Oracle Financials ERP Cloud is a comprehensive cloud-based business management solution designed to cater to mid-sized to enterprise-level clients. This platform encompasses a suite of applications that encompass financial accounting, material planning, self-service reporting, and analytics.

When gearing up for an interview for a position that involves Oracle Financials, it’s essential to acquaint yourself with prevalent Oracle Financials Interview Questions. This preparation will allow you to demonstrate your proficiency in this cloud-based, end-to-end business management solution effectively.

1Q) How many key flex fields are there in Oracle Financials

• General Ledger:

• Accounting Flexfield

• Assets:

• Asset Key Flexfield
• Location Flexfield
• Category Flexfield

• Service:

• Service Item Flexfield

• Receivables:

• Territory Flexfield
• Sales Tax Location Flexfield

• Inventory:

• Item Categories
• System Items
• Sales Orders
• Item Catalogs

2Q) What is the report used to identify duplicate suppliers?

• Ans: To find out duplicate suppliers, the SUPPLIER AUDIT REPORT is run.

3Q) What are the benefits of flex fields?

• Configure applications to support your own accounting, product, and other codes.
• Enable the construction of intelligent keys.
• Configure the application to capture additional data.
• Use the application to validate values and value combinations entered by the user.
• Support multiple flex field structures depending on the data context.

4Q) What are the types of flex fields?

• Key flexfield
• Descriptive flexfield

5Q) 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.

6Q) What are the types of Flexfield Qualifiers?

• NATURAL ACCOUNT
• BALANCING ACCOUNT
• COST CENTER
• INTERCOMPANY
• Segment Qualifiers:

• ACCOUNT TYPE
• Budget entry allowed (Yes/No)
• Posting allowed (Yes/No)
• Control Account Reconciliation Flag (Available for specific countries)

7Q) What is the implication of dynamic insert?

• Ans: Dynamic Insertion is a feature that 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.

8Q). What are Cross Validating Values?

• Ans:Cross Validation rules allow you to cross-check value combinations entered within the key flexfield segments. This option is referred to as Cross Validation rules.

9Q). What are the types of Value Sets?

• None
• Independent
• Dependent
• Table
• Special
• Pair
• Translated Independent
• Translated Dependent

10Q) How many segments are there in the key flexfield(s) in the Oracle General Ledger?

• 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

11Q) On which entity is a security rule applicable?

• Ans: It’s a feature of Key flexfield, applicable on Value Sets.

12Q) On which entity is the cross-validation rule applicable?

• Ans: It’s a feature of Key flexfield, applicable on Value Sets.

13Q) What is shorthand alias?

• Ans: An Alias is a label for a particular combination of key flexfield segment value, allowing users to enter data more efficiently.

14Q) What is a period in Oracle GL?

• Ans: A period corresponds to a time span within which transactions are entered before finalizing, also known as the close of the period.

15Q) What are the period types?

• Ans: Predefined period types in Oracle GL are:

• Month
• Quarter
• Year

16Q) Is it possible to delete an unposted journal?

• Ans: The possibility to delete an unposted journal is uncertain.

17Q) From which sub-ledger do journals not pass through the GL interface table?

• Ans: Journals from certain sub-ledgers, such as Assets, may not pass through the GL interface table.

18Q) When interfaced and imported, what is the posting status of journals?

• Ans: When journals are interfaced and imported, they typically have an “Unposted” status.

19Q) What are the prerequisites for conversion?

• Prerequisites for conversion include:

• Defining new currencies
• Enabling seeded currencies
• Defining rate types
• Entering daily rates

20Q) What rate types are available for revaluation?

• Revaluation can use the following rate types:

• Daily rates
• Historical rates
• The revaluation rate is typically the inverse of the period-end rate.

21Q) In which currency are revaluation journals created?

• Ans: Revaluation journals are typically created in the functional currency.

22Q) Define a profile and list the types of profiles.

• Ans: A profile is a customizable setting that influences the behavior of your application. There are two types of profiles:

• User-defined
• System-defined

23Q) Explain the concept of a period and enumerate the various types of periods.

• Ans: A period corresponds to a designated time range during which transactions are recorded before finalization, typically known as the “close of the period.” The predefined period types include:

• Month
• Quarter
• Year

24Q) What are the different types of exchange rates in Oracle GL?

• Ans: Oracle GL supports five types of exchange rates:

• Spot: Based on a specific date, used for immediate currency exchange.
• Corporate: Standardizes rates for an organization, often determined by senior financial management.
• User: Manually entered exchange rates for specific transactions.
• Emu Fixed: Used during the transition period to the Euro currency.
• User-Defined: Custom rate types defined by the organization.

25Q) Define a retained income account.

• Ans: A retained income account in GL is used to post the net balance of all income and expense accounts from the previous year when opening the first period of a fiscal year.

26Q) Explain what an “value set” is.

• Ans: A value set defines the boundaries for the attributes assigned to a key or descriptive flexfield segment. Value sets control the types of values that can be used as segment values, including characteristics like length, zero-fill, alignment, alphanumeric format, and value security.

27Q) Define journal import.

• Ans: Journal import is a concurrent process used to populate the GL tables with data from interface tables.

28Q) What is the purpose of a statistical journal?

• Ans: Statistical journals allow you to combine statistical amounts with financial amounts, enabling the entry of both financial and statistical data within a single journal entry line.

29Q) Describe a recurring journal.

• Ans: A recurring journal is a tool within GL used to create journals that repeat periodically.

30Q) List the types of account segments for mass allocation.

• Ans: The types of account segments for mass allocation include:

• Circling
• Summing
• Constant

31Q) Enumerate the necessary tables in GL.

• Ans: Essential tables in GL include:

• GL_JE_BATCHES
• GL_JE_HEADERS
• GL_JE_LINES
• GL_BALANCES
• GL_SETS_OF_BOOKS
• GL_CODE_COMBINATIONS
• GL_PERIOD_STATUSES
• GL_INTERFACE

32Q) In which tables is supplier information stored?

• Ans: Supplier information can be found in tables like:

• PO_VENDORS
• PO_VENDOR_SITES_ALL
• PO_VENDOR_CONTACTS

33Q) What is the formula used to create allocation journals?

• Ans: The formula for creating allocation journals is A * B / C, where:

• A represents the cost pool to be distributed.
• B is the numerator of the factor that multiplies the cost pool for allocation.
• C is the denominator of the factor that divides the cost pool for allocation.

34Q) Differentiate between KFF (Key Flexfield) and DFF (Descriptive Flexfield).

• Ans:

• KFF (Key Flexfield) is a unique identifier and is stored in the segment column. It is used to define the structure of accounts.
• DFF (Descriptive Flexfield) captures additional information and is stored in attribute columns. It is used to capture extra details beyond the account structure.

35Q) What are the key Oracle financial modules?

• Oracle offers several crucial financial modules, including:

• Oracle Assets
• Oracle Payables
• Oracle General Ledger
• Oracle Cash Management
• Oracle Receivables
• Oracle Tax

These modules collectively form the foundation for robust financial management within Oracle’s suite of applications.

In conclusion:

Utilize Oracle Financials applications to enhance your ability to achieve the business objectives set forth for investors. This empowers management to effectively communicate with both investors and colleagues. Furthermore, Oracle Financials applications play a pivotal role in fulfilling your responsibilities in critical areas, including compliance and financial reporting.