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Oracle 1z0-1054-20 (Oracle Financials Cloud: General Ledger 2020 Implementation Essentials) exam dumps vce, practice test questions, study guide & video training course to study and pass quickly and easily. Oracle 1z0-1054-20 Oracle Financials Cloud: General Ledger 2020 Implementation Essentials exam dumps & practice test questions and answers. You need avanset vce exam simulator in order to study the Oracle 1z0-1054-20 certification exam dumps & Oracle 1z0-1054-20 practice test questions in vce format.
The Oracle Financials Cloud: General Ledger 2020 Implementation Essentials certification, validated by passing the 1z0-1054-20 Exam, represents a significant milestone for finance and technology professionals. This certification is designed for individuals with a strong foundational knowledge of accounting principles and hands-on experience in implementing Oracle Financials Cloud solutions. The target audience includes implementation consultants, financial administrators, and business analysts who are responsible for configuring and managing the core financial modules of the Oracle ecosystem. Achieving this certification demonstrates a deep understanding of the application's architecture, setup, and processing capabilities, making it a valuable credential in the competitive enterprise resource planning (ERP) market. It validates your ability to configure General Ledger, manage journal processing, handle intercompany transactions, and oversee the period close process.
Success in the 1z0-1054-20 Exam signifies more than just technical proficiency; it showcases an ability to translate business requirements into effective and efficient system configurations. The exam curriculum is structured to test a candidate's practical skills in setting up the foundational elements of the financial system, which are critical for any organization's success. By preparing for this exam, you will gain a comprehensive understanding of how enterprise structures, chart of accounts, ledgers, and legal entities form the backbone of the financial application. This knowledge is not purely theoretical but is directly applicable to real-world implementation projects, ensuring that certified professionals can deliver tangible value to their organizations or clients. Ultimately, this certification serves as a formal recognition of your expertise, enhancing your professional credibility and opening doors to new career opportunities in the world of cloud finance.
A thorough understanding of the exam syllabus is the first step toward a successful preparation strategy for the 1z0-1054-20 Exam. The topics are logically organized to cover the entire lifecycle of core financial management within Oracle Cloud. The syllabus begins with the most fundamental components, such as configuring enterprise structures and the chart of accounts. These initial topics are critical, as all subsequent transactional and reporting configurations depend on them. The exam then progresses into the specifics of General Ledger setup, including the creation of ledgers, accounting calendars, and currency settings. A significant portion is dedicated to journal processing, covering manual journals, approvals, and the automation of journal entries through various tools and integrations.
Beyond the core General Ledger, the 1z0-1054-20 Exam syllabus extends to closely related and essential modules. Intercompany accounting is a key area, testing your ability to configure balancing rules and manage transactions between different legal entities within an organization. Budgetary control and encumbrance accounting are also vital components, reflecting the need for public sector and other organizations to manage expenditures against budgets. Finally, the syllabus covers the crucial period close process and financial reporting. This includes understanding the steps to close a financial period, performing reconciliations, and using tools like Financial Reporting Studio and Smart View to generate critical financial statements and analyses. By breaking down the syllabus into these manageable sections, you can create a focused study plan that addresses each area methodically.
The cornerstone of any Oracle Financials Cloud implementation, and a primary focus of the 1z0-1054-20 Exam, is the configuration of the General Ledger. This process begins with defining the enterprise structures, which provide the framework for the entire organization. This includes setting up the enterprise, legal entities, business units, and ledgers. A legal entity represents a registered company or organization and is the level at which statutory reporting is typically performed. Business units are organizational segments that are used for transactional processing, such as invoicing or payments, and implement specific business policies. Understanding the relationship between these components is crucial for ensuring proper data security, processing, and reporting.
Central to the General Ledger is the Chart of Accounts (COA), the structure that an organization uses to record transactions and organize financial information. A well-designed COA is vital for effective reporting and analysis. For the 1z0-1054-20 Exam, you must be proficient in configuring COA value sets, values, and structures, including segment labels that identify specific segments for special processing, such as the natural account or primary balancing segment. This configuration underpins the entire accounting process. Once the COA is defined, you must configure the primary ledger, which combines the chart of accounts, accounting calendar, and currency to form a self-contained accounting record for a legal entity.
The ledger concept in Oracle Financials Cloud is powerful and flexible. In addition to the primary ledger, you can configure secondary ledgers and reporting currencies. Secondary ledgers can use a different chart of accounts, calendar, or accounting method to meet specific statutory or managerial reporting requirements. Reporting currencies are used to maintain financial records in a currency other than the primary ledger's functional currency. A deep understanding of how to define these ledgers and currency conversion rules is essential. The 1z0-1054-20 Exam will test your ability to correctly associate these components and manage the data conversion process to ensure financial data is accurate across all representations.
Finally, linking all these components together through the accounting configuration is a task that requires precision. This involves associating the primary ledger with the legal entities it serves and assigning balancing segment values to each legal entity. This crucial step ensures that the system can generate balanced journal entries for each legal entity, which is a fundamental accounting requirement. Furthermore, business units are assigned to a primary ledger, establishing the context in which they will process transactions. Mastering the setup of these foundational elements is not just important for the exam but is the most critical aspect of a successful General Ledger implementation.
A global enterprise operates across multiple countries and requires a financial system that can handle diverse currencies and fiscal periods. The 1z0-1054-20 Exam places significant emphasis on a candidate's ability to configure currencies and accounting calendars within Oracle Financials Cloud. Currency configuration starts with enabling the currencies required for transaction processing and reporting. This includes not only the major world currencies but any specific currency an organization might use. Beyond simply enabling currencies, you must understand how to manage conversion rates. The system provides tools to load daily rates automatically from financial data providers or to enter them manually for specific periods, averages, or historical values.
Understanding the different types of conversion rates is critical for exam success. The system uses specific rate types for different business purposes, such as 'Spot' for daily transactions, 'Corporate' for standardized internal reporting, and 'Period End' for revaluation processes. You must be able to configure these rate types and manage the associated rate values. The process of currency revaluation, which adjusts asset and liability accounts denominated in a foreign currency to their functional currency value at the end of a period, is a key topic. You will need to know how to set up the revaluation process, including defining the gain and loss accounts that will be used.
Equally important is the setup of the accounting calendar. The calendar defines the fiscal year and the accounting periods within that year. Oracle Financials Cloud offers significant flexibility in this area, allowing you to create calendars with standard monthly periods, 4-4-5 patterns, or other custom structures to match an organization's specific reporting needs. For the 1z0-1054-20 Exam, you should be comfortable with the process of creating a new accounting calendar, defining its periods, and specifying the start and end dates. Adjusting periods are a special feature of the calendar used for year-end adjustments, and you must understand their purpose and configuration.
Once a calendar is created, it is assigned to a ledger, establishing the official accounting cycle for that ledger. All transactions posted to the ledger must fall within a defined and open period in the assigned calendar. The management of these periods is a routine operational task. You will be expected to know how to open and close accounting periods for General Ledger and its subledgers. A solid grasp of how the calendar and currency configurations interact is essential, as these settings collectively determine how financial data is recorded, translated, and reported over time, forming a core competency tested in the 1z0-1054-20 Exam.
Journal processing is the heart of the General Ledger, as it is the mechanism for recording all financial transactions. The 1z0-1054-20 Exam thoroughly tests your knowledge of how to configure and manage this process. A key aspect of this is the setup of journal sources and categories. Journal sources identify the origin of a journal entry, such as 'Payables', 'Receivables', or 'Manual'. Journal categories provide a further level of classification, like 'Purchase Invoices' or 'Customer Payments'. Properly configuring sources and categories is vital for reporting, reconciliation, and creating specific rules for processing. For example, journal approval rules can be based on the source and category of a journal.
The exam requires a deep understanding of the journal approval process, which is managed through the Business Process Management (BPM) worklist. You must know how to configure approval rules that route journals to the appropriate managers for review before they are posted to the General Ledger. These rules can be simple, based on a single approver, or complex, involving multiple levels of approval based on criteria such as the journal amount or the specific accounts being used. Candidates should be familiar with setting up approval groups and using various routing methods like supervisory or job-level hierarchies. This ensures that organizations can maintain strong internal controls over financial postings.
Another critical topic for the 1z0-1054-20 Exam is the use of automation in journal creation. Oracle Financials Cloud provides several tools to streamline this process and reduce manual effort. Journal entry templates, or spreadsheet-based tools like File-Based Data Import (FBDI) and Application Desktop Integrator (ADI), allow users to prepare and upload large volumes of journal entries efficiently. You should understand the use cases for each tool and the steps required to configure and use them. For instance, knowing how to populate an FBDI template with data, generate the required file, and upload it through the application's interface is a practical skill you will be expected to have.
Finally, the concept of journal reversal is an important operational feature. You must know how to configure automatic journal reversals, which are useful for accrual entries that need to be reversed in the subsequent accounting period. The system can be set up to automatically generate and post the reversal entry on a specified date, ensuring that accruals are properly managed without manual intervention. A comprehensive knowledge of the entire journal lifecycle, from creation and approval to posting and reversal, is fundamental to demonstrating the level of expertise required to pass the 1z0-1054-20 Exam.
In large, multi-entity organizations, transactions between different legal entities are common and require careful management to ensure that the consolidated financial statements are accurate. The 1z0-1054-20 Exam includes a dedicated section on intercompany accounting, testing your ability to configure the system to handle these complex scenarios. The core of the intercompany functionality lies in the Intercompany Balancing Rules. These rules instruct the system on how to automatically generate the balancing lines needed to keep each legal entity's books in balance when a single journal entry affects multiple entities. For example, if the corporate entity pays an expense on behalf of a subsidiary, the system must create intercompany receivable and payable entries between the two.
To prepare for the 1z0-1054-20 Exam, you must learn how to define these balancing rules. The setup involves specifying the intercompany receivable and payable accounts that the system will use to generate the balancing entries. These rules can be defined at different levels of detail, from a simple rule for a primary balancing segment to more complex rules that apply to combinations of legal entities, ledgers, or even source and category. This flexibility allows the system to accommodate various organizational structures and accounting policies. A clear understanding of how the system selects the appropriate rule based on the transaction's context is a key competency.
The intercompany system also provides a dedicated workbench for managing and processing intercompany transactions that are initiated outside of the General Ledger. This allows organizations to create a more controlled and auditable process for intercompany activities, such as service charges or asset transfers between entities. You should be familiar with the process of creating intercompany batches, entering transactions, and managing the approval and accounting workflow. This dedicated subledger provides greater visibility and control than simply using multi-entity general ledger journals for all intercompany activity. The ability to explain the difference and when to use each method is important.
Furthermore, the 1z0-1054-20 Exam may cover the reconciliation of intercompany accounts. The system provides reports and tools to help accountants identify and resolve discrepancies between the intercompany receivable and payable balances of different entities. This is a critical period-end activity to ensure that these balances are eliminated upon consolidation. Your preparation should include understanding how to use these reconciliation tools and the common causes of out-of-balance situations. A comprehensive grasp of the intercompany module, from initial setup to transaction processing and reconciliation, will be essential for your success.
For many organizations, particularly in the public sector and non-profit industries, managing expenditures against a predefined budget is a legal and operational necessity. The 1z0-1054-20 Exam tests your knowledge of Budgetary Control and Encumbrance Accounting in Oracle Financials Cloud. Budgetary Control allows an organization to check transactions against available budget funds in real time. If funds are not available, the system can prevent the transaction from proceeding, thereby enforcing fiscal discipline. To prepare for the exam, you must understand how to enable and configure this module. This includes defining a budget calendar, which may differ from the accounting calendar, and setting up control budgets.
A control budget defines the scope of budgetary control. It specifies the segments of the chart of accounts that will be subject to budget checking (e.g., a specific fund, department, and account), the currency, and the control level. The control level determines the strictness of the budget check. An 'Absolute' control level will stop a transaction if it exceeds the budget, while an 'Advisory' level will allow it to proceed but will issue a warning. The 1z0-1054-20 Exam will expect you to know how to configure these options to meet different business requirements. You also need to know how to load budget data into the control budgets, either manually or through spreadsheet uploads.
Encumbrance accounting is a related concept that reserves budget funds for anticipated expenditures. When a purchase requisition or purchase order is approved, the system creates an encumbrance entry that earmarks the funds, reducing the available budget balance even before the actual invoice is received and paid. This provides a more accurate picture of committed funds. You must understand the full lifecycle of an encumbrance, from its creation at the requisition stage to its consumption when the invoice is processed, and its final liquidation. The exam will test your understanding of how to enable encumbrance accounting for ledgers and specific transaction types.
The integration between Budgetary Control, the subledgers (like Purchasing and Payables), and General Ledger is a key area of focus. You need to understand how the system performs funds checks at different stages of the procure-to-pay process and how the encumbrance and actual accounting entries are generated and posted. Reviewing budgetary control results, managing overrides for exceptional cases, and running reports to analyze budget versus actual performance are also important skills. A solid understanding of these features is crucial for any consultant implementing financials for organizations where budget adherence is paramount, and therefore is a significant topic within the 1z0-1054-20 Exam.
The process of closing a financial period is a critical, time-sensitive activity for any accounting department. The 1z0-1054-20 Exam requires candidates to have a firm grasp of the tools and processes within Oracle Financials Cloud that facilitate an efficient and accurate period close. The application provides a centralized dashboard, known as the Close Monitor, which offers real-time visibility into the status of the close process across all financial modules. This tool allows financial controllers to see which subledgers are open or closed, review the status of key tasks, and identify any bottlenecks that may be causing delays. Understanding how to navigate and interpret the information in the Close Monitor is a practical skill you will need.
A key part of managing the close is ensuring that all subledger transactions for the period have been fully accounted for and transferred to the General Ledger. The 1z0-1054-20 Exam will expect you to know the sequence of closing the subledgers, which typically involves closing modules like Payables and Receivables before the General Ledger itself can be closed. You must understand the prerequisite steps for each module, such as reconciling transactional activity and running key reports to validate data integrity. The process of running the 'Create Accounting' program to transfer entries to the GL and resolving any exceptions that arise is a fundamental concept.
The General Ledger close process involves several important steps. These include posting all final journal entries, running revaluation to adjust foreign currency balances, and executing translation to report balances in different currencies. You may also need to run mass allocation formulas to distribute costs or revenues across different departments or business units. The exam will test your knowledge of how to configure and execute these processes. Understanding the purpose of each step and its position in the overall close sequence is vital. For example, you must run revaluation before translation to ensure the translated balances are based on the correctly valued functional currency amounts.
Finally, once all closing activities are complete and the trial balance is validated, the period can be closed in the General Ledger. This action prevents any further transactions from being posted to that period, ensuring the integrity of the financial records. For the 1z0-1054-20 Exam, you should also be familiar with the process of opening the next accounting period to allow new transactions to be recorded. A comprehensive understanding of the end-to-end period close management, from subledger reconciliation to the final GL close, is a hallmark of an experienced financials consultant and a critical area of expertise for the exam.
Embarking on the journey to pass the 1z0-1054-20 Exam requires a strategic and disciplined approach. The first step is to thoroughly review the official exam objectives and use them as a checklist for your studies. This ensures that you cover every topic and sub-topic that could potentially appear on the exam. A great strategy is to create a detailed study schedule, allocating specific time slots to each major area like General Ledger, Payables, Receivables, and so on. This structured approach prevents last-minute cramming and allows for a deeper, more lasting understanding of the concepts.
Gaining hands-on experience is arguably the most critical component of your preparation. Reading documentation is important, but nothing replaces the practical knowledge gained from navigating the application, performing setups, and processing transactions in a test environment. If you have access to an Oracle Financials Cloud instance, use it extensively. Follow along with tutorials and implementation guides, and try to configure each component mentioned in the exam syllabus. This practical application will solidify your theoretical knowledge and prepare you for the scenario-based questions that are a common feature of the 1z0-1054-20 Exam.
The Accounts Payable (AP) module is a fundamental component of the procure-to-pay lifecycle and a significant area of focus within the 1z0-1054-20 Exam. This module manages the entire process of handling supplier invoices, from their receipt and validation to their approval and final payment. A deep understanding of the Payables module is critical for any financial implementation consultant, as it directly impacts an organization's cash flow, supplier relationships, and financial reporting accuracy. The exam will test your ability to configure the module to meet diverse business needs, process various types of invoices, and manage the intricate payment process.
Your preparation for the 1z0-1054-20 Exam must cover the end-to-end flow of an invoice. This begins with understanding the different methods of getting invoices into the system, including manual entry, spreadsheet uploads, and sophisticated automated scanning solutions. Once an invoice is in the system, it goes through a validation process to check for accuracy and completeness. This is followed by an approval workflow, which routes the invoice to the appropriate managers for authorization. Finally, the approved invoice is selected for payment in a payment run. A thorough grasp of each of these stages, including the underlying configurations that control them, is essential for success.
The integration of the Payables module with other parts of Oracle Financials Cloud is another key concept. Payables is tightly integrated with Purchasing, for matching invoices to purchase orders and receipts, and with General Ledger, for posting accounting entries related to liabilities and expenses. It also integrates with Fixed Assets, for creating asset records from supplier invoices, and with Cash Management, for reconciling payments with bank statements. The 1z0-1054-20 Exam will expect you to understand these integration points and how data flows between the modules. This holistic view is crucial for designing and implementing an efficient and cohesive financial system.
Effectively managing supplier data is the foundation of a well-run Payables department. The exam will cover topics related to supplier setup and maintenance, including defining supplier profiles, sites, and bank accounts. The ability to correctly configure this information is vital, as it impacts everything from invoice processing to payment execution. A comprehensive study of the Payables module, from its core configurations and transactional processes to its integration points, will provide you with the knowledge needed to confidently answer the questions presented in the 1z0-1054-20 Exam and prove your expertise in this critical area.
Before any transactions can be processed, the Payables module must be configured with a set of controlling options that define its behavior. The 1z0-1054-20 Exam places great importance on a candidate's ability to perform this foundational setup. The configuration process starts with the 'Manage Common Options for Payables and Procurement' task. This is where you define settings that are shared between the two modules, such as the default liability and expense accounts, the payment terms, and the business unit's default ledger and legal entity. These settings provide a baseline for all transactions processed within that business unit, reducing manual data entry and ensuring consistency.
Following the common options, you must configure the specific Invoice Options and Payment Options. Invoice Options control various aspects of the invoice processing lifecycle. Here, you will define settings such as the invoice currency, the numbering scheme for invoices, and the default matching options for purchase order-based invoices. A critical part of this setup is defining holds and tolerances. Holds automatically prevent an invoice from being paid if a certain condition is met, such as a discrepancy between the invoice amount and the purchase order amount. Tolerances define the acceptable variance, allowing minor differences to be automatically approved. The 1z0-1054-20 Exam will test your understanding of how to configure these to enforce business rules.
Payment Options, on the other hand, govern how suppliers are paid. This includes settings related to the payment currency, the grouping of invoices on a single payment, and the bank charges that may apply. You will also define the default payment method for the business unit. A key concept to master is the relationship between the supplier, invoice, and payment options. While you set defaults at the business unit level, many of these can be overridden at the supplier site or even on an individual invoice, providing a high degree of flexibility. Understanding this hierarchy of defaults is crucial for answering scenario-based exam questions.
Finally, tax configuration is an integral part of the Payables setup. While the core tax engine is a separate module, its configuration directly impacts how taxes are calculated and accounted for on supplier invoices. You must understand how to associate the Payables module with the tax regimes and rules that have been defined. This includes specifying default tax settings at the business unit level and understanding how the system determines the applicable tax for an invoice based on factors like the supplier's location and the nature of the goods or services purchased. A thorough knowledge of these core setup tasks is essential for demonstrating your implementation expertise on the 1z0-1054-20 Exam.
Suppliers are at the heart of the Accounts Payable process, and their accurate and complete setup is critical for smooth operations. The 1z0-1054-20 Exam requires a comprehensive understanding of the supplier model in Oracle Financials Cloud and the process of managing supplier data. The supplier model is hierarchical, consisting of the supplier profile at the highest level, followed by supplier addresses, and then supplier sites. The supplier profile contains general information about the supplier, such as their name and tax identifiers. A supplier can have multiple addresses, each serving a different purpose, such as a corporate headquarters or a remittance address.
The most detailed level of the hierarchy is the supplier site. A site represents a specific location from which the supplier conducts business and is associated with a particular business unit of your organization. It is at the site level that most of the critical transaction-processing controls are defined. This includes specifying the default payment terms, the payment currency, the payment method, and the bank account from which payments should be made. The 1z0-1054-20 Exam will expect you to be proficient in navigating these different levels of the supplier record and configuring the various attributes to meet specific business requirements.
Creating a new supplier is a multi-step process. It typically begins with a request from a business user, which may go through an approval workflow. Once approved, the supplier profile can be created. A key part of this process is preventing the creation of duplicate suppliers, and you should be familiar with the system's duplicate-checking capabilities. After the main profile is created, you will add the necessary addresses and then create the supplier sites for each business unit that will transact with the supplier. For each site, you will need to configure the purchasing, invoicing, and payment attributes.
Managing supplier bank accounts is another critical function, as this information is used to make electronic payments. The system has robust security features to control access to and modification of this sensitive data. You must understand the process of adding a supplier's bank account details and associating it with a specific supplier site. The 1z0-1054-20 Exam may present scenarios that test your ability to troubleshoot issues related to supplier setup, such as why a particular invoice is not being selected for payment, which can often be traced back to an incorrect configuration at the supplier site level. Mastering supplier management is therefore a non-negotiable skill.
The core function of the Accounts Payable module is to process supplier invoices accurately and efficiently. A significant portion of the 1z0-1054-20 Exam will focus on your ability to manage the entire invoice lifecycle, from creation to validation and approval. Invoices can be created in several ways. Manual entry through the user interface is the most basic method. However, for high-volume environments, you will need to be proficient with more automated methods. This includes using the File-Based Data Import (FBDI) process to upload invoices from a spreadsheet template, or leveraging integrated imaging solutions that can scan paper invoices and use optical character recognition (OCR) to automatically create invoice records.
Oracle Financials Cloud supports several types of invoices, and you must understand the purpose of each. A 'Standard' invoice is the most common type, representing a bill for goods or services. A 'Credit Memo' is used to record a credit from a supplier, reducing the amount owed. A 'Debit Memo' is similar but is created by your organization to notify the supplier of a credit you are taking. 'Prepayment' invoices are used to record advance payments to suppliers, which can later be applied to standard invoices. The 1z0-1054-20 Exam will test your knowledge of when and how to use each of these invoice types.
Once an invoice is created, it must go through the validation process. This is a critical system check that verifies the integrity of the invoice data. The validation process checks for a variety of conditions, such as ensuring that the invoice totals are correct, that a valid supplier site is used, and that the accounting information is complete. If the invoice is matched to a purchase order, validation will also check for discrepancies between the invoice, the purchase order, and the receipt quantities and amounts. You must be familiar with the different types of holds that the validation process can place on an invoice and how to resolve them.
For example, a 'Distribution Variance' hold might be placed if the sum of the invoice lines does not equal the header amount. A 'Matching' hold could be placed if the invoice quantity exceeds the received quantity on a purchase order. The 1z0-1054-20 Exam will expect you to understand how to investigate the cause of these holds and take the necessary corrective actions, such as correcting the invoice data or working with the purchasing department to resolve the underlying issue. A complete understanding of the invoice creation and validation process is fundamental to demonstrating your expertise in the Payables module.
After an invoice has been successfully validated, it often needs to be approved before it can be paid. The 1z0-1054-20 Exam requires a thorough understanding of how to configure and manage these approval workflows. Invoice approvals are managed using the powerful Business Process Management (BPM) engine that is part of the underlying Oracle Fusion Middleware platform. This engine allows you to define sophisticated, multi-stage approval rules that can meet the needs of any organization, from simple to complex. As an implementation consultant, you must be comfortable working within the BPM Worklist interface to set up and maintain these rules.
The approval rules are built using a series of conditions and actions. A condition could be based on any attribute of the invoice, such as the invoice amount, the supplier name, or the cost center being charged. For example, you could create a rule that states, "If the invoice amount is greater than $5,000, then route it to the department manager for approval." The action part of the rule specifies who the approver should be. The system supports various routing mechanisms, including routing to a specific named user, to a predefined approval group, or up a management hierarchy, such as the requester's supervisory chain.
The 1z0-1054-20 Exam will likely present scenarios that require you to determine the correct way to configure a rule to meet a specific business requirement. This could involve creating rules with multiple stages of approval, where an invoice is first approved by a project manager and then by a financial controller. It could also involve parallel approvals, where multiple people need to approve an invoice simultaneously. You should also understand how to manage vacation rules, which allow approvers to delegate their approval responsibilities to someone else when they are out of the office, ensuring that the process does not get stalled.
In addition to configuring the rules, you need to understand how to manage the approval process from an operational perspective. This includes monitoring the status of invoices that are pending approval, reassigning approval tasks if an approver is unresponsive, and troubleshooting any issues that may arise with the workflow. The BPM Worklist provides administrators with the tools to perform these tasks. A solid grasp of the entire approval framework, from rule configuration in BPM to the day-to-day management of the workflow, is a critical skill set for the 1z0-1054-20 Exam.
Making timely and accurate payments to suppliers is the final and most critical step in the procure-to-pay process. The 1z0-1054-20 Exam devotes significant attention to the Payments module, which is a centralized engine for disbursing funds from Oracle Financials Cloud. This module is shared across several applications, including Payables and Receivables (for refunds), so its proper configuration is essential. Your preparation must include a deep dive into the key setup components of the Payments module. These components work together to define how payments are processed, formatted, and transmitted to the bank.
The setup begins with configuring the payment systems. A payment system represents your organization's relationship with a financial institution or payment processor. Within this setup, you define the processing rules and security settings required to connect to that institution. Next, you must configure the payment formats. The format dictates the layout of the payment file that will be sent to the bank. The system comes with a large library of pre-built formats for common standards like ACH, BACS, and SEPA, but you must understand how to select and configure the correct format for your bank. This includes setting up any required transmission configurations for securely sending the file.
The most important setup component is the Payment Process Profile (PPP). The PPP brings together all the other settings and controls the behavior of a payment run. In the PPP, you will specify the payment format, the bank account from which funds will be disbursed, and the processing rules. For example, you can define whether the payment file should be automatically transmitted to the bank upon completion of the payment run. You can also group multiple business units to pay from a single bank account, a feature known as centralized payments. The 1z0-1054-20 Exam will expect you to know how to create and configure a PPP to meet various payment scenarios.
Finally, you need to understand how to set up disbursement bank accounts within the Cash Management module, as these are used by the Payments module. This includes defining the account details, specifying the payment documents (e.g., check stock) that will be used, and associating the account with the relevant payment systems and process profiles. A comprehensive understanding of how these different setup components—payment systems, formats, PPPs, and bank accounts—interact is crucial for mastering the Payments module and succeeding on the 1z0-1054-20 Exam.
Once all the necessary configurations are in place, you can begin to process payments. The primary tool for this in Oracle Financials Cloud is the Payment Process Request, commonly known as a PPR. A PPR is a batch job that selects invoices that are due for payment, groups them into payments, formats them according to the bank's requirements, and generates the payment file. The 1z0-1054-20 Exam will test your ability to execute and manage this end-to-end process. It all starts with submitting the PPR, which can be done from a template or by entering the selection criteria manually.
When submitting a PPR, you define the criteria for selecting the invoices to be paid. This can include a range of due dates, a specific supplier or group of suppliers, a particular currency, or a business unit. You also select the Payment Process Profile (PPP) that will govern how the payment batch is processed. Once the request is submitted, the system initiates a multi-stage process. The first stage is invoice selection, where the system identifies all the validated and approved invoices that meet the criteria you specified. You have the opportunity to review the selected invoices and make any necessary additions or removals before proceeding.
After the invoices are finalized, the system moves to the build payments stage. In this stage, the selected invoices are grouped into individual payments based on the rules defined in the PPP, such as grouping all invoices for a single supplier site into one payment. The system then assigns a payment number and determines the disbursement bank account. Following this, the format payments stage takes over. Here, the payment data is formatted into the specific file layout required by the bank, as defined in the selected payment format. This results in the creation of the payment file that will eventually be sent to the bank.
The final stages involve confirming the payment run and transmitting the file. Once the payment file is generated, it can be printed (for checks) or electronically transmitted to the bank. After receiving confirmation from the bank that the file has been processed, you will complete the process in the system. The 1z0-1054-20 Exam requires you to understand this entire workflow, including how to monitor the status of a PPR, how to troubleshoot issues that may arise at each stage, and how to handle exceptions like payment voids or terminations. This practical knowledge is essential for any financials consultant.
Maintaining a clear and auditable link between the subledger and the General Ledger is a fundamental accounting requirement. For the 1z0-1054-20 Exam, you must be proficient in the process of accounting for and reconciling Payables transactions. Every transaction in Payables that has a financial impact, such as an invoice validation or a payment, must generate a corresponding journal entry that is posted to the General Ledger. This process is managed by the Subledger Accounting (SLA) engine. You need to understand how to run the 'Create Accounting' process, which is the job that invokes SLA to generate these journal entries.
The Create Accounting process can be run in different modes. It can be run in a draft mode, which allows you to review the generated accounting entries before they are finalized, or in a final mode, which creates the entries and immediately transfers them to the General Ledger interface. You should also understand the difference between accounting for transactions and transferring them to the GL. These can be done as a single step or as two separate steps, providing flexibility in the close process. The ability to schedule this process to run automatically is another key feature you should be familiar with.
The 1z0-1054-20 Exam will expect you to have a basic understanding of the underlying Subledger Accounting rules that determine how the journal entries are created. While deep SLA customization is an advanced topic, you need to know how the system derives the accounts for the different parts of a transaction. For example, you should know how the liability account is defaulted from the supplier site or common options, and how the expense or asset account is entered on the invoice distribution. Understanding this logic is crucial for troubleshooting accounting errors.
Reconciliation is the process of ensuring that the total balances in the Payables subledger match the corresponding liability account balances in the General Ledger. The application provides several standard reports to facilitate this process. The 'Payables to General Ledger Reconciliation Report' is the primary tool for this, providing a detailed breakdown of accounting activity and highlighting any discrepancies. Your preparation for the 1z0-1054-20 Exam should include learning how to run and interpret this report, as well as understanding the common causes of reconciliation issues and how to resolve them. This skill demonstrates a complete understanding of the financial data flow.
The Accounts Receivable (AR) module is the counterpart to Payables and is central to the order-to-cash business process. It is responsible for managing customer billing, processing payments, and maintaining customer balances. A thorough understanding of the Receivables module is a mandatory requirement for passing the 1z0-1054-20 Exam. This module directly influences an organization's cash flow and its relationship with its customers. The exam will rigorously test your ability to configure the system to handle various billing scenarios, manage customer data effectively, process customer payments accurately, and reconcile receivables activity with the General Ledger.
Your preparation must encompass the complete lifecycle of a receivable, starting from the creation of a customer invoice. This can originate from an upstream application like Order Management or can be created directly within the Receivables module. The exam covers different methods for creating transactions, including manual entry and the powerful AutoInvoice import tool. Once an invoice is created and sent to the customer, the focus shifts to managing the outstanding balance. This involves applying customer payments, handling adjustments and credit memos, and pursuing overdue amounts through the collections process. A strong grasp of each stage of this cycle is fundamental.
Integration is a key theme throughout the 1z0-1054-20 Exam, and the Receivables module is no exception. It has critical integration points with Order Management, for creating invoices from sales orders; with General Ledger, for posting revenue, cash, and receivable accounting entries; and with Cash Management, for reconciling customer payments with bank statements. Furthermore, the Revenue Management module works closely with Receivables to ensure compliance with modern revenue recognition standards like ASC 606 and IFRS 15. Understanding how data and processes flow between these interconnected modules is essential for a holistic implementation approach.
Ultimately, the goal of the Receivables module is to efficiently convert sales into cash. The 1z0-1054-20 Exam will assess your ability to configure the system to optimize this process. This includes setting up flexible billing options, streamlining the receipt application process, and providing the tools for effective collections management. By mastering the concepts within the Receivables module, you will demonstrate your capability to implement a core component of Oracle Financials Cloud that is vital to the financial health of any organization, proving your readiness for the certification.
The foundation of a successful Receivables implementation lies in its initial configuration. The 1z0-1054-20 Exam requires candidates to be proficient in setting up the various system options and components that govern the module's behavior. The primary setup task is configuring the Receivables System Options. This is a comprehensive set of controls, defined at the business unit level, that determines how transactions and receipts are processed. Here, you will specify settings for accounting, billing, and customer information. For example, you will define the default tax determination method, the application of payments to open invoices, and the number of days in the billing cycle.
A crucial part of the configuration is defining Transaction Types and Transaction Sources. A Transaction Type determines the default settings for an invoice, debit memo, or credit memo, such as whether it posts to the General Ledger and whether it generates an open receivable balance. For example, you might have a transaction type for 'Domestic Sales' and another for 'International Sales', each with different default revenue accounts. A Transaction Source identifies the origin of a transaction, such as 'Manual' for user-entered invoices or a specific name for invoices imported from an external billing system. The 1z0-1054-20 Exam will test your ability to configure these to categorize and control transaction processing.
Receipt processing is another area requiring detailed setup. You must configure Receipt Classes and Receipt Sources. The Receipt Class determines the processing steps for a customer payment, including how it is created, whether it requires remittance, and how it is accounted for. For instance, a receipt class for electronic funds transfers would be configured differently from one for paper checks. The Receipt Source provides a default receipt class and helps to categorize receipts for reporting purposes. You must also configure Remittance Banks, which involves setting up the bank accounts into which customer payments will be deposited.
Finally, the 1z0-1054-20 Exam emphasizes the importance of AutoAccounting. This powerful feature automatically derives the General Ledger accounts for every part of a receivables transaction, such as the receivable, revenue, tax, and cash accounts. AutoAccounting rules are built based on various inputs, like the transaction type, customer site, or item being sold. Correctly configuring these rules is vital to ensure that all transactions are accounted for accurately without manual intervention. A deep understanding of how to set up System Options, Transaction and Receipt components, and AutoAccounting is fundamental to passing the Receivables section of the exam.
Accurate and well-organized customer data is the bedrock of the entire order-to-cash process. The 1z0-1054-20 Exam will assess your understanding of how to create, manage, and maintain customer information within Oracle Financials Cloud. The customer model, similar to the supplier model, is hierarchical. It consists of the customer account at the top level, which represents the legal entity you are doing business with. Underneath the account, you can create multiple addresses and sites. A customer site represents a specific location and defines its business purpose, such as a 'Bill-to' site where invoices are sent or a 'Ship-to' site where goods are delivered.
A single customer account can have numerous sites, each with its own specific settings. When preparing for the 1z0-1054-20 Exam, it is essential to understand the different site purposes and how they are used by the system. For example, the 'Bill-to' site is the most important for Receivables, as it drives the creation of invoices and the management of outstanding balances. You must be able to create a new customer account, add the necessary address and site information, and assign the correct business purposes to each site. This ensures that invoices are generated correctly and sent to the right place.
One of the most powerful features for managing customer behavior is the Customer Profile Class. A profile class is a template that groups together a set of default credit and collection settings that can be assigned to customers. This greatly simplifies the setup process and ensures consistency. For example, you could create a 'High Risk' profile class with strict credit limits, short payment terms, and an aggressive collections strategy. A 'Low Risk' profile class, on the other hand, could have more lenient terms. The 1z0-1054-20 Exam will expect you to know how to create these profile classes and what attributes they control.
The attributes controlled by the profile class are extensive. They include credit limits, risk codes, payment terms, and statement cycles. The profile class also determines whether a customer is subject to collections activities and what dunning letters they will receive. When a new customer is created, you can assign them to a profile class, and they will automatically inherit all of its settings. These settings can be overridden at the individual customer account or site level if needed. Mastering the use of Customer Profile Classes is key to efficiently managing customer relationships and is a critical topic for the exam.
Go to testing centre with ease on our mind when you use Oracle 1z0-1054-20 vce exam dumps, practice test questions and answers. Oracle 1z0-1054-20 Oracle Financials Cloud: General Ledger 2020 Implementation Essentials certification practice test questions and answers, study guide, exam dumps and video training course in vce format to help you study with ease. Prepare with confidence and study using Oracle 1z0-1054-20 exam dumps & practice test questions and answers vce from ExamCollection.
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