Pass the Oracle Financials Cloud 1z0-1055-24 Questions and answers with ExamsMirror

Comprehensive and Detailed In-Depth Explanation:

In Oracle Payables, voiding a payment involves specific actions that affect the associated invoices. When a payment is voided, users have the option to select an Invoice Action, such as Cancel, Hold, or None. The chosen action determines the subsequent status of the invoice linked to the voided payment.

A. The invoice date is not in the current open period.

If an invoice's date falls outside the current open accounting period, certain actions may be restricted. However, this condition does not specifically result in an Invoice Cancel hold being applied when attempting to void a payment. Therefore, this is not the reason for the observed behavior.

B. The invoice is already on hold.

An invoice that is already on hold may have restrictions on further processing. However, the presence of an existing hold does not directly lead to the application of an Invoice Cancel hold during the voiding process. Thus, this is not the cause of the issue.

C. The invoice has been partially paid by another payment.

When an invoice has been partially paid by multiple payments, voiding one of the payments and selecting Cancel as the Invoice Action does not cancel the invoice. Instead, Oracle Payables applies an "Invoice Cancel" hold to the invoice. This hold indicates that the invoice cannot be fully canceled because it has been partially satisfied by another payment. To resolve this, the remaining payments must be addressed appropriately before the invoice can be canceled. This behavior is documented in Oracle's guidelines, which state that attempting to cancel an invoice partially paid by another payment results in an Invoice Cancel hold being applied.

docs.oracle.com

Understanding the conditions under which Invoice Actions apply is crucial for effective invoice and payment management in Oracle Payables. Recognizing that partially paid invoices cannot be canceled outright helps prevent processing errors and ensures accurate financial records.

Comprehensive and Detailed In-Depth Explanation:

In Oracle Financials Cloud, the "Incomplete" status is assigned to invoices that require additional information or actions before they can be fully processed. This status ensures that incomplete or erroneous invoices are identified and addressed promptly.

A. Supplier Portal Invoices which are saved but not yet submitted

When suppliers create invoices through the Supplier Portal, they have the option to save their progress without submitting the invoice for approval or payment. These saved invoices are assigned an "Incomplete" status, indicating that the supplier has not yet finalized and submitted them. This allows suppliers to review and modify invoice details before formal submission.

support.oracle.com

B. Scanned Invoices with invalid or missing data

Invoices processed through Integrated Imaging or Intelligent Document Recognition (IDR) are scanned and imported into the system. If these scanned invoices contain invalid or missing data—such as incorrect invoice numbers, missing line items, or unreadable fields—they are assigned an "Incomplete" status. This designation prompts accounts payable personnel to review and correct the discrepancies before the invoices can proceed through the payment process.

docs.oracle.com

C. Scanned Invoices which are rejected during import

Invoices that are rejected during the import process due to significant errors or mismatches are typically not assigned an "Incomplete" status. Instead, they are marked as "Rejected" or "Error," indicating that they require substantial correction before reprocessing. Therefore, this option is not associated with the "Incomplete" status.

D. Prepayment Invoices which are fully paid but not applied against any invoice

Prepayment invoices represent advance payments made to suppliers and are recorded as such. Once a prepayment is made, the invoice reflects a "Paid" status. The application of this prepayment to subsequent invoices is a separate process and does not revert the original prepayment invoice to an "Incomplete" status. Thus, this option does not correspond to the "Incomplete" status.

Understanding the scenarios that lead to an "Incomplete" status helps organizations efficiently manage and rectify invoice issues, ensuring a smooth accounts payable workflow.

Comprehensive and Detailed In-Depth Explanation:

Closing a Payables period in Oracle Financials Cloud requires that all transactions for the period are fully processed and accounted for. The system enforces certain checks to ensure data integrity and accurate financial reporting. The following are valid reasons that can prevent the closure of a Payables period:

Incomplete Payment Files (Option B):

Explanation: Payment files that have been initiated but not completed will prevent period closure. All payment processes must be finalized to ensure that all disbursements are accurately recorded.

Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud

To configure this expense policy in Oracle Financials Cloud, follow these steps:

Step 1: Access the Expense Policies Setup Page

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator role.

Navigate to Setup and Maintenance.

Select the Task: Manage Policies by Expense Category.

Step 2: Create or Locate the Meal Expense Category

Search for the Meals expense category.

If the Meals category does not exist:

Click Create Expense Category.

Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define a Policy Rule for Raising a Warning

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Configure the Expense Policy Rule:

Description: "Meal Expense Warning Policy".

Limit Type: "Warning Only".

Limit Amount: Enter the prescribed limit (e.g., 50 USD).

Per: Select Day (or another relevant time frame).

Applies To: Select All Employees.

Location-Based Rules: Leave blank if not location-specific.

Set Warning Behavior:

Select Raise a Warning if the expense exceeds the prescribed limit.

Ensure the policy does not block submission or approval.

Click Save and Close.

Step 4: Associate the Policy with an Expense Report Template

Navigate to Setup and Maintenance > Manage Expense Report Templates.

Search for the Expense Report Template where the Meals category should be included.

Click Edit and go to the Expense Types section.

Add the Meals Expense Type and associate it with the newly created Meals Expense Warning Policy.

Click Save and Close.

Step 5: Enable and Validate the Policy

Ensure the policy is marked as Active.

Click Submit to finalize the policy configuration.

Run the Validate and Deploy Expense Policies process.

Step 6: Testing the Policy

Simulate an Expense Report Submission:

Create a new expense report and select Meals as the expense type.

Enter an expense amount exceeding the limit (e.g., 55 USD).

Verify that a warning message appears, but the expense is still allowed to proceed.

Submit an expense below the limit (e.g., 45 USD) and ensure no warning appears.

Expected Outcome:

If the meal expense exceeds the limit, the system raises a warning but does not block the expense submission.

If the meal expense is within the limit, the system processes it without warnings.

The policy is successfully associated with an expense type in an expense report template.

Conclusion

By following these steps, you successfully configure an expense policy that raises a warning for meals exceeding a specified limit without blocking submission or processing. This ensures that employees are notified about policy violations while allowing flexibility in expense approvals.

Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud

To implement the expense policy for meals in Oracle Financials Cloud, follow these steps:

Step 1: Navigate to the Expense Policies Setup

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator role.

Go to the Setup and Maintenance work area.

Select Manage Policies by Expense Category (Task Name: Manage Expense Policies by Expense Category).

Select the US1 Business Unit to ensure the policy applies to the correct entity.

Step 2: Create or Update the Meal Expense Category

Under Manage Policies by Expense Category, locate or create the Meals Expense Category.

If the Meals category does not exist:

Click Create Expense Category.

Enter Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define Expense Limits for Evening Meals

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Description: "Evening Meal Limit".

Limit Type: "Maximum Allowed Amount".

Limit Amount: Enter 30 USD.

Per: Select Day.

Apply to All Employees (since this applies regardless of role and location).

Location-Based Rules: Leave blank since it applies universally.

Click Save and Close.

Step 4: Enable and Activate the Policy

Ensure the policy is enabled by selecting the checkbox for Active.

Click Submit to finalize the configuration.

Run the "Validate and Deploy Expense Policies" process to apply changes.

Step 5: Testing the Policy

Simulate an Expense Report Submission:

Have an employee create a new expense report.

Select Meals as the expense category.

Enter an evening meal expense of 35 USD (which exceeds the policy limit).

Verify if a policy violation warning appears, restricting the claim to 30 USD.

Submit an expense of 30 USD and ensure no policy violation occurs.

Expected Outcome:

Employees can claim up to 30 USD per day for an evening meal.

Any claim above 30 USD triggers a policy violation warning.

The rule applies to all employees regardless of role and location.

Conclusion

By following the above steps, you successfully configure an expense policy for meals that limits evening meal claims to 30 USD per day. This ensures compliance with the company's expense management guidelines while streamlining the expense approval process in Oracle Financials Cloud.