Exam Code: 1Z0-511
Exam Name: Oracle E-Business Suite R12 Project Essentials Exam
A customer has two operating units: US and Ireland. A project that is set in the Ireland operating unit requires the services of employees from the US operating unit. Identify three mandatory steps that must be completed for the employees in the US to enter their time on the project and for costs to be successfully distributed.
A. Set up Internal Billing Implementation options in US and Ireland.
B. Define provider controls in US and receiver controls in Ireland.
C. Set up a new transaction source to receive Intercompany transactions in Ireland.
D. For the project in Ireland, select “Allow Cross Charges to all Operating Units within Legal Entity”.
E. For the project in Ireland, set up transaction controls to allow charges from other operating units.
A project is undertaken for a customer where all labor costs are non-billable, and Non-Labor costs are billable if the accumulated costs incurred are greater than $10k. How can Oracle Projects be implemented to support this?
A. Use transaction controls to restrict billing to Non-Labor elements and to calculate the bill amounts on Non-Labor.
B. Use transaction controls to billing Non-Labor elements, capture the value on the project, and then use the Non-Labor billing extension to calculate when an activity is billable.
C. Create an agreement and funding for $10k only, and fund only those tasks on a project where you estimate to incur costs of $10k or more.
D. Use the cost-to-cost billing extension to build billing rules to meet the requirement.
E. Use the cost accrual extension.
An organization posts project costs to the balance sheet as they are incurred. Each month they recognize project revenue on each project. Select the option that ensures that costs are credited from the balance sheet and debited to profit and loss as revenue is recognized.
A. Use events for project revenue and use GL journals to carry out the relevant account postings.
B. Implement a project revenue extension with appropriate event types and AutoAccounting definition.
C. Use miscellaneous transactions to generate revenue with the appropriate AutoAccounting definition.
D. Use preapproved batches with a class type of “Work in Process” to generate revenue with the appropriate AutoAccounting definition.
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?
A. Create each element as a top task and implement top task billing for the project.
B. Create each element as a top task on the project and create an agreement for variable works and one for fixed fee. Then fund the project at the top task level.
C. Have one agreement and create an invoice grouping rule in Accounts Receivable.
D. Create one agreement and fund the project.
E. Use billing events and create separate events per purchase order.
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?
A. Debit: Cost of Goods Sold
Credit: Unbilled Receivables
B. Debit: Bank
C. Debit: Unearned Revenue
D. Debit: Revenue
Credit: Accounts Payable Liability Account
E. Debit: Unbilled Receivables
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?
A. Create draft Invoices against individual projects, and consolidate them in Receivables.
B. Create a program. All costs will roll up to the program level and the program can be billed.
C. Run the invoice consolidation concurrent request to produce a single invoice.
D. Carry out billing against top tasks across any projects with the same Service Type.
E. Use inter-project billing so that individual contract projects invoice a single project which, in turn, bills the customer.
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?
B. Partially shared
D. Not shared
A contractor is engaged to carry out a statement of work by a customer. The contract is fixed price, and milestone payments will be made based on the individual completion of agreed deliverables. The contract specifies that 10% of any invoice totals must be withheld. The exception to this rule is that if certain deliverables are met ahead of the agreed schedule, then the full amount can be invoiced. How would this scenario be set up in Oracle Projects?
A. Customer Retention Billing is implemented with a Withholding Term of Expenditure Category.
B. 10% of project costs is set with a billing hold (as required) in Expenditure Inquiry.
C. A task is used to collect costs that are to be withholding and the task is set to non-billable as required.
D. Customer Retention Billing is implemented with a Withholding Term based on Event Types.
E. A customer bill split is implemented to send 10% of all invoiced costs to a dummy customer.
A company generates revenue at period end, but bills monthly in advance. The customer is invoiced in April with project starting in May and the first project is due to be recognized at the end of May.
What are the accounting entries at the end of May?
A. Debit: Cost of Goods Sold
Credit: Unbilled Receivables
B. Debit: Unearned Revenue
C. Debit: Receivable
D. Debit: Receivable
Credit: Unearned Revenue
E. Debit: Bank
Identify three transactions for which Oracle Project Costing enforces budgetary controls.
A. project-related purchase requisitions and purchase orders entered in Oracle Purchasing
B. expense reports entered In Oracle iExpenses
C. supplier invoices entered in Oracle Payables
D. contingent worker purchase orders entered in Oracle Purchasing
E. employee timecards entered in Oracle Time and Labor
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