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Oracle Fusion HCM: Compensation 2014 Essentials Sample Questions:

1. 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 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.
D) 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.

2. Which two tasks are true about components in worksheet configurations?

A) There is the flexibility to add any number of components within a compensation plan.
B) You can create up to five components to represent the different types of compensation that you want to award within a plan.
C) Each component has to be of a separate type, such as salary or bonus.
D) Plans must have at least one component if awarding compensation.

3. A corporation implemented Fusion Compensation and wants to validate the salaries with the setup. Select the two options that are true about validation setup.

A) Using grade rate validation, a warning message can be generated when the new or adjusted salary is outside the range of salary configured in the grade rate attached to the salary basis.
B) Using either a formula at the element level or criteria at the element link level, a warning message can be generated when a new or adjusted salary does not pass the configured validation.
C) Using grade rate validation, approval can be prevented when the new or adjusted salary is outside the range of salary configured in the grade rate attached to salary basis,
D) Using either a formula at the element level or criteria at the element link level, approval can be prevented when the new or adjusted salary does not pass the configured validation.

4. Identify the correct option regarding the Payroll element details in the compensation history setup.

A) Any payroll element can be added and the input value of the element must be selected. All other details are auto-populated excluding the history category.
B) Any payroll element can be added and all other details are auto-populated excluding the history category.
C) Any payroll element can be added and all other details are auto-populated including the history category.
D) Any payroll element can be added and the input value of the element must be selected. All other details are auto-populated including the history category.

5. 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 with the same payroll element. The frequency of both salary basis and the grade rate should match.
B) 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.
C) 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.
D) 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.

Solutions: