1Z0-334 Fusion Financials Payables

Oracle Financials Cloud: Payables 2016 Implementation Essentials.....................2

Payables Event Classes and Types.......................................................................4
Applying Credits Up to Zero Amount Payments: Examples..................................5
The Maximize Credits Option: How It Is Processed...............................................5
Pay Through Dates and Payment Dates in Payment Process Requests: Examples
............................................................................................................................. 8
Date Basis in Payment Process Requests: Examples............................................9
Questions and Answers...................................................................................... 11
Oracle Financials Cloud: Payables 2016 Implementation Essentials

Exam 1Z0-334 Duration: 120 minutes

Number: Number of 73
Associated Oracle Financials Cloud: Payables Questions:
Certifications: 2016 Certified Implementation Passing 61% View passing score policy
Specialist Score:
Exam Product Oracle Financials Cloud Validated Exam has been validated against
Version: Against: Oracle Fusion Payables, R10.
Exam Price: US$ 245 More on exam pricing Exam Format: Multiple Choice

General Set Up

Describe the Functional Setup Manager

Describe configuration packages

Create an implementation project

Explain how to use reports to validate setup data

Create Users and Roles

Invoicing

Explain how to use standard invoices

Explain the Integrated Imaging Solution

Create an invoice using a spreadsheet

Explain iSupplier Invoices

Approve Invoices

Manage supplier information

Payments

Explain how to create a single payment

Execute a Payment Process Request

Void a payment
 Explain Bank Reconciliations

Customize Payment Formats

Set up Fusion Payments for disbursement

Fusion Expenses

Enter expense reports

Approve expense reports

Process expense reimbursements

Manage Corporate Cards

Audit Expense Reports

Set up Fusion Expenses

Reporting

Explain how to design and use various reporting tools

Explain Oracle Transactional Business Intelligence (OTBI)

Use Business Intelligence Publisher (BIP) Reports

Use the Payables to Ledger Reconciliation Report

Process intercompany reconciliations

Other Fusion Payables Topics

Describe the invoice and payment dashboards

Process Income Tax and Withholding tax calculations

Create Accounting Entries

Explain the Close process

Configure Fusion Payables Setups

Configure Business Units

Accounting for Invoices and Payments: Explained

You can create accounting entries for invoice and payment transactions using Oracle Fusion
Subledger Accounting. Subledger Accounting creates the final accounting for subledger journal
entries and transfers the accounting to Oracle Fusion General Ledger. Subledger Accounting uses
a set of predefined account rules to create accounting, but you can define your own detailed
accounting rules.

Payables Event Classes and Types

Payables predefines accounting event classes and accounting event types that are used by
Subledger Accounting. You can modify the accounting setup to create accounting for some
events and not for others.

This table describes the event classes and types that Payables predefines for invoices and
payments.

Event Class Event Type

Bills Payable Bill Payable Matured
Bill Payable Maturity
Adjusted
Bill Payable Maturity
Reversed
Credit Memos Credit Memo Adjusted
Credit Memo Canceled
Credit Memo Validated
Debit Memos Debit Memo Adjusted
Debit Memo Canceled
Debit Memo Validated
Invoices Invoice Adjusted
Invoice Canceled
Invoice Validated
Payments Manual Payment
Adjusted
Payment Adjusted
Payment Canceled
Payment Created
Prepayment Applications Prepayment Application
Adjusted
Prepayment Applied
Prepayment Unapplied
Prepayments Prepayment Adjusted
Prepayment Canceled
Prepayment Validated
Reconciled Payments Payment Cleared
Payment Clearing
Adjusted
 Payment Uncleared
Refunds Refund Adjusted
Refund Canceled
Refund Recorded
Third Party Merge Full Merge
Partial Merge

Applying Credits Up to Zero Amount Payments: Examples

When you submit a payment process request, you can enable the Apply credits up to zero
amount payment option. Enabling the option causes the payment process to apply credits when
the credits reduce the payment amount below zero.

The following scenarios illustrate the impact of this option.

Invoice Amount Greater Than Credit Amount

An invoice for 200 USD and a credit memo for 125 USD are due for payment. The option setting
has no effect because the payment amount with the applied credit is 75 USD, which is greater
than zero.

Credit Amount Greater Than Invoice Amount

An invoice for 200 USD and a credit memo for 225 USD are due for payment.

The following table describes the payment processing that occurs based on the setting for the
Apply credits up to zero amount payment option.

Setting Payment Processing

Applies 200 USD of the credit memo to the invoice and creates a payment for 0 USD.
Enabled
The remaining credit is 25 USD.

Doesn't select the invoice or credit memo for payment because the credit reduces the
Disabled
payment to -25 USD, which is less than zero.

The Maximize Credits Option: How It Is Processed

You can use the Apply credits up to zero amount payment option, which is on the Submit
Payment Process Request page, to offset credit amounts against standard invoices issued by your
supplier. This option is applicable only when the total credit amount for a payment process
request is greater than the total standard invoice amount. If you don't use the option, and the total
credit amount for a payment process request is greater than the total standard invoice amount, no
invoices are selected for payment and the payment process request terminates. Navigate to:
Navigator > Payables menu > Payments link > Payments Tasks pane > Submit Payment Process
Request link > Submit Payment Process Request page.

Settings That Affect the Maximize Credits Option

To enable the maximize credits option, select the Apply credits up to zero amount payment
check box on the Payment and Processing Options tab of the Submit Payment Process Request
page.

How the Maximize Credits Option Is Processed

The following table shows payment installments that are available for selection in a payment
process request where the total standard invoice amount is greater than the total credit amount.

Invoice Number Type Amount (USD)

SINV1001 Standard Invoice 100

SINV1002 Standard Invoice 50

SINV1003 Standard Invoice 200

SINV1004 Standard Invoice 150

CM100 Credit Memo -100

CM101 Credit Memo -150

In the preceding table, the assumption is that all available installments in the payment process
request are selected. For this example, the following is true:

Invoice total = $500

Credit total = $ -250

Payment total = $250

Since the invoice total is greater than the credit total, the total payment amount is a positive
$250. In this scenario, the maximize credits option is irrelevant.
The following table shows payment installments that are available for selection in a payment
process request where the total standard invoice amount is less than the total credit amount.

Invoice Number Type Amount (USD)

SINV1001 Standard Invoice 100

SINV1002 Standard Invoice 50

SINV1003 Standard Invoice 200

SINV1004 Standard Invoice 150

CM100 Credit Memo -100

CM101 Credit Memo -150

CM102 Credit Memo -300

CM103 Credit Memo -200

In the preceding table, the assumption is that all available installments in the payment process
request are selected. For this example, the following is true:

Invoice total = $500

Credit total = $ -750

Payment total = $ -250

Since the invoice total is less than the credit total, the total payment amount is a negative $ -250.
When the payment amount is negative, Oracle Fusion Payments checks whether the Apply
credits up to zero amount payment check box is selected.

If the maximize credits option is selected, the application creates a zero payment by offsetting
the credit memos against the standard invoices. When the credit total is a negative amount,
Payments selects invoice installments and adjusts credit memo amounts so that the total amount
of the payment process request is zero as shown in the following table.

Invoice Number Type Amount (USD)

SINV1001 Standard Invoice 100

SINV1002 Standard Invoice 50

SINV1003 Standard Invoice 200

SINV1004 Standard Invoice 150

CM100 Credit Memo -50

CM101 Credit Memo -150

CM102 Credit Memo -300

In the preceding table, the assumption is that the payment process request selects all available
invoice installments and selects and adjusts specific credit memos. For this example, the
following is true:

Invoice total = $500

Credit total = $ -500

Payment total = $0

Note: CM103 is not selected and the amount for CM100 is adjusted from -100 to -50 to equal the
payment total of zero, 0 USD.

If the maximize credits option is deselected, the payment process request is terminated with a
message that indicates no invoices were selected
Pay Through Dates and Payment Dates in Payment Process Requests: Examples

Payment process requests use the Pay Through Date and Payment Date values to determine
whether to select an installment for payment and take a discount.

The following scenario illustrates the effect of these values in a payment process request, along
with the impact of the Always Take Discount option.

Pay Through Dates and Payment Dates in Payment Process Requests

An invoice that's ready for payment has an installment with the following information:

Due date of August 30, 2015

First discount date of July 15, 2015, for 150 USD

Second discount date of July 30, 2015, for 100 USD

The Date Basis on the payment process request is Pay Date, and the Pay Date Basis for the
supplier site is set to Discount.

This table provides examples of different Pay Through Date, Payment Date, and Always Take
Discount combinations, and the resulting installment and discount information.

Always
Pay
Payment Take Installment
Example Through Discount Taken Amount
Date Discount Selected?
Date
Option

No. The Pay

July 14, July 17, Enabled or Through Date is None. The installment isn't
1
2015 2015 disabled before the first selected.
discount date.

Yes. The Pay 100 USD. The Payment Date

July 15, July 17, Enabled or Through Date is on is after the first discount date,
2
2015 2015 disabled or after the first but before the second
discount date. discount date.

None. The Payment Date is

July 15, July 31, after the discount dates and
3 Disabled Yes
2015 2015 the Always Take Discount
option is disabled.
 150 USD. Although the
Payment Date is after the
July 15, July 31, discount dates, the first
4 Enabled Yes
2015 2015 discount is taken because the
Always Take Discount option
is enabled.

None. The Payment Date is

after the due date and the
Always Take Discount option
July 15, August
5 Disabled Yes is disabled.
2015 31, 2015
Note: Interest may be
calculated depending on your
settings.

150 USD. Although the

Payment Date is after the due
date, the first discount is
taken because the Always
July 15, August
6 Enabled Yes Take Discount option is
2015 31, 2015
enabled.

Note: Interest may be

calculated depending on your
settings.

Note: Results are different if the Date Basis is Due Date, or the Date Basis is Pay
Date and the supplier Pay Date Basis is Due. In this case, the payment process
request selects the installment only when the Pay Through Date is on or after the
due date
Date Basis in Payment Process Requests: Examples

You can specify a date basis of either Pay date or Due date on the Selection Criteria tab on the
payment process request pages. Date basis affects the installment selection and discount taken.

The following scenarios illustrate the effect of the date basis setting in a payment process
request.

For both scenarios, the invoice has the following information:

Amount: 3,000 USD

 Due date: March 31

First discount date: February 15

First discount amount : 150 USD

Second discount date: February 28

Second discount amount: 100 USD

The payment process request includes the following selection criteria:

Payment date: February 8

Pay through date: March 30

Pay Date
If you set the Date Basis field to Pay date, the Pay Date Basis setting on the supplier site also
affects the installment selection and discount taken.

Note: Specify the Pay Date Basis in the Terms section of the Invoicing tab on the
Supplier Site pages.

The following table shows the effect of the Pay Date Basis on the payment process request.

Pay Date Basis Installment

Discount
on Supplier Selected for Additional Information
Amount
Site Payment?

The installment is selected because the

pay through date of March 30 is later
than at least one of the discount dates.

The discount is 150 USD because the

Discount Yes 150 USD payment date of February 8 is before
the first discount date of February 15.

Note: If the payment date was after

February 15, but before February 28,
the second discount of 100 USD would
be taken.

Due No Not The installment isn't selected because the due

date of March 31 is later than the pay through
 applicable date of March 30.

Due Date
If you set the Date Basis field to Due date, the installment isn't selected for payment because the
due date of March 31 is later than the pay through date of March 30.

What happens if I void a payment?

The accounting and payment records for the invoices that were paid are automatically reversed.

If applicable, the following transactions also occur:

Realized gains or losses on foreign currency invoices are reversed.

If the Create interest invoices option on the Manage Invoice Options page is enabled, all
related interest invoices are reversed.

If the invoice is associated with a withholding tax invoice and tax is withheld at payment,
a reversing invoice is automatically created. This reversing invoice for the tax authority
offsets the withholding tax invoice.

Note: When you void a payment, you can select to cancel the invoices, place a hold
on the invoices, or leave the invoices available for payment.

Why didn't an installment get selected for payment?

An installment can meet the selection criteria of a payment process request, but not get selected
for payment for one or more reasons. You can review installments that weren't selected for
payment and the reasons they weren't selected, on the Not Selected tab on the Review
Installments page.

Here are the reasons why an installment might not get selected for payment.

An approver rejected the invoice.

The calculation for withholding tax ended in error.

A credit reduced the payment amount to less than zero.

The invoice must be revalidated.

 The invoice requires approval.

The invoice was never validated.

The payment date is in a closed period.

Having the payment date before the system date isn't allowed.

The installment is on hold.

The supplier site is on payment hold.

The installment was manually removed from the payment process request.

Zero amount installments are excluded from payment.

Questions and Answers
1. How many Payment terms allowed in Payables?

A. 100
B. 50
C. 1000
D. As many as needed

Answer: D

2. Correctly order the steps involved setting up an electronic payment method with
a defaulting rule.

1. Set up an electronic payment method with a validation for use with

Payables
2. Set up a payment method defaulting rule for the electronic payment
method
3. Set up a payment process profile
4. Set up a report that is automatically submitted to the payment system that
displays the contents of the payment file

A. 1, 2, 3, 4
B. 4, 3, 2, 1
C. 2, 4, 3, 1
D. 2, 3, 4, 1

Answer: A

3. The client is trying to print payables checks but several invoices are not being
included. What is the cause of this?
A. The invoices were entered by a user who does not have access to print
checks
B. The invoices are for suppliers who are currently included in a Payroll
Payment File.
C. The invoices were out of sequence
D. The invoices are part of a closed accounting period

Answer: D

4. Which statement is NOT true about Task List Scope?

A. Values include legal entities, business units, ledgers and tax regimes.
B. Different setup data can be entered for different scope values.
C. Scope values are defined when the implementation project is created and
cannot be changed.
D. If the parent task list of a task has scope defined, you will be prompted to
pick a scope value

Answer: C
5. Which statements are NOT true about Implementation Project? (Choose two)
A. You can create custom tasks and add them to implementation projects.
B. You can assign a task to only one user.
C. You can create implementation projects to maintain setup data.
D. Once you have entered setup data for a task the status is automatically
changed to Completed.

Answer: B, D

6. Which options allow the user to automatically create distributions for an invoice?
(Choose three)
A. Matching an invoice to a purchase order or receipt
B. Distribution Sets
C. Payment Process Profile
D. Allocation of freight and miscellaneous lines
E. The Manage Distributions page

Answer: A, B, D

7. An invoice is matched to a purchase order with the following values:

Quantity Price Tax Rate Exchange

Rate
FromPO 10 100 10% 1.5
From Invoice 10 90 10% 1.5

The resulting variance would be characterized as:

A. Invoice price variance, tax rate variance
B. Invoice price variance, tax invoice price variance
C. Exchange rate variance, tax invoice price variance
D. Invoice price variance, tax exchange rate variance

Answer: B

8. Which payment type/payment status can NOT be voided?

A. Quick /Negotiable
B. Payment process request/Stop initiated
C. Manual/Reconciled unaccounted
D. Refund/Negotiable
E. Quick/Issued

Answer: C

9. Your business processes multiple payment batches every week. These batches
can be categorized using similar selection criteria. Which option allows you to
streamline the payment batch entry process?
A. Payment Process Request
B. Payment Process Profile
C. Payment Process Request Template
 D. Payment Formats

Answer: C

10. You would like to deploy Oracle Fusion Expenses as a stand-alone application.
Which other products require minimum setup in all cases to accomplish this?
(Choose three)
A. Oracle Fusion Tax
B. Oracle Fusion Payables
C. Oracle Fusion Payments
D. Oracle Fusion Accounts Payable
E. Oracle Fusion Subledger Accounting

Answer: B, C, D

11. If an approver is setup to receive email approval requests, the approver

can perform which actions from email? (Choose two)
A. Request more information about the expense report.
B. Approve the expense report.
C. Transfer approval ownership of the expense report to another person.
D. Reject the expense report.
E. Delegate approval of the expense report.
F. Delete the expense report.

Answer: B, D

12. You have run the Payables to Ledger Reconciliation Report and there is a
variance reported in the Accounting Amount column.

Which option should NOT be used to identify the source of the variance?
A. Posted Invoice Register
B. Beginning Payables Trial Balance Report
C. Posted Payment Register
D. Payables Invoice Aging Report

Answer: D

13. Which report can be run from Reports and Analytics?

A. Payables Payment Register
B. Payables Posted Payments Register
C. Payables Invoice Aging Report
D. Payables Key Indicators Report

Answer: B

14. Your business has a requirement to balance Payables transactions by both

balancing segment and cost center segment. How can the Payables application be
configured to meet this requirement?
A. Enable Payables option: Automatic Offsets, All segments.
B. Enable Payables option: Automatic Offsets, balancing segment.
 C. Configure an SLA journal line rule using the business flow method of linking
journal lines.
D. Configure an SLA journal line rule using the business flow method of
copying from corresponding line.
E. This is not possible in Fusion Payables.

Answer: D

15. What task is used to define a new Pay Group?

A. Manage Common Options for Payables and Procurement.
B. Manage Payment Options.
C. Manage Invoice Options.
D. Manage Payables Lookups.

Answer: D