Oracle E-Business Suite R12 Project Essentials Exam
Question No: 31
A contractor is engaged to carry out a statement of work by a customer. The contract is fixed price, and milestone payments will be made based on the individual completion of
agreed deliverables. The contract specifies that 10% of any invoice totals must be withheld. The exception to this rule is that if certain deliverables are met ahead of the agreed schedule, then the full amount can be invoiced. How would this scenario be set up in Oracle Projects?
CustomerRetention Billing is implemented with a Withholding Term ofExpenditure Category.
10% ofproject costs isset with abilling hold (as required) inExpenditureInquiry.
A taskis used to collectcosts that are to be withholdingand the task is set to non-billable asrequired.
CustomerRetention Billing isimplemented with aWithholding Term based onEvent Types.
A customerbill splitisimplemented to send 10% ofall invoiced costs to a dummy customer.
Explanation: *Defining Retention Terms
Retention Terms determine how amounts are withheld from project invoices and how the withheld amounts are billed to the project customer. Retention terms include:
Withholding Terms by Expenditure Category Withholding Terms by Event Revenue Category Billing Terms
These terms apply to all sources of project invoice amounts for the specified project or top task. For each term, you can define a withholding percentage or amount. Optionally, a threshold amount can be defined to determine the maximum amount to be withheld per term.
Reference:Oracle Project Billing User Guide
Question No: 32
A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May. What are the accounting entries at the end of May?
Debit: Cost of Goods SoldCredit: Unbilled Receivables
Debit: Unearned RevenueCredit: Revenue
Debit:ReceivableCredit: Unearned Revenue
Debit: BankCredit: Revenue
Answer: D Explanation: Invoice
When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.
The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:
Unbilled Receivables and/or Unearned Revenue200.00
Oracle Project Billing User Guide
Question No: 33
Identify three transactions for which Oracle Project Costing enforces budgetary controls.
project-related purchase requisitions and purchase orders entered in Oracle Purchasing
expense reports entered In Oracle iExpenses
supplier invoices entered in Oracle Payables
contingent worker purchase orders entered in Oracle Purchasing
employee timecards entered in Oracle Time and Labor
Answer: A,C,D Explanation:
*Enable Budgetary Controls and Encumbrance Accounting
To use budgetary controls, you must implement budgetary control and encumbrance accounting for the ledger in Oracle General Ledger and enable encumbrance accounting in Oracle Payables or Oracle Purchasing.Encumbrance accounting automatically creates encumbrances for requisitions, purchase orders, and invoices.
*PSA: Budgetary Control Report Template
This profile option can be set at the site, application, responsibility, and user levels. You must select Budgetary Control Results Template as the value for this profile option to enable users to view funds check results from Oracle Purchasing and Oracle Payables after a funds check.
Reference:Oracle Projects Implementation Guide,Implementing Oracle Project Management
Question No: 34
You have imported Labor transactions into Oracle Projects from Oracle Time and Labor by running the quot;PRC: Transaction Importquot; program.
What is the correct sequence to run the concurrent programs listed below to transfer the cost and accounting entries of these transactions to General Ledger?
PRC: Distribute Labor Cost
PRC: Transfer Journal Entries to GL
PRC: Create Accounting (with the Transfer to GL option set to quot;Noquot;) 4.PRC: Interface Labor Costs to GL
5.PRC: Generate Cost Accounting Events 6.PRC: Distribute and Interface tabor costs to GL
A. 1, 3, 6
B. 1, 5, 3, 4
C. 1, 5, 3, 2
D. 1, 2
E. 3, 6
Explanation: The following activities take place as part of the expenditures process flow for labor costs:
->Run the process PRC: Distribute Labor Costs. This process calculates the raw and
burden cost components for labor cost expenditure items. It also uses AutoAccounting to determine the default debit account for each expenditure item.
->Run the process PRC: Generate Cost Accounting Events. This process uses
AutoAccounting to determine the default credit account for each expenditure item. It also generates accounting events for distributed transactions. You can optionally select Labor Cost as the process category to limit the process to labor costs.
->Run the process PRC: Create Accounting. This process creates subledger journal
entries for eligible accounting events. You can run the process in either draft or final mode. You can optionally select Labor Cost as the process category to limit the process to labor cost accounting events. Optionally, the process can post journal entries in Oracle General Ledger.
If you define your own detailed accounting rules in Oracle Subledger Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual segments of accounts, that Oracle Projects derives using AutoAccounting.
->Run the process PRC: Transfer Journal Entries to GL. When you run the process
PRC: Create Accounting, if you select No for the parameter Transfer to GL, then you run the process PRC: Transfer Journal Entries to GL to transfer the final subledger journal entries from Oracle Subledger Accounting to Oracle General Ledger. You can optionally select Labor Cost as the process category to limit the process to labor cost accounting events. Optionally, the process can post journal entries in Oracle General Ledger.
->Run Journal Import in Oracle General Ledger. (optional)This process brings the
final accounting entries from Oracle Subledger Accounting into Oracle General Ledger.
Reference:Oracle Projects Fundamentals,Expenditures Process Flow Example: Labor Cost
Question No: 35
Your organization has configured employee rate schedules. Which three schedules can utilize employee rate schedules when delivering a project?
Job rate schedules
Cost rate schedules
Bill rate schedules
Resource class rate schedules
Explanation: You can use rates to calculate amounts for costing, billing, and workplan and financial planning. Oracle Projects determines rates from a combination of rate schedules and rate overrides. You can define the following four types of rate schedules in Oracle Projects:
*Employee: Use this type of rate schedule to define standard hourly rates or percentage markups by employee. You can use employee rate schedules as planning schedules(B), cost rate schedules(C), and bill rate schedules(D).
Job: Use this type of rate schedule to define standard hourly rates by job title. When you enter a job-based rate schedule, you enter a job group to indicate which jobs are used to determine rates. You can use job schedules as planning rate schedules, cost rate schedules, and bill rate schedules.
Resource Class : Use this type of rate schedule to define planning rates by resource class, or as a combination of resource class and organization.
*Nonlabor: Use this type of rate schedule to define rates or percentage markups by nonlabor expenditure type or a combination of nonlabor expenditure type and nonlabor resource. You can use nonlabor rate schedules as planning rate schedules, cost rate schedules, and bill rate schedules.
Question No: 36
The Profile option quot;PA: Cross Project User-Updatequot; is set to quot;Yesquot; for a Projects module user. Which two statements apply?
The use must be named as a Key Member on a project to be able to see Summary Labor Costs.
The userwill be able to update projects across all Operating Units.
The userwill be able to update only the projects belonging to the same Operating Unit to which theuser belongs.
Theuserview SummaryLaborCosts forall projects.
The user must alsohave Organization Authority forall Operating Units to updateall projects.
Explanation: PA: Cross Project User – Update: Enables users to update all project information. This applies only to the operating units the responsibility has access to through the MO: Operating Unit profile option or the MO: Security Profile profile option.
Note: Users whose responsibilities are associated with a cross business group access security profile can view and update project and resource information across all business groups in your enterprise.
Reference: Oracle Projects Fundamentals, Responsibility-Based Security
Question No: 37
Which three Project foundation setups are shared across Operating Units in a multi- organization setup?
Project Classifications categories
Explanation: A:Project Classifications (Class Categories and Class Codes)
You define project classifications to group your projects according to categories you define. A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category.
B:In a multi-organization environment, you must set up project types for each operating unit. It is possible to have the same project type names in multiple operating units.
However, each project type has it own attributes to control project processing by operating unit.
E:In a multi-organization environment, expenditure types are set up once and are shared across all operating units.
Reference:Oracle Projects Implementation Guide,Implementing Oracle Project Costing
Question No: 38
Which three statements are correct about defining a cost budget for a project?
You can enterbudget amount atthe project level, the top task level, or the lowest task level.
Youcan enterbudget amount only at the lowest task level.
You can enterbudget amountfora combination of lowest task and a labor resource.
Youcan enterbudget amount only at the top task level.
You can enterbudget amount for a combination of lowest task and a Non-Labor resource.
You cannot enterbudget amount for a combination of lowest task and a Non-Labor resource.
Explanation: A:You can budget at the project, top task, or lowest task level.
*When you create budgets and forecasts that do not use budgetary control and budget integration features, you can choose to enter budget and forecast amounts at any level of the financial structure by selecting one of the following lowest level planning level options:
Project Top Task
When you choose the Lowest Task option, you can enter amounts at all levels of the financial structure including top tasks, middle-level tasks, and lowest tasks. You can also enter amounts at multiple task levels within the same branch of the financial structure.
Oracle Projects treats theamounts that you enter at each task level as incremental amounts
that roll up into the total amounts for the project.
Question No: 39
A customer is using Oracle Payables and Oracle Projects. The customer has two suppliers set up with names X and Y, respectively. Supplier Y has been merged with Supplier X.
The Supplier Merge Program is run from the Supplier Merge option in Oracle Payables and you have chosen to merge all transactions. What will happen to the supplier references on transactions related to Supplier Y that are already interfaced to Oracle Projects?
The Supplier Merge Program does notimpact any supplier transactions that are already interfaced to Oracle Projects.
The SupplierMerge Program completes with error,the merge is not possible because transactionsrelated to Supplier Y are already interfaced to Oracle Projects.
The supplier references to Supplier Y will be modified to Supplier X for all transactions existing in Oracle Projects.
The transactionsrelatedto Supplier X and Y will be deleted from Oracle Projects.
The transactions related to Supplier Y will be deleted from Oracle Projects.
Answer: C Explanation:
*When you merge supplier information you have different options. You can choose to merge both invoices and purchase orders. If you choose to merge invoices, then you can merge all invoices or just unpaid invoices. When you choose to merge all invoices, any associated payments are merged as well.
You can merge suppliers in Oracle Payables to maintain your supplier records. This functionality enables you to merge duplicate suppliers into a single, consolidated supplier. You can use it to merge transactions within the same supplier from one supplier site to a different supplier site. You can also choose to merge all transactions for a supplier into a new supplier, or you can choose to merge only unpaid invoices.
The supplier merge program in Oracle Payables updates the supplier references on related transactions in Oracle Projects.
Question No: 40
You are setting up an AutoAccounting rule and trying to use quot;Class Codequot; as the parameter for that rule. Which setup must exist in order to use quot;Class Codequot; as one of the parameters?
Enable AutoAccountingfor one ClassCode ofaClassCategory.
EnableAutoAccountingforall the Class Codes ofaClassCategory.
Enable AutoAccounting for the Class Category.
Enable AutoAccountingfor both Class Category and Class Code.
Explanation: *AutoAccounting Parameter: ClassCode
AutoAccounting class code on the project.
Note: Since you can define many project classification categories, the Class Code parameter always corresponds to the one classification category that you specified as the AutoAccounting classification category.
Reference:Oracle Projects Implementation Guide