Budgetary control for accounts 5020 and 5021 has a budget of $90,000USD each for the year 2012. The accounts also have balances on obligation of $10,000 USD for each and an expenditure of $20,000 USD for each. A Fund of $50,000 USD is available for account 5010 only. You have run the Encumbrance Year End Carry Forward process for obligation from the last period of the year 2012 to the first period of year 2013. Which statement is true?
Correct Answer: E
If you have included 5020 and 5021 in the encumbrance rule, then only the obligation of $10,000 USD will be carried forward. This is based on the Oracle documentation that states: You can carry forward year-end encumbrances into the following year. You can also carry forward an equivalent budget amount or funds available. When you carry forward year-end encumbrances, the Carry Forward rule you specify determines how General Ledger calculates the amount to be carried forward. You can choose one of the following Carry Forward rules: Encumbrances Only: General Ledger calculates the year-to-date encumbrance balance as of the end of the year and carries that balance forward into the beginning balance of the first period of the next fiscal year. Encumbrances and Encumbered Budget: General Ledger calculates the year-to-date encumbrance balance as of the end of the year and carries forward that balance, plus an equivalent budget amount, into the beginning balance of the first period of the next fiscal year. Funds Available: General Ledger calculates the funds available as the year-to-date budget balance less year-to-date actual and encumbrance balances. General Ledger then carries forward that amount into the beginning balance of the first period of the next fiscal year1. In this case, if you have used the Encumbrances Only rule, then only the obligation of $10,000 USD for each account will be carried forward. The budget balances, expenditure balances, and funds available will not be carried forward. The other options are incorrect because they do not match any of the Carry Forward rules described in the documentation.
Question 53
You want to specify Intercompany System Options. Which three factors should you consider? (Choose three.)
Correct Answer: A,B,E
The Intercompany System Options page allows you to specify various settings for intercompany transactions, such as whether to enforce an enterprise-wide currency or allow intercompany transactions in local currencies, whether to allow receivers to reject intercompany transactions, and the approvers who will approve intercompany transactions3.
Question 54
Your customer has many eliminating entries to eliminate intercompany balances. The General Ledger does not include a purpose-built Consolidation feature. How would you automate the process of creating eliminating entries, assuming your customer is not using Oracle Hyperion Financial Close Management?
Correct Answer: A
The Calculation Manager is a tool that enables you to create and manage allocation definitions that can be used to automate the process of creating eliminating entries for intercompany balances. You can use the Calculation Manager to define allocation rules, formulas, drivers, and conditions for your eliminating entries. You can also schedule the allocation definitions to run every period or on demand1.
Question 55
Your customer wants to use a clearing company to automatically balance intercompany entries. Which three statements are true regarding the use of a clearing company value? (Choose three.)
