Question 1

Write Check transaction and a Pay Vendor transaction the difference?

Accepted Answer

B

Explanation: The fundamental difference between a "Pay Vendor Bill" and a "Write Check" transaction lies in their interaction with the Accounts Payable (A/P) ledger. A "Pay Vendor Bill" transaction is specifically used to settle an existing liability that was created when a vendor bill was entered. Therefore, its primary accounting function is to debit (reduce) the Accounts Payable account. Conversely, a "Write Check" transaction is typically used for immediate payments where no formal bill was entered into the system, such as for a point-of-sale purchase. This transaction bypasses the A/P account, directly debiting an expense or asset account and crediting the bank account.

Question 2

Which two boxes must be used to reverse the journal entry next month (choose 2)

Accepted Answer

D
BASED ON A RIGOROUS REVIEW OF OFFICIAL ORACLE E-BUSINESS SUITE DOCUMENTATION, ONLY ONE OF THE PROVIDED OPTIONS IS DEMONSTRABLY CORRECT FOR THE STANDARD JOURNAL REVERSAL PROCESS. THE QUESTION ASKS FOR TWO, INDICATING A POTENTIAL FLAW IN THE QUESTION ITSELF. THE SINGLE MOST ACCURATE CHOICE IS D.

Explanation: To create an automatic reversing journal entry in Oracle General Ledger, the user must specify when the reversal should occur. This is accomplished by defining the reversal period and/or the specific Reversal Date. The system uses this date to generate and post the corresponding reversal entry in the future accounting period as specified. The other options provided do not align with the standard functionality for configuring a journal reversal.

Question 3

Which statement is true about Accept Customer Payment?

Accepted Answer

B

Explanation: In standard accounts receivable processes, it is a common and necessary function to apply a single payment received from a customer to multiple outstanding invoices. Enterprise Resource Planning (ERP) systems, such as Oracle NetSuite, are designed to facilitate this. When a customer sends a lump-sum payment to cover several bills, the "Accept Customer Payment" function allows the user to record the total amount received and then distribute and apply it across the specific open invoices it is intended to settle, thereby clearing multiple accounts receivable records with one payment transaction.

Question 4

Which two transactions containing inventory items will post to COGS? (Choose two)

Accepted Answer

B, D

Explanation: The Cost of Goods Sold (COGS) is an expense account that is debited when inventory is sold and ownership is transferred to the customer. In Oracle's system, this accounting impact occurs at two primary points. First, the Item Fulfillment transaction, which signifies that goods have been shipped, directly debits COGS and credits the Inventory asset account. Second, an Invoice created from a Sales Order that includes an inventory item also triggers the COGS posting, as this transaction finalizes the sale initiated by the sales order and fulfillment process. These transactions represent the recognition of the cost associated with the revenue earned.

Question 5

Which Two accounts have dedicated reconciliation page in NS?

Accepted Answer

A, C

Explanation: NetSuite provides dedicated, functionally specific pages for reconciling bank and credit card accounts against their respective monthly statements. These pages, found under the Transactions > Bank menu, allow users to enter a statement ending balance and date, and then systematically clear or "tick off" transactions recorded in NetSuite that appear on the statement. This process generates a reconciliation report and ensures the cash and credit card balances in the General Ledger are accurate. Other account types, while requiring reconciliation, do not have this specific type of dedicated statement reconciliation tool.

Question 6

Which three statements are true about using Parent Accounts in NetSuite? (Choose Three)

Accepted Answer

B, C, E

Explanation: In NetSuite's Chart of Accounts, a hierarchical structure is created by defining parent-child relationships. This is done by editing the child account and selecting an existing account in the "Subaccount of" field. A parent account can be configured as either a posting or a non-posting account. By checking the "Summary" box on the parent account's record, it is designated as a non-posting account. This prevents any direct transactions from being posted to it, and its balance will simply be a summary of its child accounts' balances, which is useful for reporting. If the "Summary" box is left unchecked, the parent account remains a posting account.

Question 7

What is true about multi-currency Customers?

Accepted Answer

A

Explanation: When the Multi-Currency feature is enabled in an Oracle NetSuite environment, a single customer record can be configured to conduct business in multiple currencies. On the 'Financial' subtab of the customer record, users can add any currency that has been set up in the system to the 'Currencies' sublist. This allows transactions, such as sales orders and invoices, to be created for that customer in any of their designated currencies. The system does not impose a hard limit on the number of currencies that can be associated with a single customer entity.

Question 8

Which statement is true about budgets in NetSuite?

Accepted Answer

D

Explanation: NetSuite allows for the creation of multiple, distinct budgets for the same fiscal year and set of criteria (e.g., department, class, location). This is accomplished by using Budget Categories. Each budget is assigned to a category, which serves as a unique identifier. This functionality is essential for financial planning and analysis, enabling companies to maintain various budget versions simultaneously, such as an original budget, a revised forecast, or different "what-if" scenarios. Users can then run Budget vs. Actual reports against any of these specific budget categories to compare performance.

Question 9

How can the financial reports be kept separate when tracking finances for two wholly owned but distinct legal entities in one NetSuite account?

Accepted Answer

D

Explanation: NetSuite OneWorld is designed to manage multiple legal entities within a single account through the use of subsidiaries. Each subsidiary functions as a separate company with its own base currency, tax nexus, and fiscal calendar, enabling the generation of distinct financial reports (e.g., Balance Sheet, Income Statement). This structure allows for both individual legal entity reporting and consolidated financial reporting at the parent level, directly addressing the need to keep finances separate for distinct legal entities.

Question 10

which two steps are recommended to track travel expenses by department (choose 2)

Accepted Answer

C, D

Explanation: To effectively track travel expenses by department, the recommended Oracle Chart of Accounts (COA) design is to use a single, shared general ledger account for the expense type (e.g., "Travel Expense"). The specific department incurring the expense is captured in a separate COA segment, such as the "Department" or "Cost Center" segment. This approach (D) creates a flexible and scalable COA. To ensure data integrity and complete tracking, the department segment should be configured as a mandatory field (C) for all relevant transactions. This control prevents expenses from being posted without departmental attribution, ensuring accurate reporting.

Question 11

Which two statements are true about budgets in NetSuite? (Choose two.)

Accepted Answer

A, D

Explanation: NetSuite's budgeting functionality allows for comprehensive financial planning and analysis. Budgets can be established not only for standard financial accounts but also for statistical accounts, enabling the tracking and planning of non-monetary metrics like headcount or square footage. In a OneWorld account, budgets are typically created in the local currency of each subsidiary. When these local budgets are viewed in consolidated reports at the parent level, their values are translated into the parent's currency. This translation process uses exchange rates which can change over time, causing the consolidated budget amounts to fluctuate.

Question 12

Which statement is true about recording customer payments?

Accepted Answer

A

Explanation: The "Accept Customer Payment" transaction in NetSuite records the receipt of funds from a customer. From an accounting standpoint, this transaction creates a journal entry that debits either the Undeposited Funds account or a specific bank account, and credits the Accounts Receivable (A/R) account. This credit to A/R directly reduces, or offsets, the outstanding balance that was created by the original invoice(s). This process accurately reflects that the customer has settled their debt and is a fundamental principle of double-entry accounting for receivables.

Question 13

Which statement is true about inter-company journal entries?

Accepted Answer

C

Explanation: The fundamental principle of inter-company accounting in systems like Oracle General Ledger is that journal entries must balance within each legal entity (subsidiary). When a single journal entry affects multiple legal entities, the system automatically generates intercompany receivable and payable lines. These system-generated lines ensure that for each distinct legal entity (represented by a primary balancing segment value), the total debits equal the total credits. This maintains the integrity of each subsidiary's individual general ledger and ensures each entity's trial balance remains in balance.

Question 14

What is a characteristic of importing journal entries?

Accepted Answer

B

Explanation: A key characteristic of importing journal entries, specifically within the context of Oracle NetSuite, relates to performance and practical system limits. While the absolute hard limit for a CSV import is 25,000 lines per file, Oracle's official documentation establishes a best practice of limiting journal entry imports to 10,000 lines. This recommendation is for performance reasons, as processing very large journal entries can be resource-intensive and slow. Exam questions frequently test on such documented best practices as they represent a crucial aspect of using the system effectively.

Question 15

Which two options are possible to set in NetSuite? (Choose Two)

Accepted Answer

A, D

Explanation: In NetSuite, customer credit limit behavior is configured via the "Customer Credit Limit Handling" preference under Order Management accounting preferences. This setting provides two relevant options for this scenario: 1. Warn Only: This setting allows a sales order to be entered and saved for a customer over their credit limit but displays a warning message to the user, aligning with option (D). 2. Enforce Hold: This setting allows the sales order to be entered but automatically places it on a "Credit Hold" status. An order on hold cannot be processed for fulfillment or invoicing, which directly achieves the outcome described in option (A).

Free Oracle N16599GC10 Actual Exam Questions