1z0-1055-24 Exam Dumps : Oracle Financials Cloud: Payables 2024 Implementation Professional

Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud

To configure thisexpense policyinOracle Financials Cloud, follow these steps:

Step 1: Access the Expense Policies Setup Page

Log into Oracle Financials Cloud with the appropriateExpense ManagerorFinancial Administratorrole.

Navigate toSetup and Maintenance.

Select the Task:Manage Policies by Expense Category.

Step 2: Create or Locate the Meal Expense Category

Search for theMealsexpense category.

If theMealscategory does not exist:

ClickCreate Expense Category.

Category Name:"Meals".

Category Type:"Meals and Entertainment".

Save the entry.

Step 3: Define a Policy Rule for Raising a Warning

Select theMealsExpense Category and clickEdit.

Navigate to thePolicies and Limitstab.

UnderAmount Limits, clickAdd New Rule.

Configure the Expense Policy Rule:

Description:"Meal Expense Warning Policy".

Limit Type:"Warning Only".

Limit Amount:Enter the prescribed limit (e.g.,50 USD).

Per:SelectDay(or another relevant time frame).

Applies To:SelectAll Employees.

Location-Based Rules:Leave blank if not location-specific.

Set Warning Behavior:

SelectRaise a Warningif the expense exceeds the prescribed limit.

Ensure the policydoes not block submission or approval.

ClickSave and Close.

Step 4: Associate the Policy with an Expense Report Template

Navigate toSetup and Maintenance > Manage Expense Report Templates.

Search for theExpense Report Templatewhere theMealscategory should be included.

ClickEditand go to theExpense Typessection.

Add the Meals Expense Typeand associate it with the newly createdMeals Expense Warning Policy.

ClickSave and Close.

Step 5: Enable and Validate the Policy

Ensure the policy ismarked as Active.

ClickSubmitto finalize the policy configuration.

Run theValidate and Deploy Expense Policiesprocess.

Step 6: Testing the Policy

Simulate an Expense Report Submission:

Create a new expense report and selectMealsas the expense type.

Enter an expense amount exceeding the limit (e.g.,55 USD).

Verify that a warning message appears, but the expense is stillallowed to proceed.

Submit an expense below the limit(e.g.,45 USD) and ensureno warning appears.

Expected Outcome:

If the meal expense exceeds the limit, the system raises awarningbutdoes not block the expense submission.

If the meal expense is within the limit, the systemprocesses it without warnings.

The policy issuccessfully associatedwith anexpense typein anexpense report template.

Conclusion

By following these steps, you successfully configure anexpense policythatraises a warningfor meals exceeding a specified limitwithout blocking submission or processing. This ensures that employees arenotifiedabout policy violations while allowing flexibility inexpense approvals.

TASK 2: CREATE EXPENSE ITEMS

We need tocreate expense itemswith the following requirements:

✔Effective Start Date:Set tocurrent date.✔No tax implications.✔Projects are not used.✔Receipt and expense fieldsshould match those from theexpense report templatecreated earlier.✔Dinner expense itemmust be linked to theMeal policycreated in the previous task.

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

Step 1: Navigate to the Expense Items Setup

Log intoOracle Financials Cloudas anExpense Manager or Financial Administrator.

Navigate toSetup and Maintenance.

In theSearch Bar, type"Manage Expense Items".

Click onManage Expense Items.

Step 2: Create Expense Items

ClickCreate 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

✔ClickSave and Close.

Expense Item: Room Rate

ClickCreate New Expense Itemagain.

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

✔ClickSave and Close.

Expense Item: Dinner (Linked to Meal Policy)

ClickCreate New Expense Itemagain.

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 toExpense Policies.

Select the previously createdMeal Policy.

Ensure thatDinner Expense Itemis associated with this policy.

SetLimit Type: Warning Only(if applicable).

✔ClickSave 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.

✔ClickSubmit and Activate.

Step 4: Test the Expense Items

Simulate an Expense Report Submission:

SelectInternet, Room Rate, and Dinneras expense types.

Enter sample amounts.

Ensure that:

No tax implicationsappear.

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 createdexpense itemsthat comply with all business requirements.

Task 1: Create an Expense Report Template for the US1 Business Unit

The following configurations need to be implemented:

✔Effective Start Date:The current date.✔Hotel Expense Type:RequiresitemizationwithInternet, Room Rate, and Dinner.✔Expense Type:Associated with the respectiveGL account.✔Card Expense Type Mapping:Not enabled.✔Receipts Policy:Users canindicate missing receipts, and awarning should be displayed.✔Expense Fields:All fields should beoptional.

Step-by-Step Solution

Step 1: Navigate to Expense Report Templates

Log intoOracle Financials Cloudwith theExpense ManagerorFinancial Administrator role.

Navigate toSetup and Maintenance.

In theSearch Bar, type"Manage Expense Report Templates".

Click onManage Expense Report Templates.

Step 2: Create a New Expense Report Template

ClickCreate New Template.

Enter the following details:

Name:"US1 Business Unit Expense Report"

Business Unit:US1 Business Unit

Effective Start Date:(Set to current date)

Enable for Use:✔(Check this box)

ClickSave.

Step 3: Define the Expense Type – Hotel with Itemization

Navigate to theExpense Typestab.

ClickAdd Expense Type.

Enter the following details:

Expense Type Name:"Hotel"

Expense Category:"Lodging"

Requires Itemization:✔(Check this box)

UnderItemization, clickAdd Itemization Categories:

Internet

Room Rate

Dinner

ClickSave.

Step 4: Associate Expense Types with GL Accounts

Click onEdit Expense Type "Hotel".

Go to theAccountingsection.

Select theappropriate GL Accountfor lodging expenses.

Repeat this process for other requiredexpense types.

ClickSave and Close.

Step 5: Disable Card Expense Type Mapping

Navigate to theCorporate Card Expense Mappingtab.

Ensure the"Enable Corporate Card Mapping"checkbox isunchecked.

ClickSave.

Step 6: Configure Receipts Policy

Navigate to theReceiptstab.

UnderReceipt Handling, set:

Company Policy:Employeesmust provide receipts.

Allow users to indicate missing receipts?✔(Check this box).

Action for Missing Receipts:Raise a Warning(so that expense submission is not blocked).

ClickSave.

Step 7: Set Expense Fields as Optional

Navigate to theFields Setuptab.

Ensure allExpense Fieldsare set toOptional.

ClickSave and Close.

Step 8: Validate and Activate the Template

Review all configurations.

ClickSubmit and Activate.

Run theValidate and Deploy Expense Templatesprocess to ensure all settings are applied.

Step 9: Testing the Expense Report Template

Simulate an Expense Report Submission:

SelectHotel Expenseand enter details.

Verify if the systemrequires itemization(Internet, Room Rate, Dinner).

Submit without a receiptto check if awarning is displayed.

Ensure all fields remainoptional.

Verifyno corporate card expense mappingapplies.

Expected Outcome:

✔TheExpense Report Templateis successfully created forUS1 Business Unit.✔Hotel expenses require itemizationinto Internet, Room Rate, and Dinner.✔Receipts are required, and awarning is displayed for missing receipts.✔GL Account mapping is correctly appliedto each expense type.✔Card Expense Type Mapping is disabled.✔All fields are optional, allowing flexible data entry.

Conclusion

By following these steps, we have successfully created and configured anExpense Report Templatethat meets all business requirements for theUS1 Business Unit.