Shared Entities

The financial application suite of products shares a common data model and a set of integrated applications to give the enterprise a holistic view of their data. This enables the enterprise to view their business/financial information in a consolidated view and assist in their making informed decisions.
The product also share-due to this tight integration-data elements across them so that an entity (say an employee) that has been setup in one product is the same entity(employee) that is used across all products that require that entity. This reduces maintenance overhead and leads to accuracy in the data that is used across the products.
Shared entities allows one-time definition of a business object so that it can be used across various modules. The ownership of a shared entity within a business organization may vary but technically the ownership is linked to the single module.
Here is list some often used shared entities with corresponding product owners:
Shared Entity                               Owner of shared entity
Unit of Measure                               Inventory
Items                                                Inventory
Suppliers                                          Purchasing
Customers                                        Receivables
Salespersons                                    Sales
Employees                                        Human Resources
Locations                                          Human Resources
Currencies                                        Application Object Library

The Application Object Library (AOL) is a technological layer that owns a lot of internal data elements and currencies happen to be part of this product. 

EBS Release R12 Subledger Accounting (SLA)

Subledger Accounting is a rule based accounting engine that centralizes accounting for Oracle E-Business Suite products in R12. Sub ledger Accounting is not a separate module in itself, but it is Oracle's engine catering to the accounting needs of both the Oracle and External modules.

Subledger Accounting enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different set of rules to different set of transactions, or accounting for the same transaction with multiple methods. Subledger accounting options define how the journal entries are generated from Subledger transactions at the Subledger application level.

A biggest benefit of Subledger Accounting Engine is the ability to create more than one accounting representation for a single transaction entry. This is especially beneficial to global organizations that have statutory and regulatory requirements.

SLA forms and programs can be accessed through standard Oracle Application Responsibilities.

SLA allows multiple accounting respsentations for a single transaction thereby enabling compliance with multiple geographic, regulatory or business requirements.
An existing accounting definition in SLA can be copied and modified as per the requirement.Expensive customizations can be avoided with the flexbility in accounting system.Single step posting to all ledgers at a time. Real time/online accounting.Audit Trail.

Subledger accounting rules can only be applied to transactions coming from the Subledgers. Manual Journal entries and /or entries uploaded through WebADI are not processed by the Subledger Accounting Engine and, therefore cannot leverage user-defined accounting rules.

List of Subledgers use the Subledger Accounting Engine when accounting entries are generated:


Cost Management

Cash Management



Lease Management




Public Sector/Federal

Process Manufacturing




The services that the Subledger Accounting Engine provides to the Subledgers are:

Generation and storage of detailed accounting entries.

Storage of Subledger balances.

Access to Subledger accounting entries with drilldown to transactions.

Subledger reporting.

Configurable rules, instead of hard coded ones used by a common accounting engine.

Subledger Inquiry Forms

One of the biggest impacts to the end user is the addition of three new Subledger inquiry forms. These three new forms can be used for research, for reconciliation, and to drilldown from GL. The three new forms are the 1) Accounting Events form, 2 ) The Journal entries form , 3) The Journal Entry lines form.

SLA Reporting

Oracle has developed several new reports that report on data in the SLA repository. New reports in Release R12

Journal Entries Report:

The Journal entries report displays detailed journal entry information and transaction details for Subledger journal entries. This report also includes adjustments entered into the General Ledger and entries posted to general ledger from other sources. Only posted entries are included in this report.

Account Analysis Report (SLA)

The Account Analysis Report provides drill-down information about the movement on a range of accounts and displays all journal entry lines that affect that range for a period or range of periods. The report only includes journal entries transferred to and posted to General Ledger.

Third Party Balance Report

The third party balance report displays balance and activity information for supplier and customer control accounts.

Subledger Period Close Exception Report

The Subledger Period Close Exceptions Report lists all accounting events and journal entries that fail period close validation. It is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or non-transferred journal entries.

Open Account AP Balance Listing.

The AP Trial Balance has been replaced by the Open Account AP Balance Listing in R12. This report is a variation on the more general Open Account Balances Listing, and shows basically the outstanding amount (liability) for all open AP invoices. The balance should match your AP liability account(s) in General Ledger. Users can create their own layout and publish their custom reports using Oracle XML Publisher.

1ZO-517 Practice Questions

What is a benefit of the secondary tracking segment?

A. Additional security ensures that correct accounts are selected while entering transactions.

B. The Management segment is enabled automatically when the secondary segment is defined.

C. More details are provided to retained earnings, cumulative translation adjustments, and revaluation gains/losses accounts.

Answer: C

2) Isa Global Inc. is based in the United States with divisions in Europe and Asia. All journal imports, recurring journals, mass allocations, and manual journal entries have been posted for their European subsidiary. What is the next logical step in the period-close process?

A. opening the next period

B. closing the current period

C. revaluing foreign currency balances

D. translating to the functional currency

E. consolidating to the parent set of books

Answer: C

 3) Select two actions that ledger sets permit. (Choose two.)

A. performing variance inquiries

B. being used for mass budgets

C. sending budget balance inquiries

D. viewing account balances for multiple ledgers in one view

E. grouping multiple ledgers that share the same chart of accounts and calendar

Answer: D,E

4) Select three activities that must be performed to complete the setup of the key accounting flexfield.(Choose three.)

A. Create aliases.

B. Define a value set.

C. Define security rules.

D. Define an account structure.

E. Define valid segment values.

F. Create account combinations.

Answer: B,D,E

5) Which two statements are true about the reporting currency in Oracle General Ledger? (Choose two.)

A. It is an integrated extension of a ledger.

B. It replaces multiple reporting currencies.

C. Reporting currencies are the same as secondary ledgers.

D. Reporting currencies cannot have the same chart of accounts, accounting method, and ledger processing options.

Answer: A,B

6) Which three activities would use summary accounts? (Choose three.)

A. creating a monthly recurring standard journal entry to amortize goodwill

B. allocating the total monthly costs of the Information Services department to other departments

C. estimating a sales commission accrual based on the total of all product sales for each division

D. formulating a budget for employee benefits in each company based on the total of all budgeted employee salaries

Answer: B,C,D

7 ) The companys two senior executives have different budget figures. They want Peter, the GL accountant, to prepare two current budgets in Oracle Financials and submit budgets to both of them. What would be your response?

A. It is not possible to have more than one current budget.

B. Whether you can have multiple current budgets depends on the budget organization.

C. The Require Budget Journal profile option must be set at the budget level if you want to have multiple current budgets.

D. The Require Budget Journal profile option must be set at the set of books level if you want to

have multiple current budgets.

E. The Oracle General Ledger budget functionality supports multiple current budgets, so there is

no problem in satisfying this requirement.

Answer: A

 8) Identify the four setup options that control supplier defaults. (Choose four.)

A. financial options

B. payables options

C. receiving options

D. purchasing options

E. Payables system setup

F. Trading Community Architecture (TCA)

Answer: A,B,D,E

 9) Identify three ways that an invoice can be submitted for validation. (Choose three.)

A. online by clicking the Validate button in the Invoice Batches window

B. online by clicking the Validate and Account button in the Invoice Batches window

C. in batch by submitting the Payables Invoice Validation program from the Invoice Workbench

D. in batch by submitting the Payables Invoice Validation program from the Submit Request


E. online by selecting either the Validate check box or the Validate Related Invoices check box in

the Invoice Actions window

Answer: A,D,E

 10) You are working on an implementation for Accounts Payable for ABC Inc. Your client has three


1. They want to be able to pay only certain types of suppliers by batch.

2. Each payment batch must be under $100,000 USD, or the batch automatically gets canceled

without user intervention.

3. Each single payment for a supplier site must be between $10 USD and $10,000 USD, or the

payment is automatically not issued.

To meet the above requirements, you perform these steps:

a) Set up suppliers with pay groups for each type, and use them when running the payment batch.

b) Set up the payment batch with Maximum Outlay equal to $100,000 USD.

c) Set up the payment batch with Maximum/Minimum payments as $10 USD and $10,000 USD.

Which requirements have you met?

A. 2 and 3

B. 1, 2 and 3

C. 1 and 2

D. 1 and 3

Answer: D

 11) Payables lists four seeded payment methods. They are check, outsourced check, electronic, and

wire. Choose the correct description for wire.

A. a paper check to print and send to a supplier

B. an EFT, EDI, or XML to the bank of a supplier

C. a funds transfer initiated by contacting the bank and requesting wire payment to the bank of a


D. transmission of payment information to an external party, such as your bank, that prints checks

on your behalf

Answer: C

 12) With Oracle Cash Management, you can reconcile payments created in Payables to your bank

statements. When you reconcile payments using Oracle Cash Management, Cash Management

updates the status of payments. Select the new status.

A. issued

B. updated

C. negotiable

D. reconciled

Answer: D

 13) Which event reverses an accrual for an item set to accrue on receipt?

A. paying an invoice

B. delivering goods to a final destination

C. running the Receipt Accruals - Period-end process

D. matching an invoice in Payables to a purchase order

Answer: D

 14) Identify three setup options that are defined in the Financial Options window. (Choose three.)

A. interest

B. retainage

C. miscellaneous

D. expenses clearing

E. expense AP accrual account

Answer: B,C,D

 15) Select two actions available in Oracle General Ledger. (Choose two.)

A. deleting posted journals

B. exporting data to subsidiary ledgers

C. importing data from subsidiary ledgers

D. consolidating balances in subsidiary ledgers

E. consolidating balances from multiple ledgers

Answer: C,E

 16) Which module of Oracle E-Business Suite Release 12 sends revaluation and accrual entries to

General Ledger?

A. Oracle Assets

B. Oracle Projects

C. Oracle Treasury

D. Oracle Receivables

E. Oracle Property Manager

Answer: C

 17) Identify the different types of data that can be processed using the GL Interface. (Choose three.)

A. rates

B. budget

C. vendors

D. statistical

E. intercompany

F. currency codes

Answer: B,D,E

 18) Choose the reason why Tina is unable to view the subledger entries from Oracle Payables in the

Oracle General Ledger module. She has run the transfer program that completes successfully.

A. Journal Import is not submitted.

B. The Journal source is not defined.

C. The Journal category is not defined.

D. Payables is not integrated with General Ledger.

Answer: A

19)ABC Corporation has five companies, which operate in different industries. Each company has a

different ledger-processing option that is industry specific. Choose the number of primary ledgers

that are required to be defined.

A. five

B. four

C. two

D. one

E. three

Answer: A

 20) Choose three tables that will be populated when the Journal Import process is run with the option

to post set as "Yes." (Choose three.)






Answer: A,B,C

 21)Select three levels where additional reporting currency representations can be maintained.

(Choose three.)

A. batch

B. journal

C. balance

D. subledger

Answer: B,C,D

 22) You are implementing Oracle General Ledger at a client site. The client is based in the US, but

they have a global presence in many countries and transactions in multiple currencies. The

implementation team decides that the Oracle General Ledger multi-currency setup will be a part of

the implementation. The client's Chief Financial Officer wants a system that has these features:

1. Enter transactions and reports in any currency.

2. Enter exchange rates online or automatically.

3. Calculate realized and unrealized gains and losses. IV. Translate actual and budget balances.

4. Produce foreign currency financial statements and reports.

Which requirements can be satisfied with the implementation?

A. 1, 2, and 3 only

B. 1, 2, 3, and 4 only

C. 1, 2, 4, and 5 only

D. All requirements from 1 through 5 can be satisfied.

Answer: D

 23)Identify three statements that are correct for the multi-currency functionality of Oracle General

Ledger. (Choose three.)

A. Enter transactions and reports in any currency.

B. Enter exchange rates online and automatically.

C. Translate only actual but not budgeted balances.

D. Translate only budgeted but not actual balances.

E. Use daily, period end, average, and historical rates.

Answer: A,B,E

 24) Which three are the benefits of the Currency Rates Manager in Oracle General Ledger? (Choose


A. You can maintain daily rates and historical rates more easily.

B. You get improved efficiency with the help of the spreadsheet interface.

C. You can maintain consistency among different currency conversion rates.

D. Additional security ensures that historical rates can be uploaded to closed or future periods


E. You can maximize intercompany imbalances during intercompany eliminations of foreign

currency transactions that are due to exchange rate differences.

Answer: A,B,C

 25) John, the rates manager at ABC Company in the USA, is in charge of maintaining currency rates

for the entire company. John had defined the rates for GBP to USD and GBP to Indian Rupee

(INR) only. Sam, the company accountant, is worried that he would not be able to execute

transactions involving USD and INR currencies. What does John say to help Sam?

A. Currency Rates Manager automatically converts all transactions entered in INR to USD.

B. Currency Rates Manager automatically converts all transactions entered in INR to GBP first

and then to USD.

C. Currency Rates Manager automatically performs the calculation between USD and INR on the

basis of cross-rate rules.

D. Sam must manually define the USD to INR rates first, to be able to enter transactions involving

USD and INR currency.

E. Sam must manually define the INR to USD rates first, to be able to enter transactions involving

USD and INR currency.

Answer: C

Oracle EBS R12: General Ledger and Payables Fundamentals

Q1. Subledger Accounting is a rule-based accounting engine that centralizes accounting for Oracle
E-Business Suite Release 12 products.
Select the Oracle application that is NOT a Subledger Accounting module.

A. Assets
B. Payables
C. Purchasing
D. Receivables
E. General Ledger

Answer: E

Q2. Oracle Payments is the central payment engine for Oracle E-Business Suite Release 12.
Identify three modules that integrate with Oracle Payments. (Choose three.)

A. Assets
B. Payables
C. Receivables
D. Cash Management
E. Order Management

Answer: BCD

Q3. There are five major business functions that occur sequentially during the natural flow of the
Payables processes. Consider this list of five steps:

1. Invoice Payment
2. Invoice Validation
3. Invoice and Payment Accounting
4. Supplier Entry
5. Invoice Import/Entry

What is the order in which these steps must be performed?
A. 1, 2, 3, 4, 5
B. 4, 5, 2, 1, 3
C. 5, 3, 1, 2, 4
D. 3, 1, 4, 2, 5
E. 4, 2, 5, 1, 3

Answer: B

Q4 There are many fields with important data displayed on the main page of the Payables Overview
Which three fields do NOT appear in the Payables Overview main window? (Choose three.)

A. Terms
B. Paygroup
C. Trading Partner
D. Settlement Date
E. Remit-To Bank Account Name

Answer: ABE

Q5). What are the three prerequisites for interfacing Payables invoice lines with Assets? (Choose three.)

A. The invoice has no holds.
B. The invoice must be posted to General Ledger.
C. The invoice has been transferred to General Ledger.
D. The invoice distribution has "Track as Asset" selected.
E. The distribution account is an Asset Clearing or CIP account.

Answer: CDE

Q6. Identify two events that take place when an invoice is matched to a purchase order. (Choose two.)

A. Tolerances are enforced.
B. The quantity billed is updated.
C. The quantity received is updated.
D. The purchase order accounting information is copied to the invoice.

Answer: BD

Q7. Identify the two invoice types processed by the Payables Open Interface process. (Choose two.)

A. standard
B. prepayment
C. debit memos
D. credit memos

Answer: AD

Q8. Identify four interface tables that are available in Oracle Payables. (Choose four.)

A. Payables Open Interface
B. Suppliers Open Interface
C. Payables PCard Interface
D. Payables Payments Interface
E. Payables PO Matching Interface
F. Payables Invoice Open Interface

Answer: ABCE

Q9. There are numerous Oracle modules that are integrated into or out of the Payables module.
Identify four Oracle modules that are directly integrated with Oracle Payables. (Choose four.)

A. Loans
B. Purchasing
C. Bill of Materials
D. E-Business Tax
E. Order Management
F. Cash Management
G. System Administrator

Answer: ABDF
Q10. Select three types of Payables open interfaces that will import data into Payables from other
applications or third-party solutions. (Choose three.)

A. PCard Open Interface
B. Supplier Open Interface
C. Matching Open Interface
D. Receiving Open Interface
E. Payments Open Interface

Answer: ABC

Q11. Identify three types of entities that can be defined and related to one another in Oracle Applications.
(Choose three.)

A. ledger
B. paygroups
C. legal entities
D. responsibilities
E. business groups

Answer: ACE

Q12. To set up and use Multiple Organization Access Control (MOAC) most effectively, you need to define
three profile options. (Choose three.)

A. MO: Operating Unit
B. HR: Security Profile
C. MO: Security Profile
D. HR: Business Group
E. MO: Default Operating Unit

Answer: ACE

Q13. Select four options that can be set at the supplier site level. (Choose four.)

A. surveys
B. tax details
C. accounting
D. bank details
E. business classification

Answer: ABCD

Q14. You are on a phased-approach implementation. Payables and Purchasing are being implemented
in Phase One, and Assets in Phase Two.
Identify three choices in the process for the best way to discuss supplier naming conventions and supplier
site naming conventions. (Choose three.)

A. Agree upon naming conventions.
B. Gather only the Payables and Purchasing personnel.
C. Document conventions and obtain the sign-off by authorized approvers later.
D. Document conventions and obtain the sign-off by authorized approvers immediately.
E. Gather all interested parties for requirements-including Assets, Payables and Purchasing.

Answer: ADE

Q15. The rate variance Gain/Loss accounts specified in the Financial Options - Accounting region are
used to account for _____.

A. exchange rate variance in invoices and payments
B. invoice price variance in purchase orders and invoices
C. exchange rate variance for expense items in purchase orders and invoices
D. exchange rate variance for inventory items in purchase orders and invoices

Answer: D