Oracle 1Z0-1055-24 Exam Questions - Navigate Your Path to Success

Correct : A

Comprehensive and Detailed In-Depth Explanation:

In Oracle Financials Cloud, the Payment Process Request (PPR) undergoes several stages, each with specific functions and potential user interventions. When Payment Approval is enabled, the system incorporates an approval workflow to ensure that payments are reviewed and authorized before disbursement.

Stages of Payment Process Request:

Installment Selection:

Description: The system selects invoice installments based on predefined criteria such as due dates, payment methods, and supplier information.

User Action: Optional review if the 'Review Installments' option is selected.

Document Validation:

Description: Validates the selected installments for completeness and correctness, ensuring all necessary information is present.

User Action: Required if there are validation errors or missing information.

Build Payments:

Description: Groups validated installments into payments based on attributes like payment date, disbursement bank account, and payment method.

User Action: None, this is an automated process.

Review Proposed Payments:

Description: Allows users to review and, if necessary, modify the proposed payments before finalizing them.

User Action: Required if the 'Review Proposed Payments' option is selected.

Payment Approval:

Description: If enabled, this stage involves routing the proposed payments to designated approvers for authorization before disbursement.

User Action: Approvers must review and approve or reject the payments.

Create Payment Files:

Description: Generates the necessary payment files for disbursement, such as electronic funds transfer (EFT) files or check print files.

User Action: None, unless issues arise during file creation.

Trigger Point for Payment Approval:

The Payment Approval process is automatically triggered at the Review Proposed Payments stage. At this point, the system pauses to allow approvers to review the proposed payments and make decisions regarding their authorization. This control mechanism ensures that all payments are vetted before funds are disbursed, aligning with organizational policies and financial controls.

According to Oracle's documentation:

'If enabled, the payment process stops at the Review Proposed Payments stage. Approvers can then optionally remove payments directly from a payment process request and approve it.'

docs.oracle.com

Analysis of Options:

A . Review Proposed Payments: Correct. This is the stage where the payment approval process is triggered, allowing approvers to review and authorize payments.

B . Create Payment Files: Incorrect. This stage occurs after payment approval and involves generating the actual payment files for disbursement.

C . Review Installments: Incorrect. This is an earlier stage where selected installments are reviewed before payments are built, but it does not involve the payment approval workflow.

D . Build Payments: Incorrect. This stage involves grouping validated installments into payments and occurs before the Review Proposed Payments stage.

Conclusion:

Enabling Payment Approval in Oracle Financials Cloud introduces a critical control point at the Review Proposed Payments stage of the Payment Process Request. This setup ensures that all proposed payments undergo managerial review and authorization before the creation of payment files and the actual disbursement of funds. Implementing this approval process helps maintain robust financial oversight and compliance within the organization's payment workflows.

Oracle Financials Cloud Documentation -- How You Set Up Payment Approval https://docs.oracle.com/en/cloud/saas/financials/24d/faipp/how-you-set-up-payment-approval.html

Oracle Financials Cloud Documentation -- How You Set Up Payment Approval https://docs.oracle.com/en/cloud/saas/financials/24d/faipp/how-you-set-up-payment-approval.html

Topic 2, Challenges (Hands-on Performance Based)

Correct : A

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.