1z0-1055-24 Oracle Financials Cloud: Payables 2024 Implementation Professional Questions and Answers

Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud

To implement the expense policy for meals in Oracle Financials Cloud, follow these steps:

Step 1: Navigate to the Expense Policies Setup

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator role.

Go to the Setup and Maintenance work area.

Select Manage Policies by Expense Category (Task Name: Manage Expense Policies by Expense Category).

Select the US1 Business Unit to ensure the policy applies to the correct entity.

Step 2: Create or Update the Meal Expense Category

Under Manage Policies by Expense Category, locate or create the Meals Expense Category.

If the Meals category does not exist:

Click Create Expense Category.

Enter Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define Expense Limits for Evening Meals

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Description: "Evening Meal Limit".

Limit Type: "Maximum Allowed Amount".

Limit Amount: Enter 30 USD.

Per: Select Day.

Apply to All Employees (since this applies regardless of role and location).

Location-Based Rules: Leave blank since it applies universally.

Click Save and Close.

Step 4: Enable and Activate the Policy

Ensure the policy is enabled by selecting the checkbox for Active.

Click Submit to finalize the configuration.

Run the "Validate and Deploy Expense Policies" process to apply changes.

Step 5: Testing the Policy

Simulate an Expense Report Submission:

Have an employee create a new expense report.

Select Meals as the expense category.

Enter an evening meal expense of 35 USD (which exceeds the policy limit).

Verify if a policy violation warning appears, restricting the claim to 30 USD.

Submit an expense of 30 USD and ensure no policy violation occurs.

Expected Outcome:

Employees can claim up to 30 USD per day for an evening meal.

Any claim above 30 USD triggers a policy violation warning.

The rule applies to all employees regardless of role and location.

Conclusion

By following the above steps, you successfully configure an expense policy for meals that limits evening meal claims to 30 USD per day. This ensures compliance with the company's expense management guidelines while streamlining the expense approval process in Oracle Financials Cloud.

Comprehensive and Detailed In-Depth Explanation:

In Oracle Financials Cloud, the Match in Full feature allows users to create invoices by matching the full amount of a purchase order (PO) efficiently. However, certain conditions can prevent a PO from appearing in the Match in Full search results.

Analysis of Each Option:

A. The match approval level is set to 4-way matching

Explanation: The match approval level determines the matching requirements between the PO, receipt, inspection, and invoice. A 4-way matching requires that the PO, receipt, accepted quantities from inspection, and invoice quantities all match within defined tolerances before payment approval. This setting, however, does not impact the availability of the PO in the Match in Full search results. Therefore, a 4-way matching configuration is not a reason for the PO not appearing in the search results.

B. The Supplier or Purchase Order is set up for self-billing

Explanation: Self-billing arrangements mean that the buyer generates the invoice on behalf of the supplier. In such scenarios, the Match in Full feature is not applicable because the invoicing process is handled differently. As per Oracle documentation, "Match in Full can't be used in the following circumstances:... A supplier or the purchase order is set up for self-billing."

docs.oracle.com

Therefore, if the supplier or PO is configured for self-billing, the PO will not appear in the Match in Full search results.

C. The match approval level is set to 3-way matching

Explanation: Similar to 4-way matching, a 3-way matching requires that the PO, receipt, and invoice quantities match within tolerances before payment approval. This setting ensures that the goods received and invoiced align with the PO terms. However, the match approval level, whether 3-way or 4-way, does not affect the PO's availability in the Match in Full search results. Thus, a 3-way matching configuration is not a reason for the PO not appearing in the search results.

D. The Purchase Order is already partially matched to an invoice

Explanation: The Match in Full feature is designed for situations where the supplier sends an invoice for the full amount of the PO. If a PO has already been partially matched to an invoice, it indicates that some portions of the PO have been invoiced, and the remaining amounts do not represent the full PO value. According to Oracle documentation, "Match in Full can't be used in the following circumstances:... The purchase order has already been partially matched to an invoice."

docs.oracle.com

Therefore, a PO that has been partially matched will not appear in the Match in Full search results.

Conclusion:

The two reasons preventing the purchase order from appearing in the Match in Full search results are:

B. The Supplier or Purchase Order is set up for self-billing

D. The Purchase Order is already partially matched to an invoice

These conditions make the Match in Full feature inapplicable, thereby excluding the PO from the search results.