1Z0-1054-25 Oracle Fusion Cloud Financials: General Ledger Practice Questions
Prepare for 1Z0-1054-25 with more than an answer.
- Exam fee
- $245 USD
- Level
- Professional
- Valid for
- As per Oracle Cloud Recertification Policy
Domains covered on the exam 7
- Implementing Enterprise and Financial Reporting Structures
- Implementing Ledgers
- Implementing and Managing Journals
- Processing Intercompany
- Performing Period Close
- Configuring Financial Reports
- Using AI/ML/Mobile and Other Automation Features
- 1
An organization wants to improve its financial close efficiency by leveraging automation. Which THREE of the following Oracle General Ledger features directly support the automation of period close tasks? (Select THREE).
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Correct answer: A, C, D
- 2
A new legal entity is established in a country that has not been previously configured in the system. The implementation consultant has already created the legal entity and the primary ledger. When attempting to complete the legal entity registration details, the consultant cannot find the new country in the list of values for the 'Identifying Jurisdiction'. What is the prerequisite step that was missed?
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Correct answer: A
Before a country can be used as a legal jurisdiction, its geography structure must be defined in the system via the 'Manage Geographies' task. This involves importing the country's geographical data (like states, cities, postal codes) and enabling the relevant address validations. Only after the geography is defined and validated can it be selected as an identifying jurisdiction for a legal entity.
- 3
A manufacturing company needs to report its financial balances to its parent company, which uses a different Chart of Accounts. The mapping between the two charts of accounts is complex. To facilitate this, a secondary ledger is created that shares the parent company's Chart of Accounts. What is the correct data conversion level to use for this secondary ledger?
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Correct answer: D
When a secondary ledger uses a different Chart of Accounts from its primary ledger, the data conversion level must be 'Balance' or 'Adjustments Only'. 'Journal' and 'Subledger' levels require the COA to be the same. Since the goal is reporting and not full transactional detail, using the 'Balance' level and then making manual adjustments is a common approach. However, 'Adjustments Only' is the most appropriate when the primary purpose is to post specific consolidation or mapping adjustments, which is implied by the complex mapping requirement. The balance level would transfer balances, but you still need a mechanism for adjustments. Therefore, 'Adjustments Only' is the most precise answer for a reporting-focused secondary ledger with a different COA.
- 4
A user is running an intercompany reconciliation report and finds that transactions created in the Payables subledger are not appearing. Transactions from General Ledger and Receivables are visible. What is a potential reason for this discrepancy?
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Correct answer: C
The intercompany reconciliation process relies on data that has been successfully transferred to the intercompany tables. For subledger transactions (like those from Payables), a specific process must be run to transfer this data. The 'Transfer Intercompany Transactions to General Ledger' process, when run for the Payables source, moves the relevant data into the intercompany module, making it available for reconciliation reports. If this step is missed, the transactions will exist in Payables but will not be visible in the intercompany reconciliation tools.
- 5
In Smart View, an analyst is trying to drill down from a summary-level balance to the underlying journals. However, the drill-down option is grayed out. The user has the appropriate data access and security roles. What Smart View data option needs to be configured to enable this functionality?
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Correct answer: D
For drill-down functionality to be active in Smart View, the 'Drill-Through Launch' option within the Member Options tab must be configured. Setting this to 'In New Sheet' or 'Prompt to Launch' enables the drill-through capability. If it is set to 'Disabled', the option to drill down from a parent member to its children or to the underlying transactional data will be unavailable.
- 6
The Period Close Monitor provides a centralized view of all close tasks. A task in the monitor can be dependent on the completion of one or more preceding tasks. This relationship is defined as a ________.
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Correct answer: B
In the context of the Period Close Monitor and other project management tools, a task that must be completed before another task can begin is known as a 'predecessor'. Defining predecessors is critical for creating a logical workflow and ensuring that close activities are performed in the correct sequence.
- 7
An administrator is setting up a journal approval workflow with the following requirements:
- Journals under $5,000 should be auto-approved.
- Journals between $5,000 and $50,000 require approval from the journal preparer's direct manager.
- Journals over $50,000 require approval from both the direct manager and the department director.
Which tool in Oracle Cloud is used to configure this multi-level, conditional approval logic?
flowchart TD A[Start: Journal Submitted] --> B{Amount > $50,000?}; B -->|Yes| C[Route to Manager]; C --> D[Route to Director]; D --> E[Final Approval]; B -->|No| F{Amount >= $5,000?}; F -->|Yes| G[Route to Manager]; G --> E; F -->|No| H[Auto-Approve]; H --> E;Show answer details
Correct answer: B
The BPM (Business Process Management) Worklist is the application used to manage and configure approval workflows for various transactions in Oracle Fusion Applications, including General Ledger journals. Administrators can create complex rules with conditions based on attributes like amount, source, or category, and define multi-stage approval routings using supervisory hierarchies or approval groups.
- 8
A global professional services firm has just acquired a smaller competitor. The acquired firm's Chart of Accounts (COA) uses a different calendar. The parent company's calendar is a standard monthly calendar (Jan-Dec). The acquired company uses a 4-4-5 calendar. To facilitate consolidated reporting, a new secondary ledger is being created for the acquired entity. Which calendar setup is required for this new secondary ledger?
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Correct answer: B
For a secondary ledger to be used for consolidation or reporting purposes where the primary ledger has a different calendar, the secondary ledger must share the same Chart of Accounts and Accounting Calendar as the primary ledger it is mapping to (the parent's ledger). This alignment of calendars is crucial for period-to-period data mapping and consolidation.
- 9
A consultant is implementing General Ledger for a retail company with hundreds of stores. The business requires that store managers can only enter and view journals for their specific store. The 'Store' segment is the second segment in the Chart of Accounts. What is the most efficient way to enforce this security requirement?
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Correct answer: C
The standard and most efficient method to secure data by a specific COA segment is to use a combination of segment value security and Data Access Sets. Segment value security controls which segment values a user's role can access. A Data Access Set then combines this with ledger access to grant specific read or write privileges. This approach is scalable and avoids creating unnecessary ledgers or relying on approval workflows for data visibility control.
- 10
During the period close process for a European subsidiary, the financial controller notices that the 'Revaluate Balances' process completes successfully but generates zero journals for unrealized gains or losses, despite significant fluctuations in the EUR to USD exchange rate. All foreign currency transactions are entered in USD. What is the most likely cause of this issue?
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Correct answer: B
For revaluation to calculate gains or losses, the specific natural account values (e.g., cash, receivables) must be flagged for revaluation in the Chart of Accounts value set definition. If this flag is not set, the 'Revaluate Balances' process will ignore balances in those accounts, resulting in no journals being generated, even if all other setup (rates, revaluation rule) is correct.
