Oracle E-Business Suite R12 Project Essentials Exam
Question No: 21
A project is enabled for Burdening by setting up a burden schedule at the project type level. A
Miscellaneous expenditure Item Is charged to the project with a raw cost of $100 and expenditure type quot;Overhead.quot; The quot;Overheadsquot; expenditure type is excluded from all cost bases in the burden structure.
What happens when the quot;PRC: Distribute usage and Miscellaneous Costsquot; program is run for this project?
The program errorswith the message quot;Missing Expenditure type.quot;
The program completes successfully; Raw Cost = $100, Burden Cost=$0,TotalBurdened cost=$100.
Theprogram completes successfully; Raw Cost=$100, Burden Cost=
Theprogram completes successfully; Raw Cost =$100, Burden Cost=$0, Total Burdened cost= $0.
*Distribute Usage and Miscellaneous Costs
The process computes the costs and determines the default GL account to which to post the cost for expenditure items with the following expenditure type classes:
Burden Transactions Miscellaneous Transactions
Inventory and WIP transactions not already costed or accounted
Question No: 22
A customer wants to make a new classification mandatory on all their new projects. Select the three options that could help them accomplish this.
Define the classification as Mandatory in theClassification configuration.
Define the classification as Mandatory in the Project Type configuration.
Define the classification category to allow one code only.
Define project status controls to disallow project status changes where classificationcategory codesare missing.
Define theclassificationas Required on the appropriate project templates in the QuickEntry screen.
Answer: A Explanation:
*You define project classifications to group your projects according to categories you define. A project classification includes a class category and a class code. The category is a broad subject within which you can classify projects. The code is a specific value of the category.
*(see step 3 below)Defining class categories and class codes
To define class categories and class codes:
1.Navigate to the Class Categories and Codes window. 2.Enter a unique Class Category name and a Description.
Specify whether the class category is mandatory for every project you define.
Enable if all projects must have a code assigned to this class category. Do not enable if this class category is optional. If you do not enable this option, you cannot use this class category in your AutoAccounting rules.
Specify whether you want to use the class category in your AutoAccounting rules. Suggestion: For each project, you can use only one code with one class category for use with AutoAccounting rules. If an AutoAccounting category already exists within a particular date range, assign an end date to the existing AutoAccounting category and then create a new one.
Specify whether you want to allow entry of only one class code with this class category for a project.
Note: Defining multiple class codes for one category for a project may affect reporting by class category; defining multiple class codes may cause your numbers to be included more than once.
Enter the Name, Description, and Effective Dates for each class code. 7.Save your work.
Reference:Project Classifications (Class Categories and Class Codes)
Question No: 23
An employee has entered eight hours of billable time on a project. You want only three hours to be billable and five hours to be nonbillable. What is the adjustment action that should be applied on this expenditure item?
Change the billable status.
Split the item.
Apply billing hold.
Explanation: You can split an item into two items so that you can process the two resulting
split items differently.
For example, you may have an item for 10 hours, of which you want 6 hours to be billable and 4 hours to be non-billable. You would split the item of 10 hours into two items of 6 hours and 4 hours, marking the 6 hours to be billable and 4 hours to be non-billable.
The resulting split items are charged to the same project and task as the original item. Reference:Types of Expenditure Item Adjustments
Question No: 24
A one-time additional public holiday has been announced for this year. You update the PA Calendar, which is used for Resourcing with this exception. Select the two options required to ensure that this change is reflected in the existing assignment on resource calendars.
Runquot;PRC: Generate CalendarSchedules.quot;
Run quot;PRC: Rebuild Resource Timeline.quot;
Inform Resource Managers that they will have to redo all the existing planning.
Run quot;PRC: AutomatedCandidate Search.quot;
Run quot;PRC:Refresh project summary amounts.quot;
Explanation: Changes to these calendars impact the schedules of the person resources, requirements, and assignments differently. Oracle Project Resource Management provides the following administrative processes to help manage these changes and to maintain consistent schedule information throughout the application:
PRC: Generate Calendar Schedule for a Single Calendar PRC: Generate Calendar Schedules for a Range of Calendars PRC: Rebuild Timeline for a Single Resource
PRC: Rebuild Timeline for a Range of Resources
Reference:Oracle Projects Fundamentals,Assigning People to Projects
Question No: 25
You define assets for your project and assign them at the project or task level. What should be the value of quot;Project Asset Typequot; to generate asset lines?
Answer: B Explanation:
*Project Asset Type
This field identifies whether an asset represents an Estimated or complete, As-Built capital asset, or a Retirement Adjustment asset.
*We have a Capital Projects, Every month end we want generate asset lines and send to FA as CIP asset lines againest the project asset.Once project is completed then all the Asset lines will capitalize in FA .
When we want to generate asset lines, we have to give the Date in Service and Project asset Type as quot;Builtquot;. after generating the asset line we cant change the Date in service in oracle projects
If we have given the Project Asset type as quot; Estimatedquot; then i cant generate asset lines.
*Project Asset Type
When you copy an asset, Oracle Projects copies the asset with the same project asset type. For estimated assets, you can optionally copy the asset as an as-built asset.
Question No: 26
A customer is billed using deliverable billing events, which are currently approved by the customer and the finance director before invoicing. There are often invoices awaiting the finance director#39;s approval and release. The Finance director would like to use functionality that allows all invoices to be approved and released automatically.
How can this be achieved?
Use deliverable managementto automatically approve the invoice.
Implement the cost-to-cost billing extension.
Implement the costaccrual and project status inquiry extension.
Implement theinvoice approval/release extension.
Set the quot;Interface unreleased revenue to GLquot; profile option to quot;Yes.quot;
Explanation: The Automatic Invoice Approve/Release Extension allows you to release invoices automatically as part of the Generate Draft Invoice process.
Incorrect: Not E:
Generating Revenue Accounting Events
After you generate and release the revenue, you run the concurrent program PRC: Generate Revenue Accounting Events. The concurrent program determines default unearned revenue and unbilled receivables accounts using AutoAccounting and generates accounting events for Oracle Subledger Accounting.
Note: If you set the profile option PA: Interface Unreleased Revenue to GL to yes, then Oracle Projects automatically releases any unreleased revenue when you run the concurrent program PRC: Generate Revenue Accounting Events.
Reference:Oracle Project Billing User Guide,Releasing Invoices
Question No: 27
A project has two customer billing elements. One part of the project is based on a fixed fee and the other part is a variable based on a cost plus basis. The customer requires separate invoices for fixed fee elements and variable works elements. How can agreements be
used to provide separate invoices?
Createeach element as a top task and implement top task billing for the project.
Create each element as a top task on the project and create an agreement for variable works and onefor fixed fee.Then fund the project at the top task level.
Have one agreement and create an invoice grouping rule in Accounts Receivable.
Create oneagreement and fund the project.
Use billing events and create separate events per purchase order.
Explanation: One Customer, Multiple Agreements
Use multiple agreements when you have one customer, but a requirement to create a separate invoice for each top task.
You can use this method to accrue revenue cost-to-cost or impose hard or soft revenue limits by task, as well as automatically create separate invoices by task.
To create separate invoices by task, you must use a different agreement to fund each task. If you use more than one agreement for a single task, the agreements are used according to the precedence described earlier for projects.
Reference:Oracle Project Billing User Guide,greements and Project Funding
Question No: 28
A company generates revenue at period end, but bills monthly in arrears. The first project revenue is due to be recognized at the end of May and the first invoice sent to the customer in June. What are the accounting entries at the end of May?
Debit: Cost of Goods SoldCredit: Unbilled Receivables
Debit: BankCredit: Revenue
Debit: Unearned RevenueCredit: Revenue
Debit: RevenueCredit: Accounts PayableLiability Account
Answer: E Explanation: Revenue
Once revenue is created, Oracle Projects runs AutoAccounting to determine the
appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.
Unbilled Receivables and/or Unearned Revenue200.00 Revenue200.00
Question No: 29
An organization wants to consolidate work based billing across multiple projects (produce one invoice for a single customer based on multiple contract projects).
Which two methods will help them accomplish this?
Create draft Invoices against individual projects, and consolidate them in Receivables.
Create a program. All costs will roll up to the program level and the program can be billed.
Run theinvoice consolidation concurrent request to produce a singleinvoice.
Carry out billing against top tasks across any projects with the same ServiceType.
Use inter-project billing so that individual contract projects invoice a single project which, in turn, bills the customer.
Explanation: C:Consolidated Invoicing allows you to consolidate multiple project invoices into one single invoice.
Reference:Project Billing Made Easy Using Invoice Consolidation
Question No: 30
A client requires a project definition that allows for charging expenditures to the project at a higher Work Breakdown Structure level than where the manually entered percentage complete progress is captured. Which three Shared Structure relationships will support this requirement?
Explanation: Structure Integration Setup
If you enable both a workplan structure and a financial structure for your project or project template, you can decide whether or not they are integrated, and if so, to what degree. You do this by choosing one of the following options on the Structures setup page:
*Shared Structures: Enables you to generate a financial structure with a task hierarchy that is fully shared by the workplan structure task hierarchy. Workplan and financial structures are fully shared by default.
*Partially Shared Structures: Enables you to generate a financial structure that is partially shared by the workplan structure hierarchy.
*Non-Shared: Task-Based Mapping: Enables you to map individual workplan structure tasks to individual financial structure tasks.
*Non-Shared: No Mapping: Choose this if you do not want to integrate your project workplan and financial structures in any way.
Reference:Oracle Projects Fundamentals
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