Oracle Finance AP ( Q & A )

1 What are the types of invoices?
Standard, Debit memo, Credit memo,Prepayment,Retainge,Withholding invoice,Expense Report

2 What is Prepayment and Process?
A prepayment is a type of invoice you enter to make an advance payment.We can adjust prepayment against standard invoice in future.

3 What are Types of Prepayment?
Permanent -which is used for long term deposit. Ex:-Fixed deposit,Term deposit
Temporary-which is used for short term advance.Ex:-Advance to supplier

4 What is the use of permanent prepayment and Accounting entry?
Ex:Term deposit for long term
Advance to supplier Dr 100
To Supplier Cr 100

5 Batch payment process
Its a 11i bulk payment for multiple supplier

6 Standard concurrent program in AP
Create Accounting, period close exception report, India-Creditor ledger

7 Difference between invoice and invoice batch and what setup required?
It’s either, or relation. We have to activate profile option batch% as yes. It will disable the new button at find screen at invoice.

8 Can we change invoice if we made the payment?
Yes we can change if its not accounted and if the amount exceeding the previous amount otherwise can’t change.

9 What are the criteria for entering a standard invoice?
Supplier, Supplier site, payment term, payment method, distribution account

10 What are the modules interfaced through AP module?

11 What is the work of payment manager?
We can make payment supplier category wise and for multiple supplier payment in a one struck.

13 Can we sweep invoice which is in hold position?
No, We have hold and release that then we can close the period.

14 What do you mean of retention in AP?
It means holding some part of payment for a contract suppler. Retain value will be release at the end of the contract. We can make through Retainage invoice.

15 What are the encumbrance options for AP? How are they used?
PO encumbrance and requisition encumbrance available in Financial options.
Encumbrance used to reserve the funds at the time of raising PR or PO.

16 What are the different types of supplier site?
Purchasing,Pay,Primary pay,RFQ only,Procurement card

17 How can we default supplier site at invoice level?
Enable primar pay check box in supplier site for that particular site.

18 What is the use of Withholding invoice and which scenario?
At the time of doing withholding tax ,this invoice used to generate.

19 What is the entry for AP invoice?
Expenses Ac Dr 100
To Supplier Ac Cr 100

21 what are the methods of accounting?
Accrual and Cash method

22 What is special calendar & why its required?
Use the Special Calendar window to define periods that Payables uses for automatic withholding tax, recurring invoices, payment terms, and for the Key Indicators Report. For example, if you monitor staff productivity weekly, use this window to define weekly periods for the Key Indicators calendar type.

23 What types of Distribution Set and whats the use of skeleton DS?
Use Full Distribution Sets to create distributions with set percentage amounts or Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account. A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month’s headcount for each group.

24 What is EB Tax and set up. How its linking to the AP and AR module?
1. Define party tax profiles
2. Define regime
3. Create Tax
4. Create tax Status
5.Create tax rate
6.update tax configuration options

25 How to create tax rates? Create tax in EB tax

26 Withholding tax and utilization It’s like TDS concept in India.

27 What is the use of Offset Account method
Three types i.e. None,Balance,Account If we selecting None then Supplier account will be same for all OU ,If we selesting Balanceing then supplier account will seggregate for OU wise , if we select Account then its segregare All Code combination as based on real distribution account we have entered for OU wise.

28 How many types of payment method.
5 types i.e.Bills payable,Check,Electronic,Outsourced Check,Wire

29 What is pay group?
It is to group invoices in to supplier category for payments.

30 What is prepayment settlement date in payable option?
Number of days you want Payables to add to the system date to calculate a default settlement date for a prepayment. Payables prevents you from applying the prepayment to an invoice until on or after the settlement date.

31 What is GL date basis in payable option?
The date you want Payables to use as the default accounting date for invoices during invoice entry.
+ Invoice Date-Invoice date you enter during invoice entry.
System Date-Current date for your Payables system. The date you enter the invoice.
+ Goods Received/Invoice Date-Date that you enter in the Date Goods Received field.
If no value is entered, then the invoice date is used.
+ Goods Received/System Date-Date that you enter in the Date Goods Received field. If no
value is entered, then the system date is used.

32 What is difference between debit memo and credit memo?
Debit Memo: A negative change in invoiced amount identified by customer and sent to supplier. Ex.Purchase return
Credit Memo: A negative change in invoiced amount identified by supplier and sent to customer.Ex:TDS payable

33 What is meant by with-holding tax invoice?
After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.

34 What are the mandatory setups in AP?
Financial option,Payable option,System setup option,Create payment term,Create payment administrator,Creation of supplier,Open payable period,Open GL period,Open Inventory period,Open Purchase period,

35 Can we make foreign currency invoice and payment?
Yes,but in payable option we have to enable use multiple currency and in bank,enable multi currency payments

36 Purpose of Payable invoice open interface?
It can use the Payables Open Interface Import program to create Payables invoices from invoice data in the Payables Open Interface Tables

37 Payable open interface import? (Expense Report Import)?
Use Payables Open Interface Import to import invoices from the Payables Open Interface Tables.

38 What is Multi Currency payments?
Multi currency is possible but we have to set up at the time of Bank Creation.

39 Can we implement MRC at Payables?

40 What does the Unaccounted Transaction Sweep Report do?
It will sweep the transaction to next period.

41 What reports should I run before closing the period?
Period close exception report,Unposted transaction

42 What is the program to transfer data from AP to GL?
Transfer Journal Entries to GL (Parameter-Ledger ,End date)

43 What is meant by void payments?
When you void a payment, Payables automatically reverses the accounting and payment records so your general ledger will have the correct information, and so the status of the paid invoices is reset to Unpaid. Payables also reverses any realized gains or losses on foreign currency invoices recorded as paid by the payment

44 What are the types of journal categories available in the AP?

45 What is meant by matching and what are the types of matching’s available?
2 way-Invoice and PO, 3 way-Invoice,PO and Receipt and 4 way-Invoice,PO,Receipt and Inspection

46 What is a Hold and Release? Types of hold?
Hold means restriction in invoice for further processing.User can define any kind of holds to hold the invoice for further processing.
Type:-Manual and System hold

47 How to approve ‘n’ no. of invoices?
You can be Approved n number of invoices using the Request “Invoice Validation”

48 What is Zero-Payment in AP?
Create zero-amount payments to pay basic invoices with offsetting credit or debit memos, or to record cancelled invoices as paid so they are no longer included on the Invoice Aging Report. Before you make a zero-amount payment, you must enable the Allow Zero-Amount Payments option for the bank account you will use to create the payment.

49 What is Proxima Payment Terms?
Cut off day

50 What are the tables associated with Invoice?

51 What is Interest Invoice and how it can be created?
Payables automatically creates invoices to pay interest for overdue invoices if you enable automatic interest calculation for a supplier, and you pay an overdue invoice for the supplier in a payment batch or with a Quick payment. The new interest invoices are ready for Approval and payment.

52 How many key flexfields are there in Payables?

53 Can you cancel the invoice? If yes, explain?
Yes, but before create accounting

54 What is pay date basis?

55 What is terms date basis?
From which date the payment term will be calculated.
Types:- System,Goods Received,Invoice,Invoice Received,Null

56 What is the report used to identify duplicate suppliers?
“Supplier Audit Report” can be used to help identify potential duplicate suppliers.

57 What is meant by accrual write off?
If you choose the Perpetual Accrual Method within Purchasing, Purchasing records an accounts payable liability to an AP accrual account for goods received but not invoiced. When Payables matches and approves the invoice for the received goods, Payables clears the accounts payable accrual account and records the actual liability amount to the invoice accounts payable liability account.After you have entered your receipt transactions and matched and approved your invoices, you can run the Accrual Reconciliation Report to identify any differences between your Purchasing receipts and Payables invoices.

58 Use of Future dated payments?
You can use future dated payments to control the timing of your payments, and therefore control your cash flow. A future dated payment instructs your bank to disburse funds to your supplier’s bank on a specific date (the maturity date)

59 What are the period statuses in AP?
Never opened,Future,Open,Closed,Permanently closed

61 What is meant by third party payments?
Payments are generally made to the supplier providing the goods or services, however sometimes there is requirement when supplier ask you to made payments to different party on supplier’s behalf.All the payments made to other parties on behalf of the supplier is termed as Third Party Payments.

62 How to transfer funds between your internal banks?
Fund transfer

63 Can I find out which invoices are matched to a PO?

64 ERS Invoice means?
Evaluated Receipt settlement Which makes auto invoice in payable.

65 What is meant by RTS transactions?
Return to supplier which has to assign at the time of creating supplier.

66 What are the steps to define a Bank?
1. User management-Role-Security wizard through Sys Admin 2.Bank branch 3. Bank Account 4.Bank Document assignment

67 How to assign Cash clearing Account
While doing bank creation, we have to give cash clearing account.


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