Free 1Z0-1056-26 Practice Test Questions and Answers (2026) Practice Questions

Balance Forward Billing (BFB) groups all eligible bill-to sites that are enabled at the account or site level for the same customer account into a single balance-forward bill. Because only sites 1 and 2 are BFB-enabled, their transactions are consolidated; site 3, which isn’t BFB-enabled, is excluded.

A. Site 3 is not BFB-enabled, so its activity is never included in the balance-forward bill.

B. Site 3 lacks BFB enablement; site 2 alone can’t be grouped with it.

D. Site 3 isn’t enabled for BFB; therefore, it cannot be grouped with site 1.

1. Oracle Financials Cloud, Using Receivables (24A) “Balance Forward Billing: How It Works”, pp. 1792-1793.

2. Oracle Financials Cloud, Implementing Receivables (24A) “Enable Balance Forward Billing at Account or Site Level”, p. 317.

Oracle Revenue Management follows ASC 606 by allocating the contract transaction price to each performance obligation using the relative standalone-selling-price approach, which the application labels the Relative Allocation Method. Unless the residual exception is chosen, the Allocate Customer Contract Prices process always applies this method.

A. “Two Step Allocation” is not an allocation option offered by Oracle Revenue Management.

B. “Inverted Allocation” is not referenced anywhere in product or ASC 606 guidance.

C. “Alternative Allocation” is not a recognised algorithm in Oracle documentation.

E. Residual Allocation applies only when SSP can’t be determined and is therefore not the method that Revenue Management normally uses to spread the full transaction price.

1. Oracle Fusion Cloud Financials, Using Revenue Management, 23D, ch. 7 “Allocate Transaction Price”, p. 187-188 (Relative allocation method definition).

2. Oracle Fusion Cloud Financials, Implementing Subledger Accounting for Revenue Management, 23C, sec. “Revenue Allocation Methods”, para 2.

The batch creates one bill because the rule is “one per customer.” Issue date equals the batch run date (31-Jan-2015). With “Maturity Date Rule = Latest,” Receivables sets maturity to the latest invoice due date (30-day terms on the 31-Jan invoice = 2-Mar-2015). Lead Days are not applied for the Latest rule until the bill is accepted, so the maturity date remains 2-Mar-2015.

B. Uses earliest due date (28-Feb-2015), not the Latest rule.

C. Adds lead days; lead days are ignored for Latest rule prior to acceptance.

D. Rule “one per customer” yields one bill, not two.

E. Same as D; single bill, not two; issue date is run date.

F. Same as E; two separate issue dates aren’t produced.

1. Oracle Financials Cloud, Implementing Receivables (24A) “Bills Receivable: Maturity Date Rules”, p. 352.

2. Oracle Financials Cloud, Using Receivables (24A) “Create Bills Receivable”, pp. 1861-1862.

The Receipt Remittance infolet task pane exposes only three navigation links: Create Automatic Receipts, Create Receipt Remittance Batch, and Manage Receipt Remittance Batches. These links let users generate, submit, and review remittance batches and associated automatic receipts; no other receipt-related tasks appear in this pane.

A. Lockbox Transmission History is a drill-down on the Lockbox infolet, not the Receipt Remittance pane.

C. Correct Funds Transfer Errors is provided under Funds Transfer error handling, not within Receipt Remittance.

1. Oracle Fusion Cloud Financials 24A, Using Receivables, “Receipt Remittance Infolet – Task Pane Options,” p. 213, Table 10-4.

2. Oracle Fusion Cloud Financials 24A, Implementing Receivables, “Set Up Receipt Processing,” §4.2.1.

When a receipt that has adjustments or chargebacks is reversed, Receivables automatically generates offsetting entries using the predefined Adjustment Reversal and Chargeback Reversal activities, ensuring the reversal is fully balanced without manual intervention.

A. Offsetting entries are created automatically, not manually.

B. Automatic creation specifically uses the reversal activities to preserve audit trace.

D. Chargeback reversals are automatic; manual creation not required.

E. Adjustment reversals are created automatically by the system.

1. Oracle Fusion Cloud Financials 23D – Using Receivables, “Reverse Receipts,” p. 267: “If the receipt has an adjustment or chargeback, Receivables automatically creates offsetting adjustments and chargebacks using the Adjustment Reversal and Chargeback Reversal activities.”

2. Oracle Fusion Cloud Financials 23D – Implementing Receivables, ch. 12 “Receipt Processing,” para. “Automatic Adjustment Reversals.”

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Receipt Classes icon in the Receivables work area.

Click on the Create button.

In the Receipt Class window, enter the following information:

Name: XXReceipt Class (Replace XX with your allocated user ID.)

Creation Method: Manual

Remittance Method: No Remittance

Bank Account: The bank account that will be used to clear receipts for this receipt class.

Click on the Save button.

The new manual receipt class will be created.

To make sure that receipts using this receipt class will not be remitted:

Click on the Remittance Methods tab.

Select the check box next to No Remittance.

Click on the Save button.

The receipts using this receipt class will now not be remitted.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Payment Terms icon in the Receivables work area.

Click on the Create button.

In the Payment Terms window, enter the following information:

Name: XXNet 30 (Replace XX with your allocated user ID.)

Description: Net 30 payment terms

Billing Cycle: All Cycles

Due Date: Next Business Day

Discount Days: 30

Discount Amount: 2%

Discount Type: Percentage

Discount Allowed: Yes

Discount Allowed Even If Partial Payment: Yes

Effective Date: January 1, 2023

Click on the Save button.

The new balance forward payment terms will be created.

To make the payment terms accessible to all business units:

Click on the Business Units tab.

Select the check box next to All Business Units.

Click on the Save button.

The payment terms will now be accessible to all business units.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Transaction Types icon in the Receivables work area.

Click on the Create button.

In the Transaction Type window, enter the following information:

Name: XXinvoice

Class: Invoice

Transaction Action: Create

Transaction Source Type: Customer

Print Customer Bills: Yes

Allow Freight Charges: Yes

Allow Cash Applications: Yes

Accounting:

Reference Account: 41000

Company Segment: 120 Supremo

Fitness Click on the Save button.

The new transaction type will be created and the customer bills associated with this transaction type will

be printed. The balances will also be maintained for invoices associated with this transaction type. Freight

charges will be allowed and cash applications to invoices assigned to this transaction type must not

exceed the invoice balance due. The invoices associated with this transaction type will be accounted for

in the General Ledger application. The revenue GL account 41000 will be assigned as a reference

account for the business unit in question and the company segment must be 120 Supremo Fitness.

Steps to confirm the Oracle Applications Cloud version:

Click on the Settings and Actions menu under your profile in the Oracle Applications Cloud window.

Click on About This Application in the Settings and Actions menu.

Copy the complete version number from the About this Application pop-up in the Oracle Application Cloud

window.

Paste the version number in the box below.

Click Confirm.

Version Number: 21A

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Receipt Methods icon in the Receivables work area.

Click on the Create button.

In the Receipt Method window, enter the following information:

Name: XXCheck (Replace XX with your allocated user ID.)

Effective Date: January 1, 2023

Receipt Class: XXReceipt Class (The receipt class that you created in the previous step.)

Bank Account: The bank account that will be used to clear receipts for this receipt method.

Click on the Save button.

The new receipt method will be created.

below for solution.

Explanation:

Log in to Oracle Financials Cloud.

Click on the Collectors icon in the Receivables work area.

Click on the Create button.

In the Collector window, enter the following information:

Name: XXCollector (Replace XX with your allocated user ID.)

Type: Employee

Employee: FASXX03 (Replace xx with your allocated user ID.)

Available to All Business Units: Yes

Click on the Save button.

The new collector will be created.