Crack Your Interview: Top 25+ Oracle Fusion Financials Questions and Answers
Preparing for an interview in Oracle Fusion Financials requires a solid understanding of key functionalities and modules. This guide covers the top interview questions to help you confidently secure a job in Oracle Fusion Financials.
1. What are Oracle Fusion Financials?
Oracle Fusion Financials is a cloud-based financial management solution that streamlines financial processes and integrates modules like general ledger, accounts receivable, accounts payable, cash management, and asset management.
2. What are the main modules in Oracle Fusion Financials?
Key modules include:
General Ledger (GL)
Accounts Payable (AP)
Accounts Receivable (AR)
Cash Management
Fixed Assets
Expense Management
Tax Management
3. How do Oracle Fusion Financials differ from Oracle E-Business Suite Financials?
Oracle Fusion Financials is a cloud-based system with a modern interface and better integration, while Oracle EBS requires more customization and manual data handling.
4. Explain the concept of the 'General Ledger' in Oracle Fusion Financials.
The General Ledger (GL) is the central repository for financial transactions. It enables tracking, reporting, and consolidation while ensuring compliance with accounting standards.
5. What is 'Multi-Reporting Currency' in Oracle Fusion Financials?
This feature allows organisations to report financial results in multiple currencies, recording transactions in the primary currency and translating them as needed.
6. How does Oracle Fusion Financials support 'Accounts Payable'?
Accounts Payable (AP) automates the management of supplier invoices, payments, and liabilities, streamlining the procure-to-pay process.
7. What is 'Accounts Receivable', and how does it function in Oracle Fusion Financials?
Accounts Receivable (AR) manages customer invoices, collections, and receipts, automating payment tracking and reminders for overdue payments.
8. Explain the use of 'Subledger Accounting' in Oracle Fusion Financials.
Subledger Accounting (SLA) provides a detailed accounting of transactions from sub-ledgers to the GL, generating compliant journal entries based on accounting rules.
9. What are the benefits of using 'Cash Management' in Oracle Fusion Financials?
Cash Management helps organisations manage cash positions and bank accounts, offering automated bank statement reconciliations and insights into cash flow.
10. Describe the concept of 'Fixed Assets' in Oracle Fusion Financials.
The Fixed Assets module manages asset lifecycles, including acquisition, depreciation, and disposal, while ensuring compliance with reporting standards.
11. What is the purpose of 'Tax Management' in Oracle Fusion Financials?
Tax Management automates tax calculations, compliance, and reporting, accommodating global tax requirements.
12. How do you perform 'Intercompany Accounting' in Oracle Fusion Financials?
Intercompany Accounting manages transactions between legal entities, automatically generating journal entries to ensure accurate balances.
13. Explain the 'Period Close' concept in Oracle Fusion Financials.
Period Close finalises transactions and generates financial statements, ensuring data accuracy and reconciliation before reporting.
14. What is 'Expense Management' in Oracle Fusion Financials?
Expense Management automates employee expense report submissions and approvals, controlling expenses and ensuring policy compliance.
15. How do Oracle Fusion Financials integrate with other Oracle Fusion applications?
They integrate seamlessly with other applications like Procurement and HCM, using a unified data model for streamlined processes.
16. What are some common financial reports available in Oracle Fusion Financials?
Common reports include:
Trial Balance
Income Statement
Balance Sheet
Cash Flow Statement
Ageing Reports
Budget vs. Actuals
17. Explain the 'Budgeting' functionality in Oracle Fusion Financials.
Budgeting allows organizations to plan and allocate resources effectively, supporting budget creation and variance analysis.
18. How is 'Multi-Ledger Setup' used in Oracle Fusion Financials?
It enables maintaining multiple ledgers for different legal entities or accounting purposes within the same environment.
19. What are the benefits of using 'Embedded Analytics' in Oracle Fusion Financials?
Embedded Analytics offers real-time insights and visualizations within the application, supporting informed decision-making.
20. How does 'Automated Reconciliation' work in Oracle Fusion Financials?
It matches financial transactions to identify discrepancies, reducing manual effort and ensuring accurate reporting.
21. What are 'Accounting Rules' in Oracle Fusion Financials?
Accounting Rules define how transactions are recorded in the GL, ensuring consistency and compliance.
22. How can you manage Multiple Legal Entities in Oracle Fusion Financials?
Multiple legal entities can be set up with distinct charts of accounts and calendars, allowing for independent operations and consolidated reporting.
23. Explain the 'Allocation Rules' concept in Oracle Fusion Financials.
Allocation Rules distribute expenses or revenues across accounts, aiding in cost management and financial planning.
24. What are 'Cross-Validation Rules' in Oracle Fusion Financials?
These rules restrict segment value combinations to ensure valid account entries, reducing data entry errors.
25. How does Oracle Fusion Financials handle 'User Access Control'?
User Access Control uses role-based security to define roles, permissions, and segregation of duties for appropriate data access.
26. What are some key Oracle Fusion Financials interview preparation tips?
Understand core financial concepts
Study the modules
Know configuration settings
Practice real-world scenarios
Review the latest features
Conclusion
Preparing for an Oracle Fusion Financials interview involves mastering key functionalities and module-specific concepts, allowing you to apply practical solutions to financial scenarios confidently.
