Free Oracle Revenue Management Cloud Service 2020 Implementation Essentials Exam 1Z0-1059-20 Exam Practice Test

Your customer ships machines, and can recognize revenue for each machine after the machine has been delivered to a customer without waiting for complete satisfaction of an entire performance obligation. How wouldyou configure Satisfaction Method (SM) and Satisfaction Measurement Model (SMM) in Revenue Management to recognize revenue for these performance obligations at a point in time?

• by setting SM to 'Allow Partial' and SMM to 'Quantity'
• by setting SM to 'Requires Complete' and SMM to 'Period'
• by setting SM to 'Requires Complete' and SMM to 'Quantity'
• by setting SM to 'Requires Complete' and SMM to 'Percent'
• by setting SM to 'Allow Partial' and SMM to 'Period'

Which method is used to allocate total transaction price across performance obligations in Revenue Management?

• Inverted Allocation Method
• Residual Allocation Method
• Relative Allocation Method
• Two Step Allocation Method
• Alternative Allocation Method

Which configuration component is Source Document Type NOT connected to?

• Revenue Management System Options
• Performance Obligation Template
• Contract Identification Rules
• Revenue Price Profile
• Performance Obligation Identification Rules

Which is the correct definition of the Performance Obligation Liability on the balance sheet, replacing the Deferred Revenue liability?

• your invoiced goods and services less those goods and services that you have not yet delivered
• your debt to customers for goods and services you are obliged to deliver to them by either party acting less your right to invoice them for those goods and services once delivered
• Unearned Revenue
• your debt to customers for goods and services you are obliged to deliver to them by either party acting

Given you can optionally use pricing bands to create standalone selling prices, which setting enables you to use pricing bands?

• when a pricing dimension structure is enabled for pricing bands
• when a source document type is enabled to use pricing bands
• when a pricing dimension structure Instance Is enabled for pricing bands
• when a value set segment label of Set Band is used

What is a Performance Obligation?

• a combination of customer type and product code
• a product code or SKU
• a promise to a customer on which either party has acted
• a promise to a customer https://docs.oracle.com/cloud/farel12/financialscs_gs/FAIRP/FAIRP2288193.htm#FAIRP2456627

When deciding how to set up the system to recognize revenue, it is important to understand the extent of revenue deferral and the subsequent timing of revenue recognition. Which two statements are true when youconsider that recognition depends on the nature of the contingency? (Choose two)

• Payment-based contingencies do not always require payment before the contingency can be removed and revenue recognized
• Time-based contingencies must not expire before the contingency can be removed and revenue recognized
• Time-based contingencies can expire, but the contingency will have to be removed manually before the revenue is recognized if payment is not due yet
• Pre-billing customer acceptance clauses require the recording of customer acceptance in the feeder system, or its expiration, before importing into Receivables for invoicing. Customer acceptance or its expiration must occur before the contingency can be removed and the order can be imported into Receivables for invoicing.
• Post-billing customer acceptance clauses must expire (implicit acceptance), or be manually accepted (explicit acceptance), before the contingency can be removed and revenue recognized.

Which three tasks can be performed In the Revenue Management Work Area?

• Edit Contract Identification Rules.
• Review Observed Standalone Selling Prices.
• Manage contracts in 'Pending Review' status.
• Manage contracts in 'Pending Allocation' status.
• Review Performance Satisfaction Plans.
• Review Revenue Price Profiles.

Which two are choices for the Satisfaction Method when defining a Performance Obligation Identification Rule?

• require complete
• allow partial
• allow complete
• require partial https://docs.oracle.com/en/cloud/saas/financials/r13-update18a/fafrm/recognize-revenue.html#FAFRM2321853

Which three tasks are associated with defining a Pricing Dimension Structure?

• Define up to 30 segments and name them.
• Define up to 20 segments and name them.
• Analyze pricing policies across products and services.
• Create multiple instances for a given Pricing Dimension Structure.
• Include user friendly prompts for each segment.
• Assign required segment labels to each segment.