Basic Questions

1. What is Oracle Fusion Financials?

A: Oracle Fusion Financials is a cloud-based financial management solution that provides advanced reporting, automation, and real-time analytics. It integrates general ledger, accounts payable, accounts receivable, asset management, and cash management functionalities.

2. What are the key modules in Oracle Fusion Financials?

A:

• General Ledger (GL)
• Accounts Payable (AP)
• Accounts Receivable (AR)
• Asset Management (FA)
• Cash Management (CM)
• Expenses
• Tax Management
• Budgetary Control and Encumbrance Accounting

3. What is the role of the General Ledger (GL) in Oracle Fusion Financials?

A: The General Ledger module manages an organization’s financial transactions, maintains accounting records, and provides financial reporting and analysis. It supports multi-currency, multi-ledger, and multi-entity accounting structures.

4. How does Oracle Fusion Financials handle multi-currency transactions?

A: It supports automatic currency conversion using real-time exchange rates, translation, and revaluation for international businesses. It also allows transactions in different currencies within a single ledger.

5. What is a Chart of Accounts (COA) in Oracle Fusion Financials?

A:COA is a structured list of accounts used to record financial transactions. It consists of segments like company, department, account, cost center, and product to enable better financial reporting.

Advanced Questions For Fusion Financials Training

6. How does Oracle Fusion Financials handle accounting automation?

A: Oracle Fusion Financials uses AI-driven automation, including:

• Accounting Hub for rules-based accounting automation
• Automatic Journal Processing for generating and posting entries
• Smart Rules for auto-reconciliations and intercompany transactions

7. What is the difference between Encumbrance Accounting and Budgetary Control?

A:

• Encumbrance Accounting: Reserves funds for future liabilities (commitments).
• Budgetary Control: Ensures expenses remain within predefined budgets.

8. How do you configure intercompany transactions in Oracle Fusion Financials?

A:

• Define intercompany relationships.
• Set up intercompany balancing rules.
• Configure transaction processing for intercompany invoices.
• Enable automated eliminations in the consolidation process.

9. What is the difference between Payables and Receivables?

A:

• Accounts Payable (AP) manages company expenses and vendor payments.
• Accounts Receivable (AR) manages customer invoices and incoming payments.

10. How does Oracle Fusion Financials improve compliance and audit readiness?

A:

• Provides real-time audit trails.
• Uses role-based access control.
• Offers automated reconciliations and compliance reporting.
• Supports integration with regulatory standards like IFRS and GAAP.

Technical & Reporting Questions

11. What is Oracle Fusion Smart View?

A: Smart View is an Excel-based tool that allows users to access and analyze Oracle Financials data in real-time, perform ad-hoc queries, and create reports dynamically.

12. How does Oracle Fusion Financials support real-time financial reporting?

A:

• Embedded AI-driven dashboards.
• Oracle Business Intelligence (BI) integration.
• Self-service financial reports.
• Drill-down capabilities into transactional details.

13. What is SLA (Subledger Accounting) in Oracle Fusion Financials?

A: SLA is a rule-based accounting engine that allows customization of accounting entries for subledgers (AP, AR, FA, etc.) before posting them to the General Ledger.

14. How does Oracle Fusion Financials handle bank reconciliation?

A:

• Uses automated bank statement imports.
• Matches transactions against GL records.
• Flags discrepancies for manual review.
• Supports automatic reconciliation rules.

15. What is the purpose of Financial Close Manager in Oracle Fusion?

A: It helps streamline financial close processes, ensuring faster and error-free financial consolidations, approvals, and reporting.

Scenario-Based & Real-Time Questions

16. How do you handle an invoice mismatch in Oracle Payables?

A:

• Review the invoice details.
• Check if the PO and invoice match within tolerance levels.
• Use the Invoice Hold and Approval process.
• Resolve discrepancies and validate the invoice.

17. What steps are involved in creating a customer invoice in Oracle Receivables?

A:

• Navigate to Receivables > Billing > Create Transactions.
• Enter customer details.
• Add invoice line items.
• Validate and complete the invoice.
• Send it for approval.

18. How would you troubleshoot period-end closing issues in General Ledger?

A:

• Ensure all subledger transactions are posted.
• Reconcile bank statements.
• Run closing reports to identify discrepancies.
• Confirm all journal entries are approved and posted.
• Close the period after final verification.

19. How do you configure Approval Workflows in Oracle Fusion Financials?

A:

• Use Oracle BPM (Business Process Management) to define rules.
• Set up approval hierarchies based on roles.
• Configure notifications and escalation rules.
• Test the approval flow before deployment.

20. What are the integration options available for Oracle Fusion Financials?

A:

• Oracle Integration Cloud (OIC) for seamless integrations.
• REST & SOAP Web Services for external system communication.
• File-Based Data Import (FBDI) for bulk data loading.
• BI Publisher & OTBI Reports for custom reporting.

Conclusion

Mastering these Oracle Fusion Financials interview questions will give you a strong edge in securing high-paying roles like:

• Oracle Fusion Financials Consultant
• Oracle ERP Financial Analyst
• Finance Systems Manager
• Cloud Financials Solution Architect