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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. As an implementation consultant, you are required to define the total compensation statement. You are creating the statement definitions for your compensation statement.
Which three statements are true about the statement definitions?

A) Reusing statement definitions by creating new statement periods and then modifying the definition for subsequent periods is not possible.
B) The statement definition consists of compensation items added to compensation categories.
C) Edits to compensation categories affect all statement definitions that use that category.
D) The statement definition acts as a template and determines the layout and content of the generated statement.
E) Multiple legal employers, multiple countries, and multiple currencies cannot be included in one statement.
F) Compensation items with sources belonging to different legal employers cannot be added.

2. A corporation is implementing Oracle Fusion Compensation Management and must set up salary bases. Employees are assigned different grades within the organization and the salaries are dependent on the grades.
What is the correct way to set up the salary bases?

A) Set up different salary bases for different grades and different payroll elements, because the payroll element can be attached to only one salary basis. The frequency of both salary basis and grade rate should match.
B) Set up different salary bases for different grades with the same payroll element. The frequency
of both salary basis and grade rate need not match.
C) Set up different salary bases for different grades with the same payroll element. The frequency of both salary basis and the grade rate should match.
D) Set up different salary bases for different grades and different payroll elements, because the payroll element can be attached to only one salary basis. The frequency of both salary basis and grade rate need not match.

3. A corporation is implementing Oracle Fusion Compensation Management and needs to set up the
following for all employees:
-Salary paid based on the grades of employees.
-Car allowance paid based on the department and position
-Spot bonus paid based on a committee's decision.
Identify the correct option for the setup.

A) Set up one individual compensation plan with all three options. Add the required payroll elements and add restriction based on eligibility profiles and plan access.
B) Set up a salary basis for "Salary" and associate a grade rate matrix and the payroll element to it. Set up individual compensation plans for the car allowance and spot bonus, and restrict the access to line manager and HR specialist respectively. Additionally, add an eligibility profile to the car allowance to restrict it to specific departments and positions.
C) Set up Salary and the spot bonus as two salary bases, because there are no eligibility restrictions. Set up the car allowance as an individual compensation plan- Add the required payroll elements and add eligibility profiles for the car allowance for specific departments and positions.
D) Set up a salary basis for "Salary" and associate a grade rate matrix to it, and add a car allowance and spot bonus as components for the salary basis along with Salary. Attach the required payroll elements to the salary. Have salary validations to restrict access and payment for specific departments and positions.

4. A corporation has implemented Oracle Fusion Compensation Management. A Salary basis has been created to manage employees' salaries. It has a payroll element attached. As part of the Salary changes, when the compensation manager is trying to update the Salary amounts, the same is not reflecting in the payroll elements entries of the employee.
Identify the two possible causes for the issue.

A) Salary basis is configured to be non-updatable.
B) No components are defined to handle these salary adjustments.
C) Automatic entry is checked at the element eligibility link for the payroll element used.
D) Automatic entry is checked for the payroll element used.

5. What are the two correct options with respect to budgeting when the salary has multiple components?

A) Budgets can be separate for each component.
B) Multiple components can have a single budget.
C) Budgets cannot be separate for each component.
D) Multiple components cannot have a single budget.

Solutions: