Oracle Financials Interview Questions

And Answers
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Reviewer Sindhu October 19, 2016

How many key exelds are there in oracle nancials?

General Ledger

Accounting Flexeld

Assets

Asset Key Flexeld

Location Flexeld

Category Flexeld

Service

Service Item Flexeld

Receivables
Territory Flexeld

Sales Tax Location Flexeld

Inventory

Item Categories

System Items

Sales Orders

Item Catalogs

What is the report used to identify duplicate suppliers?

In order to nd out duplicate supplier, SUPPLIER AUDIT REPORT is runned

What are the benets of exelds?

Congure applications to support your own accounting, product and other

codes.

Enable the construction of intelligent keys.

Congure application to capture additional data.

Use the application to validate values and value combinations entered by the
user.

Support multiple exeld structures depending on data context.

What are the types of exelds?

Key exeld
 Descriptive exeld

What is a key exeld qualier?

A qualier is a label attached to a particular key exeld segment so it can be

located by the application requiring its information. A key exeld qualier can
be of 2 types:

Flexeld qualiers identify a segment in a exeld.

Segment qualiers identify a value set in a segment.

What are the types of Flexeld Qualier

NATURAL ACCOUNT:Each Accounting Flexeld structure must contain only

one natural account segment. When setting up the values, you will indicate the
type of account as Asset, Liability, Owners Equity, Revenue, or Expense.

BALANCING ACCOUNT:Each Structure must contain only one balancing

segment. Oracle GL (https://tekslate.com/tutorials/oracle-bpm/) ensures that
all journals balance for each balancing segment.

COST CENTER:This segment is required for Oracle Assets. The Cost center
segment is used in many Oracle Assets reports and by Oracle Workow to
generate account numbers. In addition, Oracle Projects and Oracle Purchasing
also utilize the cost center segment.

INTERCOMPANY:GL automatically uses the intercompany segment in the

account code combination to track intercompany transactions within a single set
of books. This segment has the same value set and the same values as the
balancing segment.

Segment Qualiers
ACCOUNT TYPE: Asset, Liability, Owners Equity, Revenue, Expense,
Budgetary Dr, and Budgetary Cr.

Budget entry allowed (Yes/No).

Posting allowed (Yes/No).

Control Account Reconciliation Flag: Available for specic countries.

What is the implication of dynamic insert?

Dynamic Insertion is a feature which controls whether the user can enter new
account code combinations from any form/window. If this feature is disabled,
then the user cannot input new account code combinations from any
window/form.

Oracle applications use a particular form (called a Combination form) for

directly entering the new code combinations. Users can enter new account code
combinations only through this form if Dynamic Insertion is disabled.

What are Cross Validating Values

For key exelds with multiple segments, we can dene rules to cross check
value combinations entered with in the key exeld segments. This option is
referred as Cross Validation rules.

Value Set List Types

List of values (10 to 200)

Long list of values (> 200)

Poplist (> 10)

Value Set Security Type

No Security: All security is disabled for this value set.

Hierarchical Security: With Hierarchical security, the features of the value

security and value hierarchies are combined. With this feature any security that
applies to a parent value also applies to its child values.

Non-Hierarchical Security: Security is enabled, but the rules of the hierarchical

security do not apply. That is, a security rule that applies to a parent value does
not cascade down to its child values.

What are the types of Value Sets

None: A value set of the type None has no list of approved values associated
with it. A None value set performs only minimal checking of, for example, data
type and length.

Independent: Independent type value sets perform basic checking but also
check a value entered against the list of approved values you dene.

Dependent: A dependent value set is associated with an independent value set.

Dependent value sets ensure that all dependent value are associated with a value
in the related independent value set.

Table: Table value sets obtain their lists of approved values from existing
applications tables. When dening your table value set, you specify a SQL query
to retrieve all the approved values from the table.

Special: This specialized value set provides another exeld as a value set for a
single segment.

Pair: This specialized value set provides a range exeld as a value set for a pair
of segments.
Translated Independent: This works similar to Independent type. However, a
Translated Independent value set can contain display values that are translated
into dierent languages.

Translated Dependent: This works similar to Dependent type. However, a

Translated Dependent value set can contain display values that are translated
into dierent languages.

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How many segments are there in the key exeld(s) in oracle general
ledger?

-Oracle GL Key exeld can have 15 columns each representing a segment.

However, the segments type can be:

Cost Center segment

Balancing segment

Account segment

Intercompany segment

On which entity is a security rule applicable?

Its a feature of Key exeld, applicable on Value Sets.

On which entity is the cross-validation rule applicable?

Its a feature of Key exeld, applicable on Value Sets.

Shorthand alias.
 An Alias is a label for a particular combination of key exeld segment value.
This allows users to enter data faster and more easily because the user has to just
enter the shorthand alias, and the exeld automatically populates the values
for the segment.

What is a period in oracle gl?

A Period corresponds to a time span within which transactions are entered

prior to nalizing, otherwise called as close of the period.

What are the period types?

Predened period types in Oracle GL are:

Month

Quarter

Year

If needed, period types of our own can be dened in addition to the standard
periods.

Dierent statuses of an accounting period.

Never Opened: Cannot enter or post journals.

Future Enterable: Enter journal, but cannot post. The number of future
enterable periods is a xed number dened in the set of books window. The
number of future enterable period can be changed at any time.

Open: Enter and port journals to any open period. An unlimited number of
periods can be open, but doing so may slow the posting process and can confuse
users entering journals.
Closed: Cannot post journals in a closed period. Must reopen closed periods
before posting journals. Should manually close periods after nishing
month/quarter/year-end processing.

Permanently Closed: Permanently closed periods cannot be reopened. This

status is required to Archive and Purge data.

What is an adjusting period and its implications?

Typically, the last day of the scal year is used to perform adjusting and closing
journals entries. This period is referred to as Adjusting Period.

Choosing whether to include an adjusting period or not in a calendar is a very

important decision. There can be unlimited number of adjusting periods. Once
the accounting calendar is used, changes to its structure to remove or add an
adjusting period cannot be done.

How many types of conversion rates are there in oracle gl?

There are 5 basic types of conversion rate types predened in Oracle GL:

Spot: An exchange rate based on the rate for a specic date. It applies to the
immediate delivery of a currency.

Corporate: An exchange rate that standardize rates for your company. This rate
is generally a standard market rate determined by senior nancial management
for use throughout the organization.

User: An exchange rate that you enter during foreign currency journal entry.

Emu Fixed: An exchange rate that is used by countries joining the EU during
the transition period to the Euro currency.

User Dened: A rate type dened by your company to meet specic needs.
What type of conversion rate is required to be dened for all
transactional purposes?

Spot (Not sure).

what are the three essential components of a gl set of book?

Chart of Accounts

Your chart of accounts is the account structure you dene to t the specic needs
of your organization.

You can choose the number of account segments as well as the length, name,
and order of each segment.

Accounting Calendar

An accounting calendar denes an accounting year and the periods it contains.

You can dene multiple calendars and assign a dierent calendar to each set of
books.

Currencies

You select the functional currency for your set of books as well as other
currencies that you use to transact business and report in.

GL converts monetary amounts entered in a foreign currency to functional

currency equivalents using supplied rates.

what is the implication of the future period eld in the set of book
denition form?

The value mentioned in the Future Period eld represents the number of future
enterable periods that users can use to input journal entries (provided those
future periods are opened). However, consideration must be given to minimize
the number of future enterable periods to prevent users from accidentally
entering journal entries in an incorrect period.

How many tabbed regions are there in the set of book denition form?
What are the names of these tabbed regions?

There are 5 tabbed regions in the set of books denition form.

Closing

Journaling

Average Balances

Budgetary Control

Multiple Reporting Currencies

What is retained earnings account?

GL posts the net balance of all income and expenses accounts from the prior
year to this account when you open the rst period of a scal year.

What is the purpose of translation adjustment account?

If you translate your functional currency balances into another currency for
reporting, or if you revalue foreign currency-dominated balances, you must
specify a translation adjustment account.

Parent Do no enable.

Budget Yes.

Posting Yes.

Account Type Ownership/Stock.

What is the purpose of/unique feature of the net income account?

GL uses this account to capture the net activity of all revenue and expense
accounts when calculating the average balance for retained earnings.

What is the purpose of the transaction calendar?

Transaction calendar is dened for the purpose of enabling average balance

processing. Transaction calendar is created optionally with valid business days
mentioned.

In order to allow unbalances journal posting what action is required at

set of book denition level / what is a suspense account and its purpose?

If you choose to allow posting of out-of-balance/unbalanced journal entries,

GL automatically posts the dierence to Suspense Account. However, the
Suspense Account check box should be checked and an Account # to be provided
for this feature to work during the creation of set of books.

If you have multiple companies or balancing entities within a set of books, GL

automatically creates a suspense account for each balancing entity.

What is a value set?

A value set denes the boundaries for the attributes that you assign to a key or
descriptive exeld segment. Value sets control what types of values can be
used as Accounting Flexeld segment values. Value sets determine the
attributes of your segments such as length, zero-ll, and right justify,
alphanumeric, and value security. Value sets also control how validation is
performed.

Inorder to allow intercompany journals what action is required at set of

book denition level?
 One of the accounting key exeld segments should be of the type
Intercompany. This segment would have the same value set and the same values
as the balancing segment.

Also, enable Balance Intercompany Journals feature. This allows users to post
out-of-balance intercompany journal entries and automatically balance those
journal entries against a specied intercompany account. Select the Balance
Intercompany Journal checkbox and enter the intercompany account(s) in the
Intercompany Accounts window. If you do not enable this feature, you can only
post intercompany journal entries that balance by balancing segment, (usually
the company segment).

What is Account Hierarchy Manager

Account hierarchy manager is a feature provided by Oracle Application which

allows to:

Graphically create, maintain, and review account structure hierarchies.

Dene new parent and child segment values, as well as change parent/child
dependencies.

Create new roll-up groups from the account hierarchy manager and have your
changes reected automatically in both key segment values and rollup groups
window.

Also provides option to control entities such as:

Read only

Read/write security

Segment Value Security: An oracle applications feature that lets you exclude a
segment value or ranges of segment values for a specic user responsibility.
Segment Value Security is extended to the Account Hierarchy Manager.
Chart of Accounts Security

what does balance type a indicate?

Not Sure. May be ACTUAL.

How many buttons are there on the manual journal entry form? What are
they?

By default, there are 3 buttons on the manual journal entry form:

More Details

Change Currency

More Actions

How many buttons are there under the more actions button? What are
they?

When we click on the More Actions button, another window appears with 4
buttons:

Reverse Journal

Post

Change Period

CANCEL

What is the status of a newly entered journal?

Unposted.

Posting statuses.
Unposted

Pending

Processing

Selected for posting

Posted

Error

What is Journal Reversal Pre-Requisites

Journal balance type is Actual

Journal category has AutoReverse enabled

Journal is posted but not yet reversed

Journal reversal period is open or future enterable

Can you create a journal entry with a parent segment value?

Not sure. May be possible with a child value combined. Parent values
automatically allow posting and budgeting.

When a journal is created, which all gl tables are impacted?

GL_JE_BATCHES

GL_JE_HEADERS

GL_JE_LINES

When a journal is posted, which gl table is posted?

GL_BALANCES

When journals are interfaced, which gl table is populated?

GL_INTERFACE

What is the name of the concurrent to populate the gl tables from the
interface table?

Journal Import.

What is the mechanism to rectify a posted journal?

Reverse the Journal.

What is the purpose of stat journal?

You can associate statistical amounts with monetary amounts by using statistical
units of measure.

This enables you to enter both monetary and statistical amounts in a single
journal entry line.

For creation of periodically repititive journals what is the gl tool?

Recurring Journal.

What is massallocations?

A single journal entry formula that allocates revenues and expenses across a
group of cost centers, departments, or divisions.

What is the formula for creation of allocation journals?

A*B/C.
A is the Cost Pool that will be allocated. It can be amount or account balance.

B is the numerator of the factor (a number or statistical account) that multiplies

the cost pool for the allocation.

C is the denominator of the factor (a number or statistical account) that divides

the cost pool for the allocation.

Note: Parent values can be used in one or more segments.

Account segment types for massallocation.

Looping

Summing

Constant

What are the target and oset accounts in allocation formula?

These are the lines that are the actual journal entry.

Target (T):

Enter an account in the Target line to specify the destination for your allocation.

The parent value used in the target must be the same parent value used in the B
and C lines of the formula.

Oset (O):

Enter an account in the Oset line to specify the account to use for osetting
debit or credit from your allocation.

The Oset account is usually the same account as formula line A to reduce the
cost pool by the allocated amount.
Can you delete an unposted journal?

Not sure.

Journals from which sub-ledger do not pass through the gl interface

table?

Not sure. May be Assets.

When the journals are interfaced and imported, what posting status do
they have?

Unposted.

What is the pre-requisite for conversion?

Dene new currencies

Enable seeded currencies

Dene rate types

Enter daily rates

For revaluation, what rate types are available?

Daily rates

Historical rates

Revaluation rate is the inverse of period end rate.

How revaluation journals are created in which currency?

Functional currency
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Oracle Financials Interview Questions And Answers
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tekslate.com (https://tekslate.com/oracle-nancials-interview-questions-and-answers/)
by Reviewer Sindhu October 19, 2016