1Z0-222 - Oracle Purchasing 11i Fundamentals
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What is true about the Expense AP Accrual Account?
It is defined in the Purchasing Options and is valid for the whole operating unit
You are working on an implementation of purchasing at a financial institution. The client has strategically sourced a firm for all its desktop needs. Volume discounts apply. The client had standardized requirements specific brands of equipment and peripherals. Which two types of procurement documents would you suggest? (Choose Two.)
Blanket Purchase Agreement
Your client would like to automatically create orders for XYZ office supplies any time a user creates a requisition for that supplier, regardless of the items being ordered. The buyers would need to review each order to guarantee that enough detail was entered in the item description and to verify the appropriate price. Which two workflow attributes need to be set? (Choose two.)
Is Automatic creating allowed?
Should contract be used to AutoCreate Doc?
Your client would like to "Accrue on Receipt" both expense and inventory items. What are the four reasons for expense items NOT to Accrue on receipt? (Choose Four.)
Buyers would have to remember to uncheck the "accrue on receipt" flag 2-way matched shipment lines
Receiving inspection balances would include both inventory assets and expenses. So at the end of the month they would need to be manually reclassified.
The number of entries needed to research and reconcile the perpetual A/P Accrual Account(s) increases significantly. The amount of time required by your staff to research any discrepancies would also increase
The Accrual Reconciliation Report could take significantly longer to run
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. Which is the best way to set up this item?
Do not create blanket or contract purchase agreement or sourcing rules. Manually AutoCreate requisitions onto standard purchase orders
Select two correct statements with respect to Receiving location (Choose two.)
It is a physical location where goods are received
It is a designated area in which you temporarily store items before you deliver them to their final destination
The purchase price variance accounts record differences between:
Purchase order line price and standard cost
What are the considerations for purchase order conversion? (Choose all that apply)
Conversion reconciliation method
Data cleanup requirements
Which purchase orders to convert
Which three Purchasing Electronic Data Interchange Transactions are supported in e-commerce Gateway? ( Choose three.)
Purchase Order Change Order
Advance Shipment and Billing Notice
In addition to providing primary information about a supplier, the supplier header record information is used to ___________.
Provide defaults in the supplier sites window, which may be overridden
If your client receives plus or minus 5% against the PO, you may want to consider _________.
Setting a receipt close tolerance
Which three profile options are required for the setup of sourcing rules? (Choose three.)
PO: Allow auto-generate sourcing Rules
MRP: Sourcing Rule Category Set
MRP: Default Sourcing Assignment Set
A blanket purchase agreement is created in a foreign currency. A requisition is created in the functional currency. The requisition is AutoCreated into a blanket release against this BP
The price on the blanket release would be ___________ .
Which is NOT an option when defining security for a Document Type?
Which three statements are true regarding two and three-way receipts? (Choose three.)
Material is usable as soon as it gets the Delivered transaction
You can perform setups so that the PO would not get paid until the material is delivered to subinventory
You would need to create a receiving subinventory
As part of the purchasing implementation for . you have performed all the prerequisite setups for the creation of sourcing rules for items after the blanket purchase agreement (blanket) is approved, but when the buyer approves the blanket, a caution is displayed stating no sourcing rules are created. What could be the two reasons for this? ( Choose two.)
The blanket purchase order start and end dates are null
The blanket effective period overlaps with the multiple effective periods in the sourcing Rule
Which four tasks does the Pay on Receipt functionality enable you to perform? (Choose Four.)
Delaying payment on receipts
Enable option in individual purchase Orders and Releases
Adding a prefix on Pay on Receipt Invoices
On a requisition created in the professional forms environment (not iProcurement), which four sources can influence the Need by Date for each line? (Choose Four.)
Item Lead Time (MIN/MAX Planning)
Profile: PO: Default Need-by Time
Sales Order need by date (Drop Shipments)
Which four statements are true about Contract Purchase Agreements? (Choose Four.)
The agreed amount is the amount that is printed on the agreement
The agreed amount represents the contract amount between and the vendor
The value is the agreed amount field at the header level is copied to the Amount Limit field in the Terms and Conditions block
The agreed amount must be equal to or less than the Amount limit field
What are the options for Receiving Processing modes?
Online, Batch and immediate
Which four are the setup steps for an approval hierarchy? ( Choose Four.)
Have a supervisor entered in the employee record
Assign a job to the employee
Create an employee
Tie the employee to the login name
A client has a purchase order (PO) line with a unit of measure (UOM) of Feet. The client is performing a receipt by using a different UOM, coil. The system does not allow the user to change the UOM to Coil for the receipt. Feet is the base UOM in the Length UOM class. Coil is in the Packaging UOM class ( base UOM is Carton). What could explain the system's behavior?
There is no conversion between Coil and Carton
When defining a supplier, which three benefits are provided by employing solid naming conventions? (Choose three.)
Prevents duplicate invoices and payments
Provides accurate supplier reporting
Improves system performance
You are a buyer in the procurement department of . You associated supplier XYZ in the approved supplier list for the LAPTOP POWERSOURCE category globally, but users in Asia procure from supplier MNO. So you decide to create a new local Approved Supplier List entry for the LAPTOP POWERSOURCE category and associate it with MNO. When creating a requisition for the LAPTOP POWERSOURCE category in the Asian Organization, would MNO be successfully defaulted?
YES, MNO would be defaulted
Which is the first step in creating an Employees/supervisor hierarchy?
Creating a job value set
You have an outside requisition that needs to have full lot quantity enforced. What are the three values that can be selected for this requisition? (Choose three.)
The Direct Forward Method routes documents ___________.
To the next employee in the hierarchy who has a high enough approval authority to approve the document
Which four are possible setup steps for Approval and Security for purchasing documents? (Choose Four.)
Set distinct security and approval controls in the document types form
Set the approval routing in the Financials options
Run the Fill Employee Hierarchy Concurrent program
Which two are prerequisites for internally sourced requisitions? (Choose two.)
Must have a valid shipping network
Must be configured in multiple Oracle applications
A buyer wants to change the supplier's name on the basis of an update that was part of a quotation. Which four document types would be affected by the change? (Choose Four.)
Determining the number of clearing accounts to use can be influenced by which following factors? (Choose three.)
The use of cash management
Need for Visibility
You are planning to implement Oracle Purchasing module at your client site and you want to recommend the supplier item catalog. Which three regions are available in the supplier item catalog? (Choose three.)
Negotiated sources, which contain Blanket Purchase Agreements, Quotations and Planned Purchase orders
Prior purchases, which contain past standard purchase orders, scheduled Releases and blanket releases
The Purchasing Buyer set the following sourcing rule: Make at Organization D1 Allocation: 20% Rank: 1 Buy From: MUNP Inc Allocation: 45% Rank: 2 Buy from: DUMP Inc Allocation: 35% Rank: 2 The MRP process identifies the demand of 100, and generates the output, what is the result?
Incorrect sourcing rule
In outside Processing, WIP automatically generates a purchase requisition when you move a job into a an outside operation queue. What is true concerning this process? (Choose two.)
Manual requisitions that are not linked to outside processing can be by referencing an outside resource on a job
Oracle WIP can't automatically generate a requisition if outside processing is the first step
The purchasing buyer decides to automatically update and create sourcing rules, as part of the Blanket Purchase Agreement approval process. However when he clicks Approve button, he does not see any option to update and create blanket purchase sourcing rules. Which profile option has he failed to set up?
PO: Allow Auto-generate Sourcing Rules
Which accounts can you set in Receiving Options?
Receiving Inventory Account and Clearing Account
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?
Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions
Setup options for Purchasing Accounting include options for Financials, purchasing and payables. Which two setups are under the Financials options? (Choose two.)
PO rate variance Gain/Loss
Your Client finds that some suppliers often under-ship certain low value items. For example, if they create a purchase order for 1000 paper clips, they would often receive only 995 paper clips. Because the quantity outstanding is small, the supplier would simply never ship the remaining five paper clips. Your client wants to make sure that these purchase orders do not remain open if at least 99% of the quantity ordered has been received and invoiced. Which Item attribute settings are needed to meet this requirement?
Receipt close tolerance = 1 and invoice close tolerance = 1
O n a requisition created in the professional forms environment (not iProcurement), which four sources can influence the Need by Date for each line? ( Choose Four.)
Item Lead Time (Min/Max Planning)
Profile: PO: Default Need-by Time
Sales Order Need By Date (Drop Shipments)
For a particular document type which option applies only to the Position Approval Hierarchy?
Can Change Approval Hierarchy
Client wants to bypass the ASL and default sourcing information from a quotation or blanket agreement. Which profile option would have to be enabled?
PO: Automatic Document Sourcing
You created and saved a requisition that has several lines that you no longer need. The requisition is not approved. You want remove the lines from the requisition. What action would be appropriate in this case?
Deleting the lines from the requisition
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 In this scenario, purchase orders should be created by:
Using workflow and blanket purchase agreements
You are implementing Discrete Manufacturing and procurement at . The implemented modules include Oracle Engineering, Oracle Inventory, Oracle Advance Supply Chain Planning, Oracle Bill Of Materials and Oracle WIP. Which three modules could potentially feed data in Oracle Purchasing to create requisitions? (Choose three.)
Oracle Advance Supply Chain Planning
Price tolerance % on the Purchasing options control tab refers to the percentage by which _________.
The purchase order line price can't exceed the requisition line price
The purchasing manager of . Wants to procure aluminum sheets and wants to default supplier, site and source document information on the requisition. He creates an Approved Supplier list and sourcing rule but he did not associate any source document in the approved supplier list because a Global agreement, a Quotation and a Blanket agreement exist for this item. The "PO: Automatic Document Sourcing" is set to Yes. The supplier and supplier site information are as follows: Global BLANKET AGREEMENT: SUPPLIER A SITE1 QUOTATION : SUPPLIER A SITE2 BLANKET : SUPPLIER B SITE 1 Which supplier and supplier site would default on the Requisition?
SUPPLIER B, SITE 1
In the requisition lifecycle, requisition preferences ____________ and ____________. (Choose two.)
Are in effect for the current session only
Can be overridden if necessary
Oracle Purchasing setups and documents (except for Global Agreement) exists within and are unique to ___________.
An Operating Unit
On a standard purchase order, the distribution line for an expense item with no encumbrance, which is not autocreated from a requisition, the buyer must manually enter the ______________.
PO Charge Account