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Oracle Financials Interview Questions and Answers

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Oracle Financials Interview Questions

Oracle financials ERP cloud is a cloud-based end-to-end business management solution
developed for midsized to enterprise-level consumers. It gives a set of applications including
financial accounting, material planning, self-service reporting, and analytics

Most Frequently asked Oracle Financials Interview Questions

How many key flex fields are there in oracle financials?

What is a key flex field qualifier?
What are Cross Validating Values?
How many segments are there in the key flexfield(s) in the oracle general ledger?
What is a period in oracle gl?
What is a retained earnings account?
What is Account Hierarchy Manager?
Can you create a journal entry with a parent segment value?
How revaluation journals are created in which currency?
Explain a profile and list the types of profiles?
List the necessary tables in GL?
What are oracle financial modules?

1Q) How many key flex fields are there in oracle financials?

Ans: The key flex fields in oracle financials are:

General Ledger

1. Accounting Flexfield

Assets

1. Asset Key Flexfield

 y

2. Location Flexfield

3. Category Flexfield

Service

1. Service Item Flexfield

Receivables

1. Territory Flexfield

2. Sales Tax Location Flexfield

Inventory

1. Item Categories

2. System Items

3. Sales Orders

4. Item Catalogs

2Q) What is the report used to identify duplicate suppliers? 

Ans: To find out duplicate suppliers, the SUPPLIER AUDIT REPORT is run.

3Q) What are the benefits of flexfields?

Ans: Benfits of flexfields are:

Configure applications to support your own accounting, product, and other codes.
Enable the construction of intelligent keys.
Configure the application to capture additional data.
Use the application to validate values and value combinations entered by the user.
Support multiple flexfield structures depending on the data context.

4Q) What are the types of flexfields?

Ans: Types of flexfields are:

Key flexfield
Descriptive flexfield

5Q) What is a key flex field qualifier?

Ans: 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.
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6Q) What are the types of Flexfield Qualifier?

Ans:

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 journal balances for each balancing segment.

COST CENTER: This segment is required for Oracle Assets. The Cost centre segment is used in
many Oracle Assets reports and by Oracle Workflow to generate account numbers. Also, Oracle
apps training Projects and Oracle Purchasing utilize the cost centre 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 Available for specific

Flag countries

 7Q) What is the implication of dynamic insert?

Ans:

Dynamic Insertion is a feature that 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.

8Q) What are Cross Validating Values?

Ans: For key flexfields with multiple segments, we can define rules to cross-check value
 y p g ,
combinations entered within the key flexfield segments. This option is referred to as Cross
Validation rules.

Value Set List Types

List of values (10 to 200)

A 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 hierarchical security do not
apply. That is, a security rule that applies to a parent value does not “cascade down” to its child
values.

9Q) What are the types of Value Sets?

Ans: Types of Value Sets:

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.
Independent: Independent type value sets perform basic checking but also check a value
entered against the list of approved values you define.
Dependent: A dependent value set is associated with an independent value set.
Dependent value sets ensure that all dependent values are associated with a value in the
related independent value set.
Table: Table value sets obtain their lists of approved values from existing application
tables. When defining your table value set, you specify a SQL query to retrieve all the
approved values from the table.
Special: This specialized value set provides another flexfield as a value set for a single
segment.
Pair: This specialized value set provides a range of flexfield as a value set for a pair of
segments.
Translated Independent: This works similar to the Independent type. However, a
Translated Independent value set can contain display values that are translated into
different languages.
Translated Dependent: This works similarly to the Dependent type. However, a Translated
Dependent value set can contain display values that are translated into different
languages.

Oracle Financial Functional Interview Questions

10Q) How many segments are there in the key flexfield(s) in the oracle general ledger?

Ans: 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

11Q) On which entity is a security rule applicable?

Ans: It’s a feature of Key flexfield, applicable on Value Sets.

12Q) On which entity is the cross-validation rule applicable?

Ans: It’s a feature of Key flexfield, applicable on Value Sets.

13Q) Shorthand alias?

Ans: 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.

14Q) What is a period in oracle gl?

Ans: A Period corresponds to a time span within which transactions are entered before
finalizing, otherwise called as close of the period.

15Q) What are the period types?

Ans: 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.

Never Opened - Cannot enter or post journals.

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 the future enterable
period can be changed at any time.
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.
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
 processing.
Permanently Closed -  Permanently closed periods cannot be reopened. This status is
required to Archive and Purge data.

16Q) What are an adjusting period and its implications?

Ans: Typically, the last day of the fiscal year is used to perform adjusting and closing journal
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 an 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.

17Q) How many types of conversion rates are there in oracle gl?

Ans: 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 standardizes 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.

18Q) What type of conversion rate is required to be defined for all transactional purposes?

Ans: Spot (Not sure).

19Q) what are the three essential components of a gl set of books?

Ans: The Essential components of gl set of books are:

Chart of Accounts:

1. Your chart of accounts is the account structure you define to fit the specific needs of your
organization.

2. You can choose the number of account segments as well as the length, name, and order of
each segment.

Accounting Calendar:

1. An accounting calendar defines an accounting year and the periods it contains.

2. You can define multiple calendars and assign a different calendar to each set of books.

Currencies:
1. You select the functional currency for your set of books as well as other currencies that you
use to transact business and report in.
2. GL converts monetary amounts entered in a foreign currency to functional currency
equivalents using supplied rates.

20Q) What is the implication of the ‘future period” field in the set of book definition forms?

Ans: 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.

21Q) How many tabbed regions are there in the set of book definition form? What are the
names of these tabbed regions?

Ans: There are 5 tabbed regions in the set of a book's definition form.

Closing
Journaling
Average Balances
Budgetary Control
Multiple Reporting Currencies

22Q) What is a retained earnings account?

Ans: 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.

23Q) What is the purpose of the translation adjustment account?

Ans: 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

24Q) What is the purpose of/unique feature of the net income account?

Ans: GL uses this account to capture the net activity of all revenue and expense accounts when
calculating the average balance for retained earnings.

25Q) What is the purpose of the transaction calendar?

Ans: The transaction calendar is defined to enable average balance processing. The
transaction calendar is created optionally with valid business days mentioned.
26Q) To allow unbalances journal posting what action is required at a set of book definition
levels / what is a suspense account and its purpose?

Ans: 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
checkbox should be checked and an Account # to be provided for this feature to work during
the creation of a 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.

27Q) What is a value set?

Ans: 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.

28Q) To allow intercompany journals what action is required at a set of book definition levels?

Ans: 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 the 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).

29Q) What is Account Hierarchy Manager?

Ans: 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 roll-up 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
 Chart of Accounts Security

30Q) What does balance type “a” indicate?

Ans: Not Sure. Maybe ACTUAL.

31Q) How many buttons are there on the manual journal entry form? What are they?

Ans: By default, there are 3 buttons on the manual journal entry form:

More Details
Change Currency
More Actions

32Q) How many buttons are there under the “more actions” button? What are they?

Ans: When we click on the “More Actions” button, another window appears with 4 buttons:

Reverse Journal
Post
Change Period
CANCEL

33Q) What is the status of a newly entered journal?

Ans:

Unposted.
Posting statuses.
Unposted
Pending
Processing
Selected for posting
Posted
Error

34Q) What is Journal Reversal Pre-Requisites?

Ans:

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

35Q) Can you create a journal entry with a parent segment value?

Ans: Not sure. Maybe possible with a child value combined. Parent values automatically allow
posting and budgeting.
36Q) When a journal is created, which all gl tables are impacted?

Ans: The impacted gl tables are:

GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES

37Q) When a journal is posted, which gl table is posted?

Ans: GL_BALANCES 

38Q) When journals are interfaced, which gl table is populated?

Ans: GL_INTERFACE

39Q) What is the name of the concurrent to populate the gl tables from the interface table?

Ans: Journal Import.

40Q) What is the mechanism to rectify a posted journal?

Ans: Reverse the Journal.

41Q) What is the purpose of the stat journal?

Ans: 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.

42Q) For the creation of periodically repetitive journals, what is the gl tool?

Ans: Recurring Journal.

43Q) What is mass allocations?

Ans: A single journal entry formula that allocates revenues and expenses across a group of
cost centers, departments, or divisions.

44Q) What is the formula for the creation of allocation journals?

Ans:   A*B/C

A is the Cost Pool that will be allocated. It can be an 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 mass allocation.

Looping
Summing
Constant

45Q) What are the target and offset accounts in the allocation formula?

Ans: 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 as formula line A to reduce the cost pool by the
allocated amount.

46Q) Can you delete an unposted journal?

Ans: Not sure.

47Q) Journals from which sub-ledger do not pass through the gl interface table?

Ans: Not sure. Maybe Assets.

48Q) When the journals are interfaced and imported, what posting status do they have?

Ans: Unposted.

49Q) What is the pre-requisite for conversion?

Ans:

Define new currencies

Enable seeded currencies
Define rate types
Enter daily rates

50Q) For revaluation, what rate types are available?

Ans:

Daily rates
Historical rates
The revaluation rate is the inverse of the period-end rate
 The revaluation rate is the inverse of the period end rate.

51Q) How revaluation journals are created in which currency?

Ans: Functional currency

52Q) Explain Flexfield Qualifiers In Gl?

Ans: Need to assign qualifiers to individual accounting key flexfield segments to identify or
represent the purpose of 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 journal balances for each balancing segment. Cost Center This segment is required for
Oracle Assets. The cost centre segment is used in many Oracle Assets reports and by Oracle
Workflow to generate account numbers. Also, Oracle Projects and Oracle Purchasing utilize the
cost centre 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.

53Q) Discuss Primary Ledger Vs Secondary Ledger Vs Reporting Currency.

Ans: 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.

Oracle Financials Interview Questions

54Q) What are the kinds of flexfields?

Ans: There are two different kinds of flexfields they are:

Key flexfield: A key flexfield is a field you can customize to insert multi-segment values such as
account numbers, part numbers, etc. A descriptive flexfield means a field you customize to
insert further information for which your Oracle Applications product has not already given a
field.

Descriptive flexfield: Descriptive flexfields give a method for implementers at customer sites to
add custom attributes to entities, and to determine validation and show properties for them. A
descriptive flexfield is a logical grouping of segments that are mapped to a set of database
columns that serve as placeholders for custom attributes. 

55Q) What are the advantages of flexfields?

Ans:
 Flexfields enables the development of wise keys.

Utilizes the application to approve esteem.

Configure the applications to assist your bookkeeping.

Support various flexfield structures depending upon information setting.

56Q) What is the symbol of DFF in the forms?

Ans: Square bracket[] is the symbol of DFF in the forms.

57Q) How many segments are in AFF?

Ans: The maximum number of segments in AFF is 30, and the minimum number of segments
in AFF is 2.

58) What are the different types of flexfield qualifiers?

Ans: There are four different types of flexfield qualifiers they are:

Cost centre segment qualifier 

Balancing segment qualifier 

Intercompany segment qualifier 

Natural account segment qualifier   

59Q) What tables store Currency and period type name?

Ans:

Currency -- FND_CURRENCIES 
Period -- GL_PERIOD_STATUSES

60Q) What are the different types of calendars? 

Ans: There are two different types of calendars they are

Fiscal calendar: A fiscal year is a 12-month period utilized by organizations and governments
for financial reporting plus budgeting that sometimes follows the January - December calendar
year and sometimes does not.

Accounting: The accounting calendar determines the start and end of your fiscal year and the
time periods within that calendar, including the specific dates for each time period. Your sales
application utilizes these defined periods, frequently called enterprise periods, for multiple
purposes. 

61Q) Explain a profile and list the types of profiles?

Ans: A profile is a changeable option that influences the way your application runs. There are
two types of profiles.
 yp p

User-defined 

System defined 

62Q) Explain about the period, and what are the different types of periods?

Ans: A Period correlates to a period range within which exchanges are entered preceding
finishing, usually called as close of the period, predefined period types are.

Month

Quarter 

Year

63Q) What are the different types of change rates in oracle gl?

Ans: There are five different types of change rates in oracle gl they are:

Detect: A swapping scale dependent upon the rate for a specific date. It refers to the
prompt conveyance of money. 
Corporate: A swapping scale that institutionalizes rates for your business. This rate is
usually a standard market rate managed by senior money related administration for use
all over the association.
Client: A conversion scale that you enter significantly outside the cash diary section.
Emu Fixed: A conversion scale that is used by nations joining the EU among the progress
time frame to the Euro cash.
Client Defined: A rate type characterized by your business to address explicit issues.

64Q) Explain about a held income account?

Ans: GL posts the net equalization of all pay and costs accounts from the earlier year to this
record when you open the main time of a financial year.

65Q) Explain about an esteemed set?

Ans: An esteem set characterizes the limits for the attributes which you dole out to a key or
descriptive flexfield fragment. Esteem sets control of what kinds of qualities can be used as
Accounting Flexfield section esteems. Esteem sets determine the properties of your sections,
for example, zero-fill, length, and right legitimize, alphanumeric, and esteem security.

66Q) Explain about the journal import?

Ans: Journal import is the name of the concurrent to populate the gl table from the interface
tables.

67Q) What is the use of the stat journal?

Ans:

You can join factual sums with financial sums by using factual units of measure
You can join factual sums with financial sums by using factual units of measure.

This enables you to enter both fiscal plus measurable sums within a solitary diary section line.

68Q) What is a Recurring journal?

Ans: The recurring journal is the gl tool that is used to create periodically repetitive journals.

69Q) List the types of record segments for mass allocation?

Ans: 

Circling

Summing

Consistent   

70Q) List the necessary tables in GL?

GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES
GL_BALANCES
GL_SETS_OF_BOOKS
GL_CODE_COMBINATIONS
GL_PERIOD_STATUES
GL_INTERFACE

71Q) In which table supplier's information is stored?

Ans: Suppliers information can be found in the following tables:

PO_VENDORS

PO_VENDOR_SITES_ALL

PO_VENDOR_CONTACTS

72Q) What is the formula used to create allocation journals?

Ans: A*B/C.

A is the Cost Pool that will be distributed. It manages to be a sum or record balance.
B is the numerator of the factor that replicates the cost pool for the designation.
C is the denominator of the factor which separates the cost pool for the distribution.

73Q) Difference between kff and dff?

Ans:

KFF:
KFF is a unique identifier.

KFF is stored in the segment column.

DFF:

DFF is used to capture additional information.

DFF is stored in an attribute column.

74Q) What are oracle financial modules?

Ans: Six important oracle financials modules are:

Oracle Assets 

Oracle Payables

Oracle General Ledger

Oracle Cash Management 

Oracle receivables 

Oracle Tabs

Conclusion: 

Use Oracle Financials applications to better accomplish the business to the targets that are
published to investors. Management can adequately report to investors and colleagues. Oracle
Financials applications also assist you to meet your responsibilities in key areas encompassing
the numbers, such as Compliance. If you want to know more please enrol in the course. 

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