Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. Which three dates are mandatory while creating plan cycles?

A) HR Data Extraction Date
B) Default Due Date
C) Evaluation Period Start Date
D) Plan Access Start Date
E) Worksheet Update Period Start Date

2. 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 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.
B) 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.
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.

3. Which two methods can be used by the Compensation Administrator to publish budgets?

A) Copy budget amounts from a previous cycle.
B) Publish budgets manually.
C) Use a model to distribute budgets.
D) Publish budgets automatically by running the Build Model process.

4. A manager publishes budgets as amounts to the managers reporting to him. The following table shows the allocations made to each direct report (managers) and the total salaries of the employees in their chain.

Now, one of Manager 2's employees with eligible salary of $ 100,000 is reassigned to Manager 3. What will be the impact on Budget Percentage?

A) No Impact. The budget allocated to the employee will automatically be allocated to Manager 3. Budget percentage will remain as 10.
B) Allocated budget will not change. Budget percentage of Manager 3 will increase to 12.5% and Manager 2 will decrease to 8%.
C) Budget allocated for the employee will be released back to the manager for reallocation. Budget percentage will remain unchanged.
D) Allocated budget will not change. Budget percentage of Manager 2 will increase to 12.5% and Manager 3 will decrease to 8%.

5. Which alert is advised to be disabled when you are using HCM co-existence between Oracle PeopleSoft HCM and Oracle Fusion Compensation?

A) Leave of Absence
B) Allocation exceeding target
C) Employee termination
D) Any custom alert

Solutions: