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March 25, 2016

3/25/2016 09:23:00 PM
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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


2)List different ‘Application types’ of receipt while creating Manual-Quick batch receipt?

They Are

  • Auto Cash rule
  • Single
  • Multiple
      ·   On account
  • 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.







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