Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:     Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:     OracleExam Code:     1Z0-225           ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Exam Name:      Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type:      OracleExam Code:      1Z0-225        ...
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
Oracel inventory and purchasing exam guide
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Oracel inventory and purchasing exam guide

  1. 1. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Question: 1Select three true statements about the default of sourcing information for requisitions andpurchase orders. (Choose three.)A. The item price on a requisition can be defaulted from the item attribute setup.B. Buyer name cannot be defaulted onto a requisition, but you can assign notes to a buyer.C. You can modify the last name of the requester defaulting from the Human Resources employee record.D. You must use the Transfer From assignment on a sourcing rule for item information to default onto an internal requisition.E. When you assign a commodity to an approved supplier list, you do not need to assign the individual items in the commodity.F. You can have the same item on a quotation and a blanket agreement but the supplier or supplier site must be different, so that it can default onto a requisition line.Answer: A, D, EQuestion: 2Which three values are applicable for the transaction profile option Miscellaneous Issue andReceipt? (Choose three.)A. Online ProcessingB. Concurrent ProcessingC. Form-Level ProcessingD. Background ProcessingE. Record-Level ProcessingAnswer: A, B, DQuestion: 3Due to excessive customer returns, the client needs to prevent the reservation and subsequentshipping to customers of a specific lot number for an item, pending a quality review. Identify twoconditions that will satisfy this requirement. (Choose two.)A. Assign the lot a material status that does not permit reservations.B. Assign the lot a material status that only permits subinventory transfers and issues to scrap.C. Assign the lot a material status that does not permit reservations, but only permits subinventory transfers and issues to scrap.D. Transfer the quantity on hand of the item to a subinventory that does not permit reservations, but only permits subinventory transfers and issues to scrap.Answer: C, DQuestion: 4Identify the correct sequence of steps in the purchase order period close business flow.A. 1. Review the Uninvoiced Receipts report. > 2. Process period-end accruals. > 3. Close the purchasing period. > 4. Process remaining inventory transactions and close the inventory accounting period. > 5. Run the Accrual Rebuild Reconciliation report. > 6. Write off accrued transactions as necessary. > 7. Create a manual journal entry for write-offs.B. 1. Review the Uninvoiced Receipts report. > 2. Process period-end accruals. > 3. Close the purchasing period. > 4. Run the Accrual Rebuild Reconciliation report. > 5. Write off accrued transactions as necessary. > 6. Create a manual journal entry for write-offs. > 7. Process remaining inventory transactions and close the inventory accounting period.Page 1 of 53
  2. 2. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189C. 1. Process remaining inventory transactions and close the inventory accounting period. > 2. Run the Accrual Rebuild Reconciliation report. > 3. Write-off accrued transactions as necessary. > 4. Create a manual journal entry for write- offs. > 5. Review the Uninvoiced Receipts report. > 6. Process period-end accruals. > 7. Close the purchasing period.D. 1. Process remaining inventory transactions and close the inventory accounting period. > 2. Review the Uninvoiced Receipts report. > 3. Process period-end accruals. > 4. Close the purchasing period. > 5. Run the Accrual Rebuild Reconciliation report. > 6. Write-off accrued transactions as necessary. > 7. Create a manual journal entry for write-offs.Answer: AQuestion: 5What are the prerequisites for performing an accurate ABC Compile for inventory items using theCurrent on-hand value as the compile criterion?A. items costed onlyB. items with on-hand quantity onlyC. either items with on-hand quantity or items costedD. Both items with on-hand quantity and items costedAnswer: DQuestion: 6You are creating an interorganization transfer. The standard shipping lead time defined for thetransfer is 14 days. You want to move the inventory from the source and put it in Intransit. Youmade a mistake and did not choose the option to have Intransit Inventory. When you initiate theprocess for interorganization transfer, what is the result of the transaction?A. You would get an error for the transaction, because it violates referential integrity.B. The inventory would not be moved from the source organization, because there is a lead time of 14 days defined.C. The inventory would be moved from the source organization, but it would be moved directly to the destination organization.D. The inventory would be moved from the source organization, but it would be moved to Intransit Inventory, because there is a lead time of 14 days defined.Answer: CQuestion: 7A multinational company is setting up the sourcing rules and approved supplier list (ASL) tosource inventory items across different organizations. Which two statements are true? (Choosetwo.)A. You do not need to create a local ASL if you create a Global ASL.B. Inventory organizations used in the sourcing rules must be set up in the Shipping Networks.C. You need to match the supplier between a sourcing rule and an ASL, but not the supplier site.D. The country of origin must be entered in the ASL, or it would not be available on the purchasing document.E. A commodity can be assigned to a supplier at both the global level and at the local level, and the local level assignment takes precedence.Answer: B, EPage 2 of 53
  3. 3. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Question: 8The warehouse has received new stock from an internal distribution warehouse. Which tworeceiving transactions can be used to put stock into the warehouses inventory using the IntransitInventory? (Choose two.)A. Direct ReceiptB. Standard Receipt and DeliveryC. Inter organization Direct ReceiptD. Inter organization Receipt and DeliveryE. Inter organization Miscellaneous ReceiptAnswer: C, DQuestion: 9ACME is implementing Inventory in a Process Manufacturing environment. The default profile forthe Min-Max Planning Report is deployed. What will be the result?A. Requisitions will be preapproved.B. Users must approve requisitions for items that have a limited shelf life.C. Users must approve requisitions for items with a Material Safety Data Sheet (MSDS).D. Users must approve requisitions that are inside the items Past Due Supply time fence.E. Users must approve requisitions when the quantity exceeds the items Economic Order Quantity (EOQ).Answer: AQuestion: 10Company XYZ manufactures three different types of PC monitors.Type 1 is a unique requirement for the local college called Northern College.Shipments of Type 1 to other customers are not allowed.This item is stored only in a subinventory called MODEL 1.Other models are also stored in this same subinventory.The other two types (Type 2 and Type 3) can be shipped to any other customer, includingNorthern College.Which conditions are mandatory for the Picking rule (rule) to meet these requirements?A. Transaction type of Sales Order. Rule assigned to Northern College.B. Subinventory as MODEL 1. Rule assigned to customer Northern College.C. Subinventory as MODEL 1. Rule assigned to Type 1, and customer as Northern College.D. Subinventory as MODEL 1. Rule assigned to Type 1, and transaction type as Sales Order.E. Subinventory as MODEL 1. Rule assigned to Type 1, transaction type as Sales Order, and customer Northern College.Answer: EQuestion: 11Your customer has two manufacturing plants. The manufacturing process for both the plants isidentical, but there are differences in specific areas.1. Plant 1 uses min-max planning and Plant 2 uses re-order point planning.2. Plant 1 and Plant 2s Variable Lead Times are different.3. Plant 1 and Plant 2 use two different WIP (Work In Process) supplysubinventories.Which two attribute control settings meet the requirement? (Choose two.)A. Organization Level: WIP Supply SubinventoryPage 3 of 53
  4. 4. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189B. Master Level: Stockable, Transactable, Build in WIP Organization Level: Inventory Planning MethodC. Organization Level: Variable Lead Time, WIP Supply SubinventoryD. Master Level: Stockable, Variable Lead Time, Inventory Planning Method Organization Level: TransactableE. Master Level: Transactable, Inventory Planning Method, Variable Lead TimeF. Master Level: WIP Supply Subinventory, Variable Lead Time, Stockable, Transactable, Build in WIPAnswer: B, CQuestion: 12Company ABC has a factory that is set up as an inventory organization with severalsubinventories.Each of the subinventories has locators. The factory purchases material using a purchase order.The person who receives the purchase order does not know which subinventory and locator thematerial needs to go to.ABC wants the subinventory and locator to be automatically populated for that item.Which option would solve the problem?A. Populate the completion subinventory and locator on the routing for that item.B. Use the restrict subinventory and restrict locator flag on the Item Master record of that item.C. Populate the supply subinventory and locator fields on the Item Master record for the purchased item.D. Use the Item Transactions Default form to create default subinventory and locators for the purchased item.Answer: DQuestion: 13Which two statements are true about setting up an Approved Supplier List? (Choose two.)A. An Approved Supplier List is used only for items and not for services.B. A Global Agreement cannot be set up as a source document for a requisition.C. A blanket purchase agreement cannot be set up as a source for an item in a purchase order line.D. You can get the price breaks to default to a requisition from a quotation or a blanket purchase agreement.E. You do not need to set the profile option PO: Automatic Document Sourcing to Yes, in order to get the source document information for a service (as opposed to an inventory item).Answer: C, DQuestion: 14You are working on an implementation of Oracle Purchasing at a financial institution. The clienthas strategically sourced a firm for all its desktop needs. Volume discounts apply. The client hasstandardized pricing requirements for specific brands of equipment and peripherals. Which twotypes of procurement documents would you suggest?(Choose two.)A. Global AgreementB. Contract AgreementC. Planned Purchase OrderD. Standard Purchase OrderE. Blanket Purchase AgreementPage 4 of 53
  5. 5. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: A, EQuestion: 15Identify the purpose of using Material Status controls.A. to permit updates to the Item Master recordB. to prevent unnecessary cycle counting in an inventory organizationC. to define the transactions that are permitted for an inventory organizationD. to select the transactions that are permitted to use the inventory on-hand quantityAnswer: DQuestion: 16Your client wants to ensure that backflush operations can continue even if the inventory level isdriven below zero. At the same time, they want typical inventory transactions to be preventedfrom driving inventory levels below zero. Which configuration meets this requirement?A. Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = No.B. Org Profile option to Allow Negative Balances = No; Profile option for INV: Override Neg for Backflush = Yes.C. Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = No.D. Org Profile option to Allow Negative Balances = Yes; Profile option for INV: Override Neg for Backflush = Yes.Answer: BQuestion: 17Requisition Import groups all requisitions with the same group code under the same requisitionheader. If no group code is specified,Requisition Import groups requisitions according to five types of groups that can be optionallypassed to the Requisition Import process. Identify them. (Choose five.)A. Group by Item.B. Group by price.C. Group by buyer.D. Group by UOM.E. Group by location.F. Group by supplier.G. Group by description.H. Group all requisition lines under one requisition header.Answer: A, C, E, F, HQuestion: 18Which three fields can be set in the requisition preferences phase of the requisition life cycle?(Choose three.)A. PreparerB. CategoryC. RequestorD. DescriptionE. Charge AccountPage 5 of 53
  6. 6. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189F. Destination TypeG. Requisition AmountH. UOM (Unit of Measure)Answer: C, E, FQuestion: 19What is the impact of setting the profile option INV:Override Neg for Backflush = Yes?A. It would not allow inventory to be driven negative.B. Backflush transactions would drive inventory negative.C. Backflush transactions would not drive inventory negative.D. Backflush and inventory transactions would drive inventory negative.E. Backflush and inventory transactions would not drive inventory negative.F. It would permit the driving of on-hand inventory negative for miscellaneous issue transactions.Answer: BQuestion: 20Your company often orders items that are sourced from multiple suppliers. At any given time, thesupplier varies depending on the suppliers current production capability and price offering. Theprice varies throughout the year. For a particular item, there is no single supplier that receives themajority of the orders. What is the best way to set up this item?A. Create blanket purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries.B. Create contract purchase agreements, a sourcing rule identifying all the possible suppliers, and approved supplier list entries.C. Do not create blanket or contract purchase agreements or sourcing rules. Manually AutoCreate requisitions onto standard purchase orders.D. Create a blanket purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier.E. Create a contract purchase agreement for only one supplier, a sourcing rule for just that supplier, and an approved supplier list entry for that supplier.Answer: CQuestion: 21Which table stores the categories assigned to a system item?A. MTL_CATEGORIES_BB. MTL_CATEGORIES_TLC. MTL_ITEM_CATEGORIESD. FND_ITEM_CATEGORIESAnswer: CQuestion: 22Your client has two inventory organizations (INV ORG 1 and INV ORG 2). The organizationshave different business requirements for stock locator control:INV ORG 1:Locators must have:Building identifiedStockroom designatedPage 6 of 53
  7. 7. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189RowRackBinINV ORG 2:Locators must have:RowRackBinPosition within BinWhich solution would meet both organizations requirements?A. Establish stock locator flexfields as five segments. INV ORG 2 can use the first segment as Row.B. Establish stock locator flexfields as four segments. INV ORG 2 can use DFF for Position within Bin.C. Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a default value.D. Establish stock locator flexfields as four segments. INV ORG 1 can create DFF and use that as Building identifier.E. Establish stock locator flexfields as six segments. INV ORG 1 can create locators where the sixth segment can be a default value.Answer: CQuestion: 23Consider the following scenario for inventory item B.1) Standard Cost: $102) Purchase Order Line Quantity: 100; Purchase Order Line Price: $123) Match Approval Level: Three-Way Matching; Receipt Routing: Direct Delivery4) Received Quantity: 405) Invoice Price: $14; Invoiced Quantity: 20Which option describes the effect on different accounts correctly?A. Debit Material Account $480; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $0; Credit AP Liability Account $280B. Debit Material Account $400; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $40; Debit Purchase Price Variance Account $80; Credit AP Liability Account $280C. Debit Material Account $400 ; Credit Inventory AP Accrual Account $240; Debit Invoice Price Variance Account $80; Debit Purchase Price Variance Account $40; Credit AP Liability Account $280D. Credit Material Account $400; Debit Inventory AP Accrual Account $240; Credit Invoice Price Variance Account $40; Credit Purchase Price Variance Account $80; Debit AP Liability Account $280Answer: BQuestion: 24Which two are true about the key accounts in the Procure to Pay process? (Choose two.)A. The Receiving account is used to record the current balance of material in receiving and inspection.B. The Invoice Price Variance account is used to record differences between the invoice price and the average cost.Page 7 of 53
  8. 8. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189C. The Expense AP Accrual account is used to accrue payable liabilities when you receive items you will capitalize as inventory.D. The Purchase Price Variance account is used to record differences between the purchase order line price and the average cost.E. The Exchange Rate Gain or Loss account is used to record differences between the exchange rate used for the purchase order and the exchange rate used for the invoice.Answer: A, EQuestion: 25You applied a subassembly template for an item at the master level. Four main attributes of thesubassembly template are:- primary unit of measure (UOM): EA- minimum order quanity: 5- maximum order quantity: 10- fixed lead time: 2After applying the template, you find that the attributes are not correct. Youcorrect the template with these attributes:- primary UOM: LB- minimum order quantity: 7- maximum order quantity: 12- fixed lead time: 4You reapply the template.Which attributes are updated in the item?A. primary UOM: LB, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4B. primary UOM: LB, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 2C. primary UOM: EA, minimum order quantity: 5, maximum order quantity: 10, fixed lead time: 4D. primary UOM: EA, minimum order quantity: 7, maximum order quantity: 12, fixed lead time: 4E. primary UOM: EA, minimum order quantity: 5, maximum order quantity: 12, fixed lead time: 2Answer: DQuestion: 26Price Tolerance (%) on the Purchasing Options Control section refers to the percentage by which_____.A. the purchase order line price cannot exceed a price quoteB. the invoice price cannot exceed the purchase order line priceC. the purchase order line price cannot exceed the blanket amountD. the supplier catalog price cannot exceed purchase order line priceE. the purchase order line price cannot exceed the requisition line priceAnswer: EQuestion: 27Which two reports detail pending inventory adjustments for a count? (Choose two.)A. Cycle Count ListingB. Physical Inventory Tag ListingC. Physical Inventory Counts ReportD. Physical Inventory Adjustments ReportE. Cycle Counts Pending Approval ReportF. Cycle Count Entries and Adjustments ReportPage 8 of 53
  9. 9. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: D, EQuestion: 28The Direct Forward method routes documents _____.A. to the person with the highest approval authorityB. to the position with the highest approval authorityC. to the employees supervisor, regardless of whether that person has the authority to approveD. to the next employee in the hierarchy who has the requisite approval authority to approve the documentE. to the next position that has approval authority, regardless of whether it has the requisite authority to approveAnswer: DQuestion: 29Consider the following setup: Receipt Close Point =Accepted; Receipt Close Percent = 5%. A shipment of 100 units for item A was scheduled to bedelivered today. The shipment status changed to Closed for Receiving after processing thedelivery. Which statement is true about this delivery?A. 110 units of A are received and 94 are accepted.B. 95 units of A are received and waiting in the receiving dock.C. 99 units of A are received and 5 are rejected after inspection.D. 110 units of A are received and 103 are delivered to the inventory.E. 102 units of A are received and then 10 are returned to the vendor due to damage.Answer: DQuestion: 30Some move orders are pre-approved requests for subinventory transfers that bring material froma source location to a staging subinventory within the organization. Identify the correct moveorder type.A. Shipping move ordersB. Pick wave move orderC. Move order requisitionsD. Replenishment move ordersE. Automatic move order requisitionsAnswer: BQuestion: 31There are several types of RFQ, including Catalog RFQ, Standard RFQ, and Bid RFQ. There areonly two classes of RFQ. Identify the two valid classes and their appropriate purposes. (Choosetwo.)A. Bid Class, which supports ShipmentsB. Standard Class, which supports ItemsC. Planned Class, which supports CatalogsD. Catalog Class, which supports Price BreaksE. Cost Class, which supports Bid Price BreaksF. Category Class, which supports Supplier CatalogsG. Contract Class, which supports Total Dollars Agreed toPage 9 of 53
  10. 10. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: A, DQuestion: 32Which setup profile option allows you to send a report directly to a browser window?A. Viewer: TextB. Concurrent: Report CopiesC. Flexfields: Open Key WindowD. Concurrent Report: Access LevelAnswer: AQuestion: 33The buyer decides to automatically update and create sourcing rules, as part of the blanketpurchase agreement approval process. However, on clicking the Approve button, the buyer doesnot see any option to update and create blanket purchase sourcing rules. Which profile optionhas the buyer failed to set up?A. PO: Automatic Document SourcingB. MRP: Default Sourcing Assignment SetC. PO: Allow Auto-generate Sourcing RulesD. PO: Allow Autocreation of Oracle Sourcing DocumentsAnswer: CQuestion: 34You created an internal requisition to move material between two organizations. The destinationis locator controlled. The shipping network between these two locations has been defined asDirect. The shipment transaction fails. What could be the reason for the failure?A. Locator default has not been set up in the transaction default.B. Internal requisitions cannot be used for Direct shipping networks.C. You did not indicate the locator of the destination on the requisition.D. Locator-controlled destinations cannot be used for Direct shipping networks.Answer: AQuestion: 35Inventory organizations B1 and M1 each have five unique physical separations of materialinventory area, which are under locator control. Customer shippable goods are stored in theFinished Goods Inventory (FGI) storage area. The raw material storage area is called Stores. B1wants to transfer customer goods from one locator to another. Identify the transaction that willaccomplish the transfer.A. Subinventory transferB. Direct interorganization transferC. Account Alias Issue and ReceiptD. Miscellaneous Issue and ReceiptE. Interorganization transfer by way of intransitAnswer: AQuestion: 36Review the organization structure regarding the inventory organizations (IO) and salesorganizations (SO).Page 10 of 53
  11. 11. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189The company has defined shipping networks based on these policies:Inventory Organizations within an Operating Unit (OU) can perform shipments to the SalesOrganizations only within the same OU.An Inventory Organization can ship to any other Inventory Organization in the company.The only exception to the rule is China, which can ship to any US organization.Which sites can IO 3 ship to?A. IO 2, IO 4, IO 5, SO 3B. IO 1, IO 2, IO 3, IO 4, IO 5C. IO 1, IO 2, IO 4, IO 5, SO 3D. IO 2, IO 3, IO 4, IO 5, SO 3E. IO 1, IO 2, IO 4, IO 5, SO 1, SO 2, SO 3Answer: CQuestion: 37The following transactions occurred at BUY Co., where you implemented the ERS functionality inOracle Purchasing:Purchase order unit price: $10Receipt #1001: 150 units (gross of 50 units returned at the time of receiving)Receipt #1002: 250 unitsThe Pay on Receipt process is run nightly, with the summary level set to Pay Site at the suppliersite. The aging period is 0.What would the Pay on Receipt process generate for these transactions?A. a $3500 invoiceB. a $4000 invoiceC. a $50 invoice and a $2500 invoiceD. a $1500 invoice, a $2500 invoice, and a $50 debit memoE. a $1000 invoice, a $2500 invoice, and a $50 debit memoAnswer: AQuestion: 38Your client has an item that is used globally. The site in Colorado is evaluating a local source forthe item. The buyer requires the incoming goods from the local source to be separated from thePage 11 of 53
  12. 12. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189goods received from nonlocal sources. Which three actions should be performed to meet thisrequirement? (Choose three.)A. Enter the item in the subinventory form.B. Modify master item attributes to default a subinventory.C. Change the PO Line receipt routing to Inspection Required.D. Modify organization item attributes to default a subinventory.E. Create a separate subinventory to stock goods from the local source.F. Create item transaction default for the item in the Item Master Organization.G. Insert a separate subinventory on the purchase order and attach Receiver Notes.H. Ensure that you do not create an item transaction default for the item in the Inventory Organization.Answer: E, G, HQuestion: 39ABC Company uses serial numbers for the following transactions:1. Purchase order receipt2. Miscellaneous receipt3. Account alias receiptThe company wants to reuse the same serial numbers for work order completion transactions.Which setup would allow it to reuse the same serial numbers?A. INV: Validate Returned Serial: NoB. INV: Validate Returned Serial: YesC. INV: Restrict Receipt of Serials: NoD. INV: Restrict Receipt of Serials: YesE. INV: Validate Returned Lot: Yes and INV: Validate Returned Serial: NoF. INV: Restrict Receipt of Serials: Yes and INV: Validate Returned Serial: NoG. INV: Restrict Receipt of Serials: Yes and INV: Validate Returned Serial: YesAnswer: CQuestion: 40Consider the following setups.1) Purchasing System Option Enforce Full Lot Quantity = Mandatory2) Rounding Factor at the item level= 75%3) Unit of Issue at the item level = DozenSelect two statements that are true. (Choose two.)A. If the user enters 6 each on an internal requisition, the quantity will be rounded to 0.B. If the user enters 6 each on a purchase requisition, the quantity will be rounded to 0.C. If the user enters 11 each on an internal requisition, the quantity will be rounded to 12 each.D. If the user enters 11 each on a purchase requisition, the quantity will be rounded to 12 each.E. An advisory message suggesting rounding and a suggested rounding quantity are displayed, but you can override this.Answer: A, CQuestion: 41Select three true statements regarding the Workflow Document Creation prerequisite (PO CreateDocuments workflow). (Choose three.)A. Catalog quote must not be expired, but may be inactive.B. Supplier and supplier site are required on the requisition related to a contract purchase order.Page 12 of 53
  13. 13. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189C. If a system item is not associated with the requisition line, a supplier item number is required.D. Sourcing rules are required if the requisition originates in Oracle Purchasing or iProcurement.E. No source document is required for the PO Create Documents workflow to create a release or purchase order.F. The only time an approved supplier list is required is if your source document is a blanket purchase agreement and you are using a system item.Answer: B, C, FQuestion: 42RFQs and Quotations have setups in the following areas: Purchasing Control Options, LookupCodes, and Profile Options. Select the two options that contain correct setups, for both thePurchasing Control Options and the Profile Options. (Choose two.)A. Purchasing Control Options: Quotation Numbering, Line Type, and Quotation RequiredB. Profile Options: PO: Write Server Output to File, and PO: Warning Delay Days NumberC. Purchasing Control Options: RFQ Numbering, Quote Warning Delay, and RFQ RequiredD. Profile Options: PO: Display AutoCreated Quotation, and PO: Warning Delay Days NumberE. Purchasing Control Options: RFQ Quotation Numbering, Quote Warning Delay, and Quotation RequiredF. Profile Options: PO: Price Tolerance (%) for Catalog Updates, and PO: Warn if RFQ Required before AutoCreateAnswer: C, FQuestion: 43Your client has the following requirements for electronic delivery of purchasing documents toindirect spend vendors:1. No third-party software should be needed; the built-in Oracle functionality should be used.2. No special supplier set up should be required; the supplier should need minimal resources toparticipate.3. No requirement for audit trail or confirmation.The best method within standard functionality is _____.A. EDIB. XMLC. EmailD. FacsimileE. Direct interfaceAnswer: CQuestion: 44Select two conditions which will permit the transfer of lot-controlled items between inventoryorganizations. (Choose two.)A. Item is lot-controlled at the subinventory level.B. Item is lot-controlled in either the shipping or receiving organizations.C. Item is lot-controlled in both the shipping and receiving organizations.D. Item is lot-controlled in the receiving organization, but not the shipping organization.E. Item is lot-controlled in the shipping organization, but not the receiving organization.Answer: C, EQuestion: 45Page 13 of 53
  14. 14. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189During the RFQ lifecycle, the RFQ is assigned certain statuses. Identify the RFQ lifecycle and itscorrect sequence.A. In Process, Active, Printed, ClosedB. Active, Printed, Accepted, CompleteC. Active, In Process, Received, CompleteD. In Process, Received, Accepted, ClosedE. Requested, Printed, In Process, ReceivedAnswer: AQuestion: 46BMC is preparing to convert purchase orders (POs) from their legacy system into Oracle.Their legacy system had intelligent numbering with leading characters, which they want to beconverted. However, after conversion, they want to have nonintelligent numbering; therefore, thesystem is set up for nonintelligent numbering.During conversion, the sequence of PO conversion is to be as follows:1) Manually enter two weeks of POs because the legacy system was shut down with the new POnumbering method.2) Convert the legacy POs.What is correct in this situation?A. Leave the setups as is, but convert the legacy POs first, then the manual POs.B. The system is set up for nonintelligent numbering; therefore, the legacy POs cannot be converted with intelligent numbering.C. No setup changes are necessary as long as you ensure that the next automatic number is larger than the largest legacy PO number.D. Switch setups from Automatic to Manual, then enter the manual POs, and then switch setups back to Automatic and automatically convert all legacy POs.E. Enter the manual POs, then change the PO numbering options to Manual (alphanumeric), convert legacy POs, and then change the PO numbering options back to Automatic.Answer: EQuestion: 47For which three reasons do you create a return in the Purchasing module? (Choose three.)A. to return internal shipmentsB. to return items back to a customerC. to return delivered items to receivingD. to return externally sourced items to the supplierE. to return Return Material Authorization (RMAs) to the customer after material has been delivered to the inventoryAnswer: B, C, DQuestion: 48For the profile option TP: INV Cycle Count Entries form to Background processing, what are thesystem requirements for it to be effective? (Choose two.)A. The Receiving Transaction manager must be active.B. The Cost Manager interface manager must be active.C. The Move Transaction interface manager must be active.D. The Material Transaction interface manager must be active.E. The Lot Move Transaction interface manager must be active.Page 14 of 53
  15. 15. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: B, DQuestion: 49Identify three valid processes or steps in implementing approved supplier lists and sourcing rules.(Choose three.)A. Review the timeliness of supplier deliveries.B. Map business requirements for reports using standard Oracle reports.C. Define the item attribute "Use Approved Supplier" for relevant items in the item master.D. Establish sourcing rules while converting source documents from legacy systems into Oracle.E. Match the supplier site information for every item on an approved supplier list to the supplier header information on a sourcing rule.Answer: A, C, DQuestion: 50Which two statements are true regarding lot-based unit of measure (UOM) conversions? (Choosetwo.)A. You cannot update existing on-hand balances for lot-based UOM conversions.B. You can create lot-specific UOM conversions for on-hand lots or lots with a zero balance.C. You cannot create lot-specific UOM conversions for on-hand lots or lots with a zero balance.D. During a PO receipt, the lot-based conversion cannot be updated if the lot does not match existing conversion rates.E. Updating the on-hand balance on a lot-based UOM conversion requires a cycle count transaction with the lot number provided in the count record.Answer: B, DQuestion: 51How can you create reservations for the material based on scheduled demand for a ComplexMaintenance Repair and Overhaul (CMRO) work order when the material does not exist in theon-hand inventory?A. CMRO work orders are not eligible for reservations.B. CMRO requires inventory on hand to support reservation.C. CMRO creates reservation against a purchase order or any other supply source.D. CMRO creates a WIP job to make the material before you can create the reservation.Answer: CQuestion: 52Identify two statements that are true regarding the defining of your purchasing document approvaland routing process. (Choose two.)A. Pre-Approved documents do not need to be approved by the next approver.B. Oracle Approvals Management is used to configure Purchase Order approval workflows.C. When a requisition is approved, the corresponding purchase order does not need to be approved.D. It is possible to have different approval routing processes for Purchase Requisitions and Internal Requisitions.E. A planned purchase order and its corresponding planned (scheduled) release can have separate approval limits.Page 15 of 53
  16. 16. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: D, EQuestion: 53A supplier is not required on a _____.A. InvoiceB. ReceiptC. QuotationD. RequisitionE. Purchase OrderF. Request For QuotationAnswer: DQuestion: 54ACME requires cycle counting variance approval tolerances and the Approval Required option isset to: If out of tolerance. When the actual count falls within tolerance, Inventory _____.A. automatically approves and posts the cycle count adjustmentB. automatically approves, but does not post the cycle count adjustmentC. holds the cycle count adjustment for approval and posts it after approvalD. holds the cycle count adjustment for a recount and does not post the adjustmentAnswer: AQuestion: 55Identify two situations in which item information on a requisition CANNOT be sourced from theApproved Supplier List. (Choose two).A. The supplier status is New.B. The Approved Supplier List is disabled at the line level.C. The Use Approved Supplier flag is unchecked for the item.D. The supplier is active but the supplier site is made temporarily inactive.E. The supplier status is set to Debarred, but the business rule Sourcing is set to Allow.Answer: B, CQuestion: 56Which two statements are true regarding approval workflows in Purchasing? (Choose two.)A. You can limit approval levels in an Approval Group by Item Category.B. Approval routing can cut across legal entities within a business group.C. A Purchase Requisition and a Standard Purchase Order cannot have different approval levels.D. The Hierarchy Forward Method routes the document to the first approver in the hierarchy who has the required approval limits for that document.E. During Position Hierarchy setup, a constraint that must be considered is that the Subordinate must not be the manager of the Position Holder in their regular job roles.Answer: A, BQuestion: 57A multinational company operates in three countries, with one operating unit (OU) in each. EachOU is linked to one inventory organization. One of the inventory organizations is a manufacturingplant. Which two statements are correct? (Choose two).Page 16 of 53
  17. 17. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. A location is a legal address, it cannot be a Ship-To site for more than one country.B. A location is unique to a specific OU responsibility when the Global check box is selected.C. When a location is flagged as local, you must assign the local inventory organization to it.D. The Ship-To location and Ship-To site for the same inventory location can be in different countries.E. You cannot set a default receiving location in the Receiving Options for each inventory organization.Answer: D, EQuestion: 58Which three statements are true regarding Inventory replenishment methods? (Choose three.)A. Min-max planning considers order cost.B. Min-max planning considers carrying cost.C. Reorder point planning considers order cost.D. Reorder point planning considers replenishment lead time.E. Min-max planning can be performed at the subinventory level.F. When an item is defined, both reorder point planning and min-max planning can be specified to place limits on the calculated reorder point.Answer: C, D, EQuestion: 59The on-hand quantity balance for item A is 100 and item B is 200. A shipment of 50 for item Aand 50 for item B arrived today. The receiving clerk created a receipt for the shipment. After thereceipt, the on-hand quantity of items A and B are 150 and 200 respectively. Which one of thepossible receipt routing options for items A and B is correct?A. Item A = Direct Delivery; Item B = Standard ReceiptB. Item A = Standard Receipt; Item B = Direct DeliveryC. Item A = Inspection Required; Item B = Direct DeliveryD. Item A = Inspection Required; Item B = Standard ReceiptE. Item A = Standard Receipt; Item B = Inspection RequiredAnswer: AQuestion: 60A parts distributor has a facility that includes several buildings that are used as warehouses. Allthe warehouses together represent one subinventory in an inventory organization. Each buildingis multistoried, and each floor (story) has several rooms within each building that are unique tothat building. All rooms are used to store material, and the distributor needs the ability to storematerial and pick material from these rooms. What is the optimum number of segments that youwould recommend for the Stock Locator flexfield?A. 1B. 2C. 3D. 4E. 5Answer: CQuestion: 61Which three statements are true about the Move Order process? (Choose three.)Page 17 of 53
  18. 18. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. Requisition and pick release orders are preapproved.B. Replenishment and pick wave move orders are preapproved.C. Requisition and pick release orders are preapproved and require inspection.D. If no planner is specified for the item, the requisition line is automatically approved.E. If no approvals are required in your organization, set the inventory organization parameters Timeout Period to 0 and the Timeout Action to Approve Automatically.Answer: B, D, EQuestion: 62You want Oracle Inventory to automatically create move orders while performing min-maxplanning. To enable that functionality, you would need to define the ____.A. subinventory supply source type at the pull levelB. Move Order Timeout Action to a value greater than zeroC. Move Order Timeout Period to a value greater than zeroD. subinventory supply source type at the subinventory or item levelAnswer: DQuestion: 63Your customer is planning to close the accounting period in Inventory. Before closing the period,the customer would like to view the total number of pending transactions in one form. Which formwould provide this information?A. Pending StatusB. View Material TransactionsC. Find Pending TransactionsD. Transaction Open InterfaceE. Inventory Accounting PeriodAnswer: EQuestion: 64Which profile option controls whether a flexfield window automatically opens when you navigateto a customized descriptive flexfield?A. Flexfields: Shorthand EntryB. Flexfields: Open Key WindowC. Flexfields: Open List of ValuesD. Flexfields: Open Descr WindowE. Flexfields: Open Description FieldAnswer: DQuestion: 65The Purchasing Document Open Interface is used to import purchasing documents from sourcesoutside of Oracle Purchasing. Select the answer that contains all the correct document types orfunctions that can be interfaced into Oracle through the Purchasing DocumentOpen Interface.A. Requisitions, Receipts, Custom Pricing, Contract Agreements, Standard Purchase Orders.B. Standard Purchase Orders, Purchase Order Changes, Cancel Purchase Order, Requisitions, Receipts.Page 18 of 53
  19. 19. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189C. Contract Agreements, Standard Purchase Orders, Price sales catalog information, Purchase Order Changes.D. Standard Purchase Orders, Purchase Order Changes, Contract Agreements, Blanket Purchase Agreements, Planned Purchase Orders.E. Price sales catalog information, Responses to requests for quotations (RFQs) in the form of blanket purchase agreement lines, or catalog quotations, Standard Purchase Orders, Planned Purchase Orders.F. Blanket Purchase Agreements, Cancel Purchase Order, Responses to requests for quotations (RFQs) in the form of blanket purchase agreement lines, or catalog quotations, Requisitions, Planned Purchase Orders.Answer: EQuestion: 66Identify the correct sequence of steps in the Procure to Pay period close process.A. Prepare for period close. > Run Validation/ Review and resolve holds. > Create accounting. > Transfer and review. > Close the period in AP. > Post journal entries in GL. > Reconcile AP activity for the period. > Close the PO period.B. Prepare for period close. > Run Validation/ Review and resolve holds. > Create accounting. > Transfer and review. > Close the period in AP. > Reconcile AP activity for the period. > Close the PO period. > Post journal entries in GL.C. Prepare for period close. > Run Validation/ Review and resolve holds. > Create accounting. > Transfer and review. > Close the period in PO. > Post journal entries in GL. > Reconcile PO activity for the period. > Close the AP period.D. Prepare for period close. > Run Validation/ Review and resolve holds. > Create accounting. > Transfer and review. > Close the period in AP. > Reconcile AP activity for the period. > Post journal entries in GL. > Close the PO period.E. Prepare for period close. > Run Validation/ Review and resolve holds. > Transfer and review. > Close the period in AP. > Create accounting. > Post journal entries in GL. > Reconcile AP activity for the period. > Close the PO period.Answer: AQuestion: 67Revision control is set at the organization level. Both Colorado and New York sites have item Aunder revision control. Item A was shipped from the Colorado site to the New York site on InternalOrder using Revision B. Since that time, revision control at the Colorado site has been changedto a numeric value and the current revision is 3.Now, New York is returning item A on an Internal Order with Revision B.What would happen when Colorado attempts to receive this unit?A. Colorado would have to temporarily change revision control to allow receipt.B. The transaction can be processed as normal. Old revisions that were issued are still valid.C. Receipt can be transacted, but the new revision number would have to be assigned upon receipt.D. New York would have to change revision control to match Colorado for transaction to be successful.E. The receipt cannot be transacted without DBA intervention. After the revision is changed, you cannot use a previous version.Answer: BQuestion: 68Consider the following scenario:Page 19 of 53
  20. 20. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 1891) Receipt Days Early = 5; Receipt Days Late = 10; Receipt Days Exceed-Action =Reject2) Over Receipt Tolerance (%) = 5; Over Receipt Action = Reject3) Receipt Close Point = Received; Receipt Close Percent = 5%A shipment of 100 for item A was scheduled to be delivered on Oct-15-2007. Which receipttransaction(s) can occur?A. A receipt of 95 for item A is created on Oct-09-2007.B. A receipt of 90 for item A is created on Oct-27-2007.C. A receipt of 108 for item A is created on Oct-16-2007.D. A receipt of 60 for item A is created on Oct-12-2007. Another receipt of 65 for item A is created on Oct-17-2007.E. A receipt of 70 for item A is created on Oct-12-2007. Another receipt of 28 for item A is created on Oct-17-2007.Answer: EQuestion: 69Select three statements that are true regarding the clearing account. (Choose three.)A. An asset clearing account can also be used as a project clearing account.B. You can have a maximum of one asset clearing account per asset category.C. For each payables document you create, you can have a separate cash clearing account.D. You can use Cash in Transit report in cash management only if cash clearing account and cash account are separate.E. You use a separate cash clearing account and cash account to have visibility of the Cash in Transit on the balance sheet.Answer: B, C, EQuestion: 70If you have Purchasing as the only installed application, in which two tabs in the Financial Optionswindow are you required to enter information? (Choose two.)A. TaxB. AccountingC. EncumbranceD. Human ResourcesE. Supplier-PurchasingAnswer: B, EQuestion: 71Two Customer Service Representatives each book a sales order for an item that is revision andlot controlled. There are no other open, active sales orders for this item. Each Customer ServiceRepresentative pick releases their order to the same warehouse independently. The PickRelease Rule used by both includes Auto Allocation. On the resulting MoveOrders, Inventory has allocated all the requested quantity for one of the sales orders, but only halfthe requested quantity on the second sales order was available to be allocated. Using theTransact Move Orders form, which action sequence can the warehouse person use to reduce theallocation on the first Move Order so that both customer orders can be equally satisfied?A. 1. View/Update Allocations; 2. Change the allocated Revision and Quantity values, as appropriate.B. 1. View/Update Allocations;Page 20 of 53
  21. 21. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189 2. Change the allocated Revision and Quantity values; 3. Change the allocated Lot and Quantity values, as appropriate.C. 1. View/Update Allocations; 2. Change the allocated Lot and Quantity values, as appropriate; 3. Select the appropriate Missing Quantity Action.D. 1. View/Update Allocations; 2. Change the allocated Revision and Quantity values, as appropriate; 3. Change the Destination Subinventory.Answer: CQuestion: 72At BBC Inc., you are implementing Oracle Work in Process, Oracle Advanced Supply ChainPlanning, Oracle Bill Of Materials, Oracle Inventory, and Oracle Engineering. When creatingrequisitions, which two modules do NOT feed data into Oracle Purchasing? (Choose two.)A. Oracle InventoryB. Oracle EngineeringC. Oracle Bill Of MaterialsD. Oracle Work in ProcessE. Oracle Advanced Supply Chain PlanningAnswer: B, CQuestion: 73Your client requires Org A to supply Org B with inventory on a need basis. The Internal Order flagis checked. An internal requisition has been created and approved. What type of receipt wouldOrg B have to perform to receive the goods?A. RMA receiptB. Inter-Org TransferC. Account Alias receiptD. Purchase Order receiptE. Receipt by Shipment NumberAnswer: EQuestion: 74Your customer completes four production orders on a daily basis. One of the production ordershas quality problems on some finished-good items. The requirements for this situation are:i) Isolate the defective material from the regular production order output.ii) The system should prevent this material from being included in external customer ordershipments.What setup or process can achieve these objectives?A. Enable lot control for the item. Store the lot in an isolated subinventory.B. Define the lot number as a rejected lot. Store this lot in an isolated subinventory.C. Create a reject locator. Move the items to this locator that prevents customer shipment.D. Enable lot control for the item. Assign material status that disallows shipping transactions.E. Enable serial control for the item. Store the serial control item in a separate subinventory that prevents customer shipment.Answer: DQuestion: 75Page 21 of 53
  22. 22. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189The materials manager has noticed that several items were created and assigned to variousinventory organizations, but the analyst skipped the Copy from Template step. The managerwould like to know how to correct the items. Which three statements are true? (Choose three.)A. Apply the template in the organization item. It would automatically update the Master Item window.B. You can use the Item Attribute Copy form to update the value of an item attribute across multiple organizations in a given organization hierarchy.C. You can change an organization-level attribute with the Master Item window. If you do this, it will update the organization-level attribute across all organizations.D. You can use the Organization Item window to update organization-level itemattributes. This would update organization-level attributes in your current organization only.E. To update master-level attributes, use the Master Item window. If an attribute is controlled at the master level, the value of the attribute applies for all organizations to which the item is assigned.Answer: B, D, EQuestion: 76The client has decided that Quality and Discrete Manufacturing will be implemented at a futurestage, so new supply from current manufacturing will be added to current inventory on hand bythe Open Transactions Interface. The immediate requirement is to go-live with Inventory andOrder Management. Which three seeded transaction types can be omitted for material statuscontrol? (Choose three.)A. average cost updateB. all internal transactionsC. backflush subinventory transferD. miscellaneous issues and receiptsE. all transaction types related to Work in ProcessF. all transaction types related to Project ManufacturingAnswer: C, E, FQuestion: 77Select the best business practice for a supplier that is being newly added to the ApprovedSupplier List.A. Allow PO Approval, Sourcing, Schedule Confirmation and Manufacturer LinkB. Allow PO Approval, Sourcing and Schedule Confirmation but not Manufacturer LinkC. Allow PO Approval, Sourcing and Manufacturer Link but not Schedule ConfirmationD. Allow PO Approval, Schedule Confirmation and Manufacturer Link but not SourcingAnswer: CQuestion: 78Which four are true about the Future Periods field in the Financials Options window? (Choosefour.)A. You cannot import or enter invoices in a future period.B. You can import/enter invoices in future periods, pay and create accounting entries for them.C. You can change this number to the maximum number of future periods you want to allow in Payables.D. You can import/enter invoices in future periods but you cannot pay or create accounting entries for them.Page 22 of 53
  23. 23. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189E. The first time you enter this field, Payables defaults the number of future periods you use in your Ledger as a default.F. Payables uses this value to limit the number of future periods you can maintain in the Control Payables Periods window.G. After you change the status of a future period to Open, you can change it back to Future only if you did not create any transactions in that period.Answer: C, D, E, FQuestion: 79Your client does not want to implement account alias issues or receipts. When performing setups,what should you do about the account alias flexfield?A. Define segments, but do not compile.B. Create at least one alias, compile, then disable the alias.C. Ignore the account alias flexfield because it would not be required.D. Compile the flexfield structure because it is required by Oracle Inventory.E. Define default account aliases that can be used at a later date, but ensure they are disabled now.Answer: DQuestion: 80Select three true statements about inventory reservations. (Choose three.)A. A reservation is a link between a supply source and a demand source.B. For on-hand inventory supply, there is only one type of reservation called high-level reservation.C. For on-hand inventory supply, there is only one type of reservation called low-level reservation.D. Reservations can be created only by Oracle applications or via forms. They cannot be imported from third-party applications.E. A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source.F. Item reservations prevent the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components.G. Item reservations allow the allocation of material you previously set aside for a sales order, account, account alias, inventory allotment, user-defined source, process batch components or, Oracle Complex Maintenance and Repair Overhaul work order components as long as the quantity is not negative.Answer: A, E, FQuestion: 81A Blanket Purchase Agreement is created with the following cumulative price break:Quantity > 0: Unit Price = $5Quantity > 20: Unit Price = $4Single line, single distribution releases are created as follows:Release# 1 with quantity 15Release# 2 with quantity 10What are the unit price values on the releases?A. Release1 $5, Release2 $5B. Release1 $4, Release2 $4C. Release1 $5, Release2 $4Page 23 of 53
  24. 24. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189D. It depends on the price tolerance for the line.E. Release1 $5, Release2 $4 for a quantity of 5 and $5 for a quantity of 5Answer: CQuestion: 82Which three are true about the Evaluated Receipt Settlement (ERS) process? (Choose three.)A. Invoice is always created for the supplier site.B. Invoice is always created in unapproved status.C. Invoice currency is always defaulted from the purchase order currency.D. Payment currency is always defaulted from the purchase order currency.E. Payment terms are always defaulted from the purchase order payment terms.F. Amount is always determined by multiplying the quantity received by the purchase order item unit price.Answer: B, C, FQuestion: 83A recent shipment of item A was routed to the inspection department according to standardpractice, but no receipt for item A is available in the system for inspection. What might havehappened?A. Requester set the receipt routing to Direct Delivery in the requisition.B. Receiving clerk created an express receipt instead of a standard one.C. Buyer changed the receipt routing to Standard Receipt in the purchase order line.D. Buyer changed the routing to Direct Delivery at the supplier site level for this supplier.E. Receiving clerk changed the receipt routing to Standard Receipt at the time of receiving.Answer: EQuestion: 84A global manufacturing organization (GLO) has multiple sourcing rules and approved supplierlists (ASLs) that are set up correctly.Three of the inventory organizations are ITA, NYC, and GER. NYC is a manufacturingorganization and the other two are distribution warehouses. The three organizations source itemsfrom each other. Which two statements are valid?(Choose two.)A. One global location is sufficient for the three organizations.B. Three lines were set up on a sourcing rule and the sourcing rule was assigned to a single Assignment Set.C. A sourcing rule is set up for a supplier but no ASL. When an item is entered on a requisition for this supplier, the supplier information would not be defaulted.D. The price for item A is set in ITA at P1 and in GER at P2. When you raise an internal requisition for item A in destination org ITA and source org GER, the defaulted price is P2.E. ITA has a sourcing rule to source a part from GER. You also assign a bill of distribution to ITA to source the same part from the manufacturing plant NYC. The default source would be GER.Answer: B, EQuestion: 85While defining Approval Groups, which three objects can you define authorization rules for?(Choose three.)Page 24 of 53
  25. 25. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. BuyerB. LocationC. CommodityD. Item CategoryE. Account RangeF. Document AmountAnswer: B, D, EQuestion: 86Which three processes would help analyze supplier information before defining a new supplierrecord? (Choose three.)A. Submit and review the Suppliers Report.B. Submit and review the Suppliers Audit Report.C. Perform a Find or Query on the Supplier name.D. Submit and review the Suppliers On Hold report.E. Submit and review Purchase Price Variance report.F. Submit and review the Purchasing Activity Register report.G. Submit and review Open Purchase Orders By Buyer report.Answer: A, B, CQuestion: 87Identify two instances when an approved supplier list is redundant for automatic sourcing.(Choose two.)A. A sourcing rule exists for an item-supplier-supplier site combination.B. You need to source service lines and Oracle Sourcing is implemented.C. Items are sourced from a manufacturing plant across countries/operating units in a multinational company.D. You need to default source information on an item that is on a blanket purchase agreement and a quotation.E. You need to source information from a global agreement to a standard purchase order and the profile option PO: Automatic Document Sourcing is set to Yes.Answer: B, EQuestion: 88Which three statements are true about the item master?(Choose three.)A. It is possible to copy items across item master organizations.B. The item master organization is the centralized repository for all items in different organizations.C. It is possible to associate items in one item master organization with another item master organization.D. When an attribute control is set at the item master level, updates are not allowed at the item or organization level.E. There is no functional or technical difference between the item master organization and other organizations while transacting on an item.F. When an attribute control is set at the item master level, updates can still be made at the item or organization level but these updates would not propagate back up to the item master level.Answer: B, D, EPage 25 of 53
  26. 26. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Question: 89Your client wants approvals for Move Orders to occur after 30 days. Based on the Move Orderapproval workflow, how would you enter the values for Move Order Timeout Period and MoveOrder Timeout Action?A. Timeout Period = 30, Action = Reject AutomaticallyB. Timeout Period = 15, Action = Reject AutomaticallyC. Timeout Period = 0, Action = Approve AutomaticallyD. Timeout Period = 30, Action = Approve AutomaticallyE. Timeout Period = 10, Action = Approve AutomaticallyF. Timeout Period = 15, Action = Approve AutomaticallyAnswer: FQuestion: 90Which three are valid setup options for purchasing document types? (Choose three.)A. Archive OnB. Forward MethodC. Default HierarchyD. Security Access LevelE. Can Change HierarchyF. Owner Cannot ApproveAnswer: A, B, CQuestion: 91Identify four ways in which sourcing rules significantly improve efficiency of procurementprocesses. (Choose four.)A. Allowing you to transfer from one supplier site to the other, if it is a global supplier.B. Assigning sourcing rules at the item or item-organization level using an assignment set.C. Giving you the ability to identify the priority to be given to the local sites of a global supplier.D. Sourcing the highest percentage of an item from only those suppliers who ranked the highest.E. Allowing you to identify the most efficient shipping method to be used for a specific sourcing rule.F. Automatically allocating planned orders across different suppliers based on predetermined criteria such as rank and percentage.G. Allowing the implementer to define a single sourcing rule for an item at the Item Master level, to cater to all inventory organizations.Answer: B, C, E, FQuestion: 92Identify three valid sources of Inventory Demand. (Choose three.)A. Approved Requisition LinesB. Miscellaneous TransactionsC. Scheduled CMRO Work OrdersD. Approved Purchase Order LinesE. Sales Order Lines in Entered statusF. WIP Work Orders in Released statusG. Sales Orders Lines in Scheduled statusPage 26 of 53
  27. 27. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: C, F, GQuestion: 93Each UOM class must have a base unit specified. Which represents a base unit for the UOMClass Quantity?A. OneB. EachC. CaseD. GrossE. DozenAnswer: BQuestion: 94Your client uses Average Costing to value the items in the inventory. A Miscellaneous Receipttransaction has been submitted for a quantity of 1 of an item. What are the two possible valuesthat could have been added to the Material Account by this transaction? (Choose two.)A. 1 x (User-entered Unit Cost)B. 1 x (Current Average Unit Cost)C. The transaction will not be costed until the next Cost Manager program is executed.D. 1 x (Average Cost Variance), calculated when the next Cost Manager program is executedAnswer: A, BQuestion: 95Which are the three mandatory fields when defining asupplier bank header? (Choose three.)A. BankB. Bank branchC. Bank contactD. Bank account numberE. Bank operating accountAnswer: A, B, DQuestion: 96Profile options can be either required or optional. All required options must have a value. Whichtwo profile options are required when setting up Oracle Inventory? (Choose two.)A. INV: Validate Returned LotB. INV: Accounting Category SetC. INV: Restrict Receipt of SerialsD. INV: Default Primary Unit of MeasureE. INV: Replenishment Move Order GroupingAnswer: B, DQuestion: 97Your customer sets up an item with the wrong primary unit of measure (UOM) and transacts for acouple of years. Now the customer realizes that the unit of measure setup was incorrect. Howcan you correct the UOM after transactions have been made?Page 27 of 53
  28. 28. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. You can change the UOM easily in the organization items.B. You cannot correct the primary UOM for the item after transactions.C. You can easily correct the primary UOM by changing the value in the item master.D. You can delete items using delete group and create the item again using the correct primary UOM.Answer: BQuestion: 98Your customer is interested in implementing revision control for the finished goods model items.Which two requirements can be met by implementing revision control? (Choose two.)A. changing model functionality when on-hand quantity is availableB. tracking design changes in other modules (BOM, Work In Process) with a different model numberC. scrapping the old model and introducing a new model which has changes in functionality and featuresD. accommodating a slight design change in the model, where functionality and features remain the sameE. tracking design changes in all other functions, such as Bill of Materials, Routings, Work in Process, and so on, using the same model numberAnswer: D, EQuestion: 99An item has its Lot Control attribute set to Full Control. The Active material status does not haveany transaction types related to lot control enabled for material status control. This status isassigned to all lot numbers associated with the item. The subinventory where the items lotnumbers are all located also has the Active material status. How will the application respondwhen a user tries to submit a subinventory transfer transaction?A. The transaction will be accepted.B. An error message will be generated.C. The transaction will be accepted, but will be registered as a transfer to and from the same subinventory.D. The transaction will be accepted, but the item cost update will have to be processed separately by the user.Answer: AQuestion: 100During implementation, there are various additional things that need to be considered for RFQsand Quotations. There are seven documented areas to consider, as well as some common senseconsiderations. Select five options that accurately depict these. (Choose five.)A. Data Cleanup is not important.B. RFQ and Quotation Usage is important.C. Data Mapping for RFQs Open Interface is important.D. RFQ and Quotation Conversion strategy is important.E. Data Cleanup of legacy RFQs and Quotes is important.F. Data Mapping from the legacy RFQs and Quotes is important.G. Quotation Usage and RFQ Usage does not matter because RFQs cannot be converted.H. The method by which RFQs are delivered to potential suppliers (Printed Forms) is important.I. Training on RFQ and Quotations is not necessary because the quotations are automatically created into Requisitions.Page 28 of 53
  29. 29. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189J. You should just create new RFQs in the new system so that the linkage between RFQs and Requisitions can be maintained.Answer: B, D, E, F, HQuestion: 101Bonus Inc. implemented the ERS functionality in Oracle Purchasing. The Pay on Receipt processis run nightly. The Summary level is set to Pay Site at the supplier site and the Match Approvaloption on PO shipment is set to Four-Way. Purchase order #001 of 150 units at a unit price of $1was received in total as Receipt #R-PO001, but not yet inspected and delivered. On the sameday, from Purchase Order #002 of 100 units (at a unit price of $1), 50 units was initially receivedas Receipt #R-PO002, inspected, and delivered. Both purchase orders have the same item,supplier, and supplier sites. What would the Pay on Receipt process generate for thesetransactions?A. a $50 invoiceB. a $250 invoiceC. a $150 invoice and a $50 invoiceD. a $200 invoice with invoice validation on holdE. a $250 invoice with invoice validation for $50 on holdAnswer: DQuestion: 102Your ordering process starts with a requisition. Into which two documents must the purchaserequisition document be transformed within Oracle Applications? (Choose two.)A. ReturnB. ReceiptC. QuotationD. Purchase OrderE. Request For QuotationAnswer: D, EQuestion: 103Which four responsibilities must be defined in order to perform the purchasing setup when thecomplete Oracle R12 E-Business Suite is installed? (Choose four.)A. Inventory ManagerB. Payables ManagerC. Receivables ManagerD. System AdministratorE. Purchasing Super UserF. General Ledger Super UserG. Advanced Supply Chain PlannerAnswer: B, D, E, FQuestion: 104Which statement is true regarding inventory transactions?A. Transaction reasons can be used in all transaction forms.B. Work in Process would not affect inventory transactions.C. Inventory adjustments are not part of inventory transactions.Page 29 of 53
  30. 30. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189D. You can designate, by transaction type, which transaction reasons are available.E. You must create at least one user-defined transaction reason for each inventory organization.Answer: AQuestion: 105XYZ is a metal fabrication company. It wants to classify all metals and plastics into two majorgroups. There are many subgroups in metals and plastics. All the subgroups are linked to theirmajor group. This group classification is extensively used in all the reports in the organization.Which Oracle functionality can meet the above requirement?A. CatalogsB. CategoriesC. Catalog and CategoriesD. Category Set and CategoriesE. Group key flexfield enabled in the reportsF. Group descriptive flexfield enabled in the reportsAnswer: DQuestion: 106ABC is a laptop manufacturing company. On an average, the company completes 10 discretejobs daily. ABC has the following requirements:1. When the customer returns the laptop, ABC should be in a position to identify the laptopsmanufacture date and batch number.2. Each laptop should be identified with a unique number and this should be tagged with thebatch number.3. When a customer returns a laptop, ABC decides whether it can replace it with a new laptop orrepair it, by considering the age of the laptop.ABC needs to identify the aging period of the laptop.Which setup would meet the above requirements?A. Using the discrete job form, the manufactured date and batch number can be identified.B. Enable lot and serial control at the organization item level. Enter the shelf life days in the item.C. Enable parent lot and child lots at the organization item level. Enter the shelf life days in the item.D. Enable parent lot and grade control at the organization item level. Enter the shelf life days in the item.E. Enable lot control at the organization item level. Set up uniqueness within inventory items in the organization parameters.Answer: BQuestion: 107What is the significance of the Shrinkage Rate item attribute?A. The expected reduction in demand within the planning fenceB. The average loss of material during manufacturing or storageC. The expected decrease in the rate of production of units during manufacturingD. The expected percentage (%) loss of quality of an item during the manufacturing process or storageAnswer: BQuestion: 108Page 30 of 53
  31. 31. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Which two statements apply to a Physical Inventory Tag as defined by Inventory? (Choose two.)A. Physical Inventory Tags cannot be bar coded.B. It can contain a count for a group of a given item.C. It is produced and printed by the Generate Physical Inventory Tags function.D. It is unique for every stock locator/item/lot number/serial number combination.E. It is used to indicate to the warehouse staff that a count has been recorded for that location, so that a duplicate count is not performed.Answer: B, DQuestion: 109ACME is implementing Inventory in a make-to-order manufacturing environment, where there ison-hand inventory for 200 different motors. For these purchasable items, given the proper profilesetup, Min-max can automatically create _____.A. an expense accountB. an encumbrance accountC. an invoice price variance accountD. an inventory Accounts Payable accrual accountE. records in the Purchase Order Requisition interface tableAnswer: EQuestion: 110What is the correct sequence when defining units of measure (UOM)?A. UOM Class, UOM, UOM ConversionsB. UOM Class, UOM Conversions, UOMC. UOM Conversions, UOM Class, UOMD. UOM Conversions, UOM, UOM ClassE. UOM, UOM Class, UOM ConversionsAnswer: AQuestion: 111A client often orders an item by the case but stocks the item as individual units by using the Eachunit of measure (UOM). The client orders the item from three suppliers, and the case sizes differby supplier (10, 12, and 50). What is the proper way to set up these units of measure?A. Always use the Each UOM and do not create purchase orders for cases.B. Create a Case UOM and an Each UOM, and assign them to different UOM classes.C. Create a Case UOM and an Each UOM, and assign both of them to the same UOM class.D. Create multiple CaseX UOMs, where X is the quantity per case, and an Each UOM, and assign them to the same UOM class.E. Create multiple CaseX UOMs, where X is the quantity per case, and an Each UOM, and assign them to different UOM classes.Answer: DQuestion: 112The client wants to implement reorder point planning for some items in the organization. Theycurrently use min-max planning. What is the minimum amount of information that needs to bechanged on the items the client wants to plan?Page 31 of 53
  32. 32. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. Safety Stock Quantity and ForecastB. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying CostC. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, and Order CostD. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, Order Cost, and Maximum Order QuantityE. Safety Stock Quantity, Inventory Planning Method set to Reorder Point, Forecast Quantity, Carrying Cost, Order Cost, and Minimum Order QuantityAnswer: CQuestion: 113Company ABC is using serialization in all organizations that manage inventory. It wants eachorganization to determine the proper levels of serial control. The products in each organizationare completely different, so having the same serial numbers on different products is acceptable.The only global requirement is that serial numbers be generated in advance, to prevent incorrectserial number types from being created. Using the table below, choose the cell that representsthe correct parameter and attribute combination to meet Company ABCs needs.A. BB. CC. FD. HE. KF. LAnswer: AQuestion: 114What two conditions prevent you from reserving the inventory? (Choose two.)A. The inventory module is installed as Shared.B. The items have a nonreservable material status.C. The inventory is in a Standard Cost inventory organization.D. The inventory is in an Average Cost inventory organization.E. The reservation will cause the on-hand quantity to be negative.Answer: B, EQuestion: 115When you enter a receipt, you first use the Find Expected Receipts window to locate the sourcedocument for the receipt. Select four valid source documents for a receipt. (Choose four.)A. an approved internal requisition lineB. an intransit shipment within your inventoryC. a shipment from a supplier based on a purchase orderD. a move order from inventory for material storage relocationE. a return from a customer based on a return material authorization (RMA)F. a shipment from inventory backed by an internal sales order generated by an internal requisitionAnswer: B, C, E, FQuestion: 116Page 32 of 53
  33. 33. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189ACME is using cycle counting and the quantity variance approval tolerances are specified at thecycle count header level, cycle count Class level, and cycle count item level. When tolerances areset up at all the levels, which tolerance is considered first by Inventory?A. Unit cost levelB. Subinventory levelC. Cycle count item levelD. Cycle count class levelE. Cycle count header levelAnswer: CQuestion: 117Which data is received by Oracle Bill of Materials from Oracle Inventory?A. ATP supply onlyB. item information onlyC. on-hand quantity onlyD. item information and units of measureE. units of measure and on-hand quantityAnswer: DQuestion: 118Receiving Open Interface (ROI) is typically a three-step process. Identify the correct sequence ofthe steps.A. Load - Accrue - ProcessB. Load - Confirm - ProcessC. Receive - Inspect- DeliverD. Load - Process - ConfirmE. Validate - Confirm - ProcessAnswer: DQuestion: 119Which window in Purchasing would you use to copy an existing global Approved Supplier Listentry and make it local to your organization?A. Supplier StatusB. Request For QuotationC. Supplier-Item AttributesD. Approved Supplier List StatusesE. Sourcing Rule/Bill of Distribution AssignmentsAnswer: CQuestion: 120Min-max planning can be used _____.A. only at the subinventory levelB. in place of MRP/MPS planningC. in Exponential Smoothing Forecast calculationsD. in Economic Order Quantity(EOQ) calculationsE. in Material Requirement Planning/Master Production Schedule (MRP/MPS) calculationsPage 33 of 53
  34. 34. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Answer: BQuestion: 121Company X is identifying the major aspects of its inventory organization structure and definitions.Which two actions or statements would be correct? (Choose two.)A. An inventory location can be an Office Site only if it is also a registered office.B. It can consider manufacturing facilities, warehouses, distribution centers, and branch offices, as well as other entities.C. It does not need a minimum of two inventory organizations in a master/child relationship, but it is a best practice to do so.D. The financial impact of inventory parameters is limited to Purchase Price Variance and Intransit Account for interorganization shipments, and Transfer Credits for the sending organization.E. You can control inventory organizations across different operating units from one responsibility but you cannot have it default to one operating unit. The last used operating unit used before you log off would default when you log in the next time.Answer: B, CQuestion: 122The Account Alias Name flexfield cannot exceed _____ characters.A. 20B. 15C. 25D. 30E. 45F. 180Answer: CQuestion: 123Which five actions can you perform on Requisitions? (Choose five.)A. Print requisitions.B. Update requisitions.C. Cancel/Final Close requisitions.D. Modify after the requisition has been approved.E. View the status and action history of requisitions.F. Delete requisition lines after the requisition has been approved.G. Only Finally Close requisitions; Cancel is not an available action.H. Review requisition assignments and assign/reassign requisitions to buyers. I. Printing requisitions is not an available action until the client has created a company form.J. Requisition Management is not a valid action for requisitions; assigning/reassigning can be performed only on POs.Answer: A, B, C, E, HQuestion: 124ABC Inc. is a semiconductor manufacturing organization. They have all possible inventorycontrols on items. Which controls are validated on subinventory transfer transactions?1. Lot control2. Locator controlPage 34 of 53
  35. 35. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 1893. Serial Number control4. Revision Quantity control5. Subinventory and locator restrictions for specific itemsA. 1B. 1 and 3C. 1, 3, and 5D. 1, 2, and 3E. 1 through 5F. 1, 2, 3, and 5G. 1, 2, 3, and 4Answer: EQuestion: 125Which four must be set up to implement a position hierarchy for document approvals? (Choosefour.)A. BuyersB. Employee JobsC. Approval GroupsD. Security HierarchyE. Employee PositionsF. Employee LocationsG. Approval AssignmentsAnswer: B, C, E, GQuestion: 126View the Exhibit. Your client was creating an express receipt. While saving the receipt, it failed.Identify the most logical reason for the failure.Page 35 of 53
  36. 36. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. A manual action was performed in one of the lines before clicking the Express button.B. The Early/late Receipt Date Tolerance is exceeded and the Exception Control is Warning.C. Location is not available for Expense Destination Type and the Destination Type is Receiving.D. Location is not available for Expense Destination Type and the Destination Type is Final Destination.E. Instead of a purchase order number, a supplier name was specified in the Find Expected Receipts window.Answer: DQuestion: 127When implementing Purchasing at FGH Corp., you notice several administrative inefficienciesdue to a poorly maintained supplier list. Identify three inefficiencies. (Choose three.)A. entering suppliers twiceB. issuing specific invoicesC. generating inaccurate returnsD. generating inaccurate receiptsE. generating accurate supplier reportsF. issuing more payments than necessaryG. issuing more purchase orders than necessaryAnswer: A, F, GQuestion: 128Company X is a global company with operations in three regions: North America, Europe, and Asia. Each region has a separate business group, and one legal entity attached to each businessgroup. North America has two operating units (OU) and the other two regions (Europe andAsia) have one OU each. Identify two correct statements regarding purchasing documentapproval and routing processes. (Choose two.)Page 36 of 53
  37. 37. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189A. All three regions must share the same approval hierarchy.B. North America can have two sets of Approval Groups, one for each OU.C. North America can have only one set of Approval Groups to share across each OU.D. Each region can have a different type of hierarchy: Employee/Supervisor or Position Hierarchy.E. Each region can have a different approval hierarchy, but all three regions must use the same type of hierarchy: Employee/Supervisor or Position Hierarchy.Answer: B, DQuestion: 129Which two statements are correct about defining inventory organizations and locations? (Choosetwo.)A. A subinventory can be shared across two inventory organizations.B. You can restrict a location tagged as Global to a specific inventory organization.C. The item master is always the validation organization in a multiorganization structure.D. When the location is tagged as Global, it is NOT mandatory to select an international address style (where available).E. While defining a location that is local, you must ensure that the Ship Location and Ship-To site are always the same.Answer: B, DQuestion: 130Your clients department administrative assistant (only) is allowed to self-approve the officesupplies requisitions up to $5,000.00. For all other types of requisitions, there is no approvalauthority.The companys location is Ann Arbor.The purchasing category for office supplies is Office.Supplies.The chart of accounts follows this format: Company.Business Group.CostCenter.Account.Future.Your clients company account code is "01," business group is "100," cost center (or department)is "560," the account for office supplies is "67549," and the future segment is always "000000."Which approval group setup would enable this restrictive purchasing practice?A. Document Total: Amount Limit = $5,000.00 Location: Amount Limit = $5,000 and Location = Ann Arbor Category Range: Amount Limit = $10,000 Category Range: From x.Supplies To: Office.SuppliesB. Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000. Account Range: From: 01.100.560. 67549.000000 To 01.100.560. 67549.000000 Category Range: Amount Limit = $5,000 Category Range: From Office.Supplies To: Office.SuppliesC. Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000 Account Range: From: 01.100.560. 67549.000000 To: 01.100.560. 67549.000000 Category Range: Amount Limit = $5,000 Category Range: From: Office.Supplies To: Office.Supplies Requisition Document Type setup = Owner can ApproveD. Document Total: Amount Limit = $0.00 Account Range: Amount Limit = $5,000 Account Range: From: 01.100.560. 00000.000000 To: 01.100.560. 99999.000000Page 37 of 53
  38. 38. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189 Location: Amount Limit = $5,000 and Location = Ann ArborE. Set the Document Total object to include an amount limit of $5,000.00 Set the Account Range object to include an amount limit of $5,000 and account range from 01.100.560.00000.000000 to 01.100.560.99999.000000. Set the Account Range object to include an amount limit of $5,000 and account range from 01.100.560.00000.000000 to 01.100.560.99999.000000. Set the Requisition Document Type setup to Owner can Approve.Answer: CQuestion: 131Which three statements are true about ABC Analysis and cycle count Classes? (Choose three.)A. The hit/miss% for the Class overrides the hit/miss% of the cycle count header.B. The hit/miss% for the cycle count header overrides the hit/miss% of the Class.C. An ABC Analysis can be compiled for a subinventory that is defined as a non-quantity-tracked subinventory.D. An ABC Analysis can be compiled for nonasset (expense) subinventories for which quantities are tracked.E. In ABC Analysis, a quantity variance must always be submitted for approval, regardless of the tolerance levels.F. Positive and negative tolerances can be entered for each class, which will override the tolerance at the cycle count header level.Answer: A, D, FQuestion: 132You and your client determined that forecasting methods included with inventory will be sufficientto meet the clients needs. You and the customer have decided to use Focus Forecasting tobegin with and move to Exponential Smoothing after one year. Along the way, your customernoticed some definite trends in demand and has requested your help to re-evaluate theforecasting method.What do you recommend as a forecasting method? What additional information is needed, if any?A. Focus ForecastingB. Exponential SmoothingC. Exponential Smoothing with Trend Enhanced Forecasting, Alpha and Beta CoefficientsD. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Beta CoefficientsE. Exponential Smoothing with Season Enhanced Forecasting, Alpha and Gamma CoefficientsAnswer: CQuestion: 133Beyond the shelf life days, active lots become expired lots. Expired lots______.A. can be reservedB. are not allowed to do subinventory transferC. are not included in inventory valuation reportsD. cannot be transacted and included in on-hand quantitiesE. are not included in cycle and physical counting adjustmentsF. are not considered as on-hand supply for min-max and re-order point planningAnswer: FPage 38 of 53
  39. 39. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189Question: 134What is the prerequisite for entering unscheduled entries in a cycle count?A. Run a manual schedule request to generate counts.B. Generate cycle count requests before entering counts.C. Run an automatic schedule request to generate counts.D. Run the count generation program for unscheduled entries.E. Set the Unscheduled Entries flag to Yes in the cycle count header.Answer: EQuestion: 135Which Approved Supplier List (ASL) entry would take precedence for an item?A. Local entry that applies to your suppliers.B. Global entry that applies to your suppliers.C. Local entry that applies only to your organization.D. Both local and global entries that apply to your suppliers.E. Global entry that applies to all organizations of your company.Answer: CQuestion: 136You match an unordered receipt to _____.A. a purchase order shipment from any organizationB. a Return Material Authorization (RMA) from any organizationC. a purchase order shipment from the same organization for any supplierD. a purchase release shipment from the same organization for the same supplierE. a finally closed purchase order shipment from the same organization for the same supplierAnswer: DQuestion: 137When a quotation is due to expire within the number of days you specified, then you receive thefollowing message in the Notifications Summary window: Quotations active or approachingexpiration: [number]. Where is this [number] set up in the system?A. in the Quote Header - Warning Delay fieldB. in the Systems Profile Options - PO: Quote Warning DelayC. in Purchasing Options on the Default Tab - Quote Warning Delay fieldD. Lookup Code, which is an (LOV) List of Values, in the Quote Header – Warning Delay fieldAnswer: CQuestion: 138If the PO: Allow Buyer Override in AutoCreate Find profile option is set to No, what would happenif the buyer, Pat Stock, uses the AutoCreate form?A. Pat would be able to view requisitions assigned to other buyers and unassigned requisitions.B. Pat would not be able to view requisitions assigned to other buyers or unassigned requisitions.C. Pat would be able to view requisitions assigned to other buyers, but not view unassigned requisitions.Page 39 of 53
  40. 40. Exam Name: Oracle EBS R12: Inventory and Purchasing FundamentalsExam Type: OracleExam Code: 1Z0-225 Total Questions: 189D. Pat would not be able to view requisitions assigned to other buyers, but would be able to view unassigned requisitions.E. Pat would be able to view all requisitions in the AutoCreate form, but would be prevented from placing requisitions on a purchase order if they reference another buyer.Answer: BQuestion: 139Your customer completes two discrete jobs. Each job completes with a quantity of 100. After jobcompletion, the business user found that 10 components used in Job1 were bad. All thecomponents are serial-controlled items. Job1 reopened so that they could return the WIPComponent for the 10 quantities back to inventory. The list of values (LOV) shows all the serialnumbers irrespective of the component used in the specific discrete job. Which setup or processwould restrict the component serial numbers specific to their discrete job from appearing in theLOV that is used?A. Setup INV: Geneology Delimited: YesB. Setup INV: Validate Returned Serial: YesC. Setup INV: Restrict Receipt of Serial: YesD. Serial Control at the item level: PredefinedE. Serial number assigned during WIP completionF. Serial number assigned during WIP assembly returnG. The system automatically defaults the serial numbers respective to their discrete jobs.Answer: BQuestion: 140While implementing Oracle Payables, Oracle Purchasing, and Oracle General Ledger at GLOLtd., you are informed by the accountant that the AP Clearing Account balance is increasingdaily. To solve this issue, what would you check in the accounting process?A. whether journals are posted regularlyB. whether suppliers are sequentially numberedC. whether the month-end accrual process is runD. whether invoices are matched to purchase orders and receiptsE. whether Oracle Payables transactions are reconciled with Oracle General LedgerAnswer: DQuestion: 141Oracle Inventory interacts with other Oracle applications by sharing information. Which twopieces of information does Oracle Inventory receive from the Order Management application?(Choose two.)A. UOM informationB. shipping informationC. on-hand informationD. ATP supply informationE. reservations informationAnswer: B, EQuestion: 142Select three statements that are true about the receiving process. (Choose three.)Page 40 of 53

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