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Oracle receivables Interview Questions



1. How do you create a Chargeback Invoice ?A. Using Receipts window2. How do you adjust the amount of advance already received against an Invoice ?A. Create an Invoice for Deposit and receive an amount against this deposit Invoice. Then Create theregular invoice and in the column of Commitments enter the number of Deposit Invoice. The Regular Invoice gets matched with the Deposit Invoice for the amount of Regular invoice or deposit invoice whichever is lower 3. How do you write off small amounts while accounting the receipt against an invoice?A. Using Receipts window. You have the button for write offs.4. How do you Account for bank charges deducted from amount received against an invoice?A. Using Quick cash window also you can enter receipts. Here you have the option of accounting thebank charges deducted on receipt. However, this has to be enabled by putting the Value in profile optionAR: Create Bank Charges = YES.5. How do you create a credit note against an invoice ?A. You have separate window to create such credit note. Navigation Transactions => Credit Transactions.6. How do you adjust a regular Invoice with a Credit Note ? Enter the amount 0 in receipt window and ininvoice matching window select the invoice as well as the credit note. This will knock off the invoiceagainst the credit note.7. What are different types of Receipt Reversals ? What is the difference between them ? What are theaccounting entries ?A. Standard Reversal and Debit Note Reversal. Standard Reversal reopens the invoice matched in thatreceipt. You can match a new receipt against this invoice.Debit Note Reversal does not reopens the earlier matched invoice but it creates a new debit note whichcan be matched with another receipt.8. When are the following accounts are usedUnbilled ReceivableUnearned RevenueA. When you use Invoicing Rule, the receivables are accounted on different dates as defined in the rule.Till such time receivables are accounted, the amount is debited to Unbilled Receivables.If you use Accounting Rule, the revenue is accounted on different dates. Till such time revenue isaccounted, the amount is credited to Unearned Revenue..9. What is the difference between Unidentified Receipt, Unapplied Receipts and On Account Receipts ?What are the Accounting Entries for each of this ?A. Unidentified Receipts: The Customer is yet to be identified and so receipt is not matched.Unapplied Receipts: The Customer is identified and entered but the amount is not matched with any of hisinvoice.

On Account Receipts: The Customer is entered and instead of matching the amount to any of his invoiceit is matched with the On Account option. This option is available as first item in the pick list of invoices.10. What is the difference between earned discounts and Unearned discounts ? How do you account theUnearned discount? What are the accounting entries involved ?A. The cash discounts are mentioned in the payment terms. Considering the due date and the receiptdate the discount is automatically calculated while entering the receipt. If however you want to increasethe amount of invoice you can manually increase it. The amount automatically calculated as per terms isthe Earned Discount. The manually added amount is the Unearned Discount. This however, dependsupon the option given in System Options in Setup.11. What are the Key Flexfields in AR.A. Sales Tax Location FlexfieldTerritory FlexfieldAR Setup Related12. What is difference between transaction type and transaction source ?A. Transaction type can either be Invoice, Credit Note, Debit Note, Deposit. Etc. This also decideswhether to account in GL, Whether to consider in receivables, the accounts to be debited, credited, thetax calculation options, and some other options which are defauled.Transaction Source decides whether the source of entry is manual or automatic. It also mentions whether transaction and batch numbering is manual or automatic.If automatic the last entered number is to be mentioned to start the automatic numbering. IF the source isautomatic, that means the transactions are to be uploaded through interface either from OE or legacysystem. Then some other options are to be set.13. What is AutoAccounting ?A. This is the account generator in Accounts receivables. This decides accounts for ReceivablesRevenueAutoInvoice ClearingFreightTaxUnbilled ReceivableUnearned RevenueFrom where the accounts are defaulted ?Sales repsTransaction LinesTransaction TypesTaxesOr you can have Constant values14. What is AutoCashRule Set ?

This decides the sequence of the invoice matching rules for unmatched receipts entered though quichcash or AutoLockBox(interface). The rules are already defined in the system. Like “Match Payment withInvoice”, “Apply to the Oldest Invoice First”, “Clear the Account”, etc.15. Where do you attach the Set Of Books ? Can you attach more than one set of books ? if you havemore then one set of books then how Receivables is configured ?You attach the set of books in System Options in Setup. Only one set of books can be attached. If youhave more then one set of books then AR is to be set in multi org environment. By specifying the “MOOperating Unit” and the “GL Set of Books Name”.16. How do you define document numbering for receipts ? can you have different sequences for eachPayment Method.In system administration. You can have different sequences for different payment methods.
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