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Oracle 1Z0-1056-26 practice questions

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Question 1Receivables Configuration and Setup

In Oracle Receivables, which setup object must you define before you can assign a transaction source to a transaction type?

  1. A remittance bank
  2. A receivables activity
  3. A transaction batch source Correct answer.
  4. A collector

Explanation

Transaction types reference a transaction source, so the batch source must exist first. Receivables activities, collectors, and remittance banks are unrelated to transaction type definition.

Question 2Receivables Configuration and Setup

Which Receivables system option controls whether a customer must always be specified on a transaction?

  1. Automatic Receipt Numbering
  2. Allow Payment Term Override
  3. Enable Transaction Printing
  4. Require Customer on Transaction Correct answer.

Explanation

The Require Customer on Transaction profile option (System Options) forces a customer to be entered on every transaction. The other listed options govern payment terms, receipt numbering, and printing rather than customer entry.

Question 3Receivables Configuration and Setup

A company wants to group transactions for accounting and reporting by business line. Which Receivables setup should they use?

  1. Receivables activities
  2. Batch sources Correct answer.
  3. Accounting rules
  4. Transaction types

Explanation

Batch sources group transactions and drive defaulting and numbering behavior for a category of transactions. Transaction types classify the nature of a transaction, while accounting rules govern revenue scheduling.

Question 4Receivables Configuration and Setup

Which Receivables activity type is used when a customer is given a reduction in an invoice amount without issuing a credit memo?

  1. Claim
  2. Adjustment Correct answer.
  3. Chargeback
  4. Freight

Explanation

Adjustment activities reduce the amount due on an invoice without creating a separate credit memo. Claims, chargebacks, and freight are different distribution types with distinct accounting.

Question 5Receivables Configuration and Setup

Which payment term setup determines the date from which due dates are calculated?

  1. The payment term's day of month
  2. The payment term's due date basis Correct answer.
  3. The payment term's discount basis
  4. The payment term's installment split

Explanation

The due date basis determines the starting point (invoice date, goods shipped date, etc.) from which the due date is calculated. The day of month, discount basis, and installments affect other aspects of the term.

Question 6Receivables Configuration and Setup

In Receivables, which object defines the accounting distribution for a transaction line?

  1. Accounting rules
  2. AutoAccounting Correct answer.
  3. Revenue contingency
  4. Distribution sets

Explanation

AutoAccounting determines the account segments used for each transaction distribution based on sources such as salesperson, product, and transaction type. Accounting rules define revenue schedules, not account derivation.

Question 7Receivables Configuration and Setup

Which Receivables setup defines the sequence of steps and validations applied when entering a receipt?

  1. Receipt method Correct answer.
  2. Receipt class
  3. Receipt source
  4. Remittance bank

Explanation

A receipt method links a receipt class, remittance bank account, and related processing options. The receipt class defines the processing steps, while the receipt method supplies the bank and remittance details.

Question 8Receivables Configuration and Setup

Which Receivables setup option determines whether a receipt is automatically remitted to the bank?

  1. Receipt class Correct answer.
  2. Receipt source
  3. Receipt method
  4. Customer profile

Explanation

The receipt class controls the remittance and clearing steps, including whether receipts are automatically remitted. The receipt method supplies the bank account but the class defines the processing sequence.

Question 9Receivables Configuration and Setup

A user needs to assign a collector to a customer for collections management. Which setup object should be configured?

  1. Credit check
  2. Collector Correct answer.
  3. Dunning letter set
  4. Statement cycle

Explanation

Collectors must be defined before they can be assigned to customers for collections work. Dunning letter sets, credit checks, and statement cycles are separate collections and credit configuration objects.

Question 10Receivables Configuration and Setup

A company wants to apply a credit memo only to invoices of the same transaction type. Which setup controls this behavior?

  1. Batch source
  2. Transaction type Correct answer.
  3. Credit memo reason
  4. AutoCash rule set

Explanation

The transaction type includes attributes such as the default credit memo type and the matching rules for credit memo application. The batch source groups transactions, and the credit memo reason is a reporting attribute.

Question 11Receivables Configuration and Setup

A company wants revenue to be recognized over several periods based on a fixed schedule. Which Receivables setup should be used?

  1. Revenue contingency
  2. Transaction type
  3. AutoAccounting
  4. Accounting rules Correct answer.

Explanation

Accounting rules define revenue recognition schedules (fixed or variable) and are referenced by transaction lines. AutoAccounting derives accounts, and revenue contingency flags revenue that is not yet recognizable.

Question 12Receivables Configuration and Setup

A user wants to automatically derive the salesperson account segment on transaction distributions. Which AutoAccounting source should be used?

  1. Salesperson Correct answer.
  2. Freight
  3. Tax
  4. Standard Line

Explanation

AutoAccounting supports sources such as Salesperson, Standard Line, Tax, and Freight to derive account segments. The Salesperson source uses the salesperson assigned to the transaction line.

Question 13Receivables Configuration and Setup

A company wants to require entry of a purchase order number on transactions. Which setup should be configured?

  1. Transaction type
  2. Receivables activity
  3. Batch source Correct answer.
  4. System option

Explanation

The batch source includes options such as requiring a purchase order number on entered transactions. Transaction types classify transactions, and system options govern global defaults rather than per-source requirements.

Question 14Receivables Configuration and Setup

A company wants to allow users to override the payment term on a transaction. Which setup controls this?

  1. Customer profile
  2. System option Correct answer.
  3. Transaction type
  4. Payment term

Explanation

The Allow Payment Term Override system option determines whether users can change the payment term on a transaction. Payment terms define the term itself, not the override capability.

Question 15Receivables Configuration and Setup

A company wants to send dunning letters to customers at defined intervals. Which setup is required?

  1. Credit check
  2. Statement cycle
  3. Dunning letter set Correct answer.
  4. Collector

Explanation

Dunning letter sets define the sequence and timing of dunning letters sent to overdue customers. Collectors are assigned to customers, and credit checks govern credit limits.

Question 16Receivables Configuration and Setup

A company wants receipts to be automatically applied to open invoices using a defined hierarchy of matching rules. Which setup should be configured?

  1. Receipt class
  2. Receipt method
  3. AutoCash rule set Correct answer.
  4. Payment term

Explanation

AutoCash rule sets define the ordered rules used to automatically match receipts to open transactions. Receipt classes and methods control processing steps, not matching logic.

Question 17Receivables Configuration and Setup

A company requires a credit check before a sales order is released. Which Receivables setup must be configured?

  1. Statement cycle
  2. Receipt class
  3. Dunning letter set
  4. Credit check Correct answer.

Explanation

Credit check setup defines credit limits, hold rules, and review behavior for customers. Dunning letter sets and statement cycles relate to collections and statements, not credit holds.

Question 18Receivables Configuration and Setup

A company wants to define a receipt method that uses a specific remittance bank account and receipt class. Which two components must exist first?

  1. Receipt class and remittance bank account Correct answer.
  2. Payment term and AutoAccounting
  3. Transaction type and batch source
  4. Collector and dunning letter set

Explanation

A receipt method references a receipt class and a remittance bank account, so both must be defined before the method can be created. The other pairs relate to different configuration areas.

Question 19Receivables Configuration and Setup

A user wants to automatically number receipts sequentially. Which system option should be enabled?

  1. Automatic Receipt Numbering Correct answer.
  2. Allow Payment Term Override
  3. Require Customer on Transaction
  4. Enable Transaction Printing

Explanation

Automatic Receipt Numbering enables sequential generation of receipt numbers. The other options govern customer entry, payment term overrides, and printing.

Question 20Receivables Configuration and Setup

A company wants to define a transaction type that defaults a specific batch source and accounting rule. Which setup object references these defaults?

  1. Receivables activity
  2. Collector
  3. Transaction type Correct answer.
  4. Remittance bank

Explanation

Transaction types reference default batch sources, accounting rules, and related attributes for transactions. Receivables activities, collectors, and remittance banks are not referenced by transaction types in this way.

Question 21Receivables Configuration and Setup

A company needs to recognize revenue only after a customer accepts delivered goods. Which Receivables setup supports this?

  1. Transaction type
  2. Accounting rules
  3. Revenue contingency Correct answer.
  4. AutoAccounting

Explanation

Revenue contingency identifies revenue that is not recognizable until a condition such as customer acceptance is met. Accounting rules schedule recognition but do not themselves model the contingency condition.

Question 22Receivables Configuration and Setup

A company wants a receipt to be remitted to the bank in a batch after confirmation. Which combination of setup objects controls this behavior?

  1. Transaction type and batch source
  2. Payment term and AutoAccounting
  3. Receipt class and receipt method Correct answer.
  4. Collector and dunning letter set

Explanation

The receipt class defines the processing steps such as remittance, and the receipt method supplies the remittance bank account. Together they control whether and how receipts are remitted in batches.

Question 23Receivables Configuration and Setup

A company wants AutoAccounting to derive the tax account from the tax code on a transaction line. Which AutoAccounting source should be used?

  1. Freight
  2. Tax Correct answer.
  3. Standard Line
  4. Salesperson

Explanation

The Tax source uses the tax code on the transaction line to derive the tax account segment. Salesperson, Standard Line, and Freight sources derive accounts from other attributes.

Question 24Receivables Configuration and Setup

A company wants automatic receipt matching to consider the customer's purchase order number before applying to the oldest invoice. Which setup should be configured?

  1. Statement cycle
  2. Payment term
  3. AutoCash rule set Correct answer.
  4. Receipt class

Explanation

AutoCash rule sets define the ordered matching rules, including matching by purchase order number before applying to the oldest invoice. Receipt classes and payment terms do not define matching order.

Question 25Receivables Configuration and Setup

A company needs to prevent a transaction from being created if the customer's credit limit would be exceeded. Which setup combination is required?

  1. Transaction type and batch source
  2. Credit check and customer profile credit limit Correct answer.
  3. Collector and dunning letter set
  4. Receipt class and receipt method

Explanation

Credit check setup defines the rules, and the customer profile holds the credit limit that is evaluated. Receipt classes and transaction types do not control credit limit enforcement.

Question 26Receivables Configuration and Setup

A company needs every manually entered invoice to carry a default payment term that users may change on individual transactions. Which two setup objects interact to provide the default value and permit the override?

  1. The AutoAccounting rule set and the accounting rule assigned to the transaction type
  2. The transaction type assigned to the transaction and the customer profile's payment term attribute Correct answer.
  3. The receipt class and the remittance bank account assigned to the receipt method
  4. The collections plan and the dunning letter set assigned to the customer profile

Explanation

The transaction type supplies the default payment term for transactions created under it, while the customer profile class or customer site controls whether that term may be overridden during entry. The interaction of these two objects determines both the defaulted value and the editability.

Question 27Receivables Configuration and Setup

A user is defining a new transaction type and wants invoices created under it to post to a specific set of accounts derived from the transaction line's segment values. Which configuration determines those accounts?

  1. The transaction type's assigned AutoAccounting structure and constant values Correct answer.
  2. The receipt method's remittance bank account and cash account
  3. The customer profile class's statement cycle and credit limit
  4. The collections plan's scoring model and strategy assignment

Explanation

AutoAccounting derives distribution accounts from sources such as a constant value, a segment from the transaction type, or a segment from the salesperson. The transaction type points to the AutoAccounting structure that resolves each segment for its distributions.

Question 28Receivables Configuration and Setup

A company wants receipts confirmed in a batch, then remitted to the bank as a group, with the remittance creation deferred until a scheduled run. Which setup object must be configured to control when remittance is created?

  1. The transaction type, which defines the accounting rule and the creation sign
  2. The customer profile class, which defines the statement cycle and the dunning letter set
  3. The receipt class, which defines the remittance method and the number of remittance days Correct answer.
  4. The AutoAccounting rule, which defines the tax account source for the line

Explanation

The receipt class controls the remittance method (for example, standard or deferred) and the number of remittance days that delay creation of the remittance batch. The receipt method then references that receipt class to determine processing behavior.

Question 29Receivables Configuration and Setup

Which Receivables setup object stores the sequence of validation steps that a receipt must pass before it can be confirmed?

  1. The collector, which references an associated collections plan
  2. The receipt method, which references an associated receipt class Correct answer.
  3. The transaction batch source, which references an associated accounting rule
  4. The customer profile class, which references an associated statement cycle

Explanation

The receipt method groups the processing rules for a receipt, including the receipt class that determines confirmation and remittance behavior. Receipt validation and confirmation steps are governed through that receipt method and receipt class combination.

Question 30Receivables Configuration and Setup

A company wants to require that a customer's credit limit be checked before a manually entered invoice is saved. Which setup must be configured to enforce this check?

  1. The receipt method's receipt class and the remittance bank account
  2. The transaction type's accounting rule and the AutoAccounting structure
  3. The customer profile class's credit checking option and the credit limit on the customer account Correct answer.
  4. The collections plan's strategy and the dunning letter set

Explanation

Credit checking is enabled at the customer profile class level and compares the transaction amount against the credit limit held on the customer account. When credit checking is enabled, Receivables blocks or warns on transactions that exceed the limit.

Question 31Receivables Configuration and Setup

A user needs to define a transaction type that defaults a specific batch source and accounting rule when invoices are created. Which setup object holds those default assignments?

  1. The collector definition, which references a collections plan and a scoring model
  2. The receipt method definition, which references a receipt class and a bank account
  3. The customer profile class, which references a statement cycle and a dunning letter set
  4. The transaction type definition, which references a batch source and an accounting rule Correct answer.

Explanation

The transaction type definition stores the default batch source, accounting rule, creation sign, and other attributes applied to new transactions. Assigning the transaction type to a transaction supplies those defaults at entry.

Question 32Receivables Configuration and Setup

A company wants a credit memo to be applied only to invoices that share the same transaction type. Which setup controls this restriction?

  1. The AutoAccounting structure, which limits distributions to the same segment value
  2. The transaction type's application rule, which limits application to the same transaction type Correct answer.
  3. The collections plan, which limits dunning to the same customer profile class
  4. The receipt method's receipt class, which limits remittance to the same bank account

Explanation

The transaction type definition includes an application rule that determines whether a credit memo may be applied only to transactions of the same transaction type or to any transaction. This rule is evaluated when the credit memo is applied.

Question 33Receivables Configuration and Setup

A company wants to automatically derive the salesperson account segment on transaction distributions. Which AutoAccounting source should be assigned to that segment?

  1. The standard line source, which pulls the segment from the line's natural account
  2. The constant source, which uses a fixed segment value defined on the rule
  3. The salesperson source, which pulls the segment from the salesperson assigned to the transaction line Correct answer.
  4. The tax code source, which pulls the segment from the tax code on the line

Explanation

AutoAccounting allows each segment to be sourced from objects such as the salesperson, the transaction type, or a constant. Selecting the salesperson source derives the segment from the salesperson assigned to the transaction line.

Question 34Receivables Configuration and Setup

A company wants revenue recognized only after a customer accepts delivered goods. Which Receivables setup supports this requirement?

  1. A customer profile class with a statement cycle and a credit checking option
  2. A transaction type with a creation sign of negative and an immediate accounting rule
  3. A receipt class with a deferred remittance method and a remittance days value
  4. An accounting rule with an acceptance-based event that triggers revenue recognition on acceptance Correct answer.

Explanation

Accounting rules define when revenue is recognized, and an acceptance-based rule recognizes revenue only when the acceptance event occurs. The transaction type references the accounting rule so invoices created under it follow that timing.

Question 35Receivables Configuration and Setup

A user wants to require a purchase order number on all manually entered invoices. Which setup should be configured?

  1. The transaction batch source's field-level validation for the purchase order field Correct answer.
  2. The collections plan's scoring model and strategy
  3. The AutoAccounting structure's constant segment source
  4. The receipt method's receipt class and the remittance bank account

Explanation

The transaction batch source controls which fields appear during entry and whether each field is required, optional, or hidden. Setting the purchase order field to required on the batch source enforces entry of a PO number.

Question 36Receivables Configuration and Setup

A company wants receipts to be applied automatically to open invoices using a defined hierarchy of matching rules. Which setup must be configured?

  1. An AutoAccounting structure with a constant segment source
  2. A customer profile class with a statement cycle and a dunning letter set
  3. An automatic receipt application rule set assigned through the receipt method Correct answer.
  4. A transaction type with an accounting rule and a creation sign

Explanation

Automatic receipt application rules define the hierarchy used to match receipts to open transactions, such as matching on the transaction number before the amount. The rule set is referenced by the receipt method used for the receipt.

Question 37Receivables Configuration and Setup

A company wants to send dunning letters to customers at defined intervals based on overdue balances. Which setup is required?

  1. A transaction type with an acceptance-based accounting rule
  2. A dunning letter set assigned to the customer profile class, with letter definitions and intervals Correct answer.
  3. An AutoAccounting structure with a salesperson segment source
  4. A receipt class with a deferred remittance method and remittance days

Explanation

Dunning letter sets define the letters and the intervals at which they are sent, and they are assigned through the customer profile class or customer account. The collections process uses these sets to generate correspondence for overdue balances.

Question 38Receivables Configuration and Setup

A company wants automatic receipt matching to consider the customer's purchase order number before applying a receipt to the oldest invoice. Which setup determines this order of precedence?

  1. The automatic receipt application rule set, which lists matching rules in priority order Correct answer.
  2. The customer profile class, which defines the statement cycle and credit limit
  3. The receipt class, which defines the remittance method and remittance days
  4. The transaction type, which defines the accounting rule and creation sign

Explanation

Automatic receipt application rule sets contain ordered matching rules, and Receivables applies them in the sequence defined until a match is found. Placing the purchase order rule ahead of the oldest-invoice rule makes PO matching take precedence.

Question 39Receivables Configuration and Setup

A user wants to automatically number receipts sequentially within a defined range. Which system option should be enabled?

  1. The statement cycle option on the customer profile class
  2. The transaction numbering option on the transaction batch source
  3. The receipt numbering option on the receipt method, using a defined receipt number range Correct answer.
  4. The scoring model option on the collections plan

Explanation

Receipt methods can enable automatic receipt numbering and reference a receipt number range that supplies sequential values. When automatic numbering is enabled, users do not enter the receipt number manually.

Question 40Receivables Configuration and Setup

A user needs to assign a collector to a customer so that collections work is routed correctly. Which setup object should be configured?

  1. The collector assigned on the customer account or profile class Correct answer.
  2. The accounting rule assigned on the transaction type
  3. The AutoAccounting structure assigned on the transaction type
  4. The remittance bank account assigned on the receipt method

Explanation

Collectors are defined as setup objects and assigned to customers through the customer account or profile class. Collections management then routes the customer's overdue items to the assigned collector.

Question 41Customer and Transaction Management

When you create a manually entered receivable invoice in Oracle Fusion Receivables, which two distribution accounts does the subledger accounting engine typically derive from the AutoAccounting setup?

  1. The inventory valuation account and the COGS account
  2. The receivable account and the revenue account Correct answer.
  3. The cash account and the unapplied receipt account
  4. The freight revenue account and the tax account

Explanation

For a standard invoice line, Subledger Accounting builds journal entries that debit the receivable account and credit the revenue account, both derived through AutoAccounting rules. Tax and freight accounts are only relevant when those line types exist on the transaction.

Question 42Customer and Transaction Management

A customer is defined with a credit limit of 50,000 and the credit check is enabled at the transaction type level. Which factor determines whether the transaction is placed on hold during entry?

  1. The number of open receipts currently applied to the customer's account
  2. Whether the exposure amount after the transaction exceeds the credit limit, based on the credit checking rule Correct answer.
  3. The customer's credit rating defined in the customer profile
  4. The payment terms assigned to the transaction type

Explanation

Credit checking compares the customer's calculated exposure, which includes open receivables plus the new transaction, against the credit limit using the applicable credit checking rule. The rating and payment terms do not by themselves trigger the hold.

Question 43Customer and Transaction Management

Which transaction source is used by default when you manually create a receivable invoice through the Create Invoice page in Oracle Fusion Receivables?

  1. The Bills Receivable source
  2. A source flagged as imported only
  3. A source defined with the Manual entry type Correct answer.
  4. The Receivables adjustment source

Explanation

Manual invoices require a transaction source whose type permits manual entry. Sources restricted to import cannot be selected on the manual entry page.

Question 44Customer and Transaction Management

Which receipt method attribute controls whether a receipt is automatically applied to an invoice when the receipt is created?

  1. The transaction type's posting option
  2. The receipt method's Automatic Application setting Correct answer.
  3. The customer's default payment method
  4. The remittance bank account's reconciliation flag

Explanation

Receipt methods carry an Automatic Application setting that determines whether receipts created with that method are automatically matched to open invoices. Payment method and posting options do not control automatic application.

Question 45Customer and Transaction Management

A collector wants to view all open transactions for a customer along with promised payment information. Which Receivables feature provides this consolidated view?

  1. The Aging report
  2. The Collections work area Correct answer.
  3. The Revenue Adjustments page
  4. The AutoInvoice interface

Explanation

The Collections work area consolidates open transactions, promises to pay, and dunning information for a collector's assigned customers. Aging reports only summarize balances by time bucket.

Question 46Customer and Transaction Management

Which status indicates a transaction that has been completed but not yet posted to the general ledger in Oracle Fusion Receivables?

  1. Unposted
  2. Complete Correct answer.
  3. Posted
  4. Approved

Explanation

A completed transaction has finished entry and validation but has not yet been transferred and posted by Subledger Accounting. Only after the Create Accounting process runs successfully is the transaction considered posted.

Question 47Customer and Transaction Management

When you enter a credit memo against an existing invoice, which reference is used to link the credit memo to the original transaction for application purposes?

  1. The customer's account number
  2. The transaction source name
  3. The original invoice number entered in the credit memo's reference field Correct answer.
  4. The receipt number from the customer's payment

Explanation

A credit memo can reference the original invoice by number so the application process can match and offset the balance. The customer account and source do not link the credit memo to a specific invoice.

Question 48Customer and Transaction Management

Which adjustment type in Receivables reduces an invoice balance without creating a new transaction?

  1. A debit memo
  2. A chargeback
  3. A credit memo
  4. An invoice adjustment Correct answer.

Explanation

Invoice adjustments directly reduce the balance of an existing invoice without creating a separate transaction. Credit memos and debit memos are separate transactions, and chargebacks create new invoices.

Question 49Customer and Transaction Management

A customer's invoice is disputed and the collector records a promise to pay. What happens to the invoice's collection status when the promise is recorded?

  1. The invoice is closed and removed from aging
  2. The invoice is converted to a debit memo
  3. The invoice is automatically written off
  4. The invoice is flagged with the promise details and remains open until the promise date passes Correct answer.

Explanation

Recording a promise to pay attaches promise details to the open transaction and leaves it open; if the promise date passes without payment, the transaction becomes delinquent again. It does not write off or close the invoice.

Question 50Customer and Transaction Management

Which AutoInvoice grouping rule determines how invoice lines are grouped into a single transaction during import?

  1. The grouping rule assigned to the transaction source Correct answer.
  2. The line ordering rule
  3. The accounting rule assigned to the transaction type
  4. The payment terms on the customer profile

Explanation

AutoInvoice uses the grouping rule associated with the transaction source to decide how interface lines combine into transactions. Line ordering affects line sequence, and accounting rules affect revenue scheduling.