Oracle Financial Interview

Questions And Answers

How many key flexfields are there in oracle financials?

1. General Ledger
1. Accounting Flexfield
2. Assets
1. Asset Key Flexfield
2. Location Flexfield
3. Category Flexfield
3. Service
1. Service Item Flexfield
4. Receivables
1. Territory Flexfield
2. Sales Tax Location Flexfield
5. Inventory
1. Item Categories
2. System Items
3. Sales Orders
4. Item Catalogs

What is the report used to identify duplicate suppliers?

In order to find out duplicate supplier, SUPPLIER AUDIT REPORT is runned
What are the benefits of flexfields?

 Configure applications to support your own accounting, product and other codes.

 Enable the construction of intelligent keys.

 Configure application to capture additional data.

 Use the application to validate values and value combinations entered by the user.

 Support multiple flexfield structures depending on data context.

What are the types of flexfields?

 Key flexfield

 Descriptive flexfield
What is a key flexfield qualifier?
A qualifier is a label attached to a particular key flexfield segment so it can be located by the
application requiring its information. A key flexfield qualifier can be of 2 types:

 Flexfield qualifiers identify a segment in a flexfield.

 Segment qualifiers identify a value set in a segment.
What are the types of Flexfield Qualifier
NATURAL ACCOUNT
Each Accounting Flexfield structure must contain only one natural account segment. When
setting up the values, you will indicate the type of account as Asset, Liability, Owner’s Equity,
Revenue, or Expense.
BALANCING ACCOUNT
Each Structure must contain only one balancing segment. Oracle GL ensures that all journals
balance for each balancing segment.
COST CENTER
This segment is required for Oracle Assets. The Cost center segment is used in many Oracle
Assets reports and by Oracle Workflow to generate account numbers. In addition, Oracle
apps training Bangalore Projects and Oracle Purchasing also utilize the cost center segment.
INTERCOMPANY
GL automatically uses the intercompany segment in the account code combination to track
intercompany transactions within a single set of books. This segment has the same value set
and the same values as the balancing segment.
Segment Qualifiers
ACCOUNT TYPE: Asset, Liability, Owner’s Equity, Revenue, Expense, Budgetary Dr, and
Budgetary Cr.

Budget entry allowed (Yes/No)

Posting allowed (Yes/No)

Control Account Reconciliation Flag Available for specific countries

What is the implication of dynamic insert?

Dynamic Insertion is a feature which controls whether the user can enter new account code
combinations from any form/window. If this feature is disabled, then the user cannot input
new account code combinations from any window/form.
Oracle applications use a particular form (called a Combination form) for directly entering the
new code combinations. Users can enter new account code combinations only through this
form if Dynamic Insertion is disabled.
What are Cross Validating Values
 For key flexfields with multiple segments, we can define rules to cross check value
combinations entered with in the key flexfield segments. This option is referred as Cross
Validation rules.
Value Set List Types

List of values (10 to 200)

Long list of values (> 200)

Poplist (> 10)

Value Set Security Type

 No Security: All security is disabled for this value set.

 Hierarchical Security: With Hierarchical security, the features of the value security and value
hierarchies are combined. With this feature any security that applies to a parent value also applies
to its child values.

 Non-Hierarchical Security: Security is enabled, but the rules of the hierarchical security do not
apply. That is, a security rule that applies to a parent value does not “cascade down” to its child
values.
What are the types of Value Sets

1. None: A value set of the type None has no list of approved values associated with it. A None value
set performs only minimal checking of, for example, data type and length.
2. Independent: Independent type value sets perform basic checking but also check a value entered
against the list of approved values you define.
3. Dependent: A dependent value set is associated with an independent value set. Dependent value
sets ensure that all dependent value are associated with a value in the related independent value set.
4. Table: Table value sets obtain their lists of approved values from existing applications tables. When
defining your table value set, you specify a SQL query to retrieve all the approved values from the
table.
5. Special: This specialized value set provides another flexfield as a value set for a single segment.
6. Pair: This specialized value set provides a range flexfield as a value set for a pair of segments.
7. Translated Independent: This works similar to Independent type. However, a Translated
Independent value set can contain display values that are translated into different languages.
8. Translated Dependent: This works similar to Dependent type. However, a Translated Dependent
value set can contain display values that are translated into different languages.
 Oracle Financial Functional
Interview Questions
How many segments are there in the key flexfield(s) in oracle general ledger?
Oracle GL Key flexfield can have 15 columns each representing a segment. However, the
segments type can be:

 Cost Center segment

 Balancing segment

 Account segment

 Intercompany segment
On which entity is a security rule applicable?
It’s a feature of Key flexfield, applicable on Value Sets.
On which entity is the cross-validation rule applicable?
It’s a feature of Key flexfield, applicable on Value Sets.
Shorthand alias.
An Alias is a label for a particular combination of key flexfield segment value. This allows
users to enter data faster and more easily because the user has to just enter the shorthand
alias, and the flexfield automatically populates the values for the segment.
What is a period in oracle gl?
A Period corresponds to a time span within which transactions are entered prior to finalizing,
otherwise called as close of the period.
What are the period types?
Predefined period types in Oracle GL are:

 Month

 Quarter

 Year
If needed, period types of our own can be defined in addition to the standard periods.
Different statuses of an accounting period.

1. Never Opened - Cannot enter or post journals.

2. Future Enterable - Enter journal, but cannot post. The number of future enterable periods is a fixed
number defined in the set of books window. The number of future enterable period can be changed at
any time.
3. Open - Enter and port journals to any open period. An unlimited number of periods can be open, but
doing so may slow the posting process and can confuse users entering journals.
4. Closed - Cannot post journals in a closed period. Must reopen closed periods before posting journals.
Should manually close periods after finishing month/quarter/year-end processing.
5. Permanently Closed - Permanently closed periods cannot be reopened. This status is required to
Archive and Purge data.

What is an adjusting period and its implications?

Typically, the last day of the fiscal year is used to perform adjusting and closing journals
entries. This period is referred to as Adjusting Period.
Choosing whether to include an adjusting period or not in a calendar is a very important
decision. There can be unlimited number of adjusting periods. Once the accounting calendar
is used, changes to its structure to remove or add an adjusting period cannot be done.
How many types of conversion rates are there in oracle gl?
There are 5 basic types of conversion rate types predefined in Oracle GL:
Spot: An exchange rate based on the rate for a specific date. It applies to the immediate
delivery of a currency.
Corporate: An exchange rate that standardize rates for your company. This rate is generally
a standard market rate determined by senior financial management for use throughout the
organization.
User: An exchange rate that you enter during foreign currency journal entry.
Emu Fixed: An exchange rate that is used by countries joining the EU during the transition
period to the Euro currency.
User Defined: A rate type defined by your company to meet specific needs.
What type of conversion rate is required to be defined for all transactional purposes?
Spot (Not sure).
what are the three essential components of a gl set of book?
Chart of Accounts
Your chart of accounts is the account structure you define to fit the specific needs of your
organization.
You can choose the number of account segments as well as the length, name, and order of
each segment.
Accounting Calendar
An accounting calendar defines an accounting year and the periods it contains.
You can define multiple calendars and assign a different calendar to each set of books.
Currencies
You select the functional currency for your set of books as well as other currencies that you
use to transact business and report in.
 GL converts monetary amounts entered in a foreign currency to functional currency
equivalents using supplied rates.
What is the implication of the ‘future period” field in the set of book definition form?
The value mentioned in the Future Period field represents the number of future enterable
periods that users can use to input journal entries (provided those future periods are opened).
However, consideration must be given to minimize the number of future enterable periods to
prevent users from accidentally entering journal entries in an incorrect period.
How many tabbed regions are there in the set of book definition form? What are the
names of these tabbed regions?
There are 5 tabbed regions in the set of books definition form.

1. Closing
2. Journaling
3. Average Balances
4. Budgetary Control
5. Multiple Reporting Currencies

What is retained earnings account?

GL posts the net balance of all income and expenses accounts from the prior year to this
account when you open the first period of a fiscal year.
What is the purpose of the translation adjustment account?
If you translate your functional currency balances into another currency for reporting, or if you
revalue foreign currency-dominated balances, you must specify a translation adjustment
account.

Parent Do no enable

Budget Yes

Posting Yes

Account Type Ownership/Stock

What is the purpose of/unique feature of the net income account?

GL uses this account to capture the net activity of all revenue and expense accounts when
calculating the average balance for retained earnings.
What is the purpose of the transaction calendar?
Transaction calendar is defined for the purpose of enabling average balance processing.
Transaction calendar is created optionally with valid business days mentioned.
In order to allow unbalances journal posting what action is required at set of book
definition level / what is a suspense account and its purpose?
If you choose to allow posting of out-of-balance/unbalanced journal entries, GL automatically
posts the difference to Suspense Account. However, the Suspense Account check box should
be checked and an Account # to be provided for this feature to work during the creation of set
of books.
If you have multiple companies or balancing entities within a set of books, GL automatically
creates a suspense account for each balancing entity.
What is a value set?
A value set defines the boundaries for the attributes that you assign to a key or descriptive
flexfield segment. Value sets control what types of values can be used as Accounting Flexfield
segment values. Value sets determine the attributes of your segments such as length, zero-
fill, and right justify, alphanumeric, and value security. Value sets also control how validation
is performed.
Inorder to allow intercompany journals what action is required at set of book definition
level?
One of the accounting key flexfield segments should be of the type Intercompany. This
segment would have the same value set and the same values as the balancing segment.
Also, enable Balance Intercompany Journals feature. This allows users to post out-of-balance
intercompany journal entries and automatically balance those journal entries against a
specified intercompany account. Select the Balance Intercompany Journal checkbox and
enter the intercompany account(s) in the Intercompany Accounts window. If you do not enable
this feature, you can only post intercompany journal entries that balance by balancing
segment, (usually the company segment).
What is Account Hierarchy Manager
Account hierarchy manager is a feature provided by Oracle Application which allows to:

 Graphically create, maintain, and review account structure hierarchies.

 Define new parent and child segment values, as well as change parent/child dependencies.

 Create new roll-up groups from the account hierarchy manager and have your changes reflected
automatically in both key segment values and rollup groups window.
Also provides an option to control entities such as:

 Read-only

 Read/write security

 Segment Value Security: An oracle applications feature that lets you exclude a segment value or
ranges of segment values for a specific user responsibility. Segment Value Security is extended
to the Account Hierarchy Manager.
  Chart of Accounts Security
What does balance type “a” indicate?
Not Sure. May be ACTUAL.
How many buttons are there on the manual journal entry form? What are they?
By default, there are 3 buttons on the manual journal entry form:

1. More Details
2. Change Currency
3. More Actions

How many buttons are there under the “more actions” button? What are they?
When we click on the “More Actions” button, another window appears with 4 buttons:

 Reverse Journal

 Post

 Change Period

 CANCEL
What is the status of a newly entered journal?

 Unposted.

 Posting statuses.

 Unposted

 Pending

 Processing

 Selected for posting

 Posted

 Error
What is Journal Reversal Pre-Requisites

 Journal balance type is Actual

 Journal category has AutoReverse enabled

 Journal is posted but not yet reversed

 Journal reversal period is open or future enterable

Oracle Apps Financial Interview
Questions
Can you create a journal entry with a parent segment value?
Not sure. Maybe possible with a child value combined. Parent values automatically allow
posting and budgeting.
When a journal is created, which all gl tables are impacted?

 GL_JE_BATCHES

 GL_JE_HEADERS

 GL_JE_LINES
When a journal is posted, which gl table is posted?
GL_BALANCES
When journals are interfaced, which gl table is populated?
GL_INTERFACE
What is the name of the concurrent to populate the gl tables from the interface table?
Journal Import.
What is the mechanism to rectify a posted journal?
Reverse the Journal.
What is the purpose of stat journal?
You can associate statistical amounts with monetary amounts by using statistical units of
measure.
This enables you to enter both monetary and statistical amounts in a single journal entry line.
For creation of periodically repititive journals what is the gl tool?
Recurring Journal.
What is massallocations?
A single journal entry formula that allocates revenues and expenses across a group of cost
centers, departments, or divisions.
What is the formula for creation of allocation journals?

A*B/C

 A is the Cost Pool that will be allocated. It can be amount or account balance.
  B is the numerator of the factor (a number or statistical account) that multiplies the cost pool for
the allocation.

 C is the denominator of the factor (a number or statistical account) that divides the cost pool for
the allocation.
Note: Parent values can be used in one or more segments.
Account segment types for massallocation.

 Looping

 Summing

 Constant
What are the target and offset accounts in allocation formula?
These are the lines that are the actual journal entry.
Target (T):
Enter an account in the Target line to specify the destination for your allocation.
The parent value used in the target must be the same parent value used in the B and C lines
of the formula.
Offset (O):
Enter an account in the Offset line to specify the account to use for offsetting debit or credit
from your allocation.
The Offset account is usually the same account as formula line A to reduce the cost pool by
the allocated amount.
Can you delete an unposted journal?
Not sure.
Journals from which sub-ledger do not pass through the gl interface table?
Not sure. May be Assets.
When the journals are interfaced and imported, what posting status do they have?
Unposted.
What is the pre-requisite for conversion?

1. Define new currencies

2. Enable seeded currencies
3. Define rate types
4. Enter daily rates

For revaluation, what rate types are available?

1. Daily rates
2. Historical rates
3. Revaluation rate is the inverse of period end rate.

How revaluation journals are created in which currency?

Functional currency
Explain Flexfield Qualifiers In Gl?

Need to assign qualifiers to individual accounting key flexfield segments to identify or represent the

purpose in COA.

Natural Account Each Accounting Flexfield structure must contain only one natural account

segment. When setting up the values, you will indicate the type of account as Asset, Liability,

Owner’s Equity, Revenue, or Expense.

Balancing Account Each structure must contain only one balancing segment. Oracle General

Ledger ensures that all journals balance for each balancing segment.

Cost Center This segment is required for Oracle Assets. The cost center segment is used in

many Oracle Assets reports and by Oracle Workflow to generate account numbers. In

addition, Oracle Projects and Oracle Purchasing also utilize the cost center segment.

Intercompany General Ledger automatically uses the intercompany segment in the account

code combination to track intercompany transactions within a single ledger. This segment

has the same value set and the same values as the balancing segment.
Discuss Primary Ledger Vs Secondary Ledger Vs Reporting Currency.
Primary Ledger Vs Secondary Ledger:

Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or

adjustments for one or more legal entities within the same accounting setup.
For example, use a primary ledger for corporate accounting purposes that use the corporate

chart of accounts and subledger accounting method, and use a secondary ledger for statutory

reporting purposes that use the statutory chart of accounts and subledger accounting method.

This allows you to maintain both a corporate and statutory representation of the same legal

entity’s transactions in parallel.