1Z0-1074-26 Sample Questions & Answers
Digs into cost accounting, the single biggest topic, plus receipt accounting, subledger setup, analyzing standard costs, landed cost management, supply chain financial orchestration, security, Redwood capabilities, and automation.
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- Question 1Advanced
Implementing and Utilizing Receipt Accounting · Manage Daily Receipt Accounting tasks
A multinational medical device manufacturer, Apex Health Corp, operates an inventory organization in Ireland. Apex frequently issues Return to Vendor (RTV) transactions when incoming precision sensors fail sterile compliance inspections.
During a month-end audit, the financial controller notices that several RTV transactions processed across multiple weeks have created anomalies in the receipt accrual accounts. Specifically, while the physical return was logged in Oracle Inventory Management Receiving, the accrual reversal entries are missing from the subledger, and the supplier has already issued a matching debit memo in Payables.
The cost accountant confirms that the 'Transfer Transactions from Receiving to Costing' and 'Create Receipt Accounting Distributions' processes are run nightly. Which sequence and condition explains why the RTV accrual entries failed to generate, and what is the required remedy?
flowchart LR A[PO Receipt] --> B[Receipt Accrual Generated] B --> C[Return to Vendor Logged] C --> D{Transfer to Costing Run?} D -- Yes --> E[Receipt Accounting Processed?] E -- Missing Entry --> F[Investigate Root Cause]Show answer & explanation
Correct answer: C
In Oracle Receipt Accounting, an RTV transaction acts as a direct reference child event to the original PO receipt distribution. If the parent receipt distribution contains accounting errors, unposted SLA exceptions, or pending currency conversions, the receipt accounting preprocessor cannot establish the reference unit cost, holding the RTV event in an unprocessed state until the root parent exception is resolved.
- Question 2Beginner
Implementing and Utilizing Receipt Accounting · Explain receipt accounting
True or False: In Oracle Fusion Cloud Receipt Accounting, landed cost estimated charges attached to an active trade operation can be accrued at the time of purchase order delivery to inventory, even if the third-party transportation invoice has not yet been received in Accounts Payable.
Show answer & explanation
Correct answer: B
True. Estimated landed cost charges captured on a trade operation are allocated to purchase order receipts. When the goods receipt occurs, Receipt Accounting accrues the estimated landed cost charges into the Landed Cost Absorption account, allowing inventory valuation to reflect total acquisition costs prior to receiving the final third-party invoices.
- Question 3Intermediate
Implementing and Utilizing Receipt Accounting · Manage Daily Receipt Accounting tasks
While reviewing the Receipt Accounting work area at month-end, an analyst notices that the 'Review Journal Entries' screen displays several events in 'Error' status under the 'Trade Receipt Accrual' event class. What is the standard diagnostic action to identify the underlying problem and reprocess these entries?
Show answer & explanation
Correct answer: D
Receipt Accounting distributions fail with 'Error' during Create Accounting primarily due to SLA rule configuration issues (such as unmapped account segment values or closed General Ledger periods). Cost accountants should drill into the error message via 'View Accounting' or the Subledger Accounting Exceptions report, fix the root configuration or open the period, and resubmit Create Accounting.
- Question 4Intermediate
Implementing and Utilizing Cost Accounting · Explain the role of Costing Key setups and cost policies
A manufacturing enterprise is establishing a new corporate supply chain hierarchy. The implementation team defines five separate Inventory Organizations across two operating facilities. How many Cost Organizations MUST be created at a minimum to support Cost Accounting, and what relationship rules apply when assigning Inventory Organizations to Cost Organizations?
Show answer & explanation
Correct answer: B
In Oracle Cost Accounting, a Cost Organization can represent one or more Inventory Organizations within the same Legal Entity. However, each Inventory Organization can be mapped to one and only one Cost Organization. Thus, if all five inventory organizations share a legal entity, a single Cost Organization suffices.
- Question 5Advanced
Implementing and Utilizing Cost Accounting · Configure Cost Accounting
During the design of an inventory valuation model for a specialty chemical producer, the client requests that raw chemical items be tracked at distinct unit costs based on the specific manufacturing Lot Number, whereas packaging materials should share a single average cost across the entire inventory organization. How should the implementer configure Valuation Structures and Cost Profiles to achieve this?
Show answer & explanation
Correct answer: A
Valuation Structures define the granularity at which inventory is costed and valued (e.g., Cost Organization, Inventory Org, Subinventory, Lot, Grade, Serial, or Project). By creating two distinct valuation structures and associating them with separate Cost Profiles (one assigned to the chemical category and another to packaging), the system tracks separate unit costs per lot for chemicals while maintaining an organization-level average for packaging.
- Question 6Beginner
Implementing and Utilizing Cost Accounting · Configure costing methods like Standard, Perpetual, Actual, and Periodic Average Cost
When defining a Cost Profile in Oracle Cost Management, an implementer must choose a Costing Method. Which costing method calculates unit costs by maintaining individual transaction acquisition cost layers and consumes inventory on a strict First-In, First-Out basis?
Show answer & explanation
Correct answer: A
Under the Actual Cost method in Oracle Cost Management, items are costed based on their actual receipt costs, and layers are maintained in cost tables. When transactions consume on-hand quantities, the engine depletes the oldest open receipt cost layers first according to the FIFO (First-In, First-Out) receipt layer sequencing.
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