1z0-1055-24 Sample Questions 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.

TASK 2: CREATE EXPENSE ITEMS

We need to create expense items with the following requirements:

✔ Effective Start Date: Set to current date.✔ No tax implications.✔ Projects are not used.✔ Receipt and expense fields should match those from the expense report template created earlier.✔ Dinner expense item must be linked to the Meal policy created in the previous task.

Step-by-Step Solution: Configuring Expense Items in Oracle Financials Cloud

Step 1: Navigate to the Expense Items Setup

Log in to Oracle Financials Cloud as an Expense Manager or Financial Administrator.

Navigate to Setup and Maintenance.

In the Search Bar, type "Manage Expense Items".

Click on Manage Expense Items.

Step 2: Create Expense Items

Click Create New Expense Item.

Enter the following details:

Expense Item: Internet

Name: "Internet"

Expense Category: "Meals and Entertainment"

Effective Start Date: Current Date

Tax Classification Code: None (No tax implications)

Projects Used? No (Uncheck "Enable for Projects")

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

✔ Click Save and Close.

Expense Item: Room Rate

Click Create New Expense Item again.

Enter the following details:

Name: "Room Rate"

Expense Category: "Lodging"

Effective Start Date: Current Date

Tax Classification Code: None

Projects Used? No

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

✔ Click Save and Close.

Expense Item: Dinner (Linked to Meal Policy)

Click Create New Expense Item again.

Enter the following details:

Name: "Dinner"

Expense Category: "Meals and Entertainment"

Effective Start Date: Current Date

Tax Classification Code: None

Projects Used? No

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

Link to the Meal Policy Created Earlier:

Navigate to Expense Policies.

Select the previously created Meal Policy.

Ensure that Dinner Expense Item is associated with this policy.

Set Limit Type: Warning Only (if applicable).

✔ Click Save and Close.

Step 3: Validate and Confirm the Expense Items

Review the created expense items.

Ensure that:

No tax classification codes are applied.

Projects are disabled.

Receipt and expense fields match those in the Expense Report Template.

Dinner Expense Item is correctly linked to the Meal Policy.

✔ Click Submit and Activate.

Step 4: Test the Expense Items

Simulate an Expense Report Submission:

Select Internet, Room Rate, and Dinner as expense types.

Enter sample amounts.

Ensure that:

No tax implications appear.

Projects field is disabled.

Receipt rules match the Expense Report Template.

A warning is displayed if the Dinner Expense exceeds the Meal Policy limit.

Expected Outcome:

✔ Expense items are successfully created.✔ No tax implications are applied.✔ Projects are not enabled.✔ Receipts and expense fields match the template.✔ Dinner expense item is linked to the Meal Policy and displays a warning if the limit is exceeded.

Conclusion

By following these steps, we have successfully created expense items that comply with all business requirements.