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Oracle 1Z0-1075-24 Exam (page: 1)
Oracle Manufacturing Cloud 2024 Implementation Professional
Updated on: 11-Nov-2025

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1Z0-1075-24 PDF 50 Questions

Which three statements are true about managing Units of Measure?

  1. You must define the unit of measure class with a base unit of measure.
  2. If you want to transact items in units of measure that belong to classes other than their primary UOM class, you must define conversions between the base units of measure in different UOM classes.
  3. A unit of measure standard conversion specifies the conversion factor by which the unit of measure is equivalent to the unit of measure class.
  4. Conversions between classes are unique for each item; the conversion rate varies for intraclass units of measure.
  5. A unit of measure conversion is a mathematical relationship between two different units of measure.

Answer(s): A,B,E

Explanation:

In Oracle Manufacturing Cloud, managing Units of Measure (UOM) is critical to ensuring that transactions, measurements, and conversions are handled accurately. Below is a detailed explanation of the correct statements:

Statement A: You must define the unit of measure class with a base unit of measure ­ This is a fundamental setup in Oracle Manufacturing Cloud. Every UOM class must have a base unit of measure defined because it serves as the reference for all conversions within the class. The base UOM acts as a standard, and all other UOMs within the class are defined relative to it.


Reference:

Oracle Fusion SCM: "Units of Measure Setup" documentation explains the importance of defining a base unit for every UOM class for system consistency and accurate conversions.

Statement B: If you want to transact items in units of measure that belong to classes other than their primary UOM class, you must define conversions between the base units of measure in different UOM classes ­ This is true. If an item's UOM belongs to one class, but you need to transact in another UOM from a different class, a conversion must be defined between the base UOMs of the two classes. This ensures seamless inter-class transactions and measurement consistency.


Oracle Cloud SCM Common Setup Guide for "Units of Measure Conversion" states that cross-class UOM transactions require conversion definitions for operational accuracy.

Statement E: A unit of measure conversion is a mathematical relationship between two different units of measure ­ UOM conversions in Oracle Cloud are defined mathematically, typically by specifying a conversion factor. This relationship is used by the system to automatically convert quantities between different units of measure, whether for inter-class or intra-class conversions.


Oracle Fusion Cloud SCM Documentation on "UOM Conversions" explains that a mathematical formula or factor is needed to establish the relationship between two UOMs, enabling transactions across different UOMs.

Incorrect Statements:

Statement C: A unit of measure standard conversion specifies the conversion factor by which the unit of measure is equivalent to the unit of measure class ­ This statement is incorrect because a standard conversion relates two UOMs directly, not between a UOM and the class itself. Conversions operate between specific UOMs, not between a UOM and its class.

Statement D: Conversions between classes are unique for each item; the conversion rate varies for intraclass units of measure ­ This is not accurate because conversions between UOM classes are not unique for each item. Once a UOM conversion is established between classes, it applies globally unless there are specific item-level conversions.

This ensures a consistent approach to defining, transacting, and converting units of measure across different manufacturing and inventory processes within Oracle Manufacturing Cloud.



Which three statements are true about the main areas of Managerial Accounting?

  1. Receipt Accounting Is the application that performs accrual accounting for all types of receipts.
  2. Landed Cost Management gives organizations financial visibility into their extended supply chain costs.
  3. Supply Chain Orchestration automatically selects the correct process based on user-defined Subledger Accounting rules when a supply creation Is initiated.
  4. Cost method can be defined with granularity down to individual Items.

Answer(s): A,B,D

Explanation:

In Oracle Manufacturing Cloud and related financial applications, managerial accounting plays a significant role in tracking and managing costs across supply chain and manufacturing activities. The following is a breakdown of the correct statements:

Statement A: Receipt Accounting is the application that performs accrual accounting for all types of receipts ­ Receipt Accounting is a crucial module in Oracle Cloud that supports the tracking of costs and performs accruals related to receipts. This includes processes such as procurement receipts, interorganization transfers, and supplier shipments. This allows organizations to recognize and account for the expenses associated with these receipts.


Reference:

Oracle Cloud SCM Documentation for Receipt Accounting outlines how the system manages accruals and matches them with purchase orders and invoices.

Statement B: Landed Cost Management gives organizations financial visibility into their extended supply chain costs ­ Landed Cost Management is designed to capture additional costs that arise during the transportation, handling, and processing of goods. This includes costs like shipping, insurance, and customs duties. By including these in the overall cost, it provides a more comprehensive view of the actual costs of goods in the supply chain.


Oracle Fusion SCM Guide, "Landed Cost Management," describes how it aggregates various indirect supply chain costs to give better financial visibility.

Statement D: Cost method can be defined with granularity down to individual items ­ In Oracle Manufacturing Cloud, costing methods can be assigned not only at the organization level but also at a granular level down to individual items. This provides flexibility in defining different costing strategies for different products depending on their nature, manufacturing process, or market conditions.


Oracle Manufacturing Cloud User Guide explains the flexibility in configuring cost methods at different organizational and item-specific levels.

Incorrect Statements:

Statement C: Supply Chain Orchestration automatically selects the correct process based on user- defined Subledger Accounting rules when a supply creation is initiated ­ While Supply Chain Orchestration automates various supply chain processes, it does not select processes based on Subledger Accounting rules. The orchestration system is more focused on managing and coordinating supply chain processes rather than determining accounting rules.



Which three are Cost accounting methods'

  1. Perpetual Average Cost
  2. Layer Cost, also known as "LIFO"
  3. Frozen Standard Cost
  4. Actual Cost, also known as "FIFO"
  5. Periodic Actual Cost

Answer(s): A,C,D

Explanation:

Oracle Manufacturing Cloud supports multiple cost accounting methods to help organizations track the cost of their goods and inventory effectively. Below is an explanation of the correct answers:

Statement A: Perpetual Average Cost ­ This is a commonly used method in Oracle Cloud where the system continuously updates the average cost of an item with each receipt or transaction. This method is useful for organizations that need to track the moving average cost of goods in real-time.


Reference:

Oracle SCM Cloud Cost Management Guide explains how Perpetual Average Cost is maintained and updated across transactions.

Statement C: Frozen Standard Cost ­ This method involves predefining a standard cost for each item at the beginning of a financial period. The cost remains "frozen" throughout the period, and variances between the actual cost and the standard cost are tracked and analyzed separately.


Oracle Costing Methods documentation specifies that the Frozen Standard Cost method is particularly useful for manufacturers who need stable cost inputs over a financial period.

Statement D: Actual Cost, also known as "FIFO" ­ The FIFO (First In, First Out) method records costs based on the order in which items are received. It is a type of actual costing where items are valued based on the specific costs of the earliest received inventory. Oracle Cloud supports FIFO as part of its actual costing methods.


Oracle Cost Accounting documentation details the use of FIFO for tracking actual costs in a layered costing approach.

Incorrect Statements:

Statement B: Layer Cost, also known as "LIFO" ­ Oracle Cloud does not natively support LIFO (Last In, First Out) as a cost method due to accounting and regulatory restrictions in various regions. LIFO is generally not used in the system as a standard method.

Statement E: Periodic Actual Cost ­ While there is a method called Periodic Average Cost, Periodic Actual Cost is not typically listed as a standard costing method in Oracle Cloud.



You are implementing project-driven supply chain functionality. You need to set up movement requests to issue or transfer project material to manage the inventory associated with projects and tasks.

Which two are types of movement requests to issue or transfer project material?

  1. Transfer project material from one subinventory to another.
  2. Pick transactions Interfaced by the project costing project and task using the project material, common Inventory, or Inventory from another project.
  3. Create o movement receipt line with the Project Costing widget.
  4. Perform manual pick for such movement requests using the project material, common inventory, or inventory from another project.

Answer(s): A,D

Explanation:

When setting up movement requests in a project-driven supply chain, you need to manage inventory associated with specific projects and tasks. The two correct types of movement requests in this context are:

Statement A: Transfer project material from one subinventory to another ­ This is a standard type of movement request in Oracle Cloud, allowing project materials to be transferred between subinventories. It is essential for managing inventory tied to specific projects and tasks, ensuring that materials are available where needed for project execution.


Reference:

Oracle Fusion SCM Cloud: Inventory Management Guide describes how material transfers can be executed between subinventories, including project-based transfers.

Statement D: Perform manual pick for such movement requests using the project material, common inventory, or inventory from another project ­ Manual picking for project-specific material is another supported operation. It allows users to perform manual picks from various sources, such as project material, common inventory, or even inventory from other projects.


Oracle Project-Driven Supply Chain documentation explains how manual picks can be configured to source inventory based on project requirements.

Incorrect Statements:

Statement B: Pick transactions are not interfaced specifically by project costing. Although project costing is relevant for tracking costs, it is not the driving factor behind pick transactions.

Statement C: There is no concept of creating a movement receipt line with the "Project Costing widget" in Oracle Manufacturing Cloud.



In which three ways does Supply Chain Orchestration enrich supply requests with project details to support outside processing for a project-specific work order?

  1. Supply Chain Orchestration initiates the creation of a purchase order without the work order.
  2. Expenditure Item Date Is set to the requested need-by date and Expenditure Organization is set to the manufacturing plant.
  3. Expenditure Item Date is set to the receipt date and Expenditure Organization is set to the manufacturing plant.
  4. Supply Chain Orchestration initiates the creation of a requisition with the project details.
  5. Expenditure Type is sat to the expenditure type associated to the outside processing Item.

Answer(s): B,D,E

Explanation:

Supply Chain Orchestration (SCO) plays a vital role in managing project-specific work orders, particularly for outside processing. Here's how it enriches supply requests with project details:

Statement B: Expenditure Item Date is set to the requested need-by date and Expenditure Organization is set to the manufacturing plant ­ In project-specific work orders, Supply Chain Orchestration assigns the need-by date as the Expenditure Item Date. The Expenditure Organization is typically set to the manufacturing plant handling the work order.


Reference:

Oracle Fusion Project-Driven Supply Chain documents this behavior, showing how expenditure details are linked to the project for costing purposes.

Statement D: Supply Chain Orchestration initiates the creation of a requisition with the project details ­ SCO automatically creates a requisition with all relevant project details, such as project number, task, and expenditure information. This ensures that the procurement process is aligned with the project's financial and material requirements.


Oracle SCM Cloud Supply Chain Orchestration User Guide details the automated creation of requisitions with project data for external processing.

Statement E: Expenditure Type is set to the expenditure type associated with the outside processing item ­ In Oracle Cloud, expenditure types must align with the specific processing items. SCO ensures that the correct expenditure type is applied to the work order and subsequent requisitions.


Project Financial Management guides in Oracle SCM Cloud explain how expenditure types are associated with items, ensuring accurate costing.

Incorrect Statements:

Statement A: SCO does not initiate the creation of a purchase order without the work order. A work order is essential for processing the outside work, and its absence would disrupt the orchestration process.

Statement C: The Expenditure Item Date is not set to the receipt date but rather to the requested need-by date for proper alignment with project scheduling.



The pick release of a project work order creates movement requests with the project and the task from the work order.

Which statement is NOT true about this?

  1. The expenditure type, expenditure date, and expenditure organization are derived when the work- ln-process material issue or work-in-process material pick transactions are interfaced to Costing.
  2. The expenditure type for the item is derived based on the Default Expenditure Type attribute in Inventory Management. The picks for the work order ore grouped by project costing, project, and task using pick slip grouping rules.
  3. The expenditure type and the expenditure organization from the work order are referenced onto the shop floor movement requests.
  4. The expenditure type and the expenditure organization from the work order are not referenced onto the shop floor movement requests.

Answer(s): D

Explanation:

When pick release creates movement requests for project-based work orders, there are several key points regarding expenditure information:

Statement D: The expenditure type and the expenditure organization from the work order are not referenced onto the shop floor movement requests ­ This statement is correct because the expenditure type and organization are not typically included in the shop floor movement requests.

These requests focus more on the material movement aspects, while expenditure details are managed elsewhere in the system.


Reference:

Oracle Cost Management documentation clarifies that shop floor movement requests handle inventory and material flow, and expenditure information is derived later in the process, not directly tied to these requests.

Incorrect Statements:

Statement A: The expenditure type, date, and organization are derived when interfacing with Costing, which ensures that project-related costs are tracked accurately.

Statement B: The expenditure type for the item is derived based on the default expenditure type in Inventory Management, which is true for how items are picked for a work order.

Statement C: Expenditure type and organization from the work order are referenced in costing, but not directly on movement requests.



Which is NOT a required setup task for Manufacturing master data?

  1. Manage Production Resources
  2. Manage Plant Parameters
  3. Manage Work Centers
  4. Manage Work Areas
  5. Manage Plant Profiles

Answer(s): E

Explanation:

In Oracle Manufacturing Cloud, setting up the Manufacturing master data involves a series of required tasks to enable production operations. The following are the key setups:

Manage Production Resources: This setup task is essential for defining resources such as labor, equipment, and tools that are used in the manufacturing process. Resources are vital to the production planning and scheduling functions.

Manage Plant Parameters: This task is required to define how the plant will operate in terms of material handling, scheduling, costing, and other key operational metrics. These parameters control important aspects of how manufacturing will function at the plant level.

Manage Work Centers: Work centers represent the physical or logical locations where manufacturing operations occur. They must be set up for scheduling and executing production activities.

Manage Work Areas: Work areas are required to group related work centers and define operational zones within a plant. This is important for organizing production and ensuring efficient material flow.

Manage Plant Profiles: This task is not required for setting up manufacturing master data. Plant profiles are typically used for broader plant-level settings but are not directly tied to the manufacturing execution setup.


Reference:

Oracle Manufacturing Cloud Implementation documentation outlines the mandatory steps needed to set up the manufacturing process, including work centers, work areas, resources, and plant parameters. Plant profiles are part of more administrative configuration and are not directly tied to production execution.



Your customer has multiple distribution centers and a few manufacturing plants. The plants manufacture different items with some overlap between them. The distribution centers stock parts from all plants.

A Corporate Engineering team is responsible for centrally defining items and catalogs. This team defines the items and sets the attributes for most parameters. The respective distribution centers and manufacturing plants must be allowed to change some attributes locally.

What is the best way to achieve this?

  1. Set up plants, distribution centers, and the Corporate Engineering organization as inventory organizations.
  2. Set up plants and distribution centers as inventory organizations, and the Corporate Engineering organization as an Item organization.
  3. Set up plants and the Corporate Engineering organization as item organizations, and distribution centers as inventory organizations.
  4. Set up plants and the Corporate Engineering organization as Inventory organizations, and distribution centers as item organizations.
  5. Set up plants as inventory organizations, and distribution centers and the corporate Engineering organization as item organizations.

Answer(s): B

Explanation:

In Oracle Cloud, managing items and their attributes across multiple organizations requires careful structuring of inventory and item organizations. The best way to configure this setup given the customer's requirements is as follows:

Plants and Distribution Centers as Inventory Organizations: Inventory organizations are required to manage on-hand quantities, perform transactions, and handle the physical movement of materials. Plants need to be inventory organizations to manage production, and distribution centers need to be inventory organizations to manage stocking and distribution.

Corporate Engineering Organization as an Item Organization: An item organization is responsible for centrally defining item attributes. By setting the Corporate Engineering team as an item organization, you ensure that item definitions are controlled centrally. The team can define standard attributes while allowing inventory organizations (plants and distribution centers) to modify certain attributes at their level based on local needs.

This structure allows for centralized item management with localized flexibility for plants and distribution centers.


Reference:

Oracle SCM Cloud guides for "Item and Inventory Organizations" explain how item organizations allow centralized management of item definitions while inventory organizations handle the physical inventory and can override certain attributes locally.

Incorrect Options:

A: Defining all entities as inventory organizations would not allow centralized control of item attributes.

C, D, E: These setups would either limit the ability to control item attributes centrally or misassign organizations that need to handle physical inventory as item-only organizations.



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