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Oracle EBS R12: Inventory and Purchasing Fundamentals Exam: 1Z0-225 Demo Edition
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QUESTION: 1 Select three true statements about the default of sourcing information for requisitions and purchase orders. (Choose three.) A. The item price on a requisition can be defaulted from the item attribute setup. B. Buyer name cannot be defaulted onto a requisition, but you can assign notes to a buyer. C. You can modify the last name of the requester defaulting from the Human Resources employee record. D. You must use the Transfer From assignment on a sourcing rule for item information to default onto an internal requisition. E. When you assign a commodity to an approved supplier list, you do not need to assign the individual items in the commodity. F. You can have the same item on a quotation and a blanket agreement but the supplier or supplier site must be different, so that it can default onto a requisition line.
Answer: A, D, E QUESTION: 2 Which three values are applicable for the transaction profile option Miscellaneous Issue and Receipt? (Choose three.) A. Online Processing B. Concurrent Processing C. Form-Level Processing D. Background Processing E. Record-Level Processing
Answer: A, B, D QUESTION: 3 Due to excessive customer returns, the client needs to prevent the reservation and subsequent shipping to customers of a specific lot number for an item, pending a quality review. Identify two conditions that will satisfy this requirement. (Choose two.) A. Assign the lot a material status that does not permit reservations. B. Assign the lot a material status that only permits subinventory transfers and issues to scrap. C. Assign the lot a material status that does not permit reservations, but only permits subinventory transfers and issues to scrap. D. Transfer the quantity on hand of the item to a subinventory that does not permit reservations, but only permits subinventory transfers and issues to scrap.
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Answer: C, D QUESTION: 4 Identify the correct sequence of steps in the purchase order period close business flow. A. 1. Review the Uninvoiced Receipts report. > 2. Process period-end accruals. > 3. Close the purchasing period. > 4. Process remaining inventory transactions and close the inventory accounting period. > 5. Run the Accrual Rebuild Reconciliation report. > 6. Write off accrued transactions as necessary. > 7. Create a manual journal entry for write-offs. B. 1. Review the Uninvoiced Receipts report. > 2. Process period-end accruals. > 3. Close the purchasing period. > 4. Run the Accrual Rebuild Reconciliation report. > 5. Write off accrued transactions as necessary. > 6. Create a manual journal entry for write-offs. > 7. Process remaining inventory transactions and close the inventory accounting period. C. 1. Process remaining inventory transactions and close the inventory accounting period.> 2. Run the Accrual Rebuild Reconciliation report. > 3. Write-off accrued transactions as necessary. > 4. Create a manual journal entry for write- offs. > 5. Review the Uninvoiced Receipts report. > 6. Process period-end accruals. > 7. Close the purchasing period. D. 1. Process remaining inventory transactions and close the inventory accounting period.> 2. Review the Uninvoiced Receipts report. > 3. Process period-end accruals. > 4. Close the purchasing period. > 5. Run the Accrual Rebuild Reconciliation report. > 6. Write-off accrued transactions as necessary. > 7. Create a manual journal entry for write-offs.
Answer: A QUESTION: 5 What are the prerequisites for performing an accurate ABC Compile for inventory items using the Current on-hand value as the compile criterion?
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A. items costed only B. items with on-hand quantity only C. either items with on-hand quantity or items costed D. Both items with on-hand quantity and items costed
Answer: D QUESTION: 6 You are creating an interorganization transfer. The standard shipping lead time defined for the transfer is 14 days. You want to move the inventory from the source and put it in Intransit. You made a mistake and did not choose the option to have Intransit Inventory. When you initiate the process for interorganization transfer, what is the result of the transaction? A. You would get an error for the transaction, because it violates referential integrity. B. The inventory would not be moved from the source organization, because there is a lead time of 14 days defined. C. The inventory would be moved from the source organization, but it would be moved directly to the destination organization. D. The inventory would be moved from the source organization, but it would be moved to Intransit Inventory, because there is a lead time of 14 days defined.
Answer: C QUESTION: 7 A multinational company is setting up the sourcing rules and approved supplier list (ASL) to source inventory items across different organizations. Which two statements are true? (Choose two.) A. You do not need to create a local ASL if you create a Global ASL. B. Inventory organizations used in the sourcing rules must be set up in the Shipping Networks. C. You need to match the supplier between a sourcing rule and an ASL, but not the supplier site. D. The country of origin must be entered in the ASL, or it would not be available on the purchasing document. E. A commodity can be assigned to a supplier at both the global level and at the local level, and the local level assignment takes precedence.
Answer: B, E
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QUESTION: 8 The warehouse has received new stock from an internal distribution warehouse. Which two receiving transactions can be used to put stock into the warehouse's inventory using the Intransit Inventory? (Choose two.) A. Direct Receipt B. Standard Receipt and Delivery C. Inter organization Direct Receipt D. Inter organization Receipt and Delivery E. Inter organization Miscellaneous Receipt
Answer: C, D QUESTION: 9 ACME is implementing Inventory in a Process Manufacturing environment. The default profile for the Min-Max Planning Report is deployed. What will be the result? A. Requisitions will be preapproved. B. Users must approve requisitions for items that have a limited shelf life. C. Users must approve requisitions for items with a Material Safety Data Sheet (MSDS). D. Users must approve requisitions that are inside the items Past Due Supply time fence. E. Users must approve requisitions when the quantity exceeds the item's Economic Order Quantity (EOQ).
Answer: A QUESTION: 10 Company XYZ manufactures three different types of PC monitors.Type 1 is a unique requirement for the local college called Northern College. Shipments of Type 1 to other customers are not allowed.This item is stored only in a subinventory called MODEL 1. Other models are also stored in this same subinventory.The other two types (Type 2 and Type 3) can be shipped to any other customer, including Northern College.Which conditions are mandatory for the Picking rule (rule) to meet these requirements? A. Transaction type of Sales Order. Rule assigned to Northern College. B. Subinventory as MODEL 1. Rule assigned to customer Northern College. C. Subinventory as MODEL 1. Rule assigned to Type 1, and customer as Northern College. D. Subinventory as MODEL 1. Rule assigned to Type 1, and transaction type as Sales Order. E. Subinventory as MODEL 1. Rule assigned to Type 1, transaction type as Sales Order, and customer Northern College.
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Answer: E QUESTION: 11 Your customer has two manufacturing plants. The manufacturing process for both the plants is identical, but there are differences in specific areas. 1. Plant 1 uses min-max planning and Plant 2 uses re-order point planning. 2. Plant 1 and Plant 2's Variable Lead Times are different. 3. Plant 1 and Plant 2 use two different WIP (Work In Process) supply subinventories. Which two attribute control settings meet the requirement? (Choose two.) A. Organization Level: WIP Supply Subinventory B. Master Level: Stockable, Transactable, Build in WIP Organization Level: Inventory Planning Method C. Organization Level: Variable Lead Time, WIP Supply Subinventory D. Master Level: Stockable, Variable Lead Time, Inventory Planning Method Organization Level: Transactable E. Master Level: Transactable, Inventory Planning Method, Variable Lead Time F. Master Level: WIP Supply Subinventory, Variable Lead Time, Stockable, Transactable, Build in WIP
Answer: B, C QUESTION: 12 Company ABC has a factory that is set up as an inventory organization with several subinventories.Each of the subinventories has locators. The factory purchases material using a purchase order. The person who receives the purchase order does not know which subinventory and locator the material needs to go to.ABC wants the subinventory and locator to be automatically populated for that item. Which option would solve the problem? A. Populate the completion subinventory and locator on the routing for that item. B. Use the restrict subinventory and restrict locator flag on the Item Master record of that item. C. Populate the supply subinventory and locator fields on the Item Master record for the purchased item. D. Use the Item Transactions Default form to create default subinventory and locators for the purchased item.
Answer: D QUESTION: 13
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Which two statements are true about setting up an Approved Supplier List? (Choose two.) A. An Approved Supplier List is used only for items and not for services. B. A Global Agreement cannot be set up as a source document for a requisition. C. A blanket purchase agreement cannot be set up as a source for an item in a purchase order line. D. You can get the price breaks to default to a requisition from a quotation or a blanket purchase agreement. E. You do not need to set the profile option PO: Automatic Document Sourcing to Yes, in order to get the source document information for a service (as opposed to an inventory item).
Answer: C, D QUESTION: 14 You are working on an implementation of Oracle Purchasing at a financial institution. The client has strategically sourced a firm for all its desktop needs. Volume discounts apply. The client has standardized pricing requirements for specific brands of equipment and peripherals. Which two types of procurement documents would you suggest?(Choose two.) A. Global Agreement B. Contract Agreement C. Planned Purchase Order D. Standard Purchase Order E. Blanket Purchase Agreement
Answer: A, E QUESTION: 15 Identify the purpose of using Material Status controls. A. to permit updates to the Item Master record B. to prevent unnecessary cycle counting in an inventory organization C. to define the transactions that are permitted for an inventory organization D. to select the transactions that are permitted to use the inventory on-hand quantity
Answer: D QUESTION: 16 Your client wants to ensure that backflush operations can continue even if the inventory level is driven below zero. At the same time, they want typical inventory transactions to be
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prevented from driving inventory levels below zero. Which configuration meets this requirement? A. Org Profile option to Allow Override Neg for Backflush = No. B. Org Profile option to Allow Override Neg for Backflush = Yes. C. Org Profile option to Allow Override Neg for Backflush = No. D. Org Profile option to Allow Override Neg for Backflush = Yes.
Negative Balances = No; Profile option for INV: Negative Balances = No; Profile option for INV: Negative Balances = Yes; Profile option for INV: Negative Balances = Yes; Profile option for INV:
Answer: B QUESTION: 17 Requisition Import groups all requisitions with the same group code under the same requisition header. If no group code is specified,Requisition Import groups requisitions according to five types of groups that can be optionally passed to the Requisition Import process. Identify them. (Choose five.) A. Group by Item. B. Group by price. C. Group by buyer. D. Group by UOM. E. Group by location. F. Group by supplier. G. Group by description. H. Group all requisition lines under one requisition header.
Answer: A, C, E, F, H QUESTION: 18 Which three fields can be set in the requisition preferences phase of the requisition life cycle?(Choose three.) A. Preparer B. Category C. Requestor D. Description E. Charge Account F. Destination Type G. Requisition Amount H. UOM (Unit of Measure)
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Answer: C, E, F QUESTION: 19 What is the impact of setting the profile option INV: Override Neg for Backflush = Yes? A. It would not allow inventory to be driven negative. B. Backflush transactions would drive inventory negative. C. Backflush transactions would not drive inventory negative. D. Backflush and inventory transactions would drive inventory negative. E. Backflush and inventory transactions would not drive inventory negative. F. It would permit the driving of on-hand inventory negative for miscellaneous issue transactions.
Answer: B QUESTION: 20 Your company often orders items that are sourced from multiple suppliers. At any given time, the supplier varies depending on the supplier's current production capability and price offering. The price varies throughout the year. For a particular item, there is no single supplier that receives the majority of the orders. What is the best way to set up this item? A. Create blanket purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries. B. Create contract purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries. C. Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions onto standard purchase orders. D. Create a blanket purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier. E. Create a contract purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier.
Answer: C
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