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TOP 70 Oracle Financial Interview Questions (2023)
TOP 70 Oracle Financial Interview Questions (2023)
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.
If you're preparing for an interview for a role that involves Oracle Financials, it's important to familiarize yourself with common Oracle Financials
Interview Questions to showcase your knowledge and skills in the cloud-based end-to-end business management solution.
General Ledger
Accounting Flexfield
Assets
Service
Territory Flexfield
Sales Tax Location Flexfield
Inventory
Item Categories
System Items
Sales Orders
Item Catalogs
Ans: To find out duplicate suppliers, the SUPPLIER AUDIT REPORT is run.
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 flex field structures depending on the data context.
Key flexfield
Descriptive flexfield
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:
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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.
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.
Ans: For key flexfields with multiple segments, we can define rules to cross-check value combinations entered within the key flexfield segments. This option is
referred to as Cross Validation rules.
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.
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.
Ans: Oracle GL Key flexfield can have 15 columns each representing a segment. However, the segments type can be:
Ans: A Period corresponds to a time span within which transactions are entered before finalizing, otherwise called as close of the period.
Month
Quarter
Year
If needed, period types of our own can be defined in addition to the standard periods.
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.
18Q) What type of conversion rate is required to be defined for all transactional purposes?
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:
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
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.
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
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.
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.
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).
Ans: Account hierarchy manager is a feature provided by Oracle Application which allows to:
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
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
Ans:
Unposted.
Posting statuses.
Unposted
Pending
Processing
Selected for posting
Posted
Error
Ans:
Ans: Not sure. Maybe possible with a child value combined. Parent values automatically allow posting and budgeting.
GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES
37Q) When a journal is posted, which gl table is posted?
Ans: GL_BALANCES
Ans: GL_INTERFACE
39Q) What is the name of the concurrent to populate the gl tables from the interface table?
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: A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, or divisions.
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.
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.
47Q) Journals from which sub-ledger do not pass through the gl interface table?
Ans: Unposted.
Ans:
Ans:
Daily rates
Historical rates
The revaluation rate is the inverse of the period-end rate.
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.
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.
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.
Ans:
Ans: The maximum number of segments in AFF is 30, and the minimum number of segments in AFF is 2.
Ans: There are four different types of flexfield qualifiers they are:
Ans:
Currency -- FND_CURRENCIES
Period -- GL_PERIOD_STATUSES
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.
Ans: A profile is a changeable option that influences the way your application runs. There are two types of profiles.
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.
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.
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.
Ans: Journal import is the name of the concurrent to populate the gl table from the interface tables.
Ans:
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.
Ans: The recurring journal is the gl tool that is used to create periodically repetitive journals.
Ans:
Circling
Summing
Consistent
GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES
GL_BALANCES
GL_SETS_OF_BOOKS
GL_CODE_COMBINATIONS
GL_PERIOD_STATUES
GL_INTERFACE
PO_VENDORS
PO_VENDOR_SITES_ALL
PO_VENDOR_CONTACTS
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.
Ans:
KFF:
DFF:
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 the 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 opened, 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.
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 on the course.
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