving Options are uniform for all inventory organizations in each operating unit.
Answer: CEF
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144. Your client uses Average Costing to value the items in the inventory.
A Miscellaneous Receipt transaction has been submitted for a quantity of 1 of an item.
What are the two possible values that could have been added to the Material Account by this transaction? (Choose
two.)
A. 1 x (User-entered Unit Cost)
B. 1 x (Current Average Unit Cost)
C. The transaction will not be costed until the next Cost Manager program is executeD.
D. 1 x (Average Cost Variance), calculated when the next Cost Manager program is executed
Answer: AB
145. Two Customer Service Representatives each book a sales order for an item that is revision and lot controlleD.
There are no other open, active sales orders for this item.
Each Customer Service Representative pick releases their order to the same warehouse independently.
The Pick Release Rule used by both includes Auto Allocation.
On the resulting Move Orders, Inventory has allocated all the requested quantity for one of the sales orders, but
only half the requested quantity on the second sales order was available to be allocateD.
Using the Transact Move Orders form, which action sequence can the warehouse person use to reduce the
allocation on the first Move Order so that both customer orders can be equally satisfied?
A. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values, as appropriatE.
B. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values;
3. Change the allocated Lot and Quantity values, as appropriatE.
C. 1. View/Update Allocations;
2. Change the allocated Lot and Quantity values, as appropriate;
3. Select the appropriate Missing Quantity Action.
D. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values, as appropriate;
3. Change the Destination Subinventory.
Answer: C
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146. Identify four functions that a user can perform using the Material WorkbencH. (Choose four)
A. Create move orders.
B. Create and save queries.
C. Change material statuses.
D. Perform miscellaneous issues.
E. Perform miscellaneous receipts.
F. Perform pick confirm transactions.
G. Perform ship confirm transactions.
H. View material in receiving, on-hand quantities, and intransit material.
Answer: ABCH
147. Identify three true statements about the use of the Material WorkbencH. (Choose threE. )
A. Authorized users can create move orders in the Material WorkbencH.
B. Authorized users can change material statuses in the Material WorkbencH.
C. Authorized users can perform miscellaneous issues in the Material WorkbencH.
D. Authorized users can perform miscellaneous receipts in the Material WorkbencH.
E. Authorized users can perform pick confirm transactions in the Material WorkbencH.
F. Authorized users can perform ship confirm transactions in the Material WorkbencH.
G. Authorized users can view material across organizations in the Material WorkbencH.
Answer: ABG
148. Select three true statements about inventory reservations. (Choose threE. )
A. A reservation is a link between a supply source and a demand sourcE.
B. For on-hand inventory supply, there is only one type of reservation called high-level reservation.
C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.
D. Reservations can be created only by Oracle applications or via forms. They cannot be imported from
third-party applications.
E. A reservation creates a permanent data link between a supply source and a demand source, and represents a
guaranteed allotment of material to a specified demand sourcE.
F. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account
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alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and
Repair Overhaul work order components.
G. Item reservations allow the allocation of material you previously set aside for a sales order, account, account
alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and
Repair Overhaul work order components as long as the quantity is not negativE.
Answer: AEF
149. What two conditions prevent you from reserving the inventory? (Choose two.)
A. The inventory module is installed as ShareD.
B. The items have a nonreservable material status.
C. The inventory is in a Standard Cost inventory organization.
D. The inventory is in an Average Cost inventory organization.
E. The reservation will cause the on-hand quantity to be negativE.
Answer: BE
150. Select three statements that describe the reservation of Lot Indivisible Items. (Choose threE. )
A. Inventory automatically creates high-level reservations for lot indivisible items.
B. A lot level reservation must reserve the full lot quantity or place the lot on holD.
C. A lot level reservation must reserve the full lot quantity or disregard the entire lot.
D. When you set an item as lot indivisible, you must reserve the entire lot quantity.
E. When an indivisible lot exceeds the required lot quantity, you cannot select the lot for reservation, if it
surpasses the order tolerancE.
F. When an indivisible lot exceeds the required lot quantity, you can select the lot for reservation, if the quantity is
a multiple of the order quantity.
Answer: CDE
151. How can you create reservations for the material based on scheduled demand for a Complex Maintenance
Repair and Overhaul (CMRO) work order when the material does not exist in the on-hand inventory?
A. CMRO work orders are not eligible for reservations.
B. CMRO requires inventory on hand to support reservation.
C. CMRO creates reservation against a purchase order or any other supply sourcE.
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D. CMRO creates a WIP job to make the material before you can create the reservation.
Answer: C
152. Identify four levels where item reservations can be madE. (Choose four.)
A. Project
B. Locator
C. Lot Number
D. Cost Group
E. Subinventory
F. Serial Number
G. Operating Unit
H. WIP Work Order
Answer: BCEF
153. When you view Item Supply and Demand Information on the Supply/Demand Detail form, Available
Quantity is ________.
A. the quantity on hand
B. the nettable quantity on hand
C. the reservable quantity on hand
D. the projected on-hand quantity of the item, defined as:
(all future sources of supply) – (all future sources of demand)
E. the projected on-hand quantity of the item, defined as:
Answer: E
154. Identify three valid sources of Inventory Supply. (Choose threE. )
A. Unapproved Move Orders
B. Approved Requisition Lines
C. Miscellaneous Transactions
D. Approved Purchase Order Lines
E. Sales Order Lines in Entered status
F. WIP Work Orders in Released status
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G. Sales Orders Lines in Scheduled status
Answer: BDF
155. Identify three valid sources of Inventory DemanD. (Choose threE. )
A. Approved Requisition Lines
B. Miscellaneous Transactions
C. Scheduled CMRO Work Orders
D. Approved Purchase Order Lines
E. Sales Order Lines in Entered status
F. WIP Work Orders in Released status
G. Sales Orders Lines in Scheduled status
Answer: CFG
156. Identify the purpose of using Material Status controls.
A. to permit updates to the Item Master record
B. to prevent unnecessary cycle counting in an inventory organization
C. to define the transactions that are permitted for an inventory organization
D. to select the transactions that are permitted to use the inventory on-hand quantity
Answer: D
157. The serial number of an item is fully transactable and it is placed in a subinventory that has a material status,
which allows only subinventory transfers.
What is the cumulative effective status of the serial number?
A. The serial number is not transactablE.
B. The serial number is fully transactablE.
C. The serial number may be transferred to another inventory organization.
D. The serial number may be transferred to another subinventory in the same inventory organization.
Answer: D
158. Identify the two conditions required to enable material status control for a specific subinventory. (Choose
two.)
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A. The subinventory must be designated as Quantity TrackeD.
B. The subinventory must be designated as Allow Reservation.
C. Transaction types must be enabled for material status control.
D. The subinventory must be designated as Asset Subinventory.
E. The subinventory must be assigned a material status that is enableD.
Answer: CE
159. Due to excessive customer returns, the client needs to prevent the reservation and subsequent shipping to
customers of a specific lot number for an item, pending a quality review.
Identify two conditions that will satisfy this requirement. (Choose two.)
A. Assign the lot a material status that does not permit reservations.
B. Assign the lot a material status that only permits subinventory transfers and issues to scrap.
C. Assign the lot a material status that does not permit reservations, but only permits subinventory transfers and
issues to scrap.
D. Transfer the quantity on hand of the item to a subinventory that does not permit reservations, but only permits
subinventory transfers and issues to scrap.
Answer: CD
160. Identify the two statements that directly relate to material status control. (Choose two.)
A. A material status can be enabled or disabled as requireD.
B. The material status is defaulted when using Order Management.
C. A serial number can be assigned a status that excludes it from reservations.
D. A material status is a combination of transactions and planning actions that are alloweD.
E. If status control is not enabled for a transaction type, the transaction type is always alloweD.
Answer: DE
161. The client has decided that Quality and Discrete Manufacturing will be implemented at a future stage, so new
supply from current manufacturing will be added to current inventory on hand by the Open Transactions
InterfacE.
The immediate requirement is to go-live with Inventory and Order Management.
Which three seeded transaction types can be omitted for material status control? (Choose threE. )
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A. average cost update
B. all internal transactions
C. backflush subinventory transfer
D. miscellaneous issues and receipts
E. all transaction types related to Work in Process
F. all transaction types related to Project Manufacturing
Answer: CEF
162. The inventory in storeroom A contains raw materials (purchased components) that are used in the
manufacture of completed assemblies. The assemblies are returned to storeroom A and they become supply for the
distribution warehouses B and C.
A, B, and C are independent inventory organizations.
Completed assemblies in warehouses B and C are sold in bulk to some customers and cases to others.
Spare parts for the completed assemblies are also available from storeroom A and are sent directly to field service
technicians, as requireD.
Identify two inventory set up activities that facilitate and control inventory transactions between the storeroom
and the warehouses. (Choose two.)
A. Define a material status that does not allow component items for sale to customers.
B. Define a material status that allows completed assemblies for shipment to field service technicians.
C. Define a material status for the subinventories in the storeroom that prevents interorganization transfers to the
warehouses.
D. Define a material status for component items assigned to the storeroom that prevents interorganization transfers
to the warehouses.
E. Define a material status for subinventories in the storeroom that only permits receipt from manufacturing and
interorganization transfers to the warehouses.
F. Define a material status for completed assemblies in the storeroom that only permits receipt from
manufacturing and interorganization transfers to the warehouses.
Answer: CE
163. The inventory in storeroom A contains raw material (purchased components) that are used in the manufacture
of completed assemblies on the shop floor, which are returned to storeroom A to become supply for distribution
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warehouses B and C.
A, B, and C are independent inventory organizations.
Completed assemblies in warehouses B and C are sold in bulk to some customers and cases to others.
Spare parts for the completed assemblies are available from storeroom A and are sent directly to field service
technicians, as requireD. Field service technicians also receive completed assemblies from the warehouses.
Identify two inventory set up activities that facilitate and control the inventory transactions between the inventory
organizations and the field service technicians. (Choose two.)
A. Define a material status that does not allow component items for sale to customers.
B. Define a material status that allows completed assemblies for shipment to field service technicians.
C. Define a material status for the subinventories in the warehouses that also permits shipment to field service
technicians.
D. Define a material status for the spare parts subinventory in the storeroom that only permits shipment to field
service technicians.
E. Define a material status for completed assemblies in the storeroom that only permits receipt from
manufacturing and interorganization transfers to the warehouses.
Answer: CD
164. Select the true statement about Material Status Control.
A. The profile option “INV: Default Item Status” must be set to Active at the site level to enforce Material Status
Control.
B. The profile option “INV: Material Status Support” must be set to Yes at the site level to enforce Material Status
Control.
C. The profile option “INV: Transaction Reasons Security” must be set to Yes at the site level to enforce Material
Status Control.
D. The profile option “INV: Allow Expense to Asset Transfer” must be set to Yes at the application level to
enforce Material Status Control.
Answer: B
165. Which sequence best represents the Procure to Pay life cycle flow?
A. Run compliance testinG. > Enter suppliers. > Process returns.
B. Create purchase order. > Record manual payment. > File invoices.
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C. Negotiate contracts. > Fulfill purchase order. > Generate supplier reports.
D. Enter invoicE. > Match invoice to purchase order. > Return goods to suppliers.
E. Request for quotE. > Analyze commodity. > Create payment outside payables.
Answer: C
166. Which describes a valid process in the Procure to Pay life cycle?
A. The sourcing process acknowledges that the purchase order has been duly executeD.
B. The demand process covers the search for suitable suppliers for requested goods and/or services.
C. In the invoicing process, electronic data interchange (EDI) invoices are processed with Oracle Payables.
D. The receiving process consists of a requester notification that the service has been performed as agreeD.
E. The ordering process includes purchase order placement by the supplying organization and purchase order
execution by the buying organization.
Answer: D
167. Which key area in the Procure to Pay process involves using Oracle iExpenses to enter expense reports via a
Web browser?
A. Payment
B. Invoicing
C. Sourcing
D. Reporting
E. Receiving
Answer: B
168. Based upon a revised quotation, buyer A+1 & Co. wants to change one of its suppliers names from Bay Area
Manufacturing to Bay Area MfG. Co.
Which document would NOT be affected by this change?
A. Return
B. Payment
C. Sales Order
D. Purchase Order
E. Purchase Requisition
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C. Simulate
D. A number
Answer: C
169. At BBC InC. , you are implementing Oracle Work in Process, Oracle Advanced Supply Chain Planning,
Oracle Bill Of Materials, Oracle Inventory, and Oracle EngineerinG.
When creating requisitions, which two modules do NOT feed data into Oracle Purchasing? (Choose two.)
A. Oracle Inventory
B. Oracle Engineering
C. Oracle Bill Of Materials
D. Oracle Work in Process
E. Oracle Advanced Supply Chain Planning
Answer: BC
170. While implementing Oracle Payables, Oracle Purchasing, and Oracle General Ledger at GLO LtD. , you are
informed by the accountant that the AP Clearing Account balance is increasing daily.
To solve this issue, what would you check in the accounting process?
A. whether journals are posted regularly
B. whether suppliers are sequentially numbered
C. whether the month-end accrual process is run
D. whether invoices are matched to purchase orders and receipts
E. whether Oracle Payables transactions are reconciled with Oracle General Ledger
Answer: D
171. If the PO: Allow Buyer Override in AutoCreate Find profile option is set to No, what would happen if the
buyer, Pat Stock, uses the AutoCreate form?
A. Pat would be able to view requisitions assigned to other buyers and unassigned requisitions.
B. Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions.
C. Pat would be able to view requisitions assigned to other buyers, but not view unassigned requisitions.
D. Pat would not be able to view requisitions assigned to other buyers, but would be able to view unassigned
requisitions.
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E. Pat would be able to view all requisitions in the AutoCreate form, but would be prevented from placing
requisitions on a purchase order if they reference another buyer.
Answer: B
172. Your company often orders items that are sourced from multiple suppliers. At any given time, the supplier
varies depending on the supplier’s current production capability and price offerinG. The price varies throughout
the year. For a particular item, there is no single supplier that receives the majority of the orders.
What is the best way to set up this item?
A. Create blanket purchase agreements, a sourcing rule identifying all the possible suppliers, and approved
supplier list entries.
B. Create contract purchase agreements, a sourcing rule identifying all the possible suppliers, and approved
supplier list entries.
C. Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions
onto standard purchase orders.
D. Create a blanket purchase agreement for only one supplier, a sourcing rule for just that supplier, and an
approved supplier list entry for that supplier.
E. Create a contract purchase agreement for only one supplier, a sourcing rule for just that supplier, and an
approved supplier list entry for that supplier.
Answer: C
173. Consider the following scenario:
You always order specific items from a single supplier.
You send the orders to be approved automatically.
You want the order to be created immediately after the requisition is approveD.
Your purchase orders should be created by _____.
A. using AutoCreate
B. using Create Releases
C. using workflow and contract purchase agreements
D. using workflow and blanket purchase agreements
Answer: D
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174. You import requisitions from another system. These requisitions are imported as approved requisitions and
contain references to items in the item master and blanket purchase agreements.
What is the easiest way to automatically create orders from these requisitions?
A. Using the AutoCreate form.
B. Running the Create Releases program.
C. Running the Workflow Background Processor.
D. Running the Purchasing Documents Open InterfacE.
Answer: B
175. The PO Create Documents Workflow creates _____. (Choose threE. )
A. releases from blanket purchase agreements
B. standard purchase orders from bid quotations
C. standard purchase orders from catalog quotations
D. standard purchase orders from standard quotations
E. standard purchase orders from planned purchase agreements
F. standard purchase orders from contract purchase agreements
Answer: ACF
176. Select three true statements regarding the Workflow Document Creation prerequisite (PO Create Documents
workflow). (Choose threE. )
A. Catalog quote must not be expired, but may be inactivE.
B. Supplier and supplier site are required on the requisition related to a contract purchase order.
C. If a system item is not associated with the requisition line, a supplier item number is requireD.
D. Sourcing rules are required if the requisition originates in Oracle Purchasing or iProcurement.
E. No source document is required for the PO Create Documents workflow to create a release or purchase order.
F. The only time an approved supplier list is required is if your source document is a blanket purchase agreement
and you are using a system item.
Answer: BCF
177. When you enter a receipt, you first use the Find Expected Receipts window to locate the source document for
the receipt.
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Select four valid source documents for a receipt. (Choose four.)
A. an approved internal requisition line
B. an intransit shipment within your inventory
C. a shipment from a supplier based on a purchase order
D. a move order from inventory for material storage relocation
E. a return from a customer based on a return material authorization (RMA)
F. a shipment from inventory backed by an internal sales order generated by an internal requisition
Answer: BCEF
178. Identify three correct explanations about the processing mode of the Receiving Transaction Processor.
(Choose threE. )
A. Batch processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
B. Batch processing mode: The receiving forms insert transaction information into the receiving interface tables.
These transactions remain in the interface table until you run the Receiving Transaction Processor.
C. Immediate processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
D. Immediate processing mode: The receiving forms take into account all pending transactions, but Purchasing
does not update the transaction history, source documents, and supply information until the transactions are
processeD.
E. On-line processing mode: Purchasing calls the Receiving Transaction Processor when you save your worK.
The application waits for its completion before the control returns to the user. The user will not be able to perform
any other application activities until the process completes.
F. On-line processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
Answer: BCE
179. Which two are true about the different types of receipts? (Choose two.)
A. Use cascade receipt to improve accuracy in the receiving process.
B. Use unordered receipt to enter receipts of items when you do not have a corresponding purchase order.
C. Use blind receipt to receive an entire purchase order with a few keystrokes.
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D. Use Advance Shipment Notices (ASNs) to enter receipts in the Enter Receipts window, reducing data entry
timE.
E. Use express receipt to distribute a given quantity of an item from a single supplier across multiple shipments
and distributions.
Answer: BD
180. The on-hand quantity balance for item A is 100 and item B is 200. A shipment of 50 for item A and 50 for
item B arrived today.
The receiving clerk created a receipt for the shipment. After the receipt, the on-hand quantity of items A and B are
150 and 200 respectively.
Which one of the possible receipt routing options for items A and B is correct?
A. Item A = Direct Delivery; Item B = Standard Receipt
B. Item A = Standard Receipt; Item B = Direct Delivery
C. Item A = Inspection Required; Item B = Direct Delivery
D. Item A = Inspection Required; Item B = Standard Receipt
E. Item A = Standard Receipt; Item B = Inspection Required
Answer: A
181. A recent shipment of item A was routed to the inspection department according to standard practice, but no
receipt for item A is available in the system for inspection.
What might have happened?
A. Requester set the receipt routing to Direct Delivery in the requisition.
B. Receiving clerk created an express receipt instead of a standard onE.
C. Buyer changed the receipt routing to Standard Receipt in the purchase order linE.
D. Buyer changed the routing to Direct Delivery at the supplier site level for this supplier.
E. Receiving clerk changed the receipt routing to Standard Receipt at the time of receivinG.
Answer: E
182. While entering a cascade receipt, you find that the Cascade button is disabled in the Receipts window.
Which option best describes the reason for this?
A. The receipt is for a drop-shipped item.
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B. The receipt is for a Return Material Authorization (RMA).
C. You specified Receipt Routing as Direct Delivery for this supplier.
D. You disabled Allow Cascade Transactions in the Purchase Order Shipments window.
E. You specified a purchase order number instead of a supplier and an item in the Find Expected Receipts window.
Answer: E
183. View the Exhibit. Your client was creating an express receipt. While saving the receipt, it faileD.
Identify the most logical reason for the failurE.
A. A manual action was performed in one of the lines before clicking the Express button.
B. The Early/late Receipt Date Tolerance is exceeded and the Exception Control is WarninG.
C. Location is not available for Expense Destination Type and the Destination Type is ReceivinG.
D. Location is not available for Expense Destination Type and the Destination Type is Final Destination.
E. Instead of a purchase order number, a supplier name was specified in the Find Expected Receipts window.
Answer: D
184. For which three reasons do you create a return in the Purchasing module? (Choose threE. )
A. to return internal shipments
B. to return items back to a customer
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C. to return delivered items to receiving
D. to return externally sourced items to the supplier
E. to return Return Material Authorization (RMAs) to the customer after material has been delivered to the
inventory
Answer: BCD
185. You match an unordered receipt to _____.
A. a purchase order shipment from any organization
B. a Return Material Authorization (RMA) from any organization
C. a purchase order shipment from the same organization for any supplier
D. a purchase release shipment from the same organization for the same supplier
E. a finally closed purchase order shipment from the same organization for the same supplier
Answer: D
186. You received 100 units of item A on Monday.
On Tuesday, you discovered that three units are missing from the shipment. You entered a correction to adjust the
quantity received to 97.
On Wednesday, you found two units damaged and you created a Return To Supplier transaction.
The profile option PO: ERS Aging Period is set to 3 days.
What is true if the Payment on Receipt process is run on Friday?
A. The process will generate an invoice for 95 units.
B. The process will generate an invoice for 97 units and a debit memo for 2 units.
C. The process will generate an invoice for 97 units. Then you will have to manually create a debit memo for 2
units.
D. The Return To Supplier transaction already created a debit memo. The Payment on Receipt process will
generate an invoice for 97 units.
E. The process will generate an invoice for 100 units. Then you will have to manually adjust the invoice for 3
units and create a debit memo for 2 units.
Answer: A
187. Which three are true about the Evaluated Receipt Settlement (ERS) process? (Choose threE. )
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A. Invoice is always created for the supplier sitE.
B. Invoice is always created in unapproved status.
C. Invoice currency is always defaulted from the purchase order currency.
D. Payment currency is always defaulted from the purchase order currency.
E. Payment terms are always defaulted from the purchase order payment terms.
F. Amount is always determined by multiplying the quantity received by the purchase order item unit pricE.
Answer: BCF
188. Which four are supported by the Receiving Open Interface (ROI)? (Choose four.)
A. Unordered receipt
B. Dynamic locators
C. Deliver transactions
D. Movement statistics
E. Correct transactions
F. Receive transactions
G. Transfer transactions
Answer: CEFG
189. Receiving Open Interface (ROI) is typically a three-step process. Identify the correct sequence of the steps.
A. Load – Accrue – Process
B. Load – Confirm – Process
C. Receive – Inspect- Deliver
D. Load – Process – Confirm
E. Validate – Confirm – Process
Answer: D
190. Consider the following scenario:
1) Receipt Days Early = 5; Receipt Days Late = 10; Receipt Days Exceed-Action = Reject
2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject
3) Receipt Close Point = Received; Receipt Close Percent = 5%
A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007. Which receipt transaction(s) can
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occur?
A. A receipt of 95 for item A is created on Oct-09-2007.
B. A receipt of 90 for item A is created on Oct-27-2007.
C. A receipt of 108 for item A is created on Oct-16-2007.
D. A receipt of 60 for item A is created on Oct-12-2007. Another receipt of 65 for item A is created on
Oct-17-2007.
E. A receipt of 70 for item A is created on Oct-12-2007. Another receipt of 28 for item A is created on
Oct-17-2007.
Answer: E
191. Consider the following setups:
1) Receipt Days Early = 5; Receipt Days Late = 5; Receipt Days Exceed-Action = Reject
2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject
3) Receipt Close Point = Received; Receipt Close Percent = 5%
A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007.
Which two receipt transactions can occur? (Choose two.)
A. You can create a blind receipt of 115 for item A on Oct-17-2007.
B. You can create an express receipt of 95 for item A on Oct-09-2007.
C. You can create a standard receipt of 104 for item A on Oct-25-2007.
D. You can create a substitute receipt of 107 for item A on Oct-16-2007.
E. You can create a substitute receipt of 102 for item A on Oct-19-2007.
F. You can create a standard receipt of 96 for item A on Oct-12-2007 and another standard receipt of 7 on
Oct-17-2007.
Answer: AE
192. Consider the following setup:
Receipt Close Point = Accepted; Receipt Close Percent = 5%.
A shipment of 100 units for item A was scheduled to be delivered today. The shipment status changed to Closed
for Receiving after processing the delivery.
Which statement is true about this delivery?
A. 110 units of A are received and 94 are accepteD.
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B. 95 units of A are received and waiting in the receiving docK.
C. 99 units of A are received and 5 are rejected after inspection.
D. 110 units of A are received and 103 are delivered to the inventory.
E. 102 units of A are received and then 10 are returned to the vendor due to damagE.
Answer: D
193. Which four options are true about setting the receipt routing defaulting rules? (Choose four.)
A. Supplier setup supersedes Receiving Options.
B. You cannot allow users to override receipt routinG.
C. Item setup supersedes supplier setup routing rules.
D. Supplier setup supersedes item setup routing rules.
E. You must set a rule in the receiving options setup form.
F. You can allow a user to override receipt routing by changing a profile option.
Answer: ACEF
194. The Accrual Reconciliation Report can be used to identify problems in receiving, purchasing, inventory,
work in process, or accounts payable transactions.
Which three problems can this report be used to identify? (Choose threE. )
A. payments made to the wrong invoices
B. mismatches in receipt and invoice quantities
C. invoices matched to the wrong purchase order
D. receipts made against the wrong purchase order
E. sales tax and freight charged to the A/P Liability account
F. miscellaneous inventory or work in process transactions that used the Invoice Price Variance account in error
Answer: BCD
195. Identify the correct sequence of steps in the Procure to Pay period close process.
A. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in AP. > Post journal entries in GL. > Reconcile AP activity for the perioD. > Close
the PO perioD.
B. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
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review. > Close the period in AP. > Reconcile AP activity for the perioD. > Close the PO perioD. > Post
journal entries in GL.
C. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in PO. > Post journal entries in GL. > Reconcile PO activity for the perioD. > Close
the AP perioD.
D. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in AP. > Reconcile AP activity for the perioD. > Post journal entries in GL. > Close
the PO perioD.
E. Prepare for period closE. > Run Validation/ Review and resolve holds. > Transfer and review. > Close the
period in AP. > Create accountinG. > Post journal entries in GL. > Reconcile AP activity for the perioD. >
Close the PO perioD.
Answer: A
196. Identify three statements that are true regarding Accrual Process for Period-End Accruals. (Choose threE. )
A. You reverse accrual journal entries at the start of the new accounting perioD.
B. You record the total uninvoiced receipt liabilities accrued during the accounting perioD.
C. Purchasing records the accounting entries for expense during each receiving transaction.
D. You use the Receipt Accruals – Period End process to create period-end accruals for your invoiced receipts for
expense distributions.
E. Actual journal entries are created for the amount of the receipt liabilities, debiting the expense A/P accrual
account and crediting the charge account.
F. If you are using encumbrance accounting, purchase order encumbrance is relieved when the invoices matched
to the purchase order are posted to the general ledger.
Answer: ABF
197. Which two activities should be completed before Purchasing is closed for a period? (Choose two.)
A. Resolve all unordered receipts.
B. Open the new purchasing perioD.
C. Approve all purchasing requisitions for the current perioD.
D. Complete all inventory and expense receipts for the current perioD.
E. Complete and approve all the purchase orders for the current perioD.
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F. Pay all invoices for the current period including those that have not been receiveD.
Answer: AD
198. Consider the following scenario for inventory item A:
1) Standard Cost: $10, Purchase Order Line Price: $12, Purchase Order Line Quantity: 10
2) Receipt Routing: Direct Delivery
You created a receipt of 8 units for item A. Which option correctly describes the effect on different accounts?
A. Debit Material Account $80; Credit Inventory AP Accrual Account $96; Debit Invoice Price Variance Account
$16; No effect on Purchase Price Variance Account
B. Debit Material Account $80; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Debit Purchase Price Variance Account $16
C. Debit Material Account $80; Credit Inventory AP Accrual Account $80; No effect on Invoice Price Variance
Account; Debit Purchase Price Variance Account $16
D. Credit Material Account $80; Debit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Credit Purchase Price Variance Account $16
E. Debit Material Account $96; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Credit Purchase Price Variance Account $16
Answer: B
199. Consider the following scenario for inventory item B.
1) Standard Cost: $10
2) Purchase Order Line Quantity: 100; Purchase Order Line Price: $12
3) Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery
4) Received Quantity: 40
5) Invoice Price: $14; Invoiced Quantity: 20
Which option describes the effect on different accounts correctly?
A. Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280
B. Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280
C. Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
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Account $80; Debit Purchase Price Variance Account $40; Credit AP Liability Account $280
D. Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance
Account $40; Credit Purchase Price Variance Account $80; Debit AP Liability Account $280
Answer: B
200. Which two are true about the key accounts in the Procure to Pay process? (Choose two.)
A. The Receiving account is used to record the current balance of material in receiving and inspection.
B. The Invoice Price Variance account is used to record differences between the invoice price and the average
cost.
C. The Expense AP Accrual account is used to accrue payable liabilities when you receive items you will
capitalize as inventory.
D. The Purchase Price Variance account is used to record differences between the purchase order line price and
the average cost.
E. The Exchange Rate Gain or Loss account is used to record differences between the exchange rate used for the
purchase order and the exchange rate used for the invoicE.
Answer: AE
A. You would be able to update the item name at any point in timE.
B. You would be able to update the item name after the initial/first-time savE.
C. You would be able to update the item name even after many transactions.
D. You would be able to update both the item name and description after many transactions.
E. You would be able to update the item name multiple times after the initial save and before transactions.
Answer: B
102. A beverage manufacturing company wants to view the on-hand stock of soda in liters. For all the shipping
transactions, it wants to track the soda quantity in cartons and liters.
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What type of unit of measure (UOM) setup is required to meet this requirement?
A. Enable only the primary unit of measurE.
B. Enable primary and pricing units of measurE.
C. Enable intraclass conversion at the organization level.
D. Enable interclass conversion at the organization level.
E. Set tracking UOM to primary and secondary at the item level.
F. An item stocked in liter cannot show in carton during shipment.
Answer: E
103. Your customer sets up an item with the wrong primary unit of measure (UOM) and transacts for a couple of
years. Now the customer realizes that the unit of measure setup was incorrect.
How can you correct the UOM after transactions have been made?
A. You can change the UOM easily in the organization items.
B. You cannot correct the primary UOM for the item after transactions.
C. You can easily correct the primary UOM by changing the value in the item master.
D. You can delete items using delete group and create the item again using the correct primary UOM.
Answer: B
104. Your customer has intelligence built into the item-naming convention. Each code in the item has a certain
meaninG.
For example: 01100200
01 – Business Group
100 – Division
200 – Product
The customer does not want to take the chance of adding a wrong product to a wrong division. How do you
implement this?
A. The item code can be validated through Item Folders.
B. Enable the item descriptive flexfield to capture item segment information.
C. Capture the item-naming convention information in each item description.
D. Enable the item key flexfield for each segment in system items and the cross-validation rules.
Answer: D
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105. Which two statements are true about lot numbers? (Choose two.)
A. Lot numbers can be user defineD.
B. Lot numbers have to be numeric only.
C. Lot numbers have to be of a fixed lengtH.
D. Lot numbers can be generated only at the organization level.
E. Before turning lot control on for an item, your on-hand quantity for that item should be zero.
Answer: AE
106. Your customer completes four production orders on a daily basis. One of the production orders has quality
problems on some finished-good items. The requirements for this situation are:
i) Isolate the defective material from the regular production order output.
ii) The system should prevent this material from being included in external customer order shipments.
What setup or process can achieve these objectives?
A. Enable lot control for the item. Store the lot in an isolated subinventory.
B. Define the lot number as a rejected lot. Store this lot in an isolated subinventory.
C. Create a reject locator. Move the items to this locator that prevents customer shipment.
D. Enable lot control for the item. Assign material status that disallows shipping transactions.
E. Enable serial control for the item. Store the serial control item in a separate subinventory that prevents
customer shipment.
Answer: D
107. The Child Lots check box is enabled at the organization item level. Which two statements are true? (Choose
two.)
A. The lot splitting process is enabled by this featurE.
B. The system would maintain lot genealogy with child and parent lots.
C. Child lot characteristics are completely different from that of parent lots.
D. Child lots are unique and independent lots. They are not linked with parent lots.
E. Short expiry lots are child lots. Child lots generate unique numbers across items.
F. Child lots are a subdivision of the parent lots and maintain integrity with the parent lots.
Answer: BF
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108. The Copy Lot Attributes checkbox is enabled at the organization item level. Which two statements are true?
(Choose two.)
A. This feature is specific to child lots.
B. This feature is specific to parent lots.
C. Lot attributes are copied between child lots.
D. Parent lot inherits the lot attributes of the chilD.
E. Child lots inherit the attributes of the parent lot.
F. Lot attributes are copied from parent to parent lot.
G. The feature is applicable to both child and parent lots.
H. Lot attributes are copied from the child to the parent lot.
Answer: AE
109. XYZ company scheduled receipt from a vendor on a weekly basis. Each batch received from the vendor has
fixed shelf life days. XYZ company’s requirements are:
1. Manual entry of shelf life days should not be allowed during the receipt.
2. The system should calculate the expiry date by considering the shelf life days and the receipt datE.
What is the correct setup or process to meet the above requirement?
A. Enable grade control to calculate the expiry date automatically.
B. Enable lot control. Enter the shelf life days at the organization item level.
C. Disable lot control. Enter the shelf life days at the organization item level.
D. Enable grade control. Disable lot control. Enter the shelf life days at the item level.
E. Enable serial control at the organization item level. Enter the shelf life days at the subinventory.
Answer: B
110. Beyond the shelf life days, active lots become expired lots. Expired lots______.
A. can be reserved
B. are not allowed to do subinventory transfer
C. are not included in inventory valuation reports
D. cannot be transacted and included in on-hand quantities
E. are not included in cycle and physical counting adjustments
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F. are not considered as on-hand supply for min-max and re-order point planning
Answer: F
111. You are implementing Oracle Inventory for XYZ Motor Mfg (XYZ). XYZ want to track all the motors
shipped to customer ABC. They would like to generate and assign a unique number for each motor during the
sales order shipment. This would be useful for them to track the motors easily during the return process.
What is the setup or process to achieve this objective?
A. Enable lot control at the item level. Prefix the lot with AB and ship those lots to ABC customer.
B. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation at receipt.
C. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation as no
control.
D. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation as
predefineD.
E. Enable serial control at the organization item level. Prefix serial with AB. Set up serial generation at the sales
order issuE.
Answer: E
112. Your customer has two manufacturing plants. Plant1 reuses serial numbers across all items. Plant2 requires
unique serial numbers across all items in the Plant2 enterprisE.
Which type of serial control setup meets the requirement?
A. Plant1: within an organization, Plant2: across organization
B. Plant1: within inventory items, Plant2: across organization
C. Plant1: across organization, Plant2: within an organization
D. Plant1: across organization, Plant2: within inventory items
E. Plant1: within an organization, Plant2: within inventory items
F. Plant1: within inventory items, Plant2: within an organization
Answer: F
113. Your customer completes two discrete jobs. Each job completes with a quantity of 100.
After job completion, the business user found that 10 components used in Job1 were baD. All the components
are serial-controlled items. Job1 reopened so that they could return the WIP Component for the 10 quantities back
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to inventory.
The list of values (LOV) shows all the serial numbers irrespective of the component used in the specific discrete
joB.
Which setup or process would restrict the component serial numbers specific to their discrete job from appearing
in the LOV that is used?
A. Setup INV: Geneology Delimited: Yes
B. Setup INV: Validate Returned Serial: Yes
C. Setup INV: Restrict Receipt of Serial: Yes
D. Serial Control at the item level: Predefined
E. Serial number assigned during WIP completion
F. Serial number assigned during WIP assembly return
G. The system automatically defaults the serial numbers respective to their discrete jobs.
Answer: B
114. XYZ is a chemical manufacturing company. On a daily basis, it produces 100 kilos of Item A from a single
production batcH.
100 kilos of item A manufactured from a single batch has a single expiration datE. However, the purity of item A
varies as follows:
Category 1: 95%
Category 2: 85%
Category 3: 50%
From an implementation perspective, which setup or process would meet this requirement?
A. Enable lot control. Map three categories as coproducts.
B. Enable lot control for item A. Create three lots to represent the categories.
C. Enable lot control for item A. Create three child lots and link them with the parent lot.
D. Enable lot and grade control for item A. Have three categories mapped with grades.
E. Enable lot and serial control for item A. Create one lot and three categories that are mapped with serial
numbers.
Answer: D
115. ABC is a laptop manufacturing company. On an average, the company completes 10 discrete jobs daily. ABC
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has the following requirements:
1.When the customer returns the laptop, ABC should be in a position to identify the laptop’s manufacture date and
batch number.
2.Each laptop should be identified with a unique number and this should be tagged with the batch number.
3.When a customer returns a laptop, ABC decides whether it can replace it with a new laptop or repair it, by
considering the age of the laptop. ABC needs to identify the aging period of the laptop.
Which setup would meet the above requirements?
A. Using the discrete job form, the manufactured date and batch number can be identifieD.
B. Enable lot and serial control at the organization item level. Enter the shelf life days in the item.
C. Enable parent lot and child lots at the organization item level. Enter the shelf life days in the item.
D. Enable parent lot and grade control at the organization item level. Enter the shelf life days in the item.
E. Enable lot control at the organization item level. Set up uniqueness within inventory items in the organization
parameters.
Answer: B
116. XYZ is a food processing plant. It wants its system to show a warning message after a product becomes
expireD. The warning message should also explain what action needs to be taken on the expired lot.
Which setup would achieve this requirement?
A. Enable lot and serial control. Enter the shelf life days at the item level.
B. Enable lot control at the item level. Enter the shelf life days and retest interval.
C. Enable lot control at the item level. Enter the shelf life days, retest interval and hold days.
D. Enable lot control at the item level. Enter the shelf life days, “expiration action” code and hold days.
E. Enable lot control at the item level. Enter the shelf life days, expiration action interval and hold days.
F. Enable lot control at the item level. Enter the shelf life days. Assign the “expiration action” code to the
particular item.
Answer: F
117. You are moving items from locator A to locator B within the same inventory organization.
Which two types of inventory transactions are required? (Choose two.)
A. Move Order
B. Locator transfer
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C. Subinventory transfer
D. WIP component issue
E. Miscellaneous Receipt
F. WIP assembly completion
G. Interorganization transfer direct
Answer: AC
118. Some move orders are pre-approved requests for subinventory transfers that bring material from a source
location to a staging subinventory within the organization.
Identify the correct move order typE.
A. Shipping move orders
B. Pick wave move order
C. Move order requisitions
D. Replenishment move orders
E. Automatic move order requisitions
Answer: B
119. Company XYZ has portable bar code readers that are used to scan and read data regarding the amount of
time charged on a resource that has been utilized on the manufacturing floor.
This data about utilization is then processed in the Oracle Work in Process module by using a _____.
A. concurrent manager
B. cost transaction manager
C. move transaction manager
D. material transaction manager
E. lot move transaction manager
Answer: E
120. Which three statements are true regarding inventory transactions? (Choose threE. )
A. The user can define new source types.
B. The user can define new transaction actions.
C. Transaction types are used to classify a transaction for reporting and querying purposes.
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D. A transaction source type is the combination of a transaction type and a transaction action.
E. Transaction types identify certain transactions to be included in historical usage calculations for ABC analysis
or forecastinG.
Answer: ACE
121. Which statement is true regarding inventory transactions?
A. Transaction reasons can be used in all transaction forms.
B. Work in Process would not affect inventory transactions.
C. Inventory adjustments are not part of inventory transactions.
D. You can designate, by transaction type, which transaction reasons are availablE.
E. You must create at least one user-defined transaction reason for each inventory organization.
Answer: A
122. You completed an inventory transaction and a work-in-process transaction. Then you checked the on-hand
quantity and found that both the inventory and work-in-process transactions were not processeD.
Which manager is responsible for processing quantity-based transactions?
A. cost transaction manager
B. move transaction manager
C. material transaction manager
D. lot move transaction manager
Answer: C
123. Which three actions are performed using picking rules? (Choose threE. )
A. Restrict subinventories from being allocated against.
B. Place locators on hold if the on-hand quantity is not correct.
C. Remove a locator from hold if required during allocation process.
D. Create new transaction type if demand requires a unique picking situation.
E. Control whether allocations can occur for a quantity less than the total availablE.
F. Control whether allocations can occur for single lots only or across multiple lots.
Answer: AEF
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124. For which three transaction types can picking rules be created? (Choose threE. )
A. PO Receipt
B. Sales Order
C. Cycle Count
D. Work-in-process jobs
E. Miscellaneous Receipt
F. Move Order Replenishment
G. Physical Inventory Adjustment
Answer: BDF
125. Company XYZ manufactures three different types of PC monitors.
Type 1 is a unique requirement for the local college called Northern CollegE.
Shipments of Type 1 to other customers are not alloweD.
This item is stored only in a subinventory called MODEL 1.
Other models are also stored in this same subinventory.
The other two types (Type 2 and Type 3) can be shipped to any other customer, including Northern CollegE.
Which conditions are mandatory for the Picking rule (rule) to meet these requirements?
A. Transaction type of Sales Order. Rule assigned to Northern CollegE.
B. Subinventory as MODEL 1. Rule assigned to customer Northern CollegE.
C. Subinventory as MODEL 1. Rule assigned to Type 1, and customer as Northern CollegE.
D. Subinventory as MODEL 1. Rule assigned to Type 1, and transaction type as Sales Order.
E. Subinventory as MODEL 1. Rule assigned to Type 1, transaction type as Sales Order, and customer Northern
CollegE.
Answer: E
126. The Account Alias Name flexfield cannot exceed _____ characters.
A. 20
B. 15
C. 25
D. 30
E. 45
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F. 180
Answer: C
127. Which two statements are true when performing an Account Alias Receipt? (Choose two.)
A. The alias names can be defined by the user.
B. The alias transaction would go through the workflow approval process.
C. Account alias transactions require two events: first Entry, then Transact.
D. The General Ledger account linked to the Account Alias is required to be ActivE.
E. Account Alias Receipt transactions would always be considered an inventory adjustment.
F. Account Alias Receipt transactions can dynamically create a new receipt if the General Ledger account is
provideD.
Answer: AD
128. Your client does not want to implement account alias issues or receipts.
When performing setups, what should you do about the account alias flexfield?
A. Define segments, but do not compilE.
B. Create at least one alias, compile, then disable the alias.
C. Ignore the account alias flexfield because it would not be requireD.
D. Compile the flexfield structure because it is required by Oracle Inventory.
E. Define default account aliases that can be used at a later date, but ensure they are disabled now.
Answer: D
129. You are setting up a move order requisition for which approval is requireD. At the organization level, you
have defined the following:
1) Move Order Timeout Period
2) Move Order Timeout Action
However, the approval process is not enabled for the organization item. What is the reason?
A. A planner has not been assigned to the organization item.
B. The subinventory source type has not been set to Pull Level.
C. The Move Order Timeout Action has been set to a value greater than zero.
D. The Move Order Timeout Period has been set to a value greater than zero.
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Answer: A
130. For which type of move order is approval required?
A. Planning Move order
B. Shipping Move Order
C. Production Move order
D. Requisition Move Order
E. Replenishment Move Order
Answer: D
131. Your customer wants to create move orders automatically using Kanban system.
Which setup should be enabled to achieve this?
A. Subinventory source type at the item level.
B. Master Item source type at the pull sequence level.
C. Organization source type at the pull sequence level.
D. Subinventory source type at the pull sequence level.
E. Organization item source type at the pull sequence level.
Answer: D
132. ABC company closed the accounting period for the month of October. Their current inventory accounting
period is November and all their day-to-day transactions fall under the November perioD.
The goods were physically received on Oct 26th, but the details were not entered into the system. On Nov 5th,
they found a missing receipt transaction for Oct 26tH.
The business user then tried to enter the missing receipt on Nov 5th with the transaction date of Oct 26tH.
How would the system respond?
A. The system would post the transaction with the date of Oct 26tH.
B. If they adjust the closed period tolerances, the system would allow them to post the transaction.
C. The system would not allow the transaction to be posted because Oct 26th is in a closed perioD.
D. If they reopen the inventory accounting period, the system would allow them to post the transaction.
E. A warning message would appear because the period is closeD. They can override it and post the transaction.
Answer: C
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133. Which three modules use the inventory calendar for considering working days and holidays? (Choose
threE. )
A. Oracle Planning
B. Oracle Inventory
C. Oracle Payables
D. Oracle Bill of Materials
E. Oracle General Ledger
Answer: ABD
134. Your customer is planning to close the accounting period in Inventory. Before closing the period, the
customer would like to view the total number of pending transactions in one form.
Which form would provide this information?
A. Pending Status
B. View Material Transactions
C. Find Pending Transactions
D. Transaction Open Interface
E. Inventory Accounting Period
Answer: E
135. Which three values are applicable for the transaction profile option Miscellaneous Issue and Receipt?
(Choose threE. )
A. Online Processing
B. Concurrent Processing
C. Form-Level Processing
D. Background Processing
E. Record-Level Processing
Answer: ABD
136. You created an internal requisition to move material between two organizations. The destination is locator
controlleD. The shipping network between these two locations has been defined as Direct. The shipment
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transaction fails.
What could be the reason for the failure?
A. Locator default has not been set up in the transaction default.
B. Internal requisitions cannot be used for Direct shipping networks.
C. You did not indicate the locator of the destination on the requisition.
D. Locator-controlled destinations cannot be used for Direct shipping networks.
Answer: A
137. Which four statements are true about subinventory transfer transactions for a Warehouse Management
System (WMS) -enabled organization? (Choose four.)
A. Inventory control is validateD.
B. A user-defined transaction type can be useD.
C. Storage Locator information is optional for a subinventory transfer.
D. Storage Locator information is mandatory for a subinventory transfer.
E. General Ledger account needs to be entered during subinventory transfer.
F. Goods can be transferred across storage locators within the subinventory.
G. Inventory value of an item is transferred from one inventory organization to another.
Answer: ABDF
138. Inventory organizations B1 and M1 each have five unique physical separations of material inventory area,
which are under locator control. Customer shippable goods are stored in the Finished Goods Inventory (FGI)
storage areA. The raw material storage area is called Stores.
B1 wants to transfer customer goods from one locator to another. Identify the transaction that will accomplish the
transfer.
A. Subinventory transfer
B. Direct interorganization transfer
C. Account Alias Issue and Receipt
D. Miscellaneous Issue and Receipt
E. Interorganization transfer by way of intransit
Answer: A
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139. ABC InC. is a medical equipment manufacturer. The company wants its finished goods item to be restricted
to a locator assigned to a subinventory for transactions.
Which setup step needs to be performed?
A. Set up item transaction default.
B. Restrict subinventories at the item-organization level.
C. Restrict locator control at the organization parameter.
D. Set up subinventories and locator restriction at the item-organization level.
E. Train the user to transact the specific item from the specific subinventory and locator.
Answer: D
140. ABC InC. is a semiconductor manufacturing organization. They have all possible inventory controls on
items.
Which controls are validated on subinventory transfer transactions?
1. Lot control
2. Locator control
3. Serial Number control
4. Revision Quantity control
5. Subinventory and locator restrictions for specific items
A. 1
B. 1 and 3
C. 1, 3, and 5
D. 1, 2, and 3
E. 1 through 5
F. 1, 2, 3, and 5
G. 1, 2, 3, and 4
Answer: E
141. The warehouse has received new stock from an internal distribution warehousE.
Which two receiving transactions can be used to put stock into the warehouse’s inventory using the Intransit
Inventory? (Choose two.)
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A. Direct Receipt
B. Standard Receipt and Delivery
C. Inter organization Direct Receipt
D. Inter organization Receipt and Delivery
E. Inter organization Miscellaneous Receipt
Answer: CD
142. Select two conditions which will permit the transfer of lot-controlled items between inventory organizations.
(Choose two.)
A. Item is lot-controlled at the subinventory level.
B. Item is lot-controlled in either the shipping or receiving organizations.
C. Item is lot-controlled in both the shipping and receiving organizations.
D. Item is lot-controlled in the receiving organization, but not the shipping organization.
E. Item is lot-controlled in the shipping organization, but not the receiving organization.
Answer: CE
143. Your client has inventory organizations that belong to different operating units. All items are manufactured in
one operating unit and shipped to distribution warehouses that belong to other operating units. On an exception
basis, transfers may be arranged between distribution warehouses in different operating units.
All transfers between operating units are at the shipping organization’s standard cost plus a transfer charge
percentagE.
Identify three inventory setup steps that are required for allowing the receiving inventory organization to correctly
process receipts from inventory organizations belonging to another operating unit. (Choose threE. )
A. Define an Intercompany Price List.
B. Define the correct Unit of Measure conversions for Dual UOM.
C. Define Intercompany Relations for each pair of operating units.
D. Define a separate Item Master Organization for each operating unit.
E. Define Receiving Options for each inventory organization in each operating unit.
F. Define Shipping Networks for each pair of shipping and receiving inventory organizations.
G. Ensure that the Receiving Options are uniform for all inventory organizations in each operating unit.
Answer: CEF
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144. Your client uses Average Costing to value the items in the inventory.
A Miscellaneous Receipt transaction has been submitted for a quantity of 1 of an item.
What are the two possible values that could have been added to the Material Account by this transaction? (Choose
two.)
A. 1 x (User-entered Unit Cost)
B. 1 x (Current Average Unit Cost)
C. The transaction will not be costed until the next Cost Manager program is executeD.
D. 1 x (Average Cost Variance), calculated when the next Cost Manager program is executed
Answer: AB
145. Two Customer Service Representatives each book a sales order for an item that is revision and lot controlleD.
There are no other open, active sales orders for this item.
Each Customer Service Representative pick releases their order to the same warehouse independently.
The Pick Release Rule used by both includes Auto Allocation.
On the resulting Move Orders, Inventory has allocated all the requested quantity for one of the sales orders, but
only half the requested quantity on the second sales order was available to be allocateD.
Using the Transact Move Orders form, which action sequence can the warehouse person use to reduce the
allocation on the first Move Order so that both customer orders can be equally satisfied?
A. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values, as appropriatE.
B. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values;
3. Change the allocated Lot and Quantity values, as appropriatE.
C. 1. View/Update Allocations;
2. Change the allocated Lot and Quantity values, as appropriate;
3. Select the appropriate Missing Quantity Action.
D. 1. View/Update Allocations;
2. Change the allocated Revision and Quantity values, as appropriate;
3. Change the Destination Subinventory.
Answer: C
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146. Identify four functions that a user can perform using the Material WorkbencH. (Choose four)
A. Create move orders.
B. Create and save queries.
C. Change material statuses.
D. Perform miscellaneous issues.
E. Perform miscellaneous receipts.
F. Perform pick confirm transactions.
G. Perform ship confirm transactions.
H. View material in receiving, on-hand quantities, and intransit material.
Answer: ABCH
147. Identify three true statements about the use of the Material WorkbencH. (Choose threE. )
A. Authorized users can create move orders in the Material WorkbencH.
B. Authorized users can change material statuses in the Material WorkbencH.
C. Authorized users can perform miscellaneous issues in the Material WorkbencH.
D. Authorized users can perform miscellaneous receipts in the Material WorkbencH.
E. Authorized users can perform pick confirm transactions in the Material WorkbencH.
F. Authorized users can perform ship confirm transactions in the Material WorkbencH.
G. Authorized users can view material across organizations in the Material WorkbencH.
Answer: ABG
148. Select three true statements about inventory reservations. (Choose threE. )
A. A reservation is a link between a supply source and a demand sourcE.
B. For on-hand inventory supply, there is only one type of reservation called high-level reservation.
C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.
D. Reservations can be created only by Oracle applications or via forms. They cannot be imported from
third-party applications.
E. A reservation creates a permanent data link between a supply source and a demand source, and represents a
guaranteed allotment of material to a specified demand sourcE.
F. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account
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alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and
Repair Overhaul work order components.
G. Item reservations allow the allocation of material you previously set aside for a sales order, account, account
alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and
Repair Overhaul work order components as long as the quantity is not negativE.
Answer: AEF
149. What two conditions prevent you from reserving the inventory? (Choose two.)
A. The inventory module is installed as ShareD.
B. The items have a nonreservable material status.
C. The inventory is in a Standard Cost inventory organization.
D. The inventory is in an Average Cost inventory organization.
E. The reservation will cause the on-hand quantity to be negativE.
Answer: BE
150. Select three statements that describe the reservation of Lot Indivisible Items. (Choose threE. )
A. Inventory automatically creates high-level reservations for lot indivisible items.
B. A lot level reservation must reserve the full lot quantity or place the lot on holD.
C. A lot level reservation must reserve the full lot quantity or disregard the entire lot.
D. When you set an item as lot indivisible, you must reserve the entire lot quantity.
E. When an indivisible lot exceeds the required lot quantity, you cannot select the lot for reservation, if it
surpasses the order tolerancE.
F. When an indivisible lot exceeds the required lot quantity, you can select the lot for reservation, if the quantity is
a multiple of the order quantity.
Answer: CDE
151. How can you create reservations for the material based on scheduled demand for a Complex Maintenance
Repair and Overhaul (CMRO) work order when the material does not exist in the on-hand inventory?
A. CMRO work orders are not eligible for reservations.
B. CMRO requires inventory on hand to support reservation.
C. CMRO creates reservation against a purchase order or any other supply sourcE.
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D. CMRO creates a WIP job to make the material before you can create the reservation.
Answer: C
152. Identify four levels where item reservations can be madE. (Choose four.)
A. Project
B. Locator
C. Lot Number
D. Cost Group
E. Subinventory
F. Serial Number
G. Operating Unit
H. WIP Work Order
Answer: BCEF
153. When you view Item Supply and Demand Information on the Supply/Demand Detail form, Available
Quantity is ________.
A. the quantity on hand
B. the nettable quantity on hand
C. the reservable quantity on hand
D. the projected on-hand quantity of the item, defined as:
(all future sources of supply) – (all future sources of demand)
E. the projected on-hand quantity of the item, defined as:
Answer: E
154. Identify three valid sources of Inventory Supply. (Choose threE. )
A. Unapproved Move Orders
B. Approved Requisition Lines
C. Miscellaneous Transactions
D. Approved Purchase Order Lines
E. Sales Order Lines in Entered status
F. WIP Work Orders in Released status
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G. Sales Orders Lines in Scheduled status
Answer: BDF
155. Identify three valid sources of Inventory DemanD. (Choose threE. )
A. Approved Requisition Lines
B. Miscellaneous Transactions
C. Scheduled CMRO Work Orders
D. Approved Purchase Order Lines
E. Sales Order Lines in Entered status
F. WIP Work Orders in Released status
G. Sales Orders Lines in Scheduled status
Answer: CFG
156. Identify the purpose of using Material Status controls.
A. to permit updates to the Item Master record
B. to prevent unnecessary cycle counting in an inventory organization
C. to define the transactions that are permitted for an inventory organization
D. to select the transactions that are permitted to use the inventory on-hand quantity
Answer: D
157. The serial number of an item is fully transactable and it is placed in a subinventory that has a material status,
which allows only subinventory transfers.
What is the cumulative effective status of the serial number?
A. The serial number is not transactablE.
B. The serial number is fully transactablE.
C. The serial number may be transferred to another inventory organization.
D. The serial number may be transferred to another subinventory in the same inventory organization.
Answer: D
158. Identify the two conditions required to enable material status control for a specific subinventory. (Choose
two.)
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A. The subinventory must be designated as Quantity TrackeD.
B. The subinventory must be designated as Allow Reservation.
C. Transaction types must be enabled for material status control.
D. The subinventory must be designated as Asset Subinventory.
E. The subinventory must be assigned a material status that is enableD.
Answer: CE
159. Due to excessive customer returns, the client needs to prevent the reservation and subsequent shipping to
customers of a specific lot number for an item, pending a quality review.
Identify two conditions that will satisfy this requirement. (Choose two.)
A. Assign the lot a material status that does not permit reservations.
B. Assign the lot a material status that only permits subinventory transfers and issues to scrap.
C. Assign the lot a material status that does not permit reservations, but only permits subinventory transfers and
issues to scrap.
D. Transfer the quantity on hand of the item to a subinventory that does not permit reservations, but only permits
subinventory transfers and issues to scrap.
Answer: CD
160. Identify the two statements that directly relate to material status control. (Choose two.)
A. A material status can be enabled or disabled as requireD.
B. The material status is defaulted when using Order Management.
C. A serial number can be assigned a status that excludes it from reservations.
D. A material status is a combination of transactions and planning actions that are alloweD.
E. If status control is not enabled for a transaction type, the transaction type is always alloweD.
Answer: DE
161. The client has decided that Quality and Discrete Manufacturing will be implemented at a future stage, so new
supply from current manufacturing will be added to current inventory on hand by the Open Transactions
InterfacE.
The immediate requirement is to go-live with Inventory and Order Management.
Which three seeded transaction types can be omitted for material status control? (Choose threE. )
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A. average cost update
B. all internal transactions
C. backflush subinventory transfer
D. miscellaneous issues and receipts
E. all transaction types related to Work in Process
F. all transaction types related to Project Manufacturing
Answer: CEF
162. The inventory in storeroom A contains raw materials (purchased components) that are used in the
manufacture of completed assemblies. The assemblies are returned to storeroom A and they become supply for the
distribution warehouses B and C.
A, B, and C are independent inventory organizations.
Completed assemblies in warehouses B and C are sold in bulk to some customers and cases to others.
Spare parts for the completed assemblies are also available from storeroom A and are sent directly to field service
technicians, as requireD.
Identify two inventory set up activities that facilitate and control inventory transactions between the storeroom
and the warehouses. (Choose two.)
A. Define a material status that does not allow component items for sale to customers.
B. Define a material status that allows completed assemblies for shipment to field service technicians.
C. Define a material status for the subinventories in the storeroom that prevents interorganization transfers to the
warehouses.
D. Define a material status for component items assigned to the storeroom that prevents interorganization transfers
to the warehouses.
E. Define a material status for subinventories in the storeroom that only permits receipt from manufacturing and
interorganization transfers to the warehouses.
F. Define a material status for completed assemblies in the storeroom that only permits receipt from
manufacturing and interorganization transfers to the warehouses.
Answer: CE
163. The inventory in storeroom A contains raw material (purchased components) that are used in the manufacture
of completed assemblies on the shop floor, which are returned to storeroom A to become supply for distribution
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warehouses B and C.
A, B, and C are independent inventory organizations.
Completed assemblies in warehouses B and C are sold in bulk to some customers and cases to others.
Spare parts for the completed assemblies are available from storeroom A and are sent directly to field service
technicians, as requireD. Field service technicians also receive completed assemblies from the warehouses.
Identify two inventory set up activities that facilitate and control the inventory transactions between the inventory
organizations and the field service technicians. (Choose two.)
A. Define a material status that does not allow component items for sale to customers.
B. Define a material status that allows completed assemblies for shipment to field service technicians.
C. Define a material status for the subinventories in the warehouses that also permits shipment to field service
technicians.
D. Define a material status for the spare parts subinventory in the storeroom that only permits shipment to field
service technicians.
E. Define a material status for completed assemblies in the storeroom that only permits receipt from
manufacturing and interorganization transfers to the warehouses.
Answer: CD
164. Select the true statement about Material Status Control.
A. The profile option “INV: Default Item Status” must be set to Active at the site level to enforce Material Status
Control.
B. The profile option “INV: Material Status Support” must be set to Yes at the site level to enforce Material Status
Control.
C. The profile option “INV: Transaction Reasons Security” must be set to Yes at the site level to enforce Material
Status Control.
D. The profile option “INV: Allow Expense to Asset Transfer” must be set to Yes at the application level to
enforce Material Status Control.
Answer: B
165. Which sequence best represents the Procure to Pay life cycle flow?
A. Run compliance testinG. > Enter suppliers. > Process returns.
B. Create purchase order. > Record manual payment. > File invoices.
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C. Negotiate contracts. > Fulfill purchase order. > Generate supplier reports.
D. Enter invoicE. > Match invoice to purchase order. > Return goods to suppliers.
E. Request for quotE. > Analyze commodity. > Create payment outside payables.
Answer: C
166. Which describes a valid process in the Procure to Pay life cycle?
A. The sourcing process acknowledges that the purchase order has been duly executeD.
B. The demand process covers the search for suitable suppliers for requested goods and/or services.
C. In the invoicing process, electronic data interchange (EDI) invoices are processed with Oracle Payables.
D. The receiving process consists of a requester notification that the service has been performed as agreeD.
E. The ordering process includes purchase order placement by the supplying organization and purchase order
execution by the buying organization.
Answer: D
167. Which key area in the Procure to Pay process involves using Oracle iExpenses to enter expense reports via a
Web browser?
A. Payment
B. Invoicing
C. Sourcing
D. Reporting
E. Receiving
Answer: B
168. Based upon a revised quotation, buyer A+1 & Co. wants to change one of its suppliers names from Bay Area
Manufacturing to Bay Area MfG. Co.
Which document would NOT be affected by this change?
A. Return
B. Payment
C. Sales Order
D. Purchase Order
E. Purchase Requisition
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C. Simulate
D. A number
Answer: C
169. At BBC InC. , you are implementing Oracle Work in Process, Oracle Advanced Supply Chain Planning,
Oracle Bill Of Materials, Oracle Inventory, and Oracle EngineerinG.
When creating requisitions, which two modules do NOT feed data into Oracle Purchasing? (Choose two.)
A. Oracle Inventory
B. Oracle Engineering
C. Oracle Bill Of Materials
D. Oracle Work in Process
E. Oracle Advanced Supply Chain Planning
Answer: BC
170. While implementing Oracle Payables, Oracle Purchasing, and Oracle General Ledger at GLO LtD. , you are
informed by the accountant that the AP Clearing Account balance is increasing daily.
To solve this issue, what would you check in the accounting process?
A. whether journals are posted regularly
B. whether suppliers are sequentially numbered
C. whether the month-end accrual process is run
D. whether invoices are matched to purchase orders and receipts
E. whether Oracle Payables transactions are reconciled with Oracle General Ledger
Answer: D
171. If the PO: Allow Buyer Override in AutoCreate Find profile option is set to No, what would happen if the
buyer, Pat Stock, uses the AutoCreate form?
A. Pat would be able to view requisitions assigned to other buyers and unassigned requisitions.
B. Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions.
C. Pat would be able to view requisitions assigned to other buyers, but not view unassigned requisitions.
D. Pat would not be able to view requisitions assigned to other buyers, but would be able to view unassigned
requisitions.
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E. Pat would be able to view all requisitions in the AutoCreate form, but would be prevented from placing
requisitions on a purchase order if they reference another buyer.
Answer: B
172. Your company often orders items that are sourced from multiple suppliers. At any given time, the supplier
varies depending on the supplier’s current production capability and price offerinG. The price varies throughout
the year. For a particular item, there is no single supplier that receives the majority of the orders.
What is the best way to set up this item?
A. Create blanket purchase agreements, a sourcing rule identifying all the possible suppliers, and approved
supplier list entries.
B. Create contract purchase agreements, a sourcing rule identifying all the possible suppliers, and approved
supplier list entries.
C. Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions
onto standard purchase orders.
D. Create a blanket purchase agreement for only one supplier, a sourcing rule for just that supplier, and an
approved supplier list entry for that supplier.
E. Create a contract purchase agreement for only one supplier, a sourcing rule for just that supplier, and an
approved supplier list entry for that supplier.
Answer: C
173. Consider the following scenario:
You always order specific items from a single supplier.
You send the orders to be approved automatically.
You want the order to be created immediately after the requisition is approveD.
Your purchase orders should be created by _____.
A. using AutoCreate
B. using Create Releases
C. using workflow and contract purchase agreements
D. using workflow and blanket purchase agreements
Answer: D
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174. You import requisitions from another system. These requisitions are imported as approved requisitions and
contain references to items in the item master and blanket purchase agreements.
What is the easiest way to automatically create orders from these requisitions?
A. Using the AutoCreate form.
B. Running the Create Releases program.
C. Running the Workflow Background Processor.
D. Running the Purchasing Documents Open InterfacE.
Answer: B
175. The PO Create Documents Workflow creates _____. (Choose threE. )
A. releases from blanket purchase agreements
B. standard purchase orders from bid quotations
C. standard purchase orders from catalog quotations
D. standard purchase orders from standard quotations
E. standard purchase orders from planned purchase agreements
F. standard purchase orders from contract purchase agreements
Answer: ACF
176. Select three true statements regarding the Workflow Document Creation prerequisite (PO Create Documents
workflow). (Choose threE. )
A. Catalog quote must not be expired, but may be inactivE.
B. Supplier and supplier site are required on the requisition related to a contract purchase order.
C. If a system item is not associated with the requisition line, a supplier item number is requireD.
D. Sourcing rules are required if the requisition originates in Oracle Purchasing or iProcurement.
E. No source document is required for the PO Create Documents workflow to create a release or purchase order.
F. The only time an approved supplier list is required is if your source document is a blanket purchase agreement
and you are using a system item.
Answer: BCF
177. When you enter a receipt, you first use the Find Expected Receipts window to locate the source document for
the receipt.
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Select four valid source documents for a receipt. (Choose four.)
A. an approved internal requisition line
B. an intransit shipment within your inventory
C. a shipment from a supplier based on a purchase order
D. a move order from inventory for material storage relocation
E. a return from a customer based on a return material authorization (RMA)
F. a shipment from inventory backed by an internal sales order generated by an internal requisition
Answer: BCEF
178. Identify three correct explanations about the processing mode of the Receiving Transaction Processor.
(Choose threE. )
A. Batch processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
B. Batch processing mode: The receiving forms insert transaction information into the receiving interface tables.
These transactions remain in the interface table until you run the Receiving Transaction Processor.
C. Immediate processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
D. Immediate processing mode: The receiving forms take into account all pending transactions, but Purchasing
does not update the transaction history, source documents, and supply information until the transactions are
processeD.
E. On-line processing mode: Purchasing calls the Receiving Transaction Processor when you save your worK.
The application waits for its completion before the control returns to the user. The user will not be able to perform
any other application activities until the process completes.
F. On-line processing mode: When you save your work, the receiving forms call the Receiving Transaction
Processor as a background process for the group of transactions you have entered since you last saved your worK.
Answer: BCE
179. Which two are true about the different types of receipts? (Choose two.)
A. Use cascade receipt to improve accuracy in the receiving process.
B. Use unordered receipt to enter receipts of items when you do not have a corresponding purchase order.
C. Use blind receipt to receive an entire purchase order with a few keystrokes.
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D. Use Advance Shipment Notices (ASNs) to enter receipts in the Enter Receipts window, reducing data entry
timE.
E. Use express receipt to distribute a given quantity of an item from a single supplier across multiple shipments
and distributions.
Answer: BD
180. The on-hand quantity balance for item A is 100 and item B is 200. A shipment of 50 for item A and 50 for
item B arrived today.
The receiving clerk created a receipt for the shipment. After the receipt, the on-hand quantity of items A and B are
150 and 200 respectively.
Which one of the possible receipt routing options for items A and B is correct?
A. Item A = Direct Delivery; Item B = Standard Receipt
B. Item A = Standard Receipt; Item B = Direct Delivery
C. Item A = Inspection Required; Item B = Direct Delivery
D. Item A = Inspection Required; Item B = Standard Receipt
E. Item A = Standard Receipt; Item B = Inspection Required
Answer: A
181. A recent shipment of item A was routed to the inspection department according to standard practice, but no
receipt for item A is available in the system for inspection.
What might have happened?
A. Requester set the receipt routing to Direct Delivery in the requisition.
B. Receiving clerk created an express receipt instead of a standard onE.
C. Buyer changed the receipt routing to Standard Receipt in the purchase order linE.
D. Buyer changed the routing to Direct Delivery at the supplier site level for this supplier.
E. Receiving clerk changed the receipt routing to Standard Receipt at the time of receivinG.
Answer: E
182. While entering a cascade receipt, you find that the Cascade button is disabled in the Receipts window.
Which option best describes the reason for this?
A. The receipt is for a drop-shipped item.
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B. The receipt is for a Return Material Authorization (RMA).
C. You specified Receipt Routing as Direct Delivery for this supplier.
D. You disabled Allow Cascade Transactions in the Purchase Order Shipments window.
E. You specified a purchase order number instead of a supplier and an item in the Find Expected Receipts window.
Answer: E
183. View the Exhibit. Your client was creating an express receipt. While saving the receipt, it faileD.
Identify the most logical reason for the failurE.
A. A manual action was performed in one of the lines before clicking the Express button.
B. The Early/late Receipt Date Tolerance is exceeded and the Exception Control is WarninG.
C. Location is not available for Expense Destination Type and the Destination Type is ReceivinG.
D. Location is not available for Expense Destination Type and the Destination Type is Final Destination.
E. Instead of a purchase order number, a supplier name was specified in the Find Expected Receipts window.
Answer: D
184. For which three reasons do you create a return in the Purchasing module? (Choose threE. )
A. to return internal shipments
B. to return items back to a customer
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C. to return delivered items to receiving
D. to return externally sourced items to the supplier
E. to return Return Material Authorization (RMAs) to the customer after material has been delivered to the
inventory
Answer: BCD
185. You match an unordered receipt to _____.
A. a purchase order shipment from any organization
B. a Return Material Authorization (RMA) from any organization
C. a purchase order shipment from the same organization for any supplier
D. a purchase release shipment from the same organization for the same supplier
E. a finally closed purchase order shipment from the same organization for the same supplier
Answer: D
186. You received 100 units of item A on Monday.
On Tuesday, you discovered that three units are missing from the shipment. You entered a correction to adjust the
quantity received to 97.
On Wednesday, you found two units damaged and you created a Return To Supplier transaction.
The profile option PO: ERS Aging Period is set to 3 days.
What is true if the Payment on Receipt process is run on Friday?
A. The process will generate an invoice for 95 units.
B. The process will generate an invoice for 97 units and a debit memo for 2 units.
C. The process will generate an invoice for 97 units. Then you will have to manually create a debit memo for 2
units.
D. The Return To Supplier transaction already created a debit memo. The Payment on Receipt process will
generate an invoice for 97 units.
E. The process will generate an invoice for 100 units. Then you will have to manually adjust the invoice for 3
units and create a debit memo for 2 units.
Answer: A
187. Which three are true about the Evaluated Receipt Settlement (ERS) process? (Choose threE. )
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A. Invoice is always created for the supplier sitE.
B. Invoice is always created in unapproved status.
C. Invoice currency is always defaulted from the purchase order currency.
D. Payment currency is always defaulted from the purchase order currency.
E. Payment terms are always defaulted from the purchase order payment terms.
F. Amount is always determined by multiplying the quantity received by the purchase order item unit pricE.
Answer: BCF
188. Which four are supported by the Receiving Open Interface (ROI)? (Choose four.)
A. Unordered receipt
B. Dynamic locators
C. Deliver transactions
D. Movement statistics
E. Correct transactions
F. Receive transactions
G. Transfer transactions
Answer: CEFG
189. Receiving Open Interface (ROI) is typically a three-step process. Identify the correct sequence of the steps.
A. Load – Accrue – Process
B. Load – Confirm – Process
C. Receive – Inspect- Deliver
D. Load – Process – Confirm
E. Validate – Confirm – Process
Answer: D
190. Consider the following scenario:
1) Receipt Days Early = 5; Receipt Days Late = 10; Receipt Days Exceed-Action = Reject
2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject
3) Receipt Close Point = Received; Receipt Close Percent = 5%
A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007. Which receipt transaction(s) can
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occur?
A. A receipt of 95 for item A is created on Oct-09-2007.
B. A receipt of 90 for item A is created on Oct-27-2007.
C. A receipt of 108 for item A is created on Oct-16-2007.
D. A receipt of 60 for item A is created on Oct-12-2007. Another receipt of 65 for item A is created on
Oct-17-2007.
E. A receipt of 70 for item A is created on Oct-12-2007. Another receipt of 28 for item A is created on
Oct-17-2007.
Answer: E
191. Consider the following setups:
1) Receipt Days Early = 5; Receipt Days Late = 5; Receipt Days Exceed-Action = Reject
2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject
3) Receipt Close Point = Received; Receipt Close Percent = 5%
A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007.
Which two receipt transactions can occur? (Choose two.)
A. You can create a blind receipt of 115 for item A on Oct-17-2007.
B. You can create an express receipt of 95 for item A on Oct-09-2007.
C. You can create a standard receipt of 104 for item A on Oct-25-2007.
D. You can create a substitute receipt of 107 for item A on Oct-16-2007.
E. You can create a substitute receipt of 102 for item A on Oct-19-2007.
F. You can create a standard receipt of 96 for item A on Oct-12-2007 and another standard receipt of 7 on
Oct-17-2007.
Answer: AE
192. Consider the following setup:
Receipt Close Point = Accepted; Receipt Close Percent = 5%.
A shipment of 100 units for item A was scheduled to be delivered today. The shipment status changed to Closed
for Receiving after processing the delivery.
Which statement is true about this delivery?
A. 110 units of A are received and 94 are accepteD.
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B. 95 units of A are received and waiting in the receiving docK.
C. 99 units of A are received and 5 are rejected after inspection.
D. 110 units of A are received and 103 are delivered to the inventory.
E. 102 units of A are received and then 10 are returned to the vendor due to damagE.
Answer: D
193. Which four options are true about setting the receipt routing defaulting rules? (Choose four.)
A. Supplier setup supersedes Receiving Options.
B. You cannot allow users to override receipt routinG.
C. Item setup supersedes supplier setup routing rules.
D. Supplier setup supersedes item setup routing rules.
E. You must set a rule in the receiving options setup form.
F. You can allow a user to override receipt routing by changing a profile option.
Answer: ACEF
194. The Accrual Reconciliation Report can be used to identify problems in receiving, purchasing, inventory,
work in process, or accounts payable transactions.
Which three problems can this report be used to identify? (Choose threE. )
A. payments made to the wrong invoices
B. mismatches in receipt and invoice quantities
C. invoices matched to the wrong purchase order
D. receipts made against the wrong purchase order
E. sales tax and freight charged to the A/P Liability account
F. miscellaneous inventory or work in process transactions that used the Invoice Price Variance account in error
Answer: BCD
195. Identify the correct sequence of steps in the Procure to Pay period close process.
A. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in AP. > Post journal entries in GL. > Reconcile AP activity for the perioD. > Close
the PO perioD.
B. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
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review. > Close the period in AP. > Reconcile AP activity for the perioD. > Close the PO perioD. > Post
journal entries in GL.
C. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in PO. > Post journal entries in GL. > Reconcile PO activity for the perioD. > Close
the AP perioD.
D. Prepare for period closE. > Run Validation/ Review and resolve holds. > Create accountinG. > Transfer and
review. > Close the period in AP. > Reconcile AP activity for the perioD. > Post journal entries in GL. > Close
the PO perioD.
E. Prepare for period closE. > Run Validation/ Review and resolve holds. > Transfer and review. > Close the
period in AP. > Create accountinG. > Post journal entries in GL. > Reconcile AP activity for the perioD. >
Close the PO perioD.
Answer: A
196. Identify three statements that are true regarding Accrual Process for Period-End Accruals. (Choose threE. )
A. You reverse accrual journal entries at the start of the new accounting perioD.
B. You record the total uninvoiced receipt liabilities accrued during the accounting perioD.
C. Purchasing records the accounting entries for expense during each receiving transaction.
D. You use the Receipt Accruals – Period End process to create period-end accruals for your invoiced receipts for
expense distributions.
E. Actual journal entries are created for the amount of the receipt liabilities, debiting the expense A/P accrual
account and crediting the charge account.
F. If you are using encumbrance accounting, purchase order encumbrance is relieved when the invoices matched
to the purchase order are posted to the general ledger.
Answer: ABF
197. Which two activities should be completed before Purchasing is closed for a period? (Choose two.)
A. Resolve all unordered receipts.
B. Open the new purchasing perioD.
C. Approve all purchasing requisitions for the current perioD.
D. Complete all inventory and expense receipts for the current perioD.
E. Complete and approve all the purchase orders for the current perioD.
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F. Pay all invoices for the current period including those that have not been receiveD.
Answer: AD
198. Consider the following scenario for inventory item A:
1) Standard Cost: $10, Purchase Order Line Price: $12, Purchase Order Line Quantity: 10
2) Receipt Routing: Direct Delivery
You created a receipt of 8 units for item A. Which option correctly describes the effect on different accounts?
A. Debit Material Account $80; Credit Inventory AP Accrual Account $96; Debit Invoice Price Variance Account
$16; No effect on Purchase Price Variance Account
B. Debit Material Account $80; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Debit Purchase Price Variance Account $16
C. Debit Material Account $80; Credit Inventory AP Accrual Account $80; No effect on Invoice Price Variance
Account; Debit Purchase Price Variance Account $16
D. Credit Material Account $80; Debit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Credit Purchase Price Variance Account $16
E. Debit Material Account $96; Credit Inventory AP Accrual Account $96; No effect on Invoice Price Variance
Account; Credit Purchase Price Variance Account $16
Answer: B
199. Consider the following scenario for inventory item B.
1) Standard Cost: $10
2) Purchase Order Line Quantity: 100; Purchase Order Line Price: $12
3) Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery
4) Received Quantity: 40
5) Invoice Price: $14; Invoiced Quantity: 20
Which option describes the effect on different accounts correctly?
A. Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280
B. Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280
C. Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance
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Account $80; Debit Purchase Price Variance Account $40; Credit AP Liability Account $280
D. Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance
Account $40; Credit Purchase Price Variance Account $80; Debit AP Liability Account $280
Answer: B
200. Which two are true about the key accounts in the Procure to Pay process? (Choose two.)
A. The Receiving account is used to record the current balance of material in receiving and inspection.
B. The Invoice Price Variance account is used to record differences between the invoice price and the average
cost.
C. The Expense AP Accrual account is used to accrue payable liabilities when you receive items you will
capitalize as inventory.
D. The Purchase Price Variance account is used to record differences between the purchase order line price and
the average cost.
E. The Exchange Rate Gain or Loss account is used to record differences between the exchange rate used for the
purchase order and the exchange rate used for the invoicE.
Answer: AE
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