Oracle Fusion Financials Interview Questions and Answers (8-10 Years Experience)

1. Explain the Procure-to-Pay (P2P) and Order-to-Cash (O2C) cycles in Oracle Fusion.

Answer: P2P starts from requisition, purchase order, receipt, invoice, and payment. O2C begins with

a sales order, shipment, invoice, and receipt from customers. These are managed using Payables,

Receivables, and Inventory modules.

2. How do you configure the Chart of Accounts (CoA) in Oracle Fusion?

Answer: CoA configuration involves defining segments, value sets, hierarchies, and creating the

CoA structure. It is then associated with a ledger for accounting transactions.

3. What is the purpose of Oracle Accounting Hub?

Answer: It centralizes accounting rules for transactions from external systems to ensure uniform

accounting treatment and facilitates seamless integration into Oracle Fusion GL.

4. How do you handle multi-currency and multi-ledger setups?

Answer: By defining ledgers with different currencies, exchange rates, and reporting currencies.

Multi-ledger setups help in global operations and statutory reporting.

5. What is the difference between primary and secondary ledgers?

Answer: Primary ledgers support core operations while secondary ledgers provide alternate

accounting representations (like IFRS vs GAAP).

6. Describe the period close process in Oracle Fusion GL.

Answer: It involves reviewing unposted journals, reconciling balances, running reports, and locking

periods to prevent further transactions.

7. What is Subledger Accounting (SLA)?

Answer: SLA creates accounting for subledger transactions using predefined rules. It ensures

consistency between subledgers and the general ledger.

8. How do you define financial reporting structures?

Answer: Using reporting hierarchies, trees, and segments such as cost center, department, and
natural account to build meaningful financial reports.

9. What is the use of Cross Validation Rules?

Answer: To control combinations of segment values in CoA to ensure data accuracy and prevent

invalid journal entries.

10. Explain role-based security in Fusion.

Answer: Users are assigned predefined or custom roles that control access to functions and data,

enhancing security and compliance.

11. What is OTBI and when do you use it?

Answer: Oracle Transactional Business Intelligence is used for real-time ad hoc reporting with

subject areas.

12. How is BI Publisher used in Oracle Fusion?

Answer: BI Publisher is used for formatted reports. It uses data models, layouts, and templates to

create and deliver reports.

13. What are FBDI and ADFdi?

Answer: FBDI (File Based Data Import) is used for bulk data loading; ADFdi is an Excel-based tool

for uploading transactional data interactively.

14. Describe the use of Web Services and APIs in Fusion.

Answer: Fusion exposes REST and SOAP APIs for integration with third-party systems and

automation.

15. What is ESS and how do you manage scheduled jobs?

Answer: Enterprise Scheduler Service runs background jobs and reports. Jobs are scheduled using

the Scheduled Processes UI.

16. What is UCM in Oracle Fusion?

Answer: Universal Content Manager is used to store and retrieve documents, including file uploads

like FBDI templates.

Answer: Through sandboxes for UI customization, expression language for conditions, and page

composer for layout changes.

18. How do you handle error handling in integration scenarios?

Answer: By using error notifications, audit logs, and validation reports during imports and web

service calls.

19. What is the purpose of HDL (HCM Data Loader)?

Answer: Used mainly in HCM for bulk data uploads such as employee and job records.

20. How do you secure BI Publisher reports?

Answer: Using roles and data access security settings to limit access to reports and data.

21. Describe how you implemented a multi-org setup in Oracle Fusion.

Answer: By configuring business units, ledgers, legal entities, and intercompany rules aligned with

clients legal structure.

22. How did you migrate data from EBS to Fusion?

Answer: Using FBDI templates for master and transactional data, ensuring validation and mapping

consistency.

23. How do you manage approval workflows?

Answer: Using BPM Worklist to configure routing rules based on job levels, amount, and document

types.

24. A user cannot post a journal. How would you troubleshoot?

Answer: Check journal status, period status, role access, and validation errors in the journal batch.

25. How do you handle a failed FBDI upload?

Answer: Check for validation errors in the import logs and correct them before re-uploading the file.

26. Describe a custom report you created.

Answer: A report combining AP invoice data with payment status using BI Publisher, customized
with prompts for BU and date range.

27. How do you ensure GL balances are accurate during period close?

Answer: Reconcile subledger balances, review trial balances, run diagnostics, and check for

unposted journals.

28. Explain intercompany transactions.

Answer: These are configured using intercompany rules and balancing segments to automate

accounting entries between legal entities.

29. How do you configure tax in Oracle Fusion?

Answer: Using Oracle Tax, define tax regimes, rules, rates, and assign them to transactions based

on geography and business rules.

30. What are Infolets and how are they used?

Answer: Infolets are dashboard components showing key metrics like payable aging, GL balances,

and receivables KPIs.

31. What is Smart View and how do you use it?

Answer: Excel plugin for analyzing and interacting with Oracle data, mainly for GL and Budget

reporting.

32. How do you manage audit compliance in Fusion?

Answer: By enabling audit trails, assigning proper roles, and using reports for monitoring user and

transaction activity.

33. What is Encumbrance Accounting?

Answer: Tracks budget commitments and obligations to ensure spending control. Used in public

sector accounting.

34. How is Oracle Fusion different from Oracle EBS?

Answer: Fusion is cloud-native, has a modern UI, REST APIs, and quarterly updates, unlike the

on-premise EBS.
35. Describe the setup of Cash Management in Fusion.

Answer: Configure bank accounts, reconciliation rules, and cash forecasting tools to manage daily

cash positions.

36. What are diagnostic tests in Fusion?

Answer: Pre-built tests for modules that help identify configuration and data issues automatically.

37. How do you handle custom roles?

Answer: By copying seeded roles and adjusting privileges and data security policies per business

needs.

38. What is the purpose of Ledger Sets?

Answer: Allows reporting and processing across multiple ledgers with common CoA and calendar.

39. How do you automate reconciliation processes?

Answer: Using AutoReconciliation rules in Cash Management and configuring matching rules for

Payables/Receivables.

40. What is a Business Unit and how is it used?

Answer: Represents a business function (e.g., Payables, Receivables) and controls access to data

and processes.

41. How do you manage quarterly patch testing?

Answer: By reviewing patch notes, performing impact analysis, regression testing in test pods, and

documenting outcomes.

42. What is Financial Consolidation and Close Cloud (FCCS)?

Answer: Used for group-level financial consolidation, intercompany eliminations, and reporting in

cloud ERP suite.

43. Describe your experience with Expenses module.

Answer: Configured expense types, approval flows, integration with Payables for reimbursements,

and audit rules.

Answer: By importing statements, applying auto-match rules, and manually matching exceptions in

Cash Management.

45. How do you schedule and monitor report jobs?

Answer: Using the Scheduled Processes UI to set frequency, parameters, and track job history and

logs.

46. How do you customize dashboards in Fusion?

Answer: Use Oracles Page Composer and Infolets for user-level customizations of the homepage

dashboards.

47. How do you handle duplicate invoice issues in AP?

Answer: Enable invoice matching and duplication control at supplier or system level to flag

duplicates.

48. Describe a difficult implementation and how you resolved it.

Answer: Handled a complex CoA redesign during mid-implementation. Used extensive mapping,

validation, and testing to go-live successfully.

49. How do you test financial setups?

Answer: Use test scripts for each module, validate with sample transactions, and perform

end-to-end scenario testing.

50. What are key reports used during month-end close?

Answer: Trial balance, GL journal report, subledger accounting reports, aging reports, and

reconciliation summaries.