1z0-1196-25 Practice Questions

Comprehensive and Detailed Explanation From Exact Extract:

In Oracle Utilities Customer to Meter, aRate Scheduledefines the rules and calculations used to determine charges for services, forming the backbone of the billing process. The Oracle Utilities Customer to Meter Configuration Guide details the components controlled by a Rate Schedule’s configuration:

Option A: The method used to calculate each bill segment calculation line’s value.This is correct, as the Rate Schedule specifies the calculation methods (e.g., flat rate, tiered rate, time-of-use) for determining the monetary value of each bill segment calculation line based on usage or other factors.

Option B: The SA Types that are valid for the rate schedule.This is also correct, as the Rate Schedule defines which Service Agreement Types (SA Types) can use the rate, ensuring that only applicable services are billed under the schedule.

Option E: The General Ledger (GL) account impacted by each bill segment calculation line.This is correct, as the Rate Schedule configuration includes the GL accounts to which charges are posted, ensuring accurate financial reporting.

The Oracle Utilities Customer to Meter Billing Guide explains that Rate Schedules are highly configurable, allowing utilities to tailor billing calculations to diverse customer needs and regulatory requirements. For instance, a Rate Schedule for residential electricity might include tiered pricing, specify eligible SA Types (e.g., residential electric service), and map charges to a revenue GL account.

The other options are incorrect:

Option C: The contents of each bill segment calculation line.While the Rate Schedule influences the calculation, the actual contents (e.g., description, quantity) are determined by the bill segment generation process, not directly by the Rate Schedule.

Option D: Which Usage Calculation Group to initiate for usage calculations.The Usage Calculation Group is defined by the usage subscription, not the Rate Schedule, which focuses on billing calculations rather than usage processing.

Practical Example:A Rate Schedule for a commercial water service might define a tiered rate structure (e.g., $2 per unit for 0–100 units, $3 per unit above 100 units), restrict its use to commercial SA Types, and post charges to a specific GL account (e.g., “Water Revenue”). When a customer uses 150 units, the Rate Schedule calculates the bill segment line values ($200 for the first 100 units + $150 for the next 50 units = $350) and directs the charge to the designated GL account.

The Oracle Utilities Customer to Meter Implementation Guide underscores that Rate Schedules are critical for aligning billing with business and regulatory requirements, providing flexibility to handle complex pricing models.

Comprehensive and Detailed Explanation From Exact Extract:

In Oracle Utilities Customer to Meter, atransfer adjustmentis a type of adjustment transaction used to move money between two service agreements, typically to correct billing errors or reallocate funds. The Oracle Utilities Customer to Meter Billing Guide provides detailed insights into the characteristics of transfer adjustments:

Statement A: "Transfer adjustments cannot be used to transfer monies between two service agreements that are linked to different accounts." This is correct. The system restricts transfer adjustments to service agreements within the same account to maintain financial integrity and simplify reconciliation. Transferring funds across accounts requires alternative mechanisms, such as payments or manual adjustments.

Statement C: "Both adjustments are created together and frozen together." This is also correct. A transfer adjustment involves a pair of adjustments—a debit adjustment to one service agreement and a credit adjustment to another. These are created as a single transaction to ensure balance and are frozen together to prevent partial processing, ensuring that the financial impact is consistent.

The other statements are incorrect:

Statement B: Each adjustment cannot be created independently using a single adjustment transaction, as transfer adjustments are inherently paired (debit and credit) and created together.

Statement D: The credit and debit adjustments in a transfer cannot be linked to separate approval profiles within a single transaction, as they are part of the same adjustment process with unified approval logic.

Statement E: While the General Ledger (GL) details for both adjustments are related, they are not necessarily posted together; the posting depends on the GL configuration and timing.

Practical Example:Suppose a customer has two service agreements under one account: one for electricity ($50 balance) and one for water ($0 balance). A billing error incorrectly charged $20 to the electricity agreement instead of the water agreement. A transfer adjustment is created, debiting $20 from the electricity agreement and crediting $20 to the water agreement. Both adjustments are created and frozen together, and the system ensures they are linked to the same account, updating the balances to $30 (electricity) and $20 (water).

The Oracle Utilities Customer to Meter Implementation Guide notes that transfer adjustments are a streamlined way to correct financial allocations within an account, reducing the need for manual interventions and ensuring auditability through paired transactions.