Oracle Receivables Interview Questions
1)Is it possible to apply a receipt from one customer to
another customer’s transaction? If Yes, how to apply?
Yes, in Manual Quick batch
receipt we have an option of “Multiple”
under application type by selecting this option we can assign more than two
customers.
This option will be activated only when we select the option “Allow
payment of unrelated Transactions” in System options
They Are
- Auto Cash rule
- Single
- Multiple
- Unidentified
- Unapplied
3) What is the accounting entry, if
we apply a deposit to an invoice?
Deposits
When you enter a deposit, Receivables creates
the following journal entry:
DR Receivables (Deposit)
CR Revenue
When you enter an invoice against this
deposit, Receivables creates the following journal entries:
DR Receivables (Invoice)
CR Revenue
CR Tax (if you
charge tax)
CR Freight (if you
charge freight)
DR Unearned Revenue
CR Receivables
(Invoice)
When you apply an invoice to a deposit,
Receivables creates a receivable adjustment against the invoice. Receivables
uses the account information you specified in your AutoAccounting structure to
create these entries.
When cash is received against this deposit,
Receivables creates the following journal entry:
DR Cash
CR Receivables
(Deposit)
) How to create On-account receipt? How to apply
‘On-account’ receipt to Transaction?
While entering receipt click on the Application Button in
that select the receipt amount against On-Account and save then it will create
On –account receipt, When ever you want to apply this receipt to any invoice
then first make the receipt to Un applied then apply to any invoices
4)
Which one of the auto cash rules will use “Remaining Remittance Amount” Option?
Remaining
Remittance Amount
If you are using the Apply to the Oldest
Invoice First rule, Receivables lets you determine the status of any remaining
remittance amounts. If Receivables cannot fully or partially apply a receipt
using any of the AutoCash rules in your AutoCash Rule set, it will either mark
the remaining amount ’Unapplied’ or place it ’On Account.’ You choose one of
these options in the Remaining Remittance Amount field in the AutoCash Rule
Sets window.
5)
What is the difference between Exemptions and Exception with related to taxes
in AR?
Define tax exemptions to fully or
partially exempt a customer, item, or range of items from specific tax codes.
You can create exemptions against customers or items for either locations or
specific tax codes.
Use
the Item Tax Rate Exceptions window to assign special tax rates to products
that you ship to specific authorities.
You
can only define a tax rate exception for items that can be entered on an
invoice and have a status of 'Active.'
Item
tax rate exceptions apply only to location based tax. Therefore, to use tax
rate exceptions, your Location Flexfield Structure must be State.County.City.
To use the exceptions that you define in this window, ensure that the system
option Use Item Tax Rate Exceptions is set to Yes.
6)
When is Paying customer mandatory for a transaction?
Paying Customer is mandatory for automatic receipts and
optional for manual receipt.
7)
List the various levels from where tax codes can be defaulted to transaction?
- Customer
- Customer Site
- Product
- Revenue account
- System Option
8)
What are the different status of a receipt?
- Approved
- Cleared
- Remitted
- Confirmed
- Reversed
9) What are the different sources from where we can set
‘Tax’ account default while defining Auto accounting?
·
Salesperson
·
Site
·
Standard lines
·
Taxes
·
Transaction Types
10)
Can we define more than one receivable activity for the same type?
Define
receivables activities to default accounting information for your miscellaneous cash, discounts, finance
charges, adjustments, and bills receivable. Activities that you define appear
as list of values choices in various Receivables windows. You can define as
many activities as you need.
11)
Name the profile option, which allows for creating charge-back and adjustment
transactions?
If the profile option AR: Cash – Allow
Actions is set to No, the Charge backs and Adjustments buttons are not available
in the Applications window
12)
What is the relevance of Distribution set in AR?
Define distribution sets to account for your
non–invoice related receipts. These receipts can include refunds, revenue from
the sale of stock, as well as interest and investment income. Receipts that are
not related to an invoice are known as Miscellaneous Transactions in
Receivables.
13)
Can we define Exception for a rate-based tax? If yes, explain.
No,Use the Item
Tax Rate Exceptions window to assign special tax rates to products that you
ship to specific authorities.
You can only define a tax rate exception for
items that can be entered on an invoice and have a status of ’Active.’
Item tax rate
exceptions apply only to location based tax. Therefore, to use tax rate
exceptions, your Location Flex field Structure must be State.County.City. To use
the exceptions that you define in this
window, ensure that the system option Use Item Tax Rate Exceptions is
set to Yes.
14)
What are the differences between Manual-regular and Manual-Quick batch
receipts?
|
Manual regular
|
Manual Quick
Batch
|
|
1. In manual regular directly
updates the customer balance.
|
1.Here after running the post
Quick cash program it will update the Customer Balance.
|
|
2.Receipts can be applied only
to the one customer
|
2. In this we can apply more
than one customer by using Application type i.e. Multiple
|
|
3. We can edit the batch once
we completed also
|
3. Here once we run the post
quick cash program we cant edit the batch.
|
15)
Explain the relevance of Remit-To-Address?
Define remit–to
addresses to let your customers know where to send payment for their invoices.
Receivables uses the addresses that you define in the Remit To Addresses window
to provide default remit–to information when you enter transactions.
If you use
Auto Invoice but have not defined a remit–to address for a location, AutoInvoice
will reject all invoices for which it could not determine a remit–to address.
16)
Explain the Risk Elimination Day’s option?
The debt will be
cleared by the Automatic Clearing program y days after each receipt’s
maturity date, where y is the number of risk elimination days defined
for the payment method/bank account combination assigned to the receipt.
17) Is it mandatory to define a customer profile class?
Yes, Customer
profile class A category for
your customers based on credit information,
payment terms,
currency limits, and correspondence types.
