25+ Oracle Financials Interview Questions [ 95% SUCCESS ]
Last updated on 04th Jul 2020, Blog, Interview Questions
Oracle Financials ERP Cloud is a cloud-based, end-to-end business management solution designed for midsized to enterprise-level customers. It offers a suite of applications including material planning, financial accounting, analytics, and self-service reporting.
1) What is the report used to identify duplicate suppliers?
Ans:In order to find out duplicate supplier, SUPPLIER AUDIT REPORT is runned
2) What are the benefits of flexfields?
- Configure applications to support your own accounting, product and other codes.
- Enable the construction of intelligent keys.
- Configure application to capture additional data.
- Use the application to validate values and value combinations entered by the user.
- Support multiple flexfield structures depending on data context.
3) What are the types of flexfields?
- Key flexfield
- Descriptive flexfield
4) What is a key flexfield qualifier?
Ans:A qualifier is a label attached to a particular key flexfield segment so it can be located by the application requiring its information. A key flexfield qualifier can be of 2 types:
- Flexfield qualifiers identify a segment in a flexfield.
- Segment qualifiers identify a value set in a segment.
5) What are the types of Flexfield Qualifier
Each Accounting Flexfield structure must contain only one natural account segment. When setting up the values, you will indicate the type of account as Asset, Liability, Owner’s Equity, Revenue, or Expense.
Each Structure must contain only one balancing segment. Oracle GL ensures that all journals balance for each balancing segment.
This segment is required for Oracle Assets. The Cost center segment is used in many Oracle Assets reports and by Oracle Workflow to generate account numbers. In addition, Oracle apps training Bangalore Projects and Oracle Purchasing also utilize the cost center segment.
GL automatically uses the intercompany segment in the account code combination to track intercompany transactions within a single set of books. This segment has the same value set and the same values as the balancing segment.
ACCOUNT TYPE: Asset, Liability, Owner’s Equity, Revenue, Expense, Budgetary Dr, and Budgetary Cr.
|Budget entry allowed||(Yes/No)|
|Control Account Reconciliation Flag||Available for specific countries|
6) What is the implication of dynamic insert?
Ans:Dynamic Insertion is a feature which controls whether the user can enter new account code combinations from any form/window. If this feature is disabled, then the user cannot input new account code combinations from any window/form.
Oracle applications use a particular form (called a Combination form) for directly entering the new code combinations. Users can enter new account code combinations only through this form if Dynamic Insertion is disabled.
7) What are Cross Validating Values
Ans:For key flexfields with multiple segments, we can define rules to cross check value combinations entered with in the key flexfield segments. This option is referred as Cross Validation rules.
Value Set List Types
|List of values||(10 to 200)|
|Long list of values||(> 200)|
Value Set Security Type
- No Security: All security is disabled for this value set.
- Hierarchical Security: With Hierarchical security, the features of the value security and value hierarchies are combined. With this feature any security that applies to a parent value also applies to its child values.
- Non-Hierarchical Security: Security is enabled, but the rules of the hierarchical security do not apply. That is, a security rule that applies to a parent value does not “cascade down” to its child values.
8) What are the types of Value Sets?
- None: A value set of the type None has no list of approved values associated with it. A None value set performs only minimal checking of, for example, data type and length.
- Independent: Independent type value sets perform basic checking but also check a value entered against the list of approved values you define.
- Dependent: A dependent value set is associated with an independent value set. Dependent value sets ensure that all dependent value are associated with a value in the related independent value set.
- Table: Table value sets obtain their lists of approved values from existing applications tables. When defining your table value set, you specify a SQL query to retrieve all the approved values from the table.
- Special: This specialized value set provides another flexfield as a value set for a single segment.
- Pair: This specialized value set provides a range flexfield as a value set for a pair of segments.
- Translated Independent: This works similar to Independent type. However, a Translated Independent value set can contain display values that are translated into different languages.
- Translated Dependent: This works similar to Dependent type. However, a Translated Dependent value set can contain display values that are translated into different languages.
9) How many segments are there in the key flexfield(s) in oracle general ledger?
Ans:Oracle GL Key flexfield can have 15 columns each representing a segment. However, the segments type can be:
- Cost Center segment
- Balancing segment
- Account segment
- Intercompany segment
10) On which entity is a security rule applicable?
Ans:It’s a feature of Key flexfield, applicable on Value Sets.
On which entity is the cross-validation rule applicable?
It’s a feature of Key flexfield, applicable on Value Sets.
An Alias is a label for a particular combination of key flexfield segment value. This allows users to enter data faster and more easily because the user has to just enter the shorthand alias, and the flexfield automatically populates the values for the segment.
11) What is a period in oracle gl?
Ans:A Period corresponds to a time span within which transactions are entered prior to finalizing, otherwise called as close of the period.
What are the period types?
Predefined period types in Oracle GL are:
If needed, period types of our own can be defined in addition to the standard periods.
12) Different statuses of an accounting period.
- Never Opened – Cannot enter or post journals.
- Future Enterable – Enter journal, but cannot post. The number of future enterable periods is a fixed number defined in the set of books window. The number of future enterable period can be changed at any time.
- Open – Enter and port journals to any open period. An unlimited number of periods can be open, but doing so may slow the posting process and can confuse users entering journals.
- Closed – Cannot post journals in a closed period. Must reopen closed periods before posting journals. Should manually close periods after finishing month/quarter/year-end processing.
- Permanently Closed – Permanently closed periods cannot be reopened. This status is required to Archive and Purge data.
13) What is an adjusting period and its implications?
Ans:Typically, the last day of the fiscal year is used to perform adjusting and closing journals entries. This period is referred to as Adjusting Period.
Choosing whether to include an adjusting period or not in a calendar is a very important decision. There can be unlimited number of adjusting periods. Once the accounting calendar is used, changes to its structure to remove or add an adjusting period cannot be done.
14) How many types of conversion rates are there in oracle gl?
Ans:There are 5 basic types of conversion rate types predefined in Oracle GL:
Spot: An exchange rate based on the rate for a specific date. It applies to the immediate delivery of a currency.
Corporate: An exchange rate that standardize rates for your company. This rate is generally a standard market rate determined by senior financial management for use throughout the organization.
User: An exchange rate that you enter during foreign currency journal entry.
Emu Fixed: An exchange rate that is used by countries joining the EU during the transition period to the Euro currency.
User Defined: A rate type defined by your company to meet specific needs.
15) What type of conversion rate is required to be defined for all transactional purposes?
Ans:Spot (Not sure).
what are the three essential components of a gl set of book?
Chart of Accounts
Your chart of accounts is the account structure you define to fit the specific needs of your organization.
You can choose the number of account segments as well as the length, name, and order of each segment.
An accounting calendar defines an accounting year and the periods it contains.
You can define multiple calendars and assign a different calendar to each set of books.
You select the functional currency for your set of books as well as other currencies that you use to transact business and report in.
GL converts monetary amounts entered in a foreign currency to functional currency equivalents using supplied rates.
16) What is the implication of the ‘future period” field in the set of book definition form?
Ans:The value mentioned in the Future Period field represents the number of future enterable periods that users can use to input journal entries (provided those future periods are opened). However, consideration must be given to minimize the number of future enterable periods to prevent users from accidentally entering journal entries in an incorrect period.
17) How many tabbed regions are there in the set of book definition form? What are the names of these tabbed regions?
Ans:There are 5 tabbed regions in the set of books definition form.
- Average Balances
- Budgetary Control
- Multiple Reporting Currencies
18) What is retained earnings account?
Ans:GL posts the net balance of all income and expenses accounts from the prior year to this account when you open the first period of a fiscal year.
19) What is the purpose of the translation adjustment account?
Ans:If you translate your functional currency balances into another currency for reporting, or if you revalue foreign currency-dominated balances, you must specify a translation adjustment account.
|Parent||Do no enable|
20) What is the purpose of/unique feature of the net income account?
Ans:GL uses this account to capture the net activity of all revenue and expense accounts when calculating the average balance for retained earnings.
21) What is the purpose of the transaction calendar?
Ans:Transaction calendar is defined for the purpose of enabling average balance processing. Transaction calendar is created optionally with valid business days mentioned.
In order to allow unbalances journal posting what action is required at set of book definition level / what is a suspense account and its purpose?
If you choose to allow posting of out-of-balance/unbalanced journal entries, GL automatically posts the difference to Suspense Account. However, the Suspense Account check box should be checked and an Account # to be provided for this feature to work during the creation of set of books.
If you have multiple companies or balancing entities within a set of books, GL automatically creates a suspense account for each balancing entity.
22) What is a value set?
Ans:A value set defines the boundaries for the attributes that you assign to a key or descriptive flexfield segment. Value sets control what types of values can be used as Accounting Flexfield segment values. Value sets determine the attributes of your segments such as length, zero-fill, and right justify, alphanumeric, and value security. Value sets also control how validation is performed.
23) Inorder to allow intercompany journals what action is required at set of book definition level?
Ans:One of the accounting key flexfield segments should be of the type Intercompany. This segment would have the same value set and the same values as the balancing segment.
Also, enable Balance Intercompany Journals feature. This allows users to post out-of-balance intercompany journal entries and automatically balance those journal entries against a specified intercompany account. Select the Balance Intercompany Journal checkbox and enter the intercompany account(s) in the Intercompany Accounts window. If you do not enable this feature, you can only post intercompany journal entries that balance by balancing segment, (usually the company segment).
24) What is Account Hierarchy Manager
Ans:Account hierarchy manager is a feature provided by Oracle Application which allows to:
- Graphically create, maintain, and review account structure hierarchies.
- Define new parent and child segment values, as well as change parent/child dependencies.
- Create new roll-up groups from the account hierarchy manager and have your changes reflected automatically in both key segment values and rollup groups window.
Also provides an option to control entities such as:
- Read/write security
- Segment Value Security: An oracle applications feature that lets you exclude a segment value or ranges of segment values for a specific user responsibility. Segment Value Security is extended to the Account Hierarchy Manager.
- Chart of Accounts Security
25) What does balance type “a” indicate?
Ans:Not Sure. May be ACTUAL.
How many buttons are there on the manual journal entry form? What are they?
By default, there are 3 buttons on the manual journal entry form:
- More Details
- Change Currency
- More Actions
26) How many buttons are there under the “more actions” button? What are they?
Ans:When we click on the “More Actions” button, another window appears with 4 buttons:
- Reverse Journal
- Change Period
27) What is the status of a newly entered journal?
- Posting statuses.
- Selected for posting
28) What is Journal Reversal Pre-Requisites?
- Journal balance type is Actual
- Journal category has AutoReverse enabled
- Journal is posted but not yet reversed
- Journal reversal period is open or future enterable
29) How many KFF are in GL. AP , AR.
GL Accounting FF
AP No KFF
AR Sales tax Location FF
30) What is symbol of DFF in the Forms?
Ans:Square Bracket [ ].
Enroll in Oracle Financials Certification Course By Experts TrainersWeekday / Weekend BatchesSee Batch Details
31) What is structure of KFF in the Accounting Flexfields.
32) How many segments are in AFF.
Ans:max 30 segments and min two.
33) What are flexfield Qualifiers.
Ans:Flexfield Qualifiers is used to identify the segments. Various types of flexfield qualifiers are listed below:
a) Balancing Segment Qualifier.
b) Cost Center segment Qualifier.
c) Natural Account Segment Qualifier.
d) Intercompany Segment Qualifier.
34) What is Dynamic Insertions?
Ans:u can create Code Combinations at run time.
35) In which table Code Cominations id is stored.
36) In which table flex values are stored.
Ans:1. fnd_ flex_Values
2. fnd_ flex_Values_tl
37) What is set of Books and in which table set of book is stored.
Ans:Set of Books is a Financial Reporting entity which Consist of three C.
a) Chart Of Accounts
Set of Books is stored in GL_SETS_OF_BOOKS
38) In which table Currency and Period Type Name are stored.
Ans:Currency – FND_CURRENCIES
Period – GL_PERIOD_STATUSES
39) In which table Segment Values are stored and concatenated values are stored.
40) What are different types of Currency.
41) What are different types of Calendars .
Ans:Different types of Calendars are listed below
42) How will you attach set of Books to the Responsibility?
Ans:through Profile. GL SETS OF Books Name.
43) What is Profile and what are different types of Profiles.
Ans:Profile: Profile is the changeable option that affects the way your application runs. There are two types of profile.
1. System defined
2. User defined
44) What are different Profiles Level available in oracle apps.
Ans:Below are the Profiles Level available in oracle apps
1. Site(Lowest level)
45) Write Name of some Profile options.
1. GL Sets of Books Name
2. GL sets of Books id
3. MO:Operating unit (multi org).
4. HR:User type.
46) What is cycle of GL.?
Ans:In simple and layman words-
1. Open the period
2. Create Journal Enteries
3. Post the Journals.
47) In Which tables Journal entries created.
Ans:Important tables are-
1. Batch: GL_JE_BATCHES
2. Header: GL_JE_HEADERS
3. Lines : GL_JE_LINES
48) After Posting data goes in which tables.
Ans:GL_BALANCES.( Column Period_net_cr, period_net_dr).
49) What are Important tables in GL.
50) In which table Supplier information’s is stored.
Ans:Supplier information can be found in following tables
Best Oracle Financials Training to Build Your Skills & Ability
- Instructor-led Sessions
- Real-life Case Studies
51) What is difference org_id and Organization_id.
Ans:Org_id is for operating unit and organization_id is for inventory organization.
52) How to delete a segment value?
Ans:There is no supported way to delete a segment value. Segment values can only be disabled not deleted.
53) Is there a way to load values for a specific segment outside of the form?
Ans:iSetup is the Oracle product that provides supported APIs to load values into Oracle Applications flexfields.
To load code combinations ADI may be used. Uploading zero amount journals will create new code combinations.
In this case Dynamic Insertion should be enabled and all account segment values need to exist before the new account code combinations will be dynamically created.
54) What are the different types of Journals in General Ledger ?
1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.
2. Foreign Currency Jv: this Journal, we enter other than local currency transaction purpose…before we define exchange rates
3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of books window Suspense button, then it works otherwise it’s not working
4.Tax Jv: this Journal, calculate taxation of Purchased items
5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have two methods…one is Debit to Credit and second one is sign (+ to -)
6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types
1.Standard 2.Skeleton 3.Formula
7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula A*B/C
A is Total Cost Pool..B is Usage Factor…C is Total Usage Factor…
8. Batch JV: Group of Journal we enter at a time, We Define Control Amount
9. Stat JV: This JV we have one side of Amount either debit or Credit…..
55) What is average Balance In Oracle Financials?
Ans:The Average Balance feature of Oracle General Ledger provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both standard and average balances. Average balance processing is particularly important for financial institutions, since average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many organizations also use average balances for internal management reporting and
The difference between an average and standard balance sheet is that balances are expressed as average amounts rather Than actual period-end amounts. An average balance is computed as the sum of the actual daily closing balance for a balance sheet account, divided by the number of calendar Days in the reporting period .
56) What is a funding budget?
Ans:A budget against which accounting transactions are checked for available funds when budgetary control is enable for your set of books.
57) What is planning budget
Ans:The plan for the future expenses is planning budget. It is a paper work. There is no funds requirement. It does not require journals. There are no restrictions for estimating of funds.
58) I was able to post a budget journal to a closed period, why?
Ans:Yes you can do so, reason being budget journal is not linked with your accounting period. Once you have open the budget period then you can book budget journal for that whole period.
59) What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal Entity Context?
Ans:Summary of key facts:
1. Common COA Structure used for Primary and Secondary Ledgers
2. Ledger shared by Multiple Legal Entities
3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed)
4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context
5. User preference set to Access Vision Operations OU by Default in Payables
Conclusion and Findings:
1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the Primary Ledger.
2. However, access to these Balancing Segment Values could be controlled through Security Rules being assigned to the Value Set and the Respective Responsibility
3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the common Ledger does not have assignment to it, what impact it has on the integrity of data when this access is otherwise allowed, except through Security Rules?
60) What is Journal Import?
Ans:Journal import is an interface used to bring journal entries from legacy systems and other modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into the GL base tables.
The tables populated during journal Import are
61) What is the use of GL_Interface?
Ans:Gl_Interface is the primary interface table of General ledger. It acts as an interface between data originating from other modules such as AP,AR, Legacy data and the Gl Base tables.
62) What is Actual Flag?
Ans:Actual flag represents the Journal type.
63) What is Encumbrance?
Ans:It is a process of Reservation of funds for anticipated expenditure from a budget. Encumbrance integrates GL, Purchasing and Payables modules.
64) How many Key Flex Fields are there in General Ledger?
Ans:One. Accounting Key Flex Field.
65) How many types of Budgets are there?
66)What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?
An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of currency.
An Exchange rate that we define to standardize rates for our company. This rate is the standard market rate determined by the senior financial management for use through out the organization.
Conversion rate that is defined by the user.
EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while entering journals. It uses a foreign currency that has a fixed relationship with the euro.
Transaction Calendar: Defines the business days and holidays for any calendar.
Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month etc.
67)What is Security Rule?
Ans:Security Rules are defined to control the access of a flexfield segment value (Financial information) at a responsibility level.
68) What are Cross Validation & ADI?
Ans:CVS – Cross validate segments – Allows only valid code combinations.
ADI – Allow dynamic inserts. – Allows any code combination irrespective of validity.
ADI would prevail if both of CVS and ADI are checked.
69)What is Translation?
Ans:Translation is a process used to convert functional currency to other reporting currencies at the account balances level.
70) What is Revaluation?
Ans:It is process used to revalue assets and liabilities denominated in foreign currency into functional currency based on period end exchange rate we specify. Unrealized gains/losses are resulted because of exchange rate fluctuations which are recorded in unrealized gain/loss account in GL.
71) What is FSG (Financial Statement Generator)?
Ans:Financial statement generator feature helps us to generate reports such as balance sheets and income statements with out programming. It also provides a high degree of control on the rows, columns, contents and calculations on the report. Different components such as row set, column set, content set, row order, display set have to be defined before a statement is generated, of which row set and column set are mandatory.
72) What is Consolidation?
Ans:Consolidation is a period-end process of combining the financial results of separate business subsidiaries with the parent company to form a single combined statement of financial results.
73) At what level General Ledger data is secured?
Ans:GL data is secured at Set of Book level. Subledger module data is secured at Responsibility level (i.e., at Operating Unit Level).
74) Difference between Primary Ledger and Secondary Ledger in R12 ?
The primary ledger acts as the primary accounting representation
Secondary ledgers represent the primary ledger’s accounting data in another accounting representation that differs in one or more of the following ways:
- chart of accounts
- accounting calendar/period type combination
- subledger accounting method
- ledger processing options
75) What is the method of calling standard – interface program from pl/sql or sql code?
76) What is the significance related with US folder?
Ans:The US folder is just a language specification. Multiple folders can be kept for language specification depending on the languages that are installed.
77) Which are the kinds of report triggers?
Ans:There are mainly five different kinds of report triggers available. They are
- Before report
- After report
- Before parameter form
- After parameter form
- Between pages
78) What is the firing sequence related with report triggers?
Ans:The sequence related with firing is as follows before parameter form, after parameter form, before the report, between pages and after report.
79) What is the purpose of cursors in PL/SQL?
Ans:The cursor can be made used for the purpose of handling various row – query associated with PL/SQL. Implicit cursors are available for the purpose of handling all the queries related with oracle. The memory spaces that are unnamed are used by oracle for storing the data that can be used with implicit cursors.
80) Define record group?
Ans:Record group can be considered as a concept used for the purpose of holding sql query that is associated with list related with values. Record group consists of static data and also can access data inside tables of database through sql queries.
81) Define application top?
Ans:Application tops are found when we are connecting to server. There are two types of application tops available they are product top and custom top. Product top is the kind of top that is built in default by manufacturer. Custom top can be chosen by the client, and any number of custom tops can be created as per the requirement of the client.
82) Explain about the procedures that are compulsory in the case of procedures?
Ans:There are number of parameters which are mandatory in the case of procedures and each of these parameters has a specific job associated with it.
- Errorbuf: This is the parameter used for returning error messages and for sending that to log file.
- Retcode: This is the parameter capable of showing the status associated with a procedure. 0, 1 and 2 are the status displayed by this parameter. 0 is used for indicating completed normal status, 1 defines completed warning status and 2 is the one denoting completed with error.
83) How to register concurrent program with oracle apps?
Ans:There are certain steps that you need to follow for the purpose of registering concurrent program.
- The first step is to log in to your system with the responsibility of the system administrator.
- The next step is to define executable concurrent program.
- While defining concurrent program do take care to give application name, short name and description along with the selection of executable concurrent program.
84) Define set – of books?
Ans:SOB can be defined as the collection of charts associated with accounts, currency and calendars
85) Define Ad-hoc reports?
Ans:This is a kind of report that is made used for fulfilling the reporting needs of a particular time.
86) Define the steps for customizing form?
Ans:You need to make use of the following steps for the purpose of customizing forms.
- The first and foremost thing that you need to do is to copy the files template.fmb as well as Appsatnd.fmb from AU_TOP/forms/us and paste that inside custom directory. By doing this the library associated with this task get copied by it’s own.
- You can now create the forms you want and customize them.
- Do not forget to save the created forms inside the modules where they need to be located.
87) Define about Key Flexfiled ?
Ans:Key flexfiled is a unique identifier and is usually stored inside segment, and there are two different attributes associated with this which are flexfiled qualifier and segment qualifier.
88) Define uses of Key Flexfield ?
Ans:This is a unique identifier for the purpose of storing information related with key. It also helps in entering as well as displaying information related with key.
89) Define Descriptive FlexField ?
Ans:This is a kind of flexfield that is mainly used for the purpose of capturing additional information, and it is stored in the form of attributes. Descriptive flexfield is context sensitive.
90) Define Oracle Suite?
Ans:Oracle suite is the one that comprises of oracle apps as well as software associated with analytical components.
91) Define ERP (Enterprise Resource Planning) ?
Ans:ERP is a software system that is available as a package and can be helpful in automating as well as integrating most of the processes associated with the business.
92) What is a datalink?
Ans:Datalink can be made used for the purpose of relating the results that are associated with various different queries.
93) Where do we use Custom.pll?
Ans:Custom.pll can be used during the process of making customized or new oracle forms.
94) Define multi org ?
Ans:This is a kind of functionality for data security.
95) Define Request Group ?
Ans:Request group is assigned with a set of responsibilities.
96) What is the usage of the spawned object?
Ans:This object is used for process associated with executable field.