GL Questions

1. What is the md50 document and explain one example in real time?

MD 50 Is functional Design document. Module Design 50.
Which is Input for a technical consultant who develop the product based the MD 50 Design.
MD 50 is nothing but the functional flow document which is designed by the Functional Consultant

2. What are the steps involved in development of a xml report?
Steps for developing a XML report in r12

1. Define data template.
2. Create data definition and associate or upload data template.
3. Define concurrent program to generate data XML output.
4. Define RTF template using generated data XML.
5. Registered the template with BI publisher.
6. Run the concurrent program to see the output.

3. What is the difference between normal calendar and special calendar?
a. Calendar are two types

1.accounting calendar
2.transaction calendar (optional)

accounting calendar there are two types

1.calendar (normal/regular/general)
2.fiscal calendar

4. Explain if translation is necessary when using multi reporting currency?
a. First let us see what is Translation? Translation is a process that allows you to restate
your financial functional currency into a reporting currency.

Now let us see, what is MRC? MRC is a unique feature in Oracle that allows you to
maintain and report in more than one functional currency.

So with MRC you can report in more than one currency than why do you have to do
translation. If the report is a consoliated report than yes translation is necessary.

5. What is the difference between Recurring Journals and Mass Allocation?

Recurring Journals are for transactions that repeat every accounting period. Example:
Rent expenses that recur every month.
Mass Allocation Journals are for single journal entry formula that allocates revenues and
expenses across a group of cost centers, departments, divisions or cost centers.
Example: Redistribute monthly rent expense to departments based on the amount of
space each dept occupies.



Rent expense for each dept = Total rent expense x area used by dept/ total area.
TYPE OF ENTRY RECURRING JOURNALS MASS ALLOCATION JOURNALS
Formulas per line one formula per line one formula for many lines
Formula Any formula A*B/C

Recurring Journals: The Journals which are repeated one or more periods are called
as "Recurring Journals.
Recurring Journals are classified into 3 Types:
1.) Standard Recurring Journals
2.) Skeleton Recurring Journals
3.) Formula Recurring Journals

(1) Standard Recurring Journals:- According to Standard Recurring Journals, "amounts
are constant".

(2) Skeleton Recurring Journals:- According to Skeleton Recurring Journals, "amounts are
variables".

(3) Formula Recurring Journals:- According to Formula Recurring Journals, "amounts are
to be calculated by using Formula".

Mass Allocations: Mass Allocation Journals are used to allocate the expenses or
revenues to the various departments, branches, locations depending upon usage factors.


6. What is the purpose of intercompany in GL? Explain purpose of criteria

There are two (2) types:

(1) Inter Company Journals: These Journals are created for the
transactions between the balancing segments of one or more legal entities.

(2) Intra Company Journals: These journals are created between the transactions of
one or more balancing segments of same legal entity.

7. What you meant Retained Earnings? When the Entries are created and what
is the entry?

Retained earnings derived in Oracle terms as
Sum of all Revenue Account Balances - Sum of all Expense Account balances for the accounting
year.
They are calculated when you close the last period of an Accounting year/open the first period of the
new accounting year
The accounting generated at this time will set Expense and Revenue account opening balances to
zero for the new year. The Retained earnings account receives the net balance of Revenue -
Expense. There will be an entry per Balancing segment


8. What is an Invoice?

Invoice is a information sheet whcih a compnay sends to the buyer along with the good .
It explains the details of the goods in the shipment and also the prices.
Invoices can contain all sorts of data regardinng the shipment and goods depending on the company
and product.
AR invoice is a document sent to the customer with details like, Bill-to customer code, product code,
qty sent, price, currency, credit terms, tax details,etc. Based on this invoice, customer will make
payment to the company and the same is applied against the invoice.

AP invoice is the document received from the supplier and contains informations such supplier
details, product code, qty, price and tax details. This invoice is entered in the AP module and
payment is made to the supplier against this invoice.

9. What is consolidation in GL?

Consolidation means : merging the financial data of all subsidiary ledgers(SOBs) into one Parent SOB.
STEPS:
1. Run 'Translation' if the subsidiary SOBs have different currency than parent.
2. Define consolidation mapping rules: a) Segment rule -- when COA of subsidiary and Parents are
same
b) Account rule -- when COA structure are different
3.Run 'Consolidation transfer' program
4. Go to parent SOB now and You can run your desired reports.

10. What is cycle of GL?
GL Accounting cycle can be elaborated like this...
1.Open Period.
2.Create Functional and foreign journal entries.(including the journal import from legacy systems and
subledgers).
3.Reverse journal entries.
4.Post the journals.
5.Review and correct the balances.
6.Revalue foreign currency balances.
7.Translate foreign currency balances.
8.Consolidate set of books.
9.Run accounting reports.
10.Close the accounting periods.





11. Troubleshooting in Support Project
Give some examples of troubleshooting in support project with
regard to AP,GL,FA Modules.


a. When bill is matched against a purchase order accrual account is appearing
instead of account mentioned in purchase order.
b. In Purchase order in more tab of the shipement window match approval level should be
2-way, Invoice match option should be 'PO' and accrue at receipt check box should be
unchecked.
c. If item is used in PO then in purchasing tab of item master receipt required should be no
and item required should be no.

ERS not generated since vendor site is disabled
Activate the vendor site.
d. Go to open interface invoice, query the invoice, status of invoice will be
'Rejected' , remove it.
Run Payable interface import concurrent

12. Can a flexfield qualifier be changed after it has been created?

Ans) No.

Once a segment qualifier has been designated for a specific segment and has been saved, it will
permanently have the attributes with that qualifier.
For example, you accidentally designate the cost center segment as the natural account
segment. Even though you do not compile this, the system saves the changes. And once it has
been saved, it will have all the attributes designated for the natural account qualifier, even after it
has been changed back, resaved with the correct qualifier and compiled. This is the inherent
functionality of the software.
Unfortunately, there is no real easy solution for this issue. The only option is to create a new
chart of accounts and attach a new set of books.

13. How to delete a segment value?

Ans) There is no supported way to delete a segment value. Segment values can only be
disabled not deleted.

Is there a way to load values for a specific segment outside of the form?

Ans) iSetup is the Oracle product that provides supported APIs to load values into Oracle
Applications flexfields.
To load code combinations ADI may be used. Uploading zero amount journals will create new
code combinations.
In this case Dynamic Insertion should be enabled and all account segment values need to exist
before the new account code combinations will be dynamically created.


14. What are the different types of Journals in General Ledger ?


1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.

2. Foreign Currency Jv: this Journal, we enter other than local currency transaction purpose...before
we define exchange rates

3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of
books window Suspense button, then it works otherwise it's not working

4.Tax Jv: this Journal, calculate taxation of Purchased items

5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have
two methods...one is Debit to Credit and second one is sign (+ to -)

6.Recurring Jv :this one is We define one template, we use Periodically, these are 3 types
1.Standard 2.Skeleton 3.Formula

7.Mass Allocation Jv :Set of Expenses or Set of Revenue allocate different parts using Formula
A*B/C
A is Total Cost Pool..B is Usage Factor...C is Total Usage Factor...

8. Batch JV: Group of Journal we enter at a time, We Define Control Amount

9. Stat JV: This JV we have one side of Amount either debit or Credit.....

15. What is average Balance In Oracle Financials?
The Average Balance feature of Oracle General Ledger provides organizations with the ability to
track average and end-of-day balances, report average balance sheets, and create custom reports
using both standard and average balances. Average balance processing is particularly important for
financial institutions, since average balance sheets are required, in addition to standard balance
sheets, by many regulatory agencies. Many organizations also use average balances for internal
management reporting and
16. Profitability analysis.
The difference between an average and standard balance sheet is that balances are expressed as
average amounts rather Than actual period-end amounts. An average balance is computed as the
sum of the actual daily closing balance for a balance sheet account, divided by the number of
calendar Days in the reporting period .

17. Is there a limit to the number of periods in a budget year or how many years a budget can span?
One can define budgetary control for n number of years however, one year can have maximum of
60 fiscal periods7)

18. What is a funding budget?
A budget against which accounting transactions are checked for available funds when budgetary
control is enable for your set of books.

19. What is planning budget?
The plan for the future expenses is planning budget. It is a paper work. There is no funds
requirement. It does not require journals. There are no restrictions for estimating of funds.

20. I was able to post a budget journal to a closed period, why?
Yes you can do so, reason being budget journal is not linked with your accounting period. Once you
have open the budget period then you can book budget journal for that whole period.

21. What is the specific purpose of assigning Balancing Segment Values to the Legal Entity in
Accounting Manager Setup (as once assigned, the same value is not allowed to be selected for any
other Legal Entity), if this value is usable for the Operating Unit(s) that does not have this Legal
Entity Context?

Summary of key facts:

1. Common COA Structure used for Primary and Secondary Ledgers
2. Ledger shared by Multiple Legal Entities
3. Specific Balancing Segment Values assigned to Specific Legal Entity (Overlap not allowed)
4. Specific Legal Entity Vision Operations Assigned to Payables Manager OU for Legal Entity Context
5. User preference set to Access Vision Operations OU by Default in Payables

Conclusion and Findings:

1. Balancing Segment Value Assignment to the Multiple Legal Entities, sharing the same Ledger does
not seem to restrict the user of these Balancing Segment Values in the Feeder, Operating Unit
specific Modules Like AP, wherein Legal Entity Context is passed to the OU through the link of the
Primary Ledger.

2. However, access to these Balancing Segment Values could be controlled through Security Rules
being assigned to the Value Set and the Respective Responsibility

3. The Key question is: If Legal Entity having the context to the Operating Unit that shares the
common Ledger does not have assignment to it, what impact it has on the integrity of data when
this access is otherwise allowed, except through Security Rules?


22. What are the interface tables in General Ledger ?
GL_BUDGET_INTERFACE
GL_DAILY_RATES_INTERFACE
GL_IEA_INTERFACE
GL_INTERFACE
GL_INTERFACE_CONTROL
GL_INTERFACE_HISTORY

23. What is DFF.
DFF is a mechanism that lets us create new fields in screens that are delivered by Oracle.

24. Question: Oh good, but can these new fields be added without modifying/customization of the
screen?.
Answer: Yes, certainly. Only some setup is needed, but no programmatic change is needed to
setup DFF.

Question: Why the word Descriptive in Name DFF?
Answer: I think Oracle used this terminology because by means of setup...you are describing the
structure of these new fields. Or may be Oracle simply used a silly word to distinguish DFF from
KFF(discussed in latter training lesson).

Question: Are these DFF's flexible?
Answer: A little flexible, for example, depending upon the value in a field, we can make either
Field1 or Field2 to appear in DFF.

Question: So we create new fields in existing screen, but why the need of doing so?
Answer: Oracle delivers a standard set of fields for each screen, but different customers have
different needs, hence Oracle lets us create new fields to the screen.

Question: Are these new fields that get created as a result of DFF free text?
I mean, can end user enter any junk into the new fields that are added via DFF?
Answer: If you attach a value set to the field(at time of setup of dff), then field will no longer be free
text. The entered value in the field will be validated, also a list of valid values will be provided in
LOV.

Question : Will the values that get entered by the user in dff fields be updated to database?
Answer: Indeed, this happens because for each field that you create using DFF will be mapped to a
column in Oracle Applications.

Question: Can I create a DFF on any database column?
Answer: Not really. Oracle delivers a predefined list of columns for each table that are meant for
DFF usage. Only those columns can be mapped to DFF segments. These columns are named similar
to ATTRIBUTE1, ATTRIBUTE2, ATTRIBUTE3 ETC. Usually Oracle provides upto 15 columns, but this
number can vary.

Question: Can I add hundreds of fields to a given screen?
Answer: This depends on the number of attribute columns in the table that screen uses. Also, those
columns must be flagged as DFF enabled in DFF Registration screen. Don't need to worry much
about this because all the ATTRIBUTE columns are by default flagged for their DFF usage.

Question: Hmmm, I can see that DFFs are related to table and columns...
Answer: Yes correct. Each DFF is mapped to one table. And also each segment(or call it field) is
mapped to one of the attribute columns in that table.

Question: I want these fields to appear in screen only when certain conditions are met. Is it
possible?
Answer: Yes, we have something known as Context Sensitive Descriptive Flexfields.

In Order to do this, we will follow the below steps(screenshots will follow) :-
1. Navigate to the DFF Registration screen in Oracle Apps and query on Table AP_BANK_BRANCES.
Now click on Reference Field
2. Navigate to DFF Segments screen and query on the Title of the Bank Branch and Unfreeze the
Flexfield and add segments as to Section "GLOBAL Data Elements" as shown in screenshots.

25. What is Journal Import?

Journal import is an interface used to bring journal entries from legacy systems and other
modules into the General Ledger.(Specifically Journal Import gets entries from legacy data into
the GL base tables.
The tables populated during journal Import are
GL_JE_BATCHES,
GL_JE_HEADERS,
GL_JE_LINES,
GL_IMPORT_REFERENCES



What is the use of GL_Interface?
Gl_Interface is the primary interface table of General ledger. It acts as an interface between data
originating from other modules such as AP,AR, Legacy data and the Gl Base tables.

What is Actual Flag?
Actual flag represents the Journal type.
A-Actual
B-Budget
E- Encumbrance.

What is Encumbrance?

It is a process of Reservation of funds for anticipated expenditure from a budget. Encumbrance
integrates GL, Purchasing and Payables modules.

How many Key Flex Fields are there in General Ledger?

One. Accounting Key Flex Field.

How many types of Budgets are there?

Two Types.
Expenditure Budgets
Revenue Budgets.

What are Spot Rate, Corporate Rate, Transaction Calendar and Accounting Calendar?

Spot Rate:
An exchange rate which you enter to perform conversion based on the rate on a specific date. It
applies to the immediate delivery of currency.

Corporate Rate:
An Exchange rate that we define to standardize rates for our company. This rate is the standard
market rate determined by the senior financial management for use through out the organization.

User Rate:
Conversion rate that is defined by the user.
EMU Fixed Rate: An exchange rate that is provided automatically by the General Ledger while
entering journals. It uses a foreign currency that has a fixed relationship with the euro.
Transaction Calendar: Defines the business days and holidays for any calendar.
Accounting Calendar: Defines different types of calendars namely Fiscal, Federal Fiscal, Month
etc.

What is Security Rule?

Security Rules are defined to control the access of a flexfield segment value (Financial
information) at a responsibility level.

What are Cross Validation & ADI?

CVS Cross validate segments Allows only valid code combinations.
ADI Allow dynamic inserts. Allows any code combination irrespective of validity.
ADI would prevail if both of CVS and ADI are checked.



What is Translation?

Translation is a process used to convert functional currency to other reporting currencies at the
account balances level.

What is Revaluation?

It is process used to revalue assets and liabilities denominated in foreign currency into functional
currency based on period end exchange rate we specify. Unrealized gains/losses are resulted
because of exchange rate fluctuations which are recorded in unrealized gain/loss account in GL.

What is FSG (Financial Statement Generator)?

Financial statement generator feature helps us to generate reports such as balance sheets and
income statements with out programming. It also provides a high degree of control on the rows,
columns, contents and calculations on the report. Different components such as row set, column
set, content set, row order, display set have to be defined before a statement is generated, of
which row set and column set are mandatory.

What is Consolidation?

Consolidation is a period-end process of combining the financial results of separate business
subsidiaries with the parent company to form a single combined statement of financial results.

At what level General Ledger data is secured?

GL data is secured at Set of Book level. Subledger module data is secured at Responsibility
level (i.e., at Operating Unit Level).

Difference between Primary Ledger and Secondary Ledger in R12 ?

Primary ledger:

The primary ledger acts as the primary accounting representation

Secondary Leger:
Secondary ledgers represent the primary ledger's accounting data in another accounting
representation that differs in one or more of the following ways:

chart of accounts
accounting calendar/period type combination
currency
subledger accounting method
ledger processing options
Use secondary ledgers for supplementary purposes, such as consolidation, statutory
reporting, or adjustments for one or more legal entities within the same accounting
setup. For example, use a primary ledger for corporate accounting purposes that
uses the corporate chart of accounts and subledger accounting method, and use a
secondary ledger for statutory reporting purposes that uses the statutory chart of
accounts and subledger accounting method. This allows you to maintain both a
corporate and statutory representation of the same legal entity's transactions in
parallel.
Assign one or more secondary ledgers to each primary ledger for an accounting
setup.

The secondary ledgers assigned can only perform the accounting for the legal
entities within the same accounting setup.























AP Functional Interview Questions
Chapter1 - Overview of Oracle Payables

1. How many key flex fields are there in accounts payables and what are they?

No flex fields in Oracle Accounts Payables and Oracle Purchasing.

2. What are the major functions of AP?

Set Up Suppliers
Enter and Approve Invoices
Payment of Invoices
Accounting & Reporting

3. What financial control can be achieved through AP?

Oracle Payables monitors and controls the complete Invoice Processing, Payment processing and the
Supplier Management tasks.
It helps in exercising tight controls on the payment process, application of advances against invoices,
thus safeguarding the monetary resources of the organization.
System helps in estimation of cash required to meet the contractual obligations on time, based on the
payment schedule thus helping in cash management and ensuring accuracy in working capital estimate.
Oracle Payables is a high-productivity accounting solution that helps you maintain strong financial
controls. You can:
Maximize supplier discounts
Prevent duplicate payments
Pay for only the goods and services that you order and receive
Highlight any discrepancy between the purchasing and the invoicing activity
Oracle Payables also helps you resolve business issues quickly by providing accurate responses to
your inquiries.

4. List out the financial and distribution modules (separately) integrated with AP?

Oracle General Ledger
Oracle Assets
Oracle Purchasing
Oracle Property Manager
Oracle Workflow
Oracle Human Resources
Oracle Projects
Oracle Cash Management
Oracle e-Commerce Gateway
Oracle iExpenses

5. Give an Overview of Process flow in AP?


Oracle Purchasing Oracle Inventory Oracle Payables Oracle Cash
Management
Place Orders Receive Goods Manage the Payables Process
Requisition Raise a Receipt Record Invoices Received
Purchase Order Inspection Validate and Approve Invoices
Store Goods Pay Invoices
Account & Transfer to General
Ledger
Update Account Balances Reconcile
Payments
6. Describe the Payable Cycle in AP?

Enter/Interface invoices or batches Match to PO Approve Invoice

Create Payments Reconcile Payments Create Journal Entries

Transfer to General Ledger

7. What are the major processes involved in AP?

Oracle Payables contains five major processes:
Setting up suppliers
Entering, Validating and approving invoices
Paying invoices
Creating accounting entries
Sending transactions to the general ledger

8. List out the financial and payable options in AP?

Financials Options
Accounting Encumbrance
Supplier Entry Tax
Supplier Payables Human Resource
Supplier Purchasing

Payables Options
Accounting Methods Interest
Transfer to GL Expense Report
Payment Accounting Payment
Currency Invoice Tax
Supplier Withholding Tax
Invoice Tax Default & Rules
Matching Reports

9. Major functions of Oracle payables are
_____________,_____________,_________________&________________.

10. Comment whether the following statement is true or false.
Suppliers payable option available in payable options.
Accounting methods is in financial options.
Paying Invoices is one of the activities of Oracle payable.
Oracle workflow is integrated with Oracle Payable.

Answer to 9 and 10.

9.supplier, invoice, payment, accounting

10.false, false, true, true.


Chapter 2 - suppliers definition
1) What are the functions can be performed for a supplier site when you assign the following types to the
site:
a) Pay b) purchasing c) RFQ only d) procurement card

For every supplier, you can create an unlimited number of supplier sites with different addresses and
contacts. For example, for a single supplier, you can buy from several different sites and send the
payments to only one site.

You can perform the following functions for a supplier site when you assign the following types to the
site.
Pay: You can enter invoices for the site.
Purchasing: You can create purchase orders for the site.
RFQ Only: You can create request for quotations in Oracle Purchasing for the site. You cannot create
purchase orders in an RFQ Only site.
Procurement Card: Supplier site that accepts the credit card brands of your procurement cards.
For every supplier site, you can enter contact information (name, address, and telephone number)
specific to that site. Contact information is for your reference only. It is not used by the system for
reporting purposes.

2) What need to be performed to avoid duplicate suppliers?

Before setting up a new supplier, verify that the supplier does not already exist in the system by
comparing it to existing suppliers. The verification eliminates the possibility of having duplicate suppliers
and invoices in the system and improves the system performance. To review existing suppliers:
Perform a Find or Query on the supplier name.
Submit the Suppliers Report.
Submit the Supplier Audit Report to obtain a listing of suppliers whose names are the same up to a
specific number of characters
Review supplier records periodically to achieve the following:
Prevent duplicate invoices
Improve system performance
Provide accurate supplier reporting
Use the Suppliers Report and the Supplier Audit Report to help identify duplicate suppliers.

3) What is the information needs to be given in payment, purchasing and receiving region?

Entering Supplier Information in the Invoice Tax Region
The Invoice Tax tabbed region contains the following tax options:
Invoice Tax Code
Use Offset Tax
Calculation Level
Allow Calculation Level Override
Rounding Rule
Distribution Amounts Include Tax
Entering Supplier Information in the Withholding Tax Region
Use the Withholding Tax tabbed region to enter withholding tax information for a supplier and supplier
site.
You have access to this region only if you selected the Use Withholding Tax check box in the Payables
Options window.
The options that you select for a supplier default to the new supplier sites that you enter, and then
default to invoices that you enter for the site.
Entering Supplier Information in the Purchasing Region
All supplier-purchasing values default to new supplier sites that you enter.
Supplier site values default to purchase orders and purchase requisitions. You can override any
purchasing defaults during supplier site entry and purchasing document entry.
Entering Supplier Information in the Receiving Region
All supplier-receiving values default to new purchase orders you enter for a supplier. You can override
any receiving defaults during purchase order entry.

4) What are the information not required to be given at supplier and supplier site level?

Oracle Payables Supplier Information
General Yes Yes EDI Yes Yes
Classification Yes No Invoice Tax Yes Yes
Contacts No Yes Withholding Tax Yes Yes
Accounting No Yes Tax Reporting Yes Yes
Control Yes Yes Purchasing Yes Yes
Payment Yes Yes Receiving Yes No
Bank Accounts Yes Yes
Except for the Receiving, Accounting and Classification categories, all categories of information that are
entered at the supplier level can also be entered at the supplier site level. If an option exists at the
supplier level, the value you enter their defaults to new supplier sites.

Note: Contacts information is entered only at the supplier site level.

(N) Suppliers > Entry (B) Sites

5) What is meant by supplier merge and what are the various options available?

Overview of Merging Suppliers:

Although the system prevents you from entering duplicate supplier names, you may inadvertently define
the same supplier by using two different names.
You might also create duplicate suppliers if you import suppliers from another accounts payable system.
Use Supplier Merge to combine two or more suppliers that you identify as duplicates.
You can update purchase orders and invoices for the old supplier to refer to the new supplier.
The Supplier Merge Window also enables you to merge supplier sites so that any sites assigned to an
old supplier can be reassigned to the new supplier.
When you merge suppliers, you transfer invoices, purchase orders, or both from one supplier and site to
another supplier and site. You can transfer to a new supplier and site unpaid invoices only or all invoices
(including paid and partially paid invoices).
Oracle Payables will not transfer invoices if the merge process would create a duplicate invoice for a
supplier.

Note: The merge process cannot be undone.

Maintaining reports as an Audit Trail:

o Oracle Payables does not maintain an online audit trail for merged supplier records.
o To review merged records, Oracle Payable automatically prints the Purchase Order Header Updates
Report and Supplier Merge Report.
o Keep these reports as an Audit Trail.


6) How to create employee as supplier?

You must enter an employee as a supplier before you can pay the employees expense reports. You can
enable the Automatically Create Employee as Supplier Payables option to automatically enter an
employee as a supplier during Invoice Import, or you can enter the employee manually as a supplier in
the Suppliers window.

7) What are the important suppliers reports?

Oracle Payables Supplier Reports

Report Name Description

Suppliers Report Review supplier, supplier site, and supplier site contacts information.

Supplier Audit Report Review supplier names that are similar, to help identify potential duplicate
suppliers.

New Supplier/New Review new supplier sites.
Supplier Site Listing

Supplier Payment Review the payment history,
History including void payments, for a supplier or a group of suppliers.

Supplier Paid Review the payment history, Invoice History History including discount and partial
payment information, for a supplier or group of suppliers.

Supplier Mailing Use this report to create mailing
Labels labels for supplier sites.

Purchase Order Header Review purchase orders updated
Updates Report by the Supplier Merge Program.

Supplier Merge Report Review the suppliers, sites, and Invoices updated by the Supplier Merge
Process.

Supplier Balance Identify suppliers with credit
Revaluation Report (negative) balances.

Supplier Customer Review the net balance in Oracle
Netting Report Payables and Oracle Receivables for any suppliers or customers who have the same NIF
or VAT code.

8) What does supplier audit report and supplier customer netting report do?

Supplier Audit Report Review supplier names that are similar, to help identify
potential duplicate suppliers

Supplier Customer Review the net balance in Oracle
Netting Report Payables and Oracle Receivables for any suppliers or customers who have the same NIF
or VAT code.

9) Following are true or false.
An Operating Unit can have only one pay site for a supplier
In the supplier merge window, you can merge both suppliers and supplier sites

10) Which one of the following information types can you enter at the supplier site only?
a) Bank b) Contacts c) Accounting d) Classification d) Withholding tax.

Answer to 9 and 10

9) False, True

10) Contacts
Chapter3- Transaction Set-Ups
1) What are various levels at which Invoice tax codes can be given, and what are the differences between
them?

You can set invoice tax options and default values used throughout Payables. The following invoice tax
options and defaults are a subset of the tax options.
You can control the following invoice tax options at the system level in the Payables Options window:
Require Tax Entry at Header
Use Automatic Tax Calculation
Calculation Level
Allow Calculation Level Override
Distribution Amounts Include Tax
Allow Override

2) What is Invoice tax and what are the basic set ups required for enabling Invoice taxes?

Use the Tax Defaults and Rules tabbed region to set a hierarchy for Payables to use when it provides
default tax codes. Payables will search the sources you enable, in the order you designate, until it finds a
tax code. When Payables finds a tax code, it will stop searching and default the tax code in the document
you are creating.

(N) Setup>Options>Payables (T) Invoice Tax
(N) Setup>Options>Payables (T) Tax Defaults and Rules

3) What are the tolerances can defined and where it is defined?

Use the Invoice Tolerance window to define the purchase order/receipt-matching tolerances and tax
tolerances you want to enforce.
Tolerances are variances between invoice, purchase order, receipt, and tax information.

Tolerances determine the margin of error Oracle Payables accepts before placing matching or tax holds
on an invoice.
When you submit validation for an invoice you have matched to a purchase order or receipt, Oracle
Payables checks that the invoice matches the purchase order or receipt within the matching tolerances
you define.
If the invoice exceeds the tolerances you define, Oracle Payables applies a hold on the invoice during
the Validation process. The Invoice Tolerances window shows, which hold, are applied.

(N) Setup>Invoice>Tolerances

4) Describe five check boxes in Invoice payable options?

(N) Setup>Options>Payables (T) Invoice

Invoice Payables options include the following:

Use Invoice Approval Workflow
Confirm Date as Invoice Number
Allow Force Approval
Allow Online Validation
Require validation before approval
Allow Document Category Override
Allow Adjustments to Paid Invoices
Recalculate Scheduled Payment
Allow Document Category Override
Automatically Create Freight Distribution
Freight Account
GL Date Basis
Prepayment Settlement Days
Prepayment Payment Terms



5) What is the set up required for creating automatic interest invoice?

Use the Interest tabbed region to enable Automatic Interest Calculation and then enter defaults, such as
expense and liability accounts. The following are the Interest options:
Allow Interest Invoices
Minimum Interest Amount
Expense Interest Invoice Account
Liability Interest Invoice Account

6) What matching can be controlled at the system level in the payable options?

You can control matching at the system level in the Payables Options window.
Allow Final Matching
Allow Distribution-Level Matching
Allow Matching Account Override
Transfer PO Descriptive-Flex field Information

(N) Setup>Options>Payables (T) Matching

Invoice-Matching Considerations

The Invoice Match Option exists at the following levels: supplier, supplier site, and purchase order
shipment lines. Ensure that the matching option, Purchase Order or Receipt, is set at the appropriate
level.

7) Which option needs to be enabled for creating automatic interest invoice?

Creating Automatic Interest Invoices

Payables allow you to calculate interest for overdue invoices and create interest invoices for selected
Suppliers. To do this, you must enable automatic interest calculation for a supplier and pay an overdue
invoice for the supplier in a payment batch or with a Quick payment.

8) Where could you find Use invoice approval workflow check box in the options?

Payables Options

9) Give navigation for tolerance?

(N) Setup>Invoice>Tolerances
Chapters4- Overview of Invoice Entry Process
1) Give the basic accounting entries with examples when the following transactions are entered in
accounts payables.
a) Standard Invoice b) Debit Memo

Standard Invoice:

Charge A/c Dr 100/-
To AP Liability A/c 100/-.

2) Give the basic accounting entries with examples when the following transactions are entered in
accounts payable.
a) Prepayment Invoice b) Prepayment Application

Prepayment Invoice:

Charge A/c Dr 100/-
To AP Liability A/c 100/-.

Prepayment Application:
A prepayment application occurs when you apply a prepayment to an Invoice.
This event Credits the Prepaid Account for the amount of the application, and Debits the Liability
Account because the prepayment was a payment on the Invoice.

AP Liability A/c Dr 100/-
To Prepaid A/c 100/-.

3) What are the various ways of creating distributions for AP invoices?

You can enter distributions in any of five ways:
Entering lines manually.
Automatically creating a freight or tax line.
Using allocation.
Using a distribution set.
Matching to a purchase order or receipt.

(N) Invoices>Entry>Invoices (B) Distributions

4) What is a distribution set and what are the various kinds of distribution sets?

Distribution set is used to enter automatically distributions for an invoice when you are not matching to a
purchase order.
(N) Setup>Invoice>Distribution Sets
(N) Invoices>Entry>Invoices
Enter a name that describes the use of the distribution set, and identify the distribution set as either Full
(with all percent amounts totaling 100%) or Skeleton (with all percent amounts totaling 0%).
Define an unlimited number of distribution lines for a distribution set.
Optionally assign an income tax type or an income tax name to a distribution set.

5) What is the difference between PO default and Quick match?

PO Default:

An invoice you enter for matching to a purchase order (you enter a PO number and Oracle Payables
automatically provides supplier information).

Quick Match:

An invoice you enter for matching to a purchase order (you enter a PO number and Oracle Payables
automatically provides supplier information and matches to each shipment on the purchase order).

6) What are the different methods by which invoice can be entered in Oracle payables?

You can enter invoices into Oracle Payables in the following methods:
- Enter individual invoices in the invoices window.
- Enter invoices in batches in invoice batches and invoices window.
- Enter standard and credit memo invoices that are not complex in the quick invoice window.
- Assign invoices to an invoice batch in the quick invoice batch.
- Create recurring invoices in the recurring invoices window.
- Create invoices from expenses report or import invoices from other systems.
(E-commerce gateway, property manager, self-service expenses and flat files)
- Create invoices to pay interest for overdue invoices.

7) What is a hold? How to release hold manually?

You can prevent payment and optionally prevent accounting for an invoice by manually applying one or
more holds to it.
There are three types of holds that you can use to prevent payment of an invoice:
Invoice hold.
Scheduled payment hold.
Supplier hold.
You can use invoices holds window to view invoices with holds, but you cannot manually release these
holds.
You must correct the exception that caused validation to place the hold on the invoice and then resubmit
validation to release these holds.
You can correct exceptions by updating the invoice or the purchase order or by changing invoice
tolerances.



8) What are circumstances under which an invoice can be cancelled?

You can cancel only unpaid invoices.
You can cancel any never validated invoice or a validated invoice that does not have any effective
payments or accounting holds.

9) Which one of the following is an invoice distribution type?

a)Manual b)matching c)Allocation d)Withholding e)distribution set .

10) You can allocate a miscellaneous line to which of the following lines?
a) Tax b) Item c) Freight d) prepayment e) Miscellaneous

Answer to 9 and 10

9) Withholding
Invoice distribution types:
Item
Tax
Freight
Miscellaneous
With holding
Prepayment.

10) Item.
Chapters5- Invoice Input And Matching Concepts
1) What steps required for pay on receipt (ERS) and explain in brief the feature?

Pay on receipt enables you to automatically create standard unapproved invoices for payment fo goods
based on receipt transactions.
Invoices will be created using a combination of receipt and purchase order information, eliminating
duplicate manual data entry and ensuring accurate and timely data processing.
Set up required:
Check the check boxes for pay site and purchasing and in purchasing tab the pay on field should have
a value of receipt, the invoice summary level should also have the value of receipt in the Supplier Site
of the respective Supplier in Oracle Purchasing responsibility.
To run payment on Receipt:
Navigate to the submit requests window and choose Pay on receipt auto invoice as the request name.
Choose the transaction source is ERS.
Enter a commit interval.
Optionally enter a receipt number.
Optionally enter the aging period.

2) What are the various kinds of document matching methods and matching options?
Different ways of matching:

Receipt match
Purchase order shipment match
Purchase order distribution match
Price correction.

3) What is withholding tax and what are the various kinds of withholding tax definition that can be made in
Oracle Payables?

Concept:
You may be required to withhold taxes from your employee expense reports and supplier invoices. Once
you setup Payables to automatically withhold tax, you can withhold tax either during invoice validation or
during payment processing. You can control all withholding tax options in the withholding tax region of the
payables options window.

4) What do you mean by retroactive pricing of purchase order?

Oracle Payables supports Oracle Purchasing Retroactive pricing of purchase orders feature.
When using this feature, after a purchasing user updates the price of a purchase order item, the system
creates adjustments in payables for any existing invoices matched to that item.
The net effect is as if each original invoice has been matched at the new price.

5) What are the necessary set ups required for withholding tax in payable options?

Enable the check box Use with holding tax.
Enable the check box Allow manual withholding to enter manual withholding tax distribution lines.
Withholding invoice is generated either at the time of invoice validation, payment time or never based on
the option selected in the payables option.
Enabling the includes discount amount option will exclude the discount amount from the invoice amount.
Enabling the includes tax amount option will include the tax component of the invoice for withholding tax
calculation.

Navigation: (N) Setup > Options > Payables.
Set-Up Requirements:

Navigation: (N) Setup > Calendar > Special Calendar

Navigation: (N) Suppliers > Entry Navigation: (N) Setup > Tax > Codes

Period limit: Payables stop computing withholding taxes once the amount ceiling for the period is
reached.
Flat rate: The withholding tax is calculated on a flat rate on all the invoices of the supplier.
Navigation : (N) Setup > Tax> codes >(T) Withholding Tax Details

Navigation: - Setup > Tax > Withholding > Groups


6) What is RTS? How does it work?

Return to Supplier(RTS) is Oracle Payables will automatically create Debit memos on return of goods to
supplier.
System will create a Debit note only if the original receipt against which the returns are being made is
invoice and matched.

7) What is amount based matching?

Oracle Payables has matching functionality for services procurement. So that users can match invoices
based on variable rates for services.
They can now match based on an amount only, rather than matching on quantity and price.
The self service invoice entry capability in Oracle iSupplier portal has supports this feature.

8) How to identify invoices generated by self-billing?

Oracle Payables can now automatically assign gapless, sequential invoice numbers to all self-billing
invoices for a supplier site.

9) Which invoice type can you not match to Purchase orders and receipts?
a) Standard invoice b) mixed invoice c) PO default invoice d) expense report invoice e) quick match
invoice d) none of the above

10) If you enter a Quick Match type invoice, Payables automatically completes the match to all purchase
order shipments.
a) True b) false


Answer to 9 and 10:

9) None of the above
10) True


Chapter6-Recurring Invoices

1) Explain the basic steps for creating a recurring invoice?

To enter the recurring invoices perform the following steps:
Define periods in the special calendar window.
Define a recurring invoice template.
Create invoices based on the template.

2) What are the various purposes for which special calendars can be defined in accounts payables?

Use the Special calendar window to define the periods payables uses for:
Recurring invoices.
Automatic withholding tax.
Payment terms.
The key indicators report

(N)SetupCalendarSpecial calendar

3) How to create recurring debit and credit memos?

You can create recurring credit or debit memos by defining a recurring invoice template and using
negative invoice amounts.

4) How withholding tax can be achieved from recurring invoices?

When you defining a recurring invoice template, enter a withholding tax group. This group will apply to all
invoices you create for that template.

5) What are the fields cannot be updated on creation of recurring invoices?

After you create an invoice using a recurring invoice template, you cannot update the following fields:
Supplier name.
Supplier number.
Supplier site.
Type.
First period number.
Currency.
GL Date.

6) What is the flexibility available while defining recurring invoice template?

Use the Recuuring invoice template to establish the basic information for the standard invoices that are
generated in a regular basis.
Prerequisites:
Define periods in the special calendar window.
Define a full distribution set if you want to use a distribution set for the recurring invoices.
The invoice date is the first date of the period in which the invoice is created.
The terms date depends on the terms date basis setting at the supplier site, but the date is calculated
differently than for regular invoices.
I. If the terms date basis is equal to the system date,then the terms date is the
II. Same date that the recurring invoice was created.
III. If terms date basis is not equal to the system date, then the terms date is the invoice date.
Enter a template number that is unique for the supplier. Payables generate an invoice number for each
invoice by appending the name of the recurring invoice period to the template number.

(N) InvoicesEntryRecurring Invoices

7) Which is not a type of calendar defined in the special calendar window?
a) Key indicator b) accounting calendar c) recurring invoice d) payment terms e) withholding tax.

8) You are allowed___________special invoice amounts when you define a recurring invoice template.

9) Payables create invoice numbers for recurring invoices by appending the name of the __________to
the ________________.

Answer to 7,8, and 9:
7) Accounting calendar
8)Either one or two
9) Recurring invoice period/template number

Chapter7-Prepayments

1) How to match a prepayment to an invoice?

Entering Prepayments

Enter a prepayment as you enter any other invoice. How ever you additionally specify:
Prepayment as the invoice type.
Temporary or permanent as the prepayment type.
The settlement date, which is the date after which is the prepayment can be applied to an invoice.
You can also hold a prepayment if you want to control payment of it.

Validating and paying Prepayments:

Validate and pay a prepayment just as you would any other invoice. However you must fully pay a
prepayment.
You can apply a temporary prepayment to an invoice after it has been paid and after the settlement date
of the prepayment.

2) How to apply prepayment to an expense report?

In the expense reports window, you can apply prepayments, also known as advances, to expense reports
during Expense Report entry.
The prepayments ca also is applied to expense reports in the Invoice Workbench.

3) Why timing of prepayment application on invoice is important, when using automatic withholding tax
feature?

The timing of the prepayment application to an invoice is important when using the automatic withholding
tax feature:
If the withholding tax payables option is set to apply withholding tax at invoice validation time, and you
apply the prepayment before approving the invoice, the withholding tax is calculated net of prepayments.
If you first approve an invoice and then apply the prepayment, you need to manually adjust the
withholding tax amount and the withholding invoice if the payables option is set to create withholding
invoice at invoice validation time or at payment time.

4) What is the use of Prepayments status report?

Use the Prepayments status report to review details for unapplied prepayments and unpaid or partially
paid invoices for a supplier.
(Optional) choose to include invoices in the report parameters to compare unapplied prepayments to
outstanding invoices for a supplier.
Choose the view only prepayments option in the report parameters to submit the report to obtain a
listing and a balance for all outstanding prepayments.
Submit the report for a supplier type, a single supplier or a date range to view specific supplier of date
range information regarding prepayments.


5) How to unapply a prepayment applied to an invoice by mistake? Can you unapply partially?

If you mistakenly apply a prepayment to an invoice, you unapply it in the invoice workbench. It is then
available to apply to another invoice. When you unapply a prepayment, you must unapply the full-prepaid
amount.
Payables increase the amount available for the prepayment by the unapplied amount.
Payables create a positive amount prepayment distribution on the invoice, with the same attributes as
the existing prepayment distribution it is reversing.
Payables then update the status of the invoice to unpaid or partially paid.

6) How to cancel a prepayment?

You can cancel a prepayment as you would any other invoice, in the auctions window.
If a prepayment has been paid, the payment document that paid the prepayment must be voided before
the prepayment can be canceled.
You cannot void a payment document that paid a prepayment unless the prepayment is fully unapplied.
Review cancellation information in the Invoices Overview Window.

7) How to match a prepayment to a purchase order and what is its effect?

When you match a prepayment to a purchase order, the prepayment distributions use the default
prepayments account, which you can override.
Payable does not calculate invoice price variance and exchange rate variance at this point. Later when
the matched prepayment is applied to an invoice, Payables reverses the matched quantity on the
prepayment to reflect the balance of the total quantity matched.

8) How can prepayment be applied from invoice workbench on an invoice?

For you enter in the invoices workbench, you can apply a prepayment either after you approve an invoice
or while you are entering it.
When you apply a prepayment to an invoice, you can see all available prepayment distributions for the
same supplier in the Apply/Unapply Prepayments window. You partially apply a prepayment distribution
by applying only a portion of its available amount.

9) Permanent prepayments can be applied to invoices or expenses report.
a) True b) False

10) You must fully pay a prepayment before you can apply the prepayment to an invoice.
a) True b) False

11) When you unapply a prepayment, you must unapply the full-prepaid amount.
a) True b) False

Answer to 9,10, 11:

9) False
10) True
11) True

Chapter8-Debit and Credit Memos

1) How to create debit and credit memo in the invoice workbench?

Enter a debit or credit memo to record a credit of goods or services purchased. Credit/debit memos
netted with basic invoices at payment time.

Credit Memo: Negative amount invoice created by a supplier and sent to you to notify you of a credit.

Debit memo: Negative amount invoice created by you and sent to a supplier to notify the supplier of a
credit you are recording. Usually sent with a note explaining the debit memo.
Note: In Oracle Payables, a debit memo and credit memo both create the same accounting entries.

The system does not distinguish them as different transactions.
You can enter credit memos using invoice workbench, Invoice gateway, the Open Interface.
You can enter debit memos using the Invoice Workbench.

(N) Invoices > Entry > Invoices

2) What is the difference between debit memo and credit memo?

Credit Memo:

Negative amount invoice created by a supplier and sent to you to notify you of a credit.

Debit memo:

Negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are
recording. Usually sent with a note explaining the debit memo.

3) How to match debit memo and credit memo to an existing invoice?

You can match a Debit or Credit memo to existing invoices, purchase orders, or receipts.
When you match a debit or credit memo to an existing invoice, purchase order or receipt, Payables
automatically copies the accounting information from the matched document and creates invoice
distributions for the credit memo or debit memo.



4) How to record price correction using debit and credit memo invoice?

Record a price decrease by entering a credit or debit memo invoice. Then when matching to a purchasing
order or receipt, select the price correction check box in the Find purchase orders for matching Window or
Find receipts for matching Window.
Record a price increase by entering standard or PO Default invoice type. Then when matching to a
purchase order or receipt, select the price correction check box.

(N) Invoices > Entry > Invoices (B) Match Purchase Order (B) Find

5) In oracle payables, a debit memo and credit memo create different accounting entries?
A) True B) False

6) Which one of the following can you match a debit memo and credit memo to?
a) Refund b) receipt c) payment d) prepayment d) expense report.

Answer to 5 and 6:

5) False
6) Receipt

Chapter9- Payments Set-Up

1) Explain the terms-payment Terms and Terms Date?

Assign payment terms to an invoice to automatically create scheduled payments for the invoice with due
dates and any discounts.
You can set up payment terms to default from the Financials Options, Supplier and Supplier Site Levels.
You can assign a payment term name that helps identify the payment term.
You can assign unto three discounts for each payment line.

(N) Setup>Invoice>Payment terms.

You can define payment terms based on a special calendar.
A payment terms special calendar type is used to specify due dates for each period in a calendar.
You can set up complex payment terms. For example, paying on the 5th and 25th of every month.
Exceptions can be made for weekends and bank holidays.
The payment terms window has a calendar field. This links the payment terms to the user-defined
calendar.

2) Define pay group? Can it be assigned to more that one supplier? Why pay group is used?

A pay group is a feature you use to select invoices for payment in a payment batch. You can define a
pay group and assign it to one or more suppliers.
Define a pay group with descriptive name, for example, Utilities or Employees.
Define a default pay group for all suppliers, for an individual supplier or for a supplier site.

(N) Setup>Lookups>Purchasing

3) Define discounts can be availed on the invoices for a supplier?

Payables use payment terms you assign to an invoice to pay invoices at a discounted rate.
You can define discount payment terms that have payables vary the discount amount depending on how
old the invoice is. You also define the payment terms to pay the full invoice amount if you have missed
the discounted rate.

4) What is the use of Discounts Available Report and Discount Taken and Lost Report?

Discounts Available Report:
Review invoice discount details for a supplier or group of suppliers.
Use this report to identify payments where you can take advantageous discounts.

Discount Taken and Lost Report:
Review discounts taken and lost for a supplier or a group of suppliers for a specified period of time.
Review this report to determine whether to modify system and supplier defaults to ensure that discounts
are taken.

5) How to define Bank Accounts?

Use the Banks window to enter bank information for banks with which you do business.
Oracle Receivables and Oracle Payables share bank definitions, although not all bank information
shared.
Bank branches can have multiple bank accounts, and each account you define can be associated with
payables payment documents and Receivables payment methods.
Oracle Payables uses the Banks and Bank accounts windows to define:

Internal bank accounts
Customer bank accounts
Supplier bank accounts
Multiple currency bank accounts
Foreign currency bank accounts

Bank Account Function Security:

These functions allow you to control each users access to the three bank account
types;Internal,Customer and Supplier. For example, you can grant a clerk who manages suppliers full
access to supplier bank accounts but deny that user access to customer and internal bank accounts.
These functions control bank account access in Oracle Payables Windows and reports.
You define payment document for each internal bank account. These payment documents have payment
formats associated with them, which specify a payment method of:
Check
Electronic
Wire
Clearing.

(N) Setup>Payment>Banks

How to Enter Bank Information:

In the Banks window enter all basic bank information.
Select Bank as the institution.
Optionally, enter the information related to electronic data interchange (EDI) or electronic fund transfer
(EFT.
Optionally enter the contact information in the contact region.
Save your work.
Proceed with how to define Bank Accounts.

How to Define Bank Accounts:

Enter the bank account name and bank account number.
(Optional) Enter an account type and description.
To use country-specific account number validation, enter the check digits.
Select the account use.
In the GL accounts region, enter cash, cash clearing, bank charges, and bank errors account.
In the Payables options region, enter operational information for the use of your bank account.
(Optional) Enter the contact information in the contact region.
Proceed with defining payment documents for Bank accounts.

Defining Bank Accounts for your Suppliers:
You can enter information for bank accounts for which your supplier is the account holder. You then
assign these accounts to the supplier and its sites. Payables use this bank information when you create
electronic payments for your suppliers.

Use of Supplier Bank account when it is Inactive:
When a user makes a supplier bank account inactive, Payables can optionally replace that account on
any unpaid or partially paid scheduled payments with the suppliers primary bank account.
A function controls display of the bank accounts and supplier assignments tabs in the suppliers and
banks windows. If a users responsibility does not have access to this function, then the user can not see
the following:
o Bank accounts tab in suppliers window.
o Bank accounts tab in supplier sites window.
o Supplier assignments tab in bank accounts window.
Bank Transmission Details:
Transmit payment file program in Payables.
Retrieve payment file conformations program in Payables.
Retrieve Bank Statement Program in Oracle Cash Management.
Retrieve payment exceptions concurrent program in Oracle Cash Management.

6) How to define payment documents for Bank accounts?

Defining payment documents for Bank Accounts:
You must create at least one payment document before you can use a bank account to create invoice
payments.
When you define payment documents, you can only select payment formats that use the same currency
as the bank account currency. If the bank account is a multiple currency bank account, you can choose
foreign currency payment formats or multiple-currency payment formats.

(N) Setup>Payment>Banks (B) Bank Accounts (B) Payment Documents

7) What are the different document disbursement types? Briefly describe.

Document Disbursement Types:
1. Recorded: Records payments made outside Oracle Payables, for example, a hand written check or a
wire.
2. Computer Generated: Creates immediate, single check payments. Pays invoices in a payment batch,
for example, a check run or an electronic payment batch.
3. Combined: Can be used for both manual and computer-generated payments.

8) What are the setups required in financial and payable options for payment?

Setting up Financials Options For Payments:
The that you define in the supplier payables tabbed region except for the Receipt Acceptance Days
option, are used as default values for the payment region of the Suppliers window. The supplier values
default to new supplier sites for the supplier, which default to new invoice for the supplier site.
You con override these values during entry of the supplier, supplier site, and invoice.

(N) Setup>Options>Financials (T) Supplier- Payables

Setting up Payables Options for Payments:
In the payment-tabbed region, you can set the following defaults and options that will simplify automatic
processing:

1.Bank account 8.Payment batch limit
2.EFT user number 9.Additional pay through days
3.Allow document category override 10.Exclude tax from Discount calculation
4.Discount method 11.Allow print
5.Allow pre-date 12.Allow void and reissue
6.Allow address change 13.Allow remit to account override
7.Use bank charges

Setting up Supplier Payables Options:
You can set the following payment information defaults in the supplier-tabbed region to enter payment
defaults for the supplier window:
Pay group
Invoice currency
Terms date basis
Pay date basis
Bank charges bearer
Tax reporting options.

9) What are the set ups required for future dated payments?

Setting up Future-Dated Payments:
For future-dated payments, the funds are not available until the maturity date. This is the date when the
payment document will be honored (paid) by the issuing bank. The document also contains an issue date,
which is the date the document was created or presented to the supplier.
This raises the issue of when to relieve the liability for future-dated payments. You can relieve liability for
a future-dated payment either at payment issue or payment maturity.
How to setup Future-Dated Payments:
When you use the future-dated payments, you need to select additional options in payables.

(N) Setup>Options>Payables (T) Payment Accounting

(N) Setup>Payment>Banks (B) Bank Accounts (B) Payables Documents (T) future-dated Payments

Settingup payables with Cash Management:
Select one or both options for Account gain or loss:
o When payment is issued
o When payment clears
Select the calculate Gain/Loss option:
o For each invoice
o For total payment
Use future-dated payment account:
o From payment document
o From supplier site

9) You can assign a payment priority to invoices to prioritize them for payment from
__________to____________.
10) You can enable the _________________attribute for an invoice to ensure that it is paid on a separate
payment document.
11) Bank can be defined for ____________,____________and ______________.

Answer to 10,11,and 12:

10) 1(high)/99(low).
11) Pay alone
12) Suppliers, customers and internally.

Chapter10- Payment Transactions

1) What is the effect on the Invoice, on voiding of payments and what are the various alternatives?

Voiding Payments:
When you void a payment, you select the action you want payables to take on the invoices paid by the
void payment. You can choose to:
Place the invoices on hold.
Cancel the invoices.
Take no action. Invoices are available for payment.

2) What are the various kinds of payments and explain the steps for doing batch payments?

Payment Methods:
Check: A printed-paper remittance document that is sent to a supplier.
Clearing: A record of payments for invoices transferred from another entity with in the company without
creating a payment document.
Electronic: An electronic funds transfer to a suppliers bank.
Wire: A funds transfer initiated by contacting your bank and requesting a wire payment to a suppliers
bank.

3) Give the basic accounting entries with examples when the following transactions are entered in
accounts payable.

i. Payment
ii. On Clearing
iii. Future Date Payment and Maturity

Accounting Entries for:
Payment:
AP Liability A/c Dr 100/
To Cash clearing (or) Cash A/c 100/ .

On clearing:
A payment-clearing event occurs when either clear or reconcile a payment in Oracle Cash management
and the system is set up to account for payments when they clear.

Future date payment and Maturity:
AP Liability A/c Dr 100/
To Future Dated Payment A/c 100/ .
Future Dated Payment A/c Dr 100/
To Cash Clearing (or) Cash A/c 100/ .


4) How to refund from Payment Workbench?

A refund closes out an outstanding credit balance. You are effectively making a negative payment for
credit balance. The refund payment can consist of any combination of the Invoices, Credit memos, Debit
memos and expense reports, as long as the total is a negative amount.
Oracle Payables offers you a standard way to record refunds received from your supplier.
Refunds are a type of payment that you enter in the Payment Workbench.

5) What are the prerequisites for processing electronic payment?

Prerequisites for processing Electronic Payment:
When you define your payment format, select the appropriate Electronic payment method.
You must define the remittance bank accounts and payment documents that you will use to create
electronic funds transfer (EFT) payments.
You must setup your supplier and supplier sites with bank accounts that receive electronic payments.
When you enter the invoices that you want to pay, enter Electronic as the payment method.

6) How payment reconciled with cash management?

Payment Reconciliation with Cash Management:
Use Oracle Cash Management to reconcile payments with your bank statements.
When Oracle cash Management reconciles a payment, it changes that payments status from
Negotiable to Cleared.
If your system is setup to account for payments at clearing time, then Oracle Payables creates
reconciliation accounting entries after a payment has cleared.

7) How to enquire for payment made to a supplier?

Use the Payment Overview Window to review the status of a payment and its related high-level
information.
Review information quickly when a suppler calls to enquire about the status of a payment.
Because the payment overview window is a display-only window, click payments to negative to the
payments window. If you want to view additional details or make any necessary adjustments.

(N) Payments>Inquiry>Payment Overview

8) Which one of the following is not an example of a manual payment?
a) Computer Generated Cheque b) wire transfer c) Handwritten Cheque

Comment whether the following is true or false.
9) When you create a computer generated quick payment, you can select an invoice regardless of the
payment terms and due date.

10) You can use payment batches to set limits on payment amounts.
11) You use the payment batches window to initiate payment batches.
12) Payables select approved and unapproved invoices that match your invoice selection criteria.

Answer to 8 to 12:

8) Computer Generated Cheque
9) True
10) True
11) True
12) False



Chapter11- Expense Reports

1) Explain briefly the Employee Expense Report cycle in Accounts Payables?

Enter Expense Report Review, Modify and Approve Expense Report

Submit Payables Invoice Import to convert Expense Report into Invoice

Create Payment.

Setting up Oracle Payables to enter Expense Reports:

Enter Employees and Locations Define Employee as supplier
Define Expense Report Templates.

2) How to apply a hold to an expense report?

You apply a hold to an expense report to prevent it from being paid.
You define invoice hold codes in the Payables invoice approvals window.
Examples of hold reasons are:
i. Expense report amount exceeds company policy.
ii. Requires approval from upper management.
iii. Insufficient information.
You can remove a hold after the expense report has been converted into an invoice.

3) How to apply advances against expense report?

An advance is a prepayment to an employee for business expenses.
Applying an advance to an expense report reduces the total reimbursement amount.
You can apply one or more advances to an expense report, but you can not apply more than the
expense report total.
To apply advances to expense reports, the apply advances Payables option must be enabled during
payables setup.

4) How to review and modify to an existing expense report?

You can review and modify the expense reports in the Expense Reports window.
Expense reports created in Oracle Projects must be modified in the Projects Expense Reports window
(but you can apply advances and holds to these expense reports in Payables).
After an expense report has been successfully imported by the Payables Invoice Import Program:
o You can view expense report in the expense reports window.
o You can view expense report in the expense reports window, but you cannot modify it.
You can adjust the reimbursable amount if an expense item is not reimbursable or if it violates company
policy.
Enter an adjustment reason and indicate whether the item will be short paid due to a policy violation.
Check the reviewed by payables check box when review is complete.
If the report was created in Internet Expenses, restart the AP expense report workflow by submitting the
workflow background process from the submit request window.

5) What is the use of payable invoice import program?

Payables Invoice Import Program uses to convert expense reports created in Payables, Internet
Expenses and Projects into invoices.
Converts expense reports from following sources into payables invoices:
o Payables
o Internet Expenses
o Oracle Projects
o Other Accounting Systems.
The program verifies that all required information in the expense report is provided and is valid.
Expense report that fail validation are not converted/imported and appear in the Invoice Exceptions
Report.
6) Employee can enter their own expense reports in _____________, _____________and
__________________.
7) __________________________________Converts expense reports created in payables into invoices.

8) Expense reports that fail validation appear in the __________________________________report.

Answer to 6 to 8 :

6) Oracle payables, Internet expenses, oracle projects
7) Expense Report Import
8) Expense Report Import

Chapter12- Value Added Tax

1) Where do we attach tax types and tax codes?

Tax Types:

Optionally uses the Oracle Payables Lookups window to define tax types, for example, VAT.
Oracle Purchasing and Payables treat all sales and user-define tax types the same way.

(N) Setup > Lookups > Payables

Tax Codes:

Use the tax codes window to define the tax codes that you will use to record tax information in Purchasing
and Payables.
For each tax code, you can:
o Define and use in Oracle Purchasing or Payables
o Enter:
- Tax type
- Tax rate
- Effective dates
- Recovery rate and recoverable rule
- GL account

Defining Suppliers and Supplier Sites:

Suppliers and supplier sites are shared between Oracle Purchasing and Oracle Payables and can be
setup in either product.
Enter the tax registration number in the Tax Registration Number field in the header region.
Optionally enter a default tax code or group in the Invoice Tax Code field for supplier sites.
Optionally check the Use Offset Taxes check box.

Defining Tax defaulting in Oracle Payables:

Use tax defaults and rules region of the payables options window to define:
- Which sources Oracle Payables uses to default tax codes to documents
- The order in which Oracle Payables searches the sources to find a valid tax code value.

2) What are the profile options for tax recovery?

Use the system profile values window in the system administrator Responsibility.
Set options for entering Purchasing or Payables documents:
i. Tax: Allow Override of Tax Code.
ii. Tax: Allow Override of Tax Recovery Rate.

3) Give the navigation for tax types definition.
.
Set up ->Look Ups->Payables

Value Added Tax (VAT): Imposed on the value added to goods or services at each stage of their supply.
Goods and Service Tax (GST): Sales tax levied on many consumer products and professional services.
Input Tax: Tax paid out on supplier invoices.
Output Tax: Tax collected on customer invoices.


Amount due to Tax Authority = Output Tax Recoverable Input Tax.

Chapter13- Accounting in Payables

1) What is an accounting event? What are the document classes that describe accounting events?

Accounting Event:

An accounting event is a payables transaction that affects accounting, such as a payment. The type of
event controls the accounting that is created for a transaction and how that accounting appears in the sub
ledger.

There are two document classes that describe accounting events in Payables:

Invoices
o Invoice event
o Invoice Adjustment Event
o Invoice Cancellation Event
o Prepayment Application Event
o Prepayment Unapplication Event
Payments
o Payment Event
o Payment Maturity Event
o Payment Adjustment Event
o Payment Cancellation Event
o Payment Clearing Event.

2) What are the prerequisites for creating accounting entries?

Creating Accounting Entries:

You can create entries by submitting the Payables Accounting Process.
You can create entries through transaction windows.

Payables Accounting Process:

The payables accounting process does the following:
Creates accounting entries in all sets of books.
Assigns a journal category to each entry.
Creates the Audit Report and Exceptions Report.

Prerequisites for Creating Accounting Entries:

Define payables options for accounting information
Open the period in Payables
Enter exchange rates if you are processing foreign currency transactions
Update the status of any matured future dated payments to Negotiable
Account for invoices before you approve them
Account for invoices before your account for payments.
View Accounting Entries:
You can use the view accounting entries windows to view accounting entries. Depending on how you
open the window, the window title and the data

3) What are the reports useful for reconciling payable activity?

Reconciling Payables Activity:

You can use the following payables reports to reconcile your posted invoices and payments to your
Accounts Payable Trail Balance. This ensures that your trail balance accurately reflects your accounts
payable liability:
Posted Invoice Register
Posted Payment Register
Accounts Payable Trail Balance (last period and current period)

4) Mark the following statements are true or false .
I. An invoice cancellation event occurs when you cancel an accounted invoice.
II. You cannot create an invoice event for an invoice entered in foreign currency.
III. You can create accounting entries if you use automatic offsets.
IV. The payables accounting process assigns journal entries.
V. You must account for invoices before you approve them.
VI. You can create accounting entries through a transaction window.
VII. For a payment batch, the accounting completes online.

5) Which accounting event is not in the payment document class?

Answer to 4 and 5:
4) I. True II.false III.true IV.false V.false VI.true VII.false, for a single invoice, the accounting completes
online.

5) Prepayment application event


Chapter14- Period End Process

1) What are the three key processes involved before accounting entries from payables are transferred to
General Ledger?


Approve all Invoices.
Confirm all payment batches.
Submit the Payables Accounting Process to account for all unaccounted transactions.
If you use future date payments, submit the update matured future dated payment status program.
Review the unaccounted transactions report.
Transfer invoices and payments to the General Ledger.


2) What are the conditions required to close for payables period?

Payables will not let you close a payables period if any of the following conditions apply:
There is unaccounted data.
There are accounting entries not transfer to General Ledger.
There are unmatured future dated payments.
There are unconfirmed payment batches.

3) What is the use of unaccounted transactions sweep program?

The Unaccounted Transactions Sweep Program:
The unaccounted transactions sweep program serves as a utility to allow users to sweep transaction
data from one period to the next. There is unaccounted transaction data.
This program allows users to move unaccounted transaction data forward so they can close the period
and then make adjustments at a later time.

4) What are the steps required to complete period closing process?

Completing the Period Closing Process:
A. Approve all invoices and confirm all payment batches.
B. If you use future dated payments, submit the Update Matured Future Date Payment Status Program.
C. Submit the Payables Accounting Process to account for all unaccounted transactions.
D. Review the Unaccounted Transactions Report. Review any unaccounted transactions and correct data
as necessary. Then submit the payables accounting process to account for transactions you corrected.
E. Transfer invoices and payments to General Ledger and resolve any problems you see on the output
report.
F. (Optional) move any unresolved accounting transaction exceptions to the next period.
G. In the control payables window, close the period in Payables.
H. Reconcile payables activity for the period.
I. If you use oracle purchasing, accrue un invoiced receipts.
J. If you use Oracle Assets, run the Mass Additions Create Program to transfer capital invoice line
distributions from Oracle Payables to Oracle Assets.
K. Post journal entries to General Ledger and reconcile the trail balance to the General Ledger.

5) When a period should be closed?

You close a Payables period after you have:
Completed accounting for transactions for the period.
Transferred the accounting entries to the General Ledger.

6) _______________________Program allows users to move unaccounted transaction data from one
period to next. Unaccounted transaction sweep program

7) Oracle payables do not allow you to close a period with ___________invoice and payment
transactions.
Answer to 6 and 7:

6) Unaccounted transaction sweep program
7) Unaccounted.

Chapter15- Reporting And Reconciliations

1) List out the accounting and reconciliation reports?

Payables provides the following accounting and reconciliation reports:

- Accounts Payable Trail Balance Report
- Payables Account Analysis Report
- Payables Accounting Entries Report
- Payables Accounting process report
- Posted Invoice Register
- Posted Payment Register
- Unaccounted Transactions Report

2) Briefly describe about the payables accounting process report?

Use the Payables Accounting Process Report to review accounting entries created by the Payables
Accounting Process. The report has the two sections:
Accounting Entries Audit Report:
The audit report provides, in detail or summary, a listing of accounting entries created by the accounting
process.
Accounting Entries Exception Report:
The exception report lists in detail all accounting entries that were created with an error status and a
description of that error.

3) Briefly describe about the payables accounting entries report?

Use the Payables Accounting entries Report to review and analyze accounting entries in the payables
sub ledger.
The report also lists transactions that have been accounted with error and all entries that could not be
transferred to the General Ledger Interface.

4) How to reconcile accounts payable activity for the period?

Reconciling Accounts payable Activity for the Period:
Use the following Oracle Payables reports to reconcile your transferred invoices and payments to your
Accounts Payable trail Balance to ensure that your Trail Balance accurately reflects your accounts
payable liability:
- Posted Invoice Register
- Posted Payment Register
Note: Before running your reports, be sure you have run the Payables Transfer to General Ledger
Program for all transactions in the period that your reconciling. Also, be sure to post the transactions in
the General Ledger.

5) What is the use of accounts payable s trial balance report?

Use the Accounts Payable Trail Balance Report to reconcile your accounts Payables liability in your
General Ledger.
Compare the Accounts Payable Trail Balance to the Accounts Payables balance in your General Ledger
system for a given period.
Note: Because the Trail Balance presents the outstanding accounts payable liability information, it is only
valid for an accrual set of books.

6) How to reconcile accounts payable trial balance for a given period?

To reconcile your Accounts Payable Trail Balance for a given period:
- Add the current periods accounted invoices (total invoice amount from the Posted Invoice Register) to
the prior periods accounts payables trail balance.
- Next, subtract the current periods accounted payments (total cash plus discounts taken from the Posted
Payments Register) from this total.
- This amount should be equal the current periods Accounts Payables Trail Balance.
The following is an example of reconciling the accounts Payable Trail Balance Report for April:


March Accounts Payables Trail Balance
+ April Posted Invoice Register
- April Posted Payment register
= April Accounts Trail Balance.

7) _________________Provides a listing of accounting entries created by the accounting entries.

8) _____________________And ________________________reports used to reconcile your transferred
invoices and payments to your accounts payable trial balance to ensure that your trial balance accurately
reflects your accounts payable liability.

Answer to 7 and 8:

7) Accounting Entries Audit Report

8) Posted invoice register and posted payment register