Top 25+ Oracle Fusion Financials Interview Questions Every Candidate Should Know

Preparing for an Oracle Fusion Financials interview can be challenging, but with the right set of questions and answers, you can excel and showcase your expertise effectively.

1. What are Oracle Fusion Financials?

Answer: Oracle Fusion Financials is a comprehensive suite of applications designed to manage financial processes in an organization. It integrates various financial modules, such as the General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, and Cash Management, offering real-time insights, scalability, and automation capabilities.

2. Which Oracle Fusion Financials features are the most important?

Answer: Key features include:

Unified financial processes across modules.
Real-time reporting and analytics.
Integrated business intelligence.
Role-based dashboards.
Mobile and user-friendly interface.
Compliance and regulatory reporting.

3. What distinguishes Oracle Fusion Finance from Oracle EBS Finance?

Answer: Oracle Fusion Financials is cloud-based, offering better scalability and accessibility compared to Oracle E-Business Suite (EBS), which is primarily on-premises. Fusion Financials uses advanced technologies like AI and machine learning for automation, whereas EBS relies on traditional workflows.

4. Oracle Fusion Financials' Chart of Accounts (COA): What is it?

Answer: The Chart of Accounts is a structured framework used to categorize financial transactions in Oracle Fusion Financials. It consists of segments, such as company, department, account, and product, that define and report financial data.

5. Can you explain the concept of Essbase in Oracle Fusion Financials?

Answer: Essbase is an analytical tool integrated into Oracle Fusion Financials for multidimensional data analysis. It allows users to perform complex calculations and create ad-hoc reports, enhancing decision-making capabilities.

6. What is the role of the Functional Setup Manager (FSM) in Oracle Fusion Financials?

Answer: Oracle Fusion applications can be configured and implemented with the help of the Functional Setup Manager. It simplifies setup tasks by providing a guided approach and allows for the import/export of configurations across environments.

7. How do Oracle Fusion Financials support multi-currency transactions?

Answer: Oracle Fusion Financials supports multi-currency transactions by:

Automating currency conversions based on exchange rates.
Providing currency-specific reports.
Managing revaluations, translations, and currency adjustments.

8. Financial data is centralized in Oracle Fusion Financials' General Ledger module.

Answer: The General Ledger module in Oracle Fusion Financials is the central repository for financial data. It manages journal entries, consolidated financial data, and generates financial reports like balance sheets and income statements.

9. Explain the Accounts Payable (AP) process in Oracle Fusion Financials.

Answer: The AP process includes:

Invoice creation and validation.
Payment processing.
Supplier management.
Tax calculation and reporting.
Integration with General Ledger for seamless data flow.

10. What are the benefits of using Oracle Fusion’s Fixed Assets module?

Answer: The Fixed Assets module helps organizations:

Track and manage assets efficiently.
Automate depreciation calculations.
Handle asset additions, retirements, and transfers.
Generate compliance reports.

11. How do Oracle Fusion Financials handle reporting and analytics?

Answer: Oracle Fusion Financials integrates with Oracle BI Publisher and Oracle Transactional Business Intelligence (OTBI) for real-time reporting and advanced analytics. Users can customize dashboards and create ad-hoc reports without technical expertise.

12. What are Subledger Accounting (SLA) rules?

Answer: Subledger Accounting rules determine how financial transactions in subledgers like AP and AR are translated into General Ledger journal entries. They ensure compliance with accounting standards.

13.What is the difference between Invoice Matching and Non-Matching in AP?

Answer:

Invoice Matching: This involves matching invoices with purchase orders or receipts to ensure accuracy.

Non-Matching: Used for invoices that do not require matching, such as utility bills.

14. What is a Ledger Set in Oracle Fusion Financials?

Answer: A Ledger Set is a group of ledgers sharing the same chart of accounts, calendar, and currency. It allows for consolidated reporting and processing across multiple ledgers.

15. Which journal types are available in Oracle General Ledger?

Answer:

Manual Journals: Created manually by users.
Recurring Journals: Used for repetitive transactions.
Automated Journals: Generated by system integrations.

16.What is the purpose of intercompany transactions in Fusion Financials?

Answer: Intercompany transactions manage financial activities between different legal entities within the same organization, ensuring accurate accounting and compliance.

17. How do Oracle Fusion Financials ensure data security?

Answer: Data security in Oracle Fusion Financials is maintained through:

Role-based access control (RBAC).
Data masking and encryption.
Segregation of duties.
Audit trails for tracking changes.

18. What is the significance of Tax Configuration in Oracle Fusion Financials?

Answer: Tax Configuration automates tax calculations based on jurisdiction, rates, and rules. It simplifies tax compliance and reporting.

19. What is AutoReconciliation in Cash Management?

Answer: AutoReconciliation automates the matching of bank statements with transactions recorded in Oracle Fusion Financials, reducing manual effort and errors.

20.What is the purpose of Cross Validation Rules?

Answer: Cross-validation rules ensure that combinations of account segments in the Chart of Accounts meet predefined conditions, preventing invalid data entry.

21. How do Oracle Fusion Financials integrate with other Oracle Cloud modules?

Answer: Oracle Fusion Financials integrates seamlessly with other modules like Procurement, HCM, and SCM through a unified data model and shared services, ensuring end-to-end process automation.

22. What is the purpose of Budgetary Control in Oracle Fusion Financials?

Answer: Budgetary Control monitors and enforces budgets during transaction processing, helping organizations manage expenses and adhere to financial plans.

23. What is Smart View in Oracle Fusion Financials?

Answer: Smart View is an Excel-based tool that allows users to interact with Oracle Fusion Financials data for reporting, analysis, and ad-hoc queries.

24. Explain the role of Integration Cloud Service (ICS) in Oracle Financials.

Answer: ICS enables seamless integration of Oracle Fusion Financials with third-party systems, streamlining data flow and improving process efficiency.

25. What are the best ways to put Oracle Fusion Financials into practice?

Answer: Best practices include:

Conducting a thorough requirement analysis.
Leveraging the Functional Setup Manager for configuration.
Training end-users and stakeholders.
Regularly updating and patching the system.

Conclusion

These Oracle Fusion Financials interview questions provide a solid foundation for your preparation. Focus on understanding the functionality, integration, and key features of Oracle Fusion Financials to impress your interviewers. By mastering these concepts, you can confidently demonstrate your expertise and secure the role.