GL – Intercompany – Certification MCQs – Portal

1. Question

You want to specify Intercompany System Options. Which three factors should you consider? (Choose three.)

The approvers who will approve intercompany transactions

Whether to allow receivers to reject intercompany transactions

Whether to enforce an enterprise-wide currency or allow intercompany transactions in local currencies

Automatic or manual batch numbering and the maximum transaction amount

Automatic or manual batch numbering and the minimum transaction amount

2. Question

Your customer uses Financials Cloud, Projects, Inventory and Procurement.
Which two statements are true regarding intercompany accounting for these products? (Choose two.)

Each product has its own Intercompany Accounting feature that needs to be set up separately

Within Financials Cloud, Intercompany Balancing Rules are used to balance both cross-ledger intercompany transactions and single-ledger Intercompany journals

Intercompany Balancing Rules are defined centrally and applied across Financials and Project Portfolio Management

They need to license a separate stand-alone Intercompany product that acts as the Intercompany Accounting Hub

3. Question

You are defining intercompany balancing rules that are applied to a specific source and category, such as payable and invoices, or a specific intercompany transaction type, such as Intercompany Sales.
Which two statements are correct? (Choose two.)

You can create a rule for all sources and categories by selecting the source “Other” and the category “Other”.

If you choose to have rules at various levels, then intercompany balancing evaluates the rules in this order: Ledger, Legal Entity, chart of accounts, and primary balancing segment value.

You must define rules for every combination of specific categories and sources. Otherwise, the intercompany balancing will not work.

Set up a chart of accounts rule for every chart of accounts structure you have in order to ensure thatIntercompany Balancing will always find a rule to use to generate balancing accounts.

4. Question

Which two statements are true regarding how Intercompany Balancing Rule are defined? (Choose two.)

All ledgers engaged in an intercompany transaction must share the same chart of accounts in order to define balancing rules.

You can only define balancing rules for different journals’ sources. You cannot define balancing rules for different journal categories.

You can define different balancing rules for different combinations of journal sources, journal categories, and transaction types.

You can define different rules for different charts of accounts, ledgers, legal entities, and primary balancing segment values.

5. Question

Your customer requires physical invoices to be generated in Payables Cloud and Receivables Cloud for the Intercompany payables and receivables transactions. Which two statements are correct with regards to setting this up? (Choose two.)

You only need to assign the Legal Entity and Organization Contact

You can only associate one Intercompany Organization per Legal Entity

You must have implemented Payables Cloud and Receivables Cloud

You must assign the corresponding Receivables and Payables Business Units

6. Question

You want to prevent intercompany transactions from being entered during the last day of the close. What should you do?

Freeze the Intercompany journal source in General Ledger

Close all subledger periods

Close the General Ledger period in the Manager Accounting Periods page

Close Intercompany periods in Fusion Intercompany

7. Question

Your customer wants to have balance sheets and income statements for its cost center and program segments. That is, the customer wants to have three balancing segments.
Which two recommendations would you give your customer? (Choose two.)

Additional intercompany rules will need to be defined for the two additional balancing segments

Every journal where debits do not equal credits across the three balancing segments will result in the system generating extra journal lines to balance the entry

Define Ledger balancing options to balance by second and third balancing segments

When entering journals manually, the customer will need to make sure that debits and credits are equal across all balancing segments because the system will not automatically balance the journal

8. Question

Before implementing Financials Cloud, your customer used to manually reconcile their intercompany payables and receivables accounts. What is a more automated approach to do this?

Use Oracle Hyperion Close Manager to automatically reconcile intercompany account balances

In Financials Cloud, you must manually reconcile your intercompany account balances

Run the BI Publisher reports called Intercompany Transaction Summary and Account Details to automatically reconcile intercompany balances

Run the Intercompany Reconciliation report, which shows pairs of intercompany receivables and payables accounts that are out of balance

Create a query using Oracle Transactional Business Intelligence (OTBI) that will match the intercompany payables and receivables balances

9. Question

Your customer has a large number of legal entities. The legal entity values are defined in the company segment which represents the primary balancing segment. They want to easily create eliminating entries for their intercompany activity. What would you recommend?

Define an intercompany segment in the chart of accounts. The Intercompany module and the Intercompany balancing feature in general ledger and subledger accounting will automatically populate the intercompany segment which the balancing segment value of the legal entity with which you are trading

There is no need to define an intercompany segment, the Intercompany module keeps track of the trading partners for you based on the intercompany rules to define

Define an intercompany segment and qualify it as the second balancing segment to make sure all entries are balanced for the primary balancing segment and intercompany segment

There is no need to define an intercompany segment. You can track the intercompany trading partner using distinct intercompany receivable/payable natural accounts to identify the trading partner

10. Question

Your customer wants to use a clearing company to automatically balance intercompany entries. Which three statements are true regarding the use of a clearing company value? (Choose three.)

You must map legal entities to balancing segment values in order to use a clearing company

If you do not map legal entities to balancing segment values, then a clearing company can be applied to any journal within the ledger

Clearing companies are not supported

If you map legal entities to balancing segment values, then a clearing company can only be applied within a legal entity

If you choose to use a clearing company, you can define a default clearing company value or select the clearing company value directly in the general ledger journal

11. Question

You are defining intercompany balancing rules that are applied to a specific source and category, such as payables and invoices, or a specific intercompany transaction type, such as Intercompany Sales.
Which two statements are correct?

You must define rules for every combination of specific categories and sources. Otherwise, the intercompany balancing will not work.

You can create a rule for all sources and categories by selecting the source "Other" and the category "Other."

If you choose to have rules at various levels, then intercompany balancing evaluates the rules in this order: Ledger, Legal Entity, chart of accounts, and primary balancing segment value.

Set up a chart of accounts rule for every chart of accounts structure you have in order to ensure that Intercompany Balancing will always find a rule to use to generate balancing accounts.

12. Question

Your company has complex consolidation requirements with multiple general ledger instances. You are using Oracle Hyperion Financial Management to consolidate the disparate General Ledgers. You can typically map segments between your general ledger segment to a Hyperion Financial Management segment, such as Company to Entity, Department to Department, and Account to Account.
What happens to segments in your source general ledger, such as Program, that cannot be mapped Hyperion Financial Management?

The data is not transferred.

Data is summarized across segments that are not mapped to Hyperion Financial Management

Errors occur for unmapped segments. You must map multiple segments from source general ledgers to the target segment in Hyperion Financial Management.

The unmapped segments default to future use segments in Hyperion Financial Management

13. Question

Your customer is having issues transferring intercompany transactions to General Ledger. Identify three reasons for this.

The intercompany transaction is not approved.

The corresponding Payables and Receivables invoice have not been generated.

If they are different, then the exchange rate is missing between the intercompany and ledger currency.

The intercompany period is closed.

Both the intercompany and general ledger periods are open.

14. Question

All of your subsidiaries reside on the same application instance, but some of them require a different chart of accounts and/or accounting calendar and currency. There is no minority interest or partial ownerships. What is Oracle’s recommended approach to performing consolidations?

Use Oracle Hyperion Financial Management for this type of complex consolidation. Use Oracle Hyperion Financial Management for this type of complex consolidation.

Translate balances to the corporate currency, create a chart of accounts mapping to the corporate Chart of accounts, then transfer balances to the corporate consolidation ledger using the balance transfer program.

Translate balances to the corporate currency for ledgers not in the corporate currency, use General Ledger's Financial Reporting functionality to produce consolidated reports by balancing segment where each report represents a different subsidiary.

Create separate ledgers for each subsidiary that shares the same chart of accounts, calendar, currency and accounting method. Create a separate elimination ledger to enter intercompany eliminations, then create a ledger set across all ledgers and report on the ledger set.

15. Question

Your customer has many eliminating entries to eliminate intercompany balances. The General Ledge does not include a purpose- built Consolidation feature.
How would you automate the process of creating eliminating entries, assuming your customer is not using Oracle Hyperion Financial Close Management?

Use the spreadsheet template that is accessed from the "Create Journal in Spreadsheet" task and import the spreadsheet with the eliminating entries every period.

Use the General Ledger's Calculation Manager to define an allocation definition to eliminate entries that you can generate every period.

There is no way to automate this process if the customer is not using Oracle Hyperion Financial Close Management.

Create a manual journal that includes the eliminating entries, and then create a copy of the Journal batch every period.

16. Question

Which two statements are true regarding how Intercompany Balancing Rule, are defined?

All ledgers engaged in an intercompany transaction must share the same chart: of accounts in order to define balancing rules

You can only define balancing rules for different journals' sources. You cannot define balancing rules for different journal categories.

You can define different balancing rules for different combinations of journal sources, journal categories, and transaction types

You can define different rules for different charts of accounts, ledgers, legal entities, and primary balancing segment value.

17. Question

Your customer is reconciling their Intercompany Receivables accounts.
Which two reports should they use in addition to using the intercompany Reconciliation report?

Receivables Aging by General Ledger Account report

General Ledger Trial Balance report

Receivables to General Ledger Reconciliation report

AR Aging report

18. Question

You want to specify Intercompany System Options. Which three factors should you consider?

Whether to enforce an enterprise-wide currency or allow in intercompany transactions in local currencies

Whether to allow receivers to reject intercompany transactions

Automatic or manual batch numbering and the minimum transaction amount

Automatic or manual batch numbering and the maximum transaction amount

The approvers who will approve intercompany transactions

GL – Intercompany – Certification MCQs

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