Oracle 1Z0-1163-1 Exam Questions

The Production Order to Cost Update process within Oracle Manufacturing Business Process (OMBP) in Oracle Fusion Cloud SCM ensures accurate cost calculations by capturing and updating costs associated with production orders, such as materials, labor, and overhead. This accuracy supports better decision-making and improves profitability by enabling precise cost analysis and pricing strategies. Option A is irrelevant as it ties to CRM, not cost updates. Option B exaggerates automation---human oversight remains necessary. Option D focuses on real-time updates, which is secondary to the primary benefit of accuracy emphasized in Oracle documentation.

The Production Order to Cost Update OMBP (D) in Oracle Fusion Cloud SCM focuses on providing accurate cost calculations by capturing and updating costs associated with production orders---materials, labor, and overhead---enabling better decision-making. For instance, if producing 100 units costs $1,000 (e.g., $500 materials, $300 labor, $200 overhead), this process ensures the total is reflected accurately, allowing managers to adjust pricing or reduce costs. Option A is misleading---while cost updates occur, the primary purpose is accuracy, not immediate financial gains, which are an outcome. Option B is incorrect---customer relationship management is unrelated to production costing. Option C overstates automation; human oversight is still required, and the focus is on cost, not process automation. Accurate cost data supports profitability analysis, budgeting, and strategic planning, making it a critical link between manufacturing and financial management.

Receipt Accounting (D) in Oracle Fusion Cloud SCM records the receipt of goods and services, generating accounting entries that reflect these transactions for financial reporting and cost tracking. When a shipment of 500 units arrives, Receipt Accounting logs the event, assigns costs (e.g., $5,000), and creates entries like 'Inventory Debit' and 'Accounts Payable Credit,' ensuring financial accuracy. Option A is incorrect---timely invoice payment is a downstream accounts payable process, not Receipt Accounting's role. Option B is false---contract validation occurs in procurement, not here. Option C is wrong---Receipt Accounting feeds into Cost Accounting, enhancing, not eliminating it. This function ensures compliance with accounting standards, provides visibility into goods received, and supports accurate financial statements, bridging physical and financial supply chain activities.

Inventory Management (D) in Oracle Fusion Cloud SCM ensures optimal inventory levels by tracking stock movement---receipts, transfers, and consumption---and maintaining availability data across warehouses. For example, if stock drops below a reorder point (e.g., 100 units), it triggers replenishment to avoid stockouts while preventing overstocking (e.g., holding 1,000 units when demand is 200). Option A (Supplier Qualification) evaluates suppliers, not inventory levels. Option B (Manufacturing Execution) tracks production, not overall stock. Option C (Cost Accounting) analyzes costs, not physical stock movement. Inventory Management balances service levels with cost efficiency, using real-time data to adjust stock dynamically, critical for operational success and customer satisfaction.

Replenishment Planning (D) in Oracle Fusion Cloud SCM ensures inventory levels are maintained efficiently by predicting demand and adjusting supply plans to replenish stock proactively. It uses forecasts and safety stock rules---e.g., ordering 300 units when stock falls to 50 and demand is expected to rise---to prevent shortages or excess inventory. Option A (Supplier Qualification) focuses on supplier evaluation, not inventory maintenance. Option B (Cost Accounting) tracks financials, not stock levels. Option C (Manufacturing Execution) manages production, not replenishment. Replenishment Planning optimizes inventory turnover, reduces carrying costs, and ensures product availability, making it a proactive inventory management tool.