Oracle Fusion Financials Interview Questions – Quick Revision Guide
1. What is Oracle Fusion Financials?
Answer:
Oracle Fusion Financials is a cloud-based suite of financial management applications. It includes general ledger, accounts payable, accounts receivable, fixed assets, cash management, and expense management. Built on Oracle Fusion Middleware, it delivers real-time financial information, automation, and enhanced decision-making capabilities.
2. What are the key features of Oracle Fusion General Ledger?
Answer:
Multi-dimensional reporting with Essbase cubes
Real-time financial reporting
Accounting configuration through chart of accounts
Ledger and balancing segment support
Integrated journal approval and validations
Smart view integration with Excel
3. What is a Ledger in Oracle Fusion Financials?
Answer:
A Ledger represents a financial reporting entity that maintains accounting records. It consists of:
Chart of Accounts
Calendar
Currency
Accounting Method
4. Explain the difference between Primary Ledger and Secondary Ledger.
Answer:
Primary Ledger: Used for main accounting and reporting.
Secondary Ledger: Used to maintain alternative accounting representations (e.g., IFRS vs. GAAP), usually differing in currency or accounting method.
5. What are the components of the Chart of Accounts in Fusion?
Answer:
Segment Labels (like Company, Cost Center, Account)
Value Sets
Flexfield Structures
Hierarchies for reporting
Accounting Key Flexfield (KFF)
6. How does Oracle Fusion handle Multi-Currency Transactions?
Answer:
Fusion supports multiple currencies through:
Daily exchange rates
Conversion types (Spot, Corporate, etc.)
Currency revaluation
Translation for consolidation
7. What is the purpose of Accounting Hub in Oracle Fusion?
Answer:
Accounting Hub enables centralized accounting from external systems. It transforms and posts accounting entries from non-Oracle systems into Oracle Fusion General Ledger, ensuring consistency and auditability.
8. Explain Payables Invoice Life Cycle in Oracle Fusion.
Answer:
Invoice Creation
Invoice Validation
Hold/Approval
Payment
Accounting
Posting to General Ledger
9. What is Subledger Accounting (SLA)?
Answer:
SLA is a rules-based accounting engine that creates detailed journal entries for subledger transactions (e.g., AP, AR). It separates accounting rules from the transaction processing layer.
10. What are the key modules integrated with Oracle Fusion Financials?
Answer:
Oracle Fusion Procurement
Oracle Fusion Project Portfolio Management
Oracle Fusion HCM
Oracle Fusion SCM
Oracle Fusion Tax
11. How is Bank Reconciliation handled in Fusion Cash Management?
Answer:
Upload bank statements
Match bank transactions with system transactions
Perform auto or manual reconciliation
Reconcile differences and post journal entries
12. What are Fusion Financials Infolets and Dashboards?
Answer:
Infolets are mini-dashboard widgets showing KPIs or summary data. Dashboards consolidate these infolets for roles like CFOs, Payables Managers, or GL Accountants to take quick actions.
13. What is a Business Unit and how is it used in Fusion?
Answer:
A Business Unit (BU) is an organizational entity used for transaction processing. It determines access control, processing of payables/receivables, and setup segregation across the enterprise.
14. What is the difference between Journal Approval and Invoice Approval Workflow?
Answer:
Journal Approval: Based on journal entry conditions, uses AME (Approval Management Engine)
Invoice Approval: Triggered for AP invoices, based on amount, supplier, or BU rules using BPM (Business Process Management)
15. What are Key Performance Indicators (KPIs) used in Oracle Fusion Financials?
Answer:
Days Payable Outstanding (DPO)
Days Sales Outstanding (DSO)
Cash Flow
Profit Margin
Budget vs. Actuals
KPIs are visible through OTBI dashboards and Smart View.
16. What tools are available for reporting in Oracle Fusion Financials?
Answer:
OTBI (Oracle Transactional Business Intelligence)
BI Publisher
Smart View for Excel
Financial Reporting Studio
Infolets & Dashboards
17. What is Fusion Tax and how does it integrate with Financials?
Answer:
Fusion Tax is a common tax engine that calculates tax for Payables and Receivables. It supports tax rules, tax regimes, and jurisdiction-based tax determination and is configurable for global tax compliance.
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