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Oracle 1z0-1087-20 (Oracle Account Reconciliation 2020 Implementation Essentials) exam dumps vce, practice test questions, study guide & video training course to study and pass quickly and easily. Oracle 1z0-1087-20 Oracle Account Reconciliation 2020 Implementation Essentials exam dumps & practice test questions and answers. You need avanset vce exam simulator in order to study the Oracle 1z0-1087-20 certification exam dumps & Oracle 1z0-1087-20 practice test questions in vce format.
The 1z0-1087-20 Exam, formally known as the Oracle EPM Account Reconciliation 2020 Certified Implementation Specialist exam, is designed for professionals who specialize in implementing Oracle's Enterprise Performance Management cloud solutions. This certification validates a candidate's knowledge and skills required to configure, manage, and implement the Account Reconciliation module. It demonstrates a deep understanding of the core functionalities, from setting up the system architecture to managing the period-end reconciliation lifecycle. Passing this exam signifies that an individual possesses the foundational knowledge and practical expertise to guide organizations in streamlining their financial close process effectively.
Achieving this certification is a significant milestone for consultants, administrators, and financial systems analysts. It serves as a formal recognition of their capabilities, enhancing their professional credibility and marketability. The exam covers a wide range of topics, ensuring that certified individuals are well-rounded in all aspects of the solution. Preparation for the 1z0-1087-20 Exam requires not just theoretical knowledge but also hands-on experience with the application. It is a robust test of one's ability to translate business requirements into a functional and efficient system configuration within the Oracle EPM Cloud environment.
The exam format typically consists of multiple-choice questions that are designed to test both conceptual understanding and practical application. The questions are often scenario-based, requiring the candidate to choose the best course of action for a given implementation challenge. Topics range from initial setup and configuration, data integration, managing reconciliation profiles, and executing the reconciliation process to advanced features like transaction matching and reporting. A thorough study plan that covers all official exam objectives is essential for success. Candidates should familiarize themselves with the specific weighting of each topic to allocate their study time appropriately.
Account reconciliation is a critical financial governance process that involves comparing internal financial records against external statements from banks, vendors, or other sources to ensure they are accurate and consistent. This process is fundamental for maintaining the integrity of a company's financial statements, preventing fraud, and ensuring regulatory compliance. Historically, this has been a manual, time-consuming, and error-prone activity, often relying heavily on spreadsheets and manual tracking. The goal of a modern solution is to automate and standardize this process, reducing risk and freeing up finance professionals to focus on more value-added analysis.
Oracle EPM Account Reconciliation addresses these challenges by providing a centralized and automated platform. It helps organizations manage the end-to-end reconciliation lifecycle, from loading data and performing comparisons to managing approvals and resolving discrepancies. By implementing such a system, companies can gain greater visibility into their financial close status, enforce standardized procedures, and create a clear audit trail for every reconciliation. This transformation is a key focus area for candidates preparing for the 1z0-1087-20 Exam, as they must understand the business problems the technology is designed to solve.
The solution is divided into two main modules: Reconciliation Compliance and Transaction Matching. Reconciliation Compliance focuses on the period-end reconciliation of balance sheet accounts. It ensures that all accounts are properly substantiated and that any identified issues are tracked and resolved. Transaction Matching, on the other hand, is used for high-volume, granular transaction-level matching, such as reconciling bank transactions, intercompany postings, or point-of-sale data. Understanding the distinct purpose and application of each module is a fundamental requirement for anyone aspiring to pass the 1z0-1087-20 Exam and implement the solution effectively.
A prerequisite for mastering the topics in the 1z0-1087-20 Exam is a solid understanding of the Oracle EPM Cloud platform itself. This is a suite of business process applications delivered through a software-as-a-service model. It provides a common framework for managing financial planning, consolidation, reporting, and, of course, account reconciliation. The platform features a user-friendly web interface, powerful calculation engines, and robust data integration capabilities. Implementation specialists must be comfortable navigating this environment, understanding its core components, and knowing how different modules can interact with each other to create a cohesive financial management system.
Key components of the EPM Cloud that are relevant to the 1z0-1087-20 Exam include Data Management, which is used for loading and mapping data from various source systems. Another critical area is security and user management, where administrators define roles, assign permissions, and control access to sensitive financial data. The platform also offers extensive reporting and dashboarding tools that allow users to monitor the status of the financial close, identify bottlenecks, and analyze reconciliation performance. A candidate's ability to leverage these platform-level features is implicitly tested throughout the certification exam.
Furthermore, the EPM Cloud environment is continuously updated by Oracle, with new features and enhancements released regularly. While the 1z0-1087-20 Exam is based on a specific version, the underlying principles and architecture remain largely consistent. Implementation specialists are expected to understand the lifecycle of the application, including how to manage updates, test new functionalities, and communicate changes to end-users. This forward-looking perspective is crucial for a successful long-term implementation and demonstrates a deeper level of expertise that goes beyond the basic configuration steps outlined in the exam objectives.
The first practical steps in any implementation project involve setting up the core structure of the application, a topic heavily featured in the 1z0-1087-20 Exam. This begins with defining the system settings, which control the overall behavior of the Account Reconciliation module. This includes setting the base currency, defining global attributes, and configuring email notifications for various workflow events. These initial decisions are critical as they establish the foundation upon which the entire reconciliation process will be built. Getting these settings right from the outset ensures a smoother implementation and a more intuitive user experience.
Following the system settings, the next crucial task is to configure the periods and frequencies for reconciliation. Periods define the timeframes for which reconciliations are performed, such as monthly, quarterly, or annually. Frequencies determine how often a specific reconciliation needs to occur within a given period. For example, a high-risk cash account might be reconciled daily, while a low-risk prepaid expense account is reconciled monthly. The ability to create and manage these time-based structures is a fundamental skill tested in the 1z0-1087-20 Exam, as it directly impacts the scheduling and automation of the entire close process.
Another foundational element is the creation of custom attributes and calculation logic. The application allows administrators to define additional data fields, known as attributes, to capture specific information relevant to their organization's processes. These can be used for filtering, reporting, and creating dynamic rules. Calculations can also be configured to derive new values or perform specific checks based on the data within a reconciliation. Understanding how to use these customization features allows an implementer to tailor the solution precisely to the client's needs, a key competency for any certified specialist.
Reconciliation Compliance is the heart of the Oracle EPM Account Reconciliation solution and a major focus of the 1z0-1087-20 Exam. Its primary purpose is to manage and track the substantiation of period-end account balances. This module helps ensure that every balance sheet account has a detailed reconciliation prepared, reviewed, and approved in a timely manner. It provides a structured workflow and a centralized repository for all supporting documentation, creating a complete and auditable record of the financial close process. A deep understanding of its components is non-negotiable for exam success.
The central building block within Reconciliation Compliance is the "Profile." A profile is a placeholder for a specific account or a group of accounts that need to be reconciled. It contains all the metadata that defines the reconciliation, including the account ID, name, risk rating, assigned users (preparer and reviewers), due dates, and the format to be used. Creating well-defined and organized profiles is the first step toward building an effective reconciliation framework. The exam will undoubtedly test a candidate's knowledge of profile attributes and best practices for their creation and management.
Formats are another critical concept. A format is a template that defines the structure and layout of a reconciliation. It specifies the data columns to be displayed, the types of adjustments allowed, and the rules that must be met for the reconciliation to be considered complete. The solution comes with pre-built formats for common reconciliation methods, such as balance comparison and account analysis. However, implementation specialists are often required to create custom formats to meet unique business needs. The ability to design and configure these formats is a key skill validated by the 1z0-1087-20 Exam.
An account reconciliation system is only as good as the data within it. Therefore, data integration is a paramount topic for the 1z0-1087-20 Exam. The solution needs to be populated with account balances from one or more source systems, typically an Enterprise Resource Planning (ERP) system. The primary tool used for this is Data Management, a component of the EPM Cloud platform. It provides a robust framework for extracting, transforming, and loading data into the Account Reconciliation module. Specialists must be proficient in configuring data load rules, mapping source data to target dimensions, and scheduling automated data loads.
The process involves several key steps. First, the source system must be registered, and connection details established. Next, data mappings are created to translate the account numbers, entities, and other segments from the source system's chart of accounts into the structure required by the reconciliation profiles. This mapping is a critical step that ensures data is loaded to the correct place. Finally, data load rules are created to define the specific data to be extracted for a given period and to execute the load process. The exam will likely include questions on troubleshooting data load errors and validating the accuracy of loaded balances.
Beyond general ledger balances, the system also needs to handle sub-ledger data or data from other supporting systems. For example, a bank account reconciliation requires a feed of transactions from the bank statement. This data is also typically loaded through Data Management or directly into the Transaction Matching module. A certified specialist must understand the different methods for loading various data types and know when to use each approach. This includes understanding file-based loads, direct integration options, and the use of EPM Cloud-specific tools for a seamless data flow.
A structured approach is the best way to prepare for the 1z0-1087-20 Exam. Start by thoroughly reviewing the official exam objectives provided by Oracle. This document is the blueprint for the exam, detailing every topic and sub-topic that will be covered. Use this as a checklist to gauge your current knowledge and identify areas that require more attention. Create a study plan that allocates sufficient time to each domain based on its weight in the exam. A balanced approach ensures you do not neglect any critical areas while focusing on more complex topics.
Theoretical knowledge alone is insufficient. Hands-on practice is arguably the most important component of your preparation. If possible, get access to an Oracle EPM Cloud environment to work through practical exercises. Follow along with tutorials, set up a sample application, create profiles, load data, and run through the entire reconciliation cycle. This practical experience will solidify your understanding of the concepts and help you answer the scenario-based questions that are common in the exam. It bridges the gap between knowing what a feature does and knowing how to implement it correctly.
Finally, leverage a variety of study resources to reinforce your learning. This can include official Oracle training courses, documentation, and community forums. Practice exams are also an invaluable tool. They help you get accustomed to the question format, manage your time effectively, and identify any remaining knowledge gaps. By combining a thorough review of the exam topics, extensive hands-on practice, and the use of quality study materials, you will be well-equipped to confidently face the challenges of the 1z0-1087-20 Exam and achieve your certification goal.
A core competency tested in the 1z0-1087-20 Exam is the ability to effectively create and manage reconciliation profiles. A profile is the fundamental object in Reconciliation Compliance, representing a specific reconciliation that needs to be performed. It acts as a container for all the rules, assignments, and data associated with a particular account or group of accounts. When creating a profile, numerous attributes must be configured correctly, each serving a distinct purpose in the overall process. This includes basic information like the Account ID and Name, which should be clear and descriptive for easy identification.
The configuration extends to defining the process-related attributes. The Risk Rating, for instance, is a critical field that helps prioritize reconciliations and can be used for reporting and defining review workflows. Assigning a risk rating such as high, medium, or low allows organizations to focus their attention on the most material and volatile accounts. The Account Type specifies the nature of the account, such as an asset or liability, which can influence the reconciliation procedures. The organizational unit, or company code, is also assigned to ensure data is correctly segregated and reported.
Furthermore, a profile dictates the workflow and schedule for the reconciliation. This involves assigning a preparer and a sequence of reviewers who are responsible for completing and approving the work. The system allows for multiple levels of review to enforce segregation of duties and ensure accuracy. Due dates are established within the profile, which are calculated based on the period's close date and a defined offset. A comprehensive understanding of every single field within a profile and its downstream impact is crucial for anyone preparing for the 1z0-1087-20 Exam.
Formats are templates that define the structure and behavior of a reconciliation, and they are a key topic in the 1z0-1087-20 Exam. The format determines what information a user sees and what actions they can take. Oracle provides several standard, pre-built formats designed for common reconciliation scenarios. For example, the "Balance Comparison with Subsystem" format is used when you need to compare a general ledger balance with a balance from a supporting sub-ledger, like accounts receivable or fixed assets. The "Account Analysis" format is more flexible and is used for substantiating a balance with a list of supporting items or activities.
While standard formats are useful, the real power lies in the ability to create custom formats tailored to specific business requirements. An implementation specialist must know how to build a new format from scratch. This involves defining the columns for the source system and subsystem balances, creating sections for explaining adjustments, and adding tabs for transaction details or supporting documentation. You can also embed instructions directly into the format to guide preparers, ensuring they follow a standardized procedure for every reconciliation. This level of customization is essential for driving user adoption and process efficiency.
Rules can also be configured within a format to introduce automation and validation. For example, a rule can be set up to automatically approve a reconciliation if the unexplained difference is below a certain monetary threshold. Another rule could prevent a user from submitting the reconciliation if required documentation has not been attached. The ability to design and implement these rules within formats is a higher-level skill that the 1z0-1087-20 Exam will test. It demonstrates a candidate's ability to not just configure the system but to intelligently automate the process.
The time-based structure of the reconciliation process is managed through periods and frequencies, a foundational concept for the 1z0-1087-20 Exam. Periods represent the time intervals for which reconciliations are performed. They are typically created to align with an organization's financial reporting calendar, such as monthly, quarterly, and annually. When setting up a period, you define its start and end dates, as well as the close date which serves as the anchor for all reconciliation due dates. The status of a period—pending, open, or closed—controls when users can work on their assigned tasks.
Once a period is created, it must be opened to allow users to begin their work. Opening a period triggers the system to create instances of all the reconciliations for that timeframe. Once the reconciliation cycle is complete and all work has been approved, the period must be locked and then closed. This prevents any further changes and archives the data for historical reporting and audit purposes. An implementation specialist must understand the entire lifecycle of a period and the administrative actions required at each stage.
Frequencies add another layer of granularity to the schedule. While most balance sheet accounts are reconciled monthly, some high-risk or high-volume accounts may require more frequent attention. The system allows you to define different frequencies, such as daily, weekly, or quarterly. A profile is then associated with a specific frequency. For example, a primary bank account profile might be assigned a "Daily" frequency within the "Monthly" period, meaning a reconciliation instance is created for it every single day. Mastering the interplay between periods and frequencies is essential for configuring an efficient reconciliation calendar.
A successful implementation hinges on the ability to reliably load data from external sources, making Data Management a critical subject for the 1z0-1087-20 Exam. Data Management is the centralized EPM Cloud tool for Extract, Transform, and Load (ETL) operations. It provides a web-based interface for connecting to source systems, defining data mappings, and executing data load processes. The first step is to register the source system, which could be an Oracle ERP Cloud instance, another database, or even a simple flat file.
The core of Data Management is its powerful mapping engine. This is where you define the translation rules between the source system's chart of accounts and the target dimensions in Account Reconciliation. For example, you might create a mapping that converts multiple source company codes into a single target entity. You can use explicit one-to-one mappings or more complex wildcard and conditional mappings to handle various scenarios. Correctly configured mappings ensure that balances are loaded to the correct profiles and that the data is accurate and complete.
Data Load Rules bring everything together. A rule specifies what data to extract for a particular location, period, and category. It also controls whether the data should replace or append to existing data. These rules can be executed on-demand or scheduled to run automatically at specific times, such as overnight. A key part of the implementation specialist's role is to design a robust and automated data loading process. The 1z0-1087-20 Exam will expect candidates to understand this entire workflow, from source registration to rule execution and data validation.
For multinational organizations, handling multiple currencies is a fundamental requirement, and this topic is covered in the 1z0-1087-20 Exam. The Account Reconciliation application is designed to manage reconciliations in various currencies. During the initial setup, a single base currency, or functional currency, is defined for the entire system. However, individual profiles can be configured to reconcile in their local currency, referred to as the entered currency. The system can then store balances in the entered, functional, and reporting currencies.
To perform the currency translation, the system needs access to exchange rates. These rates are loaded and managed within the EPM Cloud platform. You must define different rate types, such as "Ending" for balance sheet accounts and "Average" for profit and loss accounts, although the latter is less common in reconciliation. For each period, you load the exchange rates for all required currency pairs against the appropriate rate type. This ensures that when a user performs a reconciliation in a local currency, the system can accurately display the equivalent values in the functional currency.
The application uses these rates to calculate any foreign exchange differences and to present a consolidated view of the reconciliation status in a single, common currency. Implementation specialists must know how to configure the currency settings, load and manage exchange rate tables, and validate the results of the translation process. Troubleshooting currency-related issues, such as missing rates or incorrect translations, is a practical skill that is essential for supporting a global implementation and a likely area for exam questions.
Security is a critical aspect of any financial application, and the 1z0-1087-20 Exam requires a thorough understanding of the security model in Oracle EPM Account Reconciliation. Security is managed at multiple levels. The first level involves defining user roles, which grant access to specific functionalities. The application comes with a set of pre-defined roles, such as User, Viewer, Power User, and Administrator. For example, a "User" can prepare and review reconciliations assigned to them, while an "Administrator" has full access to configure and manage the entire system.
In addition to functional roles, access to specific reconciliations is controlled through assignments on the profile or through teams. You can directly assign a preparer and multiple reviewers to an individual profile. However, for larger organizations, managing assignments at the profile level can be cumbersome. This is where teams become incredibly useful. You can create teams of users, for example, a "Cash Team" or an "AP Team," and then assign the team to a profile. Any member of the team can then claim and work on the reconciliation, providing flexibility and load balancing.
Data security is also an important consideration. The system can restrict user access based on the organizational unit or other profile attributes. This ensures that users can only view and work on the reconciliations that are relevant to their business unit or region. For example, you can create a data access filter that prevents users from the European division from seeing any reconciliations for the North American division. A certified implementation specialist must be able to design and implement a comprehensive security model that meets the client's internal control and confidentiality requirements.
Passing the 1z0-1087-20 Exam is not just about knowing the features; it's about knowing how to implement them effectively. A successful project requires a solid methodology. This typically starts with a detailed requirements gathering and design phase. During this phase, the implementation specialist works with the client's finance team to understand their current reconciliation process, identify pain points, and design the future state within the Oracle solution. This includes decisions on the chart of accounts mapping, risk rating criteria, and the desired workflow for approvals.
The build and configure phase is next, where the specialist uses the design documents to set up the application. This involves creating all the necessary profiles, formats, and data integrations. It is an iterative process that often requires frequent check-ins with the client to demonstrate progress and validate the configuration. Best practices dictate that the system should be configured in a way that is scalable and easy to maintain. This means using consistent naming conventions, creating reusable components where possible, and thoroughly documenting all custom configurations.
Finally, the testing and deployment phases are critical for ensuring a smooth go-live. A comprehensive testing plan should be executed, covering unit testing, system integration testing, and user acceptance testing (UAT). During UAT, business users validate that the system meets their requirements and functions as expected. Any issues are identified and resolved before the system is deployed to the production environment. A successful implementation specialist guides the client through this entire journey, from initial design to post-go-live support, and this holistic understanding is key to mastering the concepts of the 1z0-1087-20 Exam.
A deep understanding of the reconciliation lifecycle is fundamental to the 1z0-1087-20 Exam. The lifecycle represents the end-to-end journey of a single reconciliation from its creation to its final archival. The process begins when an administrator opens a new period. This action automatically generates all the required reconciliation instances for that period based on the profiles and their assigned frequencies. At this point, the status of each reconciliation is "Pending," and the clock starts ticking on the assigned due dates. This automated creation ensures that no required reconciliation is ever missed.
Once the period is open and the necessary data has been loaded, the assigned preparer can begin their work. The preparer's primary responsibility is to substantiate the account balance. They analyze the balance, attach supporting documents, add comments, and explain any discrepancies. After the preparer is satisfied that the account is fully explained and supported, they submit the reconciliation for review. This submission action updates the status of the reconciliation and automatically notifies the next person in the approval workflow, which is typically the first-level reviewer.
The review and approval process can involve multiple levels, depending on the configuration of the workflow in the profile. Each reviewer examines the work done by the preparer, checks the supporting documentation, and validates the explanations provided. A reviewer has the option to approve the reconciliation, sending it to the next reviewer in the chain, or to reject it. A rejection sends the reconciliation back to the preparer with comments explaining what needs to be corrected. This iterative process continues until the final approver gives their sign-off, at which point the reconciliation is considered "Closed" and complete for the period.
The preparer is the individual responsible for performing the primary work on a reconciliation, and their tasks are a key area of study for the 1z0-1087-20 Exam. The preparer's user dashboard provides a personalized worklist showing all reconciliations assigned to them, organized by their status and due dates. This allows them to prioritize their work effectively and focus on what is most urgent. Their first step is typically to open a pending reconciliation and verify that the general ledger balance and any subsystem balances have been loaded correctly from the source systems.
The core of the preparer's job is to explain the ending balance of the account. The method for this depends on the format of the reconciliation. For an "Account Analysis" reconciliation, this involves adding a series of transactions or supporting items that sum up to the total balance. For a "Balance Comparison" reconciliation, it involves identifying and explaining the differences between the source and subsystem balances. In both cases, the preparer must often add commentary to provide context and attach supporting evidence, such as bank statements, invoices, or detailed sub-ledger reports.
Once the balance is fully reconciled and the unexplained difference is zero (or within an acceptable tolerance), the preparer's final action is to submit the reconciliation. This act is a formal declaration that the work is complete and ready for review. The system captures this submission, creating an audit trail that records who submitted it and when. A proficient preparer understands the importance of providing a clear, well-documented, and timely reconciliation that can be easily understood and validated by the reviewers, minimizing the risk of rejections and rework.
The review and approval workflow is a critical internal control feature, and its mechanics are thoroughly tested in the 1z0-1087-20 Exam. After a preparer submits a reconciliation, it moves to the assigned reviewer. The reviewer receives a notification and sees the reconciliation appear in their own worklist. The reviewer's responsibility is to provide independent oversight and verify the accuracy and completeness of the preparer's work. They have access to all the same information as the preparer, including the balances, explanations, comments, and attachments.
The reviewer performs a critical check of the reconciliation. They assess whether the supporting documentation is adequate, whether the explanations for any variances are logical, and whether the reconciliation complies with company policy. If the reviewer is satisfied, they approve it. This action can either complete the reconciliation or, if there are multiple levels of review, forward it to the next reviewer in the sequence. For example, a senior accountant might perform the first review, and a financial controller might perform the final approval for high-risk accounts.
If the reviewer finds an error or requires additional information, they must reject the reconciliation. When rejecting, it is crucial to provide clear and concise comments explaining the reason for the rejection. This helps the preparer understand exactly what needs to be fixed. The system then routes the reconciliation back to the preparer, changing its status to "Rejected." The preparer makes the necessary corrections and then resubmits it, restarting the review process. This controlled workflow ensures accountability and creates a complete audit history of all actions taken.
During the reconciliation process, preparers often identify discrepancies that require corrective action in the source ERP system. The Oracle EPM Account Reconciliation solution provides a mechanism to track these required corrections. A preparer can propose an adjustment directly within the reconciliation form. For example, if they discover a bank fee that was not recorded in the general ledger, they can add it as a "Balance Adjustment." This action does not directly post to the ERP system, but it serves as a placeholder to help the reconciliation balance.
These proposed adjustments are then tracked and reported on. The system can generate a report of all required journal entries that need to be posted in the source system. This streamlines the communication between the reconciliation team and the general ledger team. Once the journal entry has been posted in the ERP, the adjustment can be marked as "Posted" in the reconciliation system. On the next data load, the corrected balance will be reflected, and the adjustment from the prior period can be cleared. Understanding this adjustment management process is important for the 1z0-1087-20 Exam.
Similarly, the system can handle reclassifications. A reclassification is an adjustment that moves an amount from one account to another. For instance, an expense might have been incorrectly coded to the wrong department. A preparer can identify this and add a reclassification item within the reconciliation. This highlights the issue and ensures it is tracked for correction. Effectively using the adjustment and reclassification features helps improve the overall accuracy of the financial statements by ensuring that errors identified during reconciliation are systematically captured and resolved.
Automation is a key benefit of the Oracle EPM solution, and the 1z0-1087-20 Exam requires candidates to know how to leverage its automation features. One of the most powerful tools for automation is the rules engine. Administrators can configure rules to perform actions automatically based on specific criteria. This can significantly reduce the manual effort required from preparers and reviewers, allowing them to focus on higher-risk items and exceptions. These rules are typically configured within the format or at the profile level.
A common example of automation is an auto-reconciliation rule. An administrator can set up a rule that states if the general ledger balance for a specific profile is zero, the system should automatically prepare and submit the reconciliation on behalf of the user. Another popular rule is to auto-approve reconciliations where the source and subsystem balances match perfectly, or where the unexplained difference is below a predefined materiality threshold. This can eliminate the need for manual review on thousands of low-risk, zero-balance, or perfectly matched accounts each month.
Rules can also be used to enforce compliance. For example, a rule can be created to prevent a preparer from submitting a reconciliation if they have not attached any supporting documentation. This ensures that policies are consistently followed. Another rule might automatically assign a higher risk rating to an account if it has been rejected more than once in a given period. Mastering the configuration of these rules is a hallmark of an expert implementation specialist and a key skill for demonstrating proficiency in the topics covered by the 1z0-1087-20 Exam.
Effective communication is vital during the fast-paced financial close process. The system facilitates this through a robust system of alerts and notifications, a topic relevant to the 1z0-1087-20 Exam. Alerts are system-generated warnings that bring attention to potential issues. For example, an alert can be triggered if a required data load for a period has failed. Another common alert is a "due date" warning, which notifies users when their assigned reconciliations are approaching their deadline or have become overdue. These alerts appear on the user's dashboard, ensuring that critical issues are visible and can be addressed promptly.
Email notifications are another key communication tool. The system can be configured to send emails for various events in the workflow. When a preparer submits a reconciliation, an email is automatically sent to the reviewer to let them know that an item is awaiting their action. Similarly, when a reconciliation is rejected, the preparer receives an email notification with the reviewer's comments. This keeps the process moving by ensuring that users are aware of their pending tasks without having to be constantly logged into the application.
Administrators have significant control over the configuration of these notifications. They can customize the email templates, define the specific events that trigger a notification, and manage the recipients. For example, they can set up a summary notification to be sent to a finance manager at the end of each day, listing all overdue reconciliations. Understanding how to configure and manage these alerts and notifications is an important part of ensuring a smooth and efficient reconciliation process, making it a relevant skill for an implementation specialist.
The culmination of all reconciliation activities is the period-end close. The 1z0-1087-20 Exam will expect you to understand the administrative tasks involved in successfully closing a period. Throughout the period, administrators and power users monitor the progress of the close using dashboards and reports. They track the percentage of reconciliations completed, identify any bottlenecks where reconciliations are stuck, and reassign work if necessary to ensure all deadlines are met. This proactive monitoring is key to an on-time close.
Once all reconciliations for the period are complete and have a "Closed" status, the administrator can formally close the period within the system. This is a critical step that has several implications. First, it prevents any further modifications to the reconciliations for that period, preserving the integrity of the data for audit purposes. Second, it performs certain system maintenance tasks and prepares the system for the next period. Before closing, the administrator should run final validation checks to ensure there are no outstanding items.
After a period is closed, the data is archived and remains available for reporting and historical analysis. Auditors can be granted read-only access to the system to review the closed periods, examine the approved reconciliations, and download the supporting documentation. This provides a fully transparent and easily accessible audit trail, which is a major benefit of the system. The ability to manage this entire period-end process, from opening to monitoring and finally closing, is a comprehensive skill that a certified specialist must possess.
Beyond Reconciliation Compliance, the 1z0-1087-20 Exam places significant emphasis on the second key module: Transaction Matching. This module is purpose-built to automate the reconciliation of high volumes of transactional data. While Reconciliation Compliance focuses on substantiating a period-end balance, Transaction Matching deals with the detailed, line-item matching of individual transactions. This is essential for processes like bank reconciliations, intercompany reconciliations, or reconciling data from point-of-sale systems to credit card statements. It is designed to handle millions of transactions efficiently.
The core purpose of Transaction Matching is to compare two or more data sets and automatically identify the items that match, leaving only the exceptions for human investigation. For example, it can compare a list of cash disbursement transactions from the accounts payable ledger against the debits on a bank statement. The system will automatically clear all the checks that appear on both lists, leaving a much smaller, manageable list of outstanding checks and bank errors for the accountant to research. This drastically reduces the time and effort spent on manual ticking and tying.
Understanding the distinction between Reconciliation Compliance and Transaction Matching is critical. Reconciliation Compliance answers the question, "Is the period-end balance of this account correct and substantiated?" Transaction Matching answers the question, "Which individual transactions make up the activity in this account, and have they cleared or been matched against their counterparts?" The two modules are designed to work together. The results from a Transaction Matching process, such as a list of outstanding items, can be used as the supporting detail for a Reconciliation Compliance period-end reconciliation.
The foundational element in Transaction Matching is the "Match Type," a concept that is a cornerstone of this section of the 1z0-1087-20 Exam. A Match Type is a container that defines the rules and structure for a specific transaction matching process. For each type of reconciliation you want to perform, such as a bank reconciliation for a specific account or an intercompany reconciliation between two entities, you create a dedicated Match Type. This is where you define all the parameters for the matching process.
Configuration of a Match Type begins with defining the data sources. A data source represents one of the data sets you want to compare. For a bank reconciliation, you would typically define two data sources: one for the General Ledger transactions and one for the Bank Statement transactions. For each data source, you specify the columns or attributes that will be loaded, such as transaction date, amount, check number, and description. Defining these attributes correctly is crucial as they will be used in the matching rules later on.
The Match Type also controls other important settings. You can define tolerance levels for matching, allowing the system to match transactions that are not an exact match but are within an acceptable difference (e.g., due to rounding). You can also configure rules for how adjustments are created and how matched transactions are archived. A well-designed Match Type is the blueprint for an efficient and accurate automated matching process. A specialist must be able to analyze a business requirement and translate it into a properly configured Match Type.
Once a Match Type is defined, the next step is to load the transactional data into the specified data sources. This process, which is a key part of the 1z0-1087-20 Exam syllabus, is typically handled through Data Management, the same tool used for loading balances into Reconciliation Compliance. However, the nature of the data is different; instead of loading a single period-end balance, you are loading numerous individual transaction records. Each record corresponds to a line item, such as a single check, a deposit, or a journal entry.
For each data source within the Match Type, you must set up a corresponding data load process. This involves creating mappings to translate the data from the source file or system into the attributes you defined for the data source. For example, you would map the "Check #" column from your source file to the "Check Number" attribute in your General Ledger data source. The system supports loading data from delimited text files, which is the most common method for transactional data.
The frequency of these data loads depends on the business process. For a daily bank reconciliation, you would schedule the data loads to run every day, bringing in the previous day's bank transactions and the corresponding GL entries. The system is designed to handle these loads efficiently. An implementation specialist must be proficient in setting up these data feeds, scheduling them for automatic execution, and troubleshooting any errors that may occur during the loading process. Reliable data is the prerequisite for successful automated matching.
The real intelligence of the Transaction Matching module lies in its powerful rules engine, a topic you must master for the 1z0-1087-20 Exam. After data is loaded, you execute matching rules to find pairs or groups of transactions that correspond to each other across the different data sources. The system allows you to create multiple types of rules, which are typically run in a sequence from most specific to most general to maximize the number of automated matches.
The most common type of rule is an "Auto Match" rule. Here, you define the exact criteria that transactions must meet to be considered a match. For example, a rule for matching checks might state: "Match transactions from the GL data source with transactions from the Bank Statement data source where the Check Number is an exact match AND the Amount is an exact match." You can create complex rules with multiple conditions using both "AND" and "OR" logic. You can also create rules for one-to-many or many-to-many matches.
Another powerful feature is "Suggested Matches." For transactions that do not meet the strict criteria for an auto-match, the system can use a different set of, looser rules to suggest potential matches to the end-user. For example, it might suggest a match where the amounts are identical, but the reference numbers are slightly different. The user can then review these suggestions and confirm them with a single click. The ability to design an effective rule set that maximizes the auto-match rate is a key skill for a Transaction Matching specialist.
Even with the best automation rules, there will always be transactions that cannot be matched automatically. These are the exceptions, and managing them is the primary task for the end-user. The 1z0-1087-20 Exam will test your understanding of this manual process. The user is presented with a clear interface that shows the remaining, unmatched transactions from each data source. Their job is to investigate these items and resolve them.
The system provides an intuitive "split-screen" view that allows the user to see the unmatched items from both sources side-by-side. The user can sort and filter the lists to help identify potential pairs. Once a match is identified, the user can simply select the transactions from each side and perform a manual match. This moves the transactions from the "unmatched" category to the "matched" category, further reducing the number of open items.
For items that have no corresponding transaction, such as a bank fee that was not recorded in the GL, the user must create an adjustment. The system allows users to create adjustments directly from the unmatched transaction screen. This creates a record of the exception and assigns it a reason code. These adjustments are then used to explain the differences and can be fed into the Reconciliation Compliance module. The goal of the exception handling process is to resolve every single unmatched transaction, either by matching it or creating an adjustment.
The two modules of the Oracle EPM Account Reconciliation solution are designed to be complementary, and understanding their integration is essential for the 1z0-1087-20 Exam. The output of the Transaction Matching process serves as the detailed support for the period-end balance reconciliation performed in Reconciliation Compliance. This creates a seamless and fully substantiated reconciliation process from the transaction level all the way up to the balance sheet account level.
This integration is achieved by configuring the Reconciliation Compliance format to pull data directly from the Transaction Matching module. For example, for a bank account reconciliation, the format can be set up to automatically display the summary results of the matching process. This would include the general ledger balance, the bank statement balance, and a breakdown of the reconciling items, such as "outstanding checks" and "deposits in transit." These reconciling items are pulled directly from the list of unmatched transactions in the corresponding Match Type.
This powerful integration means that the preparer of the period-end bank reconciliation does not need to manually create a list of outstanding items in a spreadsheet. The system automatically populates the reconciliation form with the detailed, up-to-date results from the Transaction Matching process. The preparer's job then becomes one of review and high-level analysis rather than manual data compilation. This is a perfect example of how the solution automates the end-to-end process, and a specialist must know how to configure this link between the two modules.
Implementing Transaction Matching successfully requires more than just technical configuration. A key aspect, and a concept relevant to the holistic understanding needed for the 1z0-1087-20 Exam, is the adherence to best practices. First, it is crucial to perform a thorough analysis of the data sources before starting the build. This means understanding the granularity of the data, the quality of the reference fields, and the timing of the data availability. A "data-first" approach helps in designing more effective and robust matching rules.
It is also advisable to take a phased approach. Start with a pilot program for a single, well-defined process, such as one main bank account. Use this pilot to refine the data loads, develop the matching rules, and train a core group of users. This allows you to learn and make adjustments in a controlled environment before rolling out the solution to more complex or higher-volume reconciliations. This iterative approach generally leads to a more successful and widely adopted implementation.
Finally, continuous improvement is key. After going live, it is important to monitor the performance of the matching process. Analyze the auto-match rates and identify the common reasons for exceptions. This analysis can help you refine your existing rules or create new ones to further increase the level of automation over time. A successful implementation is not a one-time event but an ongoing process of optimization, and a certified specialist should be able to guide their clients in this journey.
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