Oracle Treasury Interview Questions

Please find below Treasury Interview Questions:
Question 1 How can you ensure that user has access to entering a Deal FX-SPOT, but cannot Validate it?
Answer User Access Levels allow restricting the access of Company and Deals. Further, in Deals there is an option to restrict Input and Validation of Deals

Question 2 Why is it advised to keep the number of Porfolios to minimum during treasury implementation?
Answer For every additional portfolio, Journal Entry Actions needs to be set-up for a combination of Deal, Deal Subtype and Product Types. And this adds to a great deal complexity. So creating that many number of as required by accounting practice make it easier to maintain in long run.

Question 3 In the multi-org structure where does treasury module operate?
Answer Treasury operates Legal Entity Level as a separate Company is created for each Legal Entity.
Question 4 How can FX deal be cancelled in Oracle Treasury?
Answer To cancell a deal the Deal Status of FX deal needs to be changed to Cancelled

Question 5 Can you set-up User Access in such a way that the user has access to FX deal for Company X and have TMM deal access for Company Y?
Answer No! User Access Levels, currently, doesnt support giving access of deals/deal subtypes/ products company wise; and hence the requirement cannot be met.

Question 6 How Treasury Users can be created against one Application User?
Answer The relationship between Application User and Treasury User is One-To-One. Hence, only one Treasury User can be created against a given Application User.

Question 7 What is Net Exposure?
Answer Maximum amount of the currency that you want to hold at any time.

Question 8 What is the difference between Base Currency and Spot Currency? Explain with example.
Answer Base currency is the first currency quoted in a currency pair on forex. For example, if you were looking at the CAD/USD currency pair, the Canadian dollar would be the base currency and the U.S. dollar would be the quote/contra currency. The price represents how much of the contra/quote currency is needed for you to get one unit of the base currency.

Question 9 What are the various types of Counter Parties allowed in Oracle Treasury?
Answer Treasuy supports creation of two type of Counter Parties Internal and External.
Question 10 How can a Counter Party be set-up as an Internal counter party?
Answer While defining the Counter Party, in the Cross Reference field the parent Company name should be given.

Question 11 What are the Open Interface/ API currently available in Treasury and what do they do?
Answer There are Open Interface/ API available for

• Foreign Exchange Transactions
• Exposure Transactions etc

Question 12 Can a user add new Amount Type for FX deal type?
Answer RTMM is the only Treasury deal type where users can create their own amount types, which show up in the Principal Type LOV under the Principal Adjustment tab on the RTMM deal form. For all other Treasury deal types, including FX deals, the user cannot create amount types.

Question 13 What the steps of Accounting Process in Oracle Treasury? What is the name of program run using which all the steps can be completed in one ?
Answer
- Perform revaluations (optional)
- Generate accruals and amortizations
- Generate daily journals
- Transfer journals to General Ledger
You can post journal entries for cash flow amounts (that is, non-revaluation and non-accrual journal entries) on a daily or weekly basis, and post journal entries for your revaluation/accrual deals on a separate timeline. The posting of cash flow amounts does not require performing revaluations or generating accruals prior to generating daily journals.
The concurrent program which can be used completing all the above 4 steps in one go is Program - Accounting Streamline Processing.

Question 14
While Generating Journals what are the two type of journals that can be created?
Answer When running the General Journals process you can choose to generate journals of two kinds:

• Non-Revaluation/Non-Accrual Related Journal Processing
• Revaluation/Accrual Related Journal Processing

"Non-Revaluation/ Non-Accrual Related Journals" creates journals for CASH amounts like principal transfer, interest settlements, deposits etc). While, "Revaluation/Accrual Related Journals" creates journal entries for all amounts ("cash", revaluation, accrual).
Question 15 What are the two types of Accruals supported by Oracle Treasury?
Answer Two type of accruals supported by Treasury are:
- Straight Line Accruals
- Effective Interest Accruals
Question 16
What are the options available for rectifying a Accrual accounting batch after Daily Journals have been generated?
Answer
As long as Daily Journals are not transferred to GL, the daily journals can be deleted. Once daily journals are deleted, Accrual Batches can be unauthorized and thereafter changes can be done.