1Z0-334 Oracle Financials Cloud Payables 2016 Implementation Essentials-Additional Information

1Z0-334 Fusion Financials – Payables Oracle Financials Cloud: Payables 2016 Implementation Essentials.....................2 Payables Event Classes and Types.......................................................................4 Applying Credits Up to Zero Amount Payments: Examples..................................5 The Maximize Credits Option: How It Is Processed...............................................5 Pay Through Dates and Payment Dates in Payment Process Requests: Examples ............................................................................................................................. 8 Date Basis in Payment Process Requests: Examples............................................9 Questions and Answers...................................................................................... 11

Oracle Financials Cloud: Payables 2016 Implementation Essentials

Exam Number: Associated Certifications: Exam Product Version: Exam Price:

1Z0-334 Oracle Financials Cloud: Payables 2016 Certified Implementation Specialist Oracle Financials Cloud US$ 245 More on exam pricing

Duration: Number of Questions: Passing Score: Validated Against: Exam Format:

General Set Up 

Describe the Functional Setup Manager



Describe configuration packages



Create an implementation project



Explain how to use reports to validate setup data



Create Users and Roles Invoicing



Explain how to use standard invoices



Explain the Integrated Imaging Solution



Create an invoice using a spreadsheet



Explain iSupplier Invoices



Approve Invoices



Manage supplier information Payments



Explain how to create a single payment



Execute a Payment Process Request



Void a payment

120 minutes 73 61% View passing score policy Exam has been validated against Oracle Fusion Payables, R10. Multiple Choice



Explain Bank Reconciliations



Customize Payment Formats



Set up Fusion Payments for disbursement Fusion Expenses



Enter expense reports



Approve expense reports



Process expense reimbursements



Manage Corporate Cards



Audit Expense Reports



Set up Fusion Expenses Reporting



Explain how to design and use various reporting tools



Explain Oracle Transactional Business Intelligence (OTBI)



Use Business Intelligence Publisher (BIP) Reports



Use the Payables to Ledger Reconciliation Report



Process intercompany reconciliations Other Fusion Payables Topics



Describe the invoice and payment dashboards



Process Income Tax and Withholding tax calculations



Create Accounting Entries



Explain the Close process



Configure Fusion Payables Setups



Configure Business Units

Accounting for Invoices and Payments: Explained

You can create accounting entries for invoice and payment transactions using Oracle Fusion Subledger Accounting. Subledger Accounting creates the final accounting for subledger journal entries and transfers the accounting to Oracle Fusion General Ledger. Subledger Accounting uses a set of predefined account rules to create accounting, but you can define your own detailed accounting rules. Payables Event Classes and Types Payables predefines accounting event classes and accounting event types that are used by Subledger Accounting. You can modify the accounting setup to create accounting for some events and not for others. This table describes the event classes and types that Payables predefines for invoices and payments.

Event Class Bills Payable

Credit Memos

Debit Memos

Invoices

Payments

Prepayment Applications

Prepayments

Reconciled Payments

Event Type • Bill Payable Matured • Bill Payable Maturity Adjusted • Bill Payable Maturity Reversed • Credit Memo Adjusted • Credit Memo Canceled • Credit Memo Validated • Debit Memo Adjusted • Debit Memo Canceled • Debit Memo Validated • Invoice Adjusted • Invoice Canceled • Invoice Validated • Manual Payment Adjusted • Payment Adjusted • Payment Canceled • Payment Created • Prepayment Application Adjusted • Prepayment Applied • Prepayment Unapplied • Prepayment Adjusted • Prepayment Canceled • Prepayment Validated • Payment Cleared • Payment Clearing Adjusted

Refunds

Third Party Merge

• • • • • •

Payment Uncleared Refund Adjusted Refund Canceled Refund Recorded Full Merge Partial Merge

Applying Credits Up to Zero Amount Payments: Examples

When you submit a payment process request, you can enable the Apply credits up to zero amount payment option. Enabling the option causes the payment process to apply credits when the credits reduce the payment amount below zero. The following scenarios illustrate the impact of this option. Invoice Amount Greater Than Credit Amount

An invoice for 200 USD and a credit memo for 125 USD are due for payment. The option setting has no effect because the payment amount with the applied credit is 75 USD, which is greater than zero. Credit Amount Greater Than Invoice Amount

An invoice for 200 USD and a credit memo for 225 USD are due for payment. The following table describes the payment processing that occurs based on the setting for the Apply credits up to zero amount payment option. Setting

Payment Processing

Enabled

Applies 200 USD of the credit memo to the invoice and creates a payment for 0 USD. The remaining credit is 25 USD.

Disabled

Doesn't select the invoice or credit memo for payment because the credit reduces the payment to -25 USD, which is less than zero.

The Maximize Credits Option: How It Is Processed

You can use the Apply credits up to zero amount payment option, which is on the Submit Payment Process Request page, to offset credit amounts against standard invoices issued by your supplier. This option is applicable only when the total credit amount for a payment process request is greater than the total standard invoice amount. If you don't use the option, and the total credit amount for a payment process request is greater than the total standard invoice amount, no invoices are selected for payment and the payment process request terminates. Navigate to:

Navigator > Payables menu > Payments link > Payments Tasks pane > Submit Payment Process Request link > Submit Payment Process Request page. Settings That Affect the Maximize Credits Option

To enable the maximize credits option, select the Apply credits up to zero amount payment check box on the Payment and Processing Options tab of the Submit Payment Process Request page. How the Maximize Credits Option Is Processed

The following table shows payment installments that are available for selection in a payment process request where the total standard invoice amount is greater than the total credit amount. Invoice Number

Type

Amount (USD)

SINV1001

Standard Invoice

100

SINV1002

Standard Invoice

50

SINV1003

Standard Invoice

200

SINV1004

Standard Invoice

150

CM100

Credit Memo

-100

CM101

Credit Memo

-150

In the preceding table, the assumption is that all available installments in the payment process request are selected. For this example, the following is true: 

Invoice total = $500



Credit total = $ -250



Payment total = $250

Since the invoice total is greater than the credit total, the total payment amount is a positive $250. In this scenario, the maximize credits option is irrelevant.

The following table shows payment installments that are available for selection in a payment process request where the total standard invoice amount is less than the total credit amount. Invoice Number

Type

Amount (USD)

SINV1001

Standard Invoice

100

SINV1002

Standard Invoice

50

SINV1003

Standard Invoice

200

SINV1004

Standard Invoice

150

CM100

Credit Memo

-100

CM101

Credit Memo

-150

CM102

Credit Memo

-300

CM103

Credit Memo

-200

In the preceding table, the assumption is that all available installments in the payment process request are selected. For this example, the following is true: 

Invoice total = $500



Credit total = $ -750



Payment total = $ -250

Since the invoice total is less than the credit total, the total payment amount is a negative $ -250. When the payment amount is negative, Oracle Fusion Payments checks whether the Apply credits up to zero amount payment check box is selected. If the maximize credits option is selected, the application creates a zero payment by offsetting the credit memos against the standard invoices. When the credit total is a negative amount,

Payments selects invoice installments and adjusts credit memo amounts so that the total amount of the payment process request is zero as shown in the following table. Invoice Number

Type

Amount (USD)

SINV1001

Standard Invoice

100

SINV1002

Standard Invoice

50

SINV1003

Standard Invoice

200

SINV1004

Standard Invoice

150

CM100

Credit Memo

-50

CM101

Credit Memo

-150

CM102

Credit Memo

-300

In the preceding table, the assumption is that the payment process request selects all available invoice installments and selects and adjusts specific credit memos. For this example, the following is true: 

Invoice total = $500



Credit total = $ -500



Payment total = $0

Note: CM103 is not selected and the amount for CM100 is adjusted from -100 to -50 to equal the payment total of zero, 0 USD. If the maximize credits option is deselected, the payment process request is terminated with a message that indicates no invoices were selected

Pay Through Dates and Payment Dates in Payment Process Requests: Examples

Payment process requests use the Pay Through Date and Payment Date values to determine whether to select an installment for payment and take a discount. The following scenario illustrates the effect of these values in a payment process request, along with the impact of the Always Take Discount option. Pay Through Dates and Payment Dates in Payment Process Requests

An invoice that's ready for payment has an installment with the following information: 

Due date of August 30, 2015



First discount date of July 15, 2015, for 150 USD



Second discount date of July 30, 2015, for 100 USD

The Date Basis on the payment process request is Pay Date, and the Pay Date Basis for the supplier site is set to Discount. This table provides examples of different Pay Through Date, Payment Date, and Always Take Discount combinations, and the resulting installment and discount information. Pay Payment Example Through Date Date

1

2

3

July 14, 2015

July 15, 2015

July 15, 2015

July 17, 2015

July 17, 2015

July 31, 2015

Always Take Discount Option

Installment Selected?

Enabled or disabled

No. The Pay Through Date is before the first discount date.

None. The installment isn't selected.

Enabled or disabled

Yes. The Pay Through Date is on or after the first discount date.

100 USD. The Payment Date is after the first discount date, but before the second discount date.

Yes

None. The Payment Date is after the discount dates and the Always Take Discount option is disabled.

Disabled

Discount Taken Amount

4

5

July 15, 2015

July 15, 2015

July 31, 2015

August 31, 2015

Enabled

Disabled

Yes

Yes

150 USD. Although the Payment Date is after the discount dates, the first discount is taken because the Always Take Discount option is enabled.

None. The Payment Date is after the due date and the Always Take Discount option is disabled. Note: Interest may be calculated depending on your settings.

6

July 15, 2015

August 31, 2015

Enabled

Yes

150 USD. Although the Payment Date is after the due date, the first discount is taken because the Always Take Discount option is enabled. Note: Interest may be calculated depending on your settings.

Note: Results are different if the Date Basis is Due Date, or the Date Basis is Pay Date and the supplier Pay Date Basis is Due. In this case, the payment process request selects the installment only when the Pay Through Date is on or after the due date Date Basis in Payment Process Requests: Examples

You can specify a date basis of either Pay date or Due date on the Selection Criteria tab on the payment process request pages. Date basis affects the installment selection and discount taken. The following scenarios illustrate the effect of the date basis setting in a payment process request. For both scenarios, the invoice has the following information: 

Amount: 3,000 USD



Due date: March 31



First discount date: February 15



First discount amount : 150 USD



Second discount date: February 28



Second discount amount: 100 USD

The payment process request includes the following selection criteria: 

Payment date: February 8



Pay through date: March 30

Pay Date

If you set the Date Basis field to Pay date, the Pay Date Basis setting on the supplier site also affects the installment selection and discount taken. Note: Specify the Pay Date Basis in the Terms section of the Invoicing tab on the Supplier Site pages.

The following table shows the effect of the Pay Date Basis on the payment process request. Pay Date Basis on Supplier Site

Discount

Installment Selected for Payment?

Yes

Discount Amount

150 USD

Additional Information 

The installment is selected because the pay through date of March 30 is later than at least one of the discount dates.



The discount is 150 USD because the payment date of February 8 is before the first discount date of February 15. Note: If the payment date was after February 15, but before February 28, the second discount of 100 USD would be taken.

Due

No

Not

The installment isn't selected because the due date of March 31 is later than the pay through

applicable

date of March 30.

Due Date

If you set the Date Basis field to Due date, the installment isn't selected for payment because the due date of March 31 is later than the pay through date of March 30.

What happens if I void a payment?

The accounting and payment records for the invoices that were paid are automatically reversed. If applicable, the following transactions also occur: 

Realized gains or losses on foreign currency invoices are reversed.



If the Create interest invoices option on the Manage Invoice Options page is enabled, all related interest invoices are reversed.



If the invoice is associated with a withholding tax invoice and tax is withheld at payment, a reversing invoice is automatically created. This reversing invoice for the tax authority offsets the withholding tax invoice.

Note: When you void a payment, you can select to cancel the invoices, place a hold on the invoices, or leave the invoices available for payment.

Why didn't an installment get selected for payment?

An installment can meet the selection criteria of a payment process request, but not get selected for payment for one or more reasons. You can review installments that weren't selected for payment and the reasons they weren't selected, on the Not Selected tab on the Review Installments page. Here are the reasons why an installment might not get selected for payment. 

An approver rejected the invoice.



The calculation for withholding tax ended in error.



A credit reduced the payment amount to less than zero.



The invoice must be revalidated.



The invoice requires approval.



The invoice was never validated.



The payment date is in a closed period.



Having the payment date before the system date isn't allowed.



The installment is on hold.



The supplier site is on payment hold.



The installment was manually removed from the payment process request.



Zero amount installments are excluded from payment.

Questions and Answers 1. How many Payment terms allowed in Payables? A. 100 B. 50 C. 1000 D. As many as needed Answer: D 2. Correctly order the steps involved setting up an electronic payment method with a defaulting rule. 1. Set up an electronic payment method with a validation for use with Payables 2. Set up a payment method defaulting rule for the electronic payment method 3. Set up a payment process profile 4. Set up a report that is automatically submitted to the payment system that displays the contents of the payment file A. B. C. D.

1, 4, 2, 2,

2, 3, 4, 3,

3, 2, 3, 4,

4 1 1 1

Answer: A 3. The client is trying to print payables checks but several invoices are not being included. What is the cause of this? A. The invoices were entered by a user who does not have access to print checks B. The invoices are for suppliers who are currently included in a Payroll Payment File. C. The invoices were out of sequence D. The invoices are part of a closed accounting period Answer: D 4. Which statement is NOT true about Task List Scope? A. Values include legal entities, business units, ledgers and tax regimes. B. Different setup data can be entered for different scope values. C. Scope values are defined when the implementation project is created and cannot be changed. D. If the parent task list of a task has scope defined, you will be prompted to pick a scope value Answer: C

5. Which statements are NOT true about Implementation Project? (Choose two) A. You can create custom tasks and add them to implementation projects. B. You can assign a task to only one user. C. You can create implementation projects to maintain setup data. D. Once you have entered setup data for a task the status is automatically changed to ‘Completed’. Answer: B, D 6. Which options allow the user to automatically create distributions for an invoice? (Choose three) A. Matching an invoice to a purchase order or receipt B. Distribution Sets C. Payment Process Profile D. Allocation of freight and miscellaneous lines E. The Manage Distributions page Answer: A, B, D 7. An invoice is matched to a purchase order with the following values:

FromPO From Invoice

Quantity

Price

Tax Rate

10 10

100 90

10% 10%

Exchange Rate 1.5 1.5

The resulting variance would be characterized as: A. Invoice price variance, tax rate variance B. Invoice price variance, tax invoice price variance C. Exchange rate variance, tax invoice price variance D. Invoice price variance, tax exchange rate variance Answer: B 8. Which payment type/payment status can NOT be voided? A. Quick /Negotiable B. Payment process request/Stop initiated C. Manual/Reconciled unaccounted D. Refund/Negotiable E. Quick/Issued Answer: C 9. Your business processes multiple payment batches every week. These batches can be categorized using similar selection criteria. Which option allows you to streamline the payment batch entry process? A. Payment Process Request B. Payment Process Profile C. Payment Process Request Template

D. Payment Formats Answer: C 10. You would like to deploy Oracle Fusion Expenses as a stand-alone application. Which other products require minimum setup in all cases to accomplish this? (Choose three) A. Oracle Fusion Tax B. Oracle Fusion Payables C. Oracle Fusion Payments D. Oracle Fusion Accounts Payable E. Oracle Fusion Subledger Accounting Answer: B, C, D 11. If an approver is setup to receive email approval requests, the approver

can perform which actions from email? (Choose two)

A. Request more information about the expense report. B. Approve the expense report. C. Transfer approval ownership of the expense report to another person. D. Reject the expense report. E. Delegate approval of the expense report. F. Delete the expense report.

Answer: B, D 12. You have run the Payables to Ledger Reconciliation Report and there is a variance reported in the ‘Accounting Amount’ column. Which option should NOT be used to identify the source of the variance? A. Posted Invoice Register B. Beginning Payables Trial Balance Report C. Posted Payment Register D. Payables Invoice Aging Report Answer: D 13. Which report can be run from Reports and Analytics? A. Payables Payment Register B. Payables Posted Payments Register C. Payables Invoice Aging Report D. Payables Key Indicators Report Answer: B 14. Your business has a requirement to balance Payables transactions by both balancing segment and cost center segment. How can the Payables application be configured to meet this requirement? A. Enable Payables option: Automatic Offsets, All segments. B. Enable Payables option: Automatic Offsets, balancing segment.

C. Configure an SLA journal line rule using the business flow method of linking journal lines. D. Configure an SLA journal line rule using the business flow method of copying from corresponding line. E. This is not possible in Fusion Payables. Answer: D

15. What task is used to define a new Pay Group?

A. Manage Common Options for Payables and Procurement. B. Manage Payment Options. C. Manage Invoice Options. D. Manage Payables Lookups.

Answer: D