Item Avergae cost update interface

Item Avergae cost update interface

1) insert the corresponding values in to two tables.

INSERT INTO mtl_transactions_interface

(source_code, source_line_id, source_header_id, process_flag, transaction_mode,

creation_date,last_update_date, created_by,last_updated_by,inventory_item_id,

organization_id,transaction_date, transaction_type_id,transaction_interface_id,

transaction_quantity,transaction_uom, material_overhead_account,material_account,

resource_account,overhead_account, outside_processing_account, cost_group_id)

VALUES

('AvgCostUpdate', 0, 0, 1, 3, SYSDATE, SYSDATE,1003, 1003, 34439, 25,

sysdate, 80, 14039365, 0,'EA', 1008, 1008,1008, 1008, 1008,1000);

=====================

INSERT into mtl_txn_cost_det_interface (cost_element_id,

level_Type, Organization_id, new_average_cost, transaction_interface_id,last_update_date,

creation_date,last_updated_by, created_by)

VALUES

(1, 1, 25, 600, 14039365,sysdate, sysdate, 1003, 1003);

2)Run Transaction manager and cost manager from inventory responsibilty.

inteface Item Transaction Defaults

Inteface Item Transaction Defaults

use this api for Item transaction defaults.

lv_process_code := 'INSERT';

inv_item_sub_default_pkg.insert_upd_item_sub_defaults

(x_return_status => y_return_status,

x_msg_count => y_msg_count,

x_msg_data => y_msg_data,

p_organization_id => lv_organization_id,

p_inventory_item_id => lv_inventory_item_id,

p_subinventory_code => lv_subinventory_code,

p_default_type => lv_default_type,

p_creation_date => SYSDATE,

p_created_by => fnd_global.user_id,

p_last_update_date => SYSDATE,

p_last_updated_by => fnd_global.user_id,

p_process_code => lv_process_code,

-- 'INSERT','UPDATE','SYNC'

p_commit => fnd_api.g_true

);

Interface sub inventories and locator for the item

Interface sub inventories and locator for the item

insert into MTL_ITEM_SUB_INVENTORIES

(INVENTORY_ITEM_ID,ORGANIZATION_ID,SECONDARY_INVENTORY,INVENTORY_PLANNING_CODE,CREATED_BY,CREATION_DATE,LAST_UPDATED_BY,LAST_UPDATE_DATE)

values(34439,25,'01',2,1003,sysdate,1003,sysdate);

insert corresponding locator for the subinventory for the item

insert into MTL_SECONDARY_LOCATORS(

INVENTORY_ITEM_ID,ORGANIZATION_ID,SUBINVENTORY_CODE,SECONDARY_LOCATOR,CREATED_BY,CREATION_DATE,LAST_UPDATED_BY,LAST_UPDATE_DATE,LAST_UPDATE_LOGIN)

values (34439,25,'01',51036,1003,sysdate,1003,sysdate,-1);

Item interface in oracle apps inventory

Item Interface in oracle apps inventory:

1) Load to MTL_system_item _interface

INSERT INTO INV.MTL_SYSTEM_ITEMS_INTERFACE(

--INVENTORY_ITEM_ID,

SEGMENT1,

SEGMENT2,

DESCRIPTION,

PRIMARY_UNIT_OF_MEASURE,

PRIMARY_UOM_CODE,

ITEM_TYPE,

LIST_PRICE_PER_UNIT,

TEMPLATE_ID,

--- REVISION,

PROCESS_FLAG,

SET_PROCESS_ID,

TRANSACTION_TYPE,

ORGANIZATION_ID,

ORGANIZATION_CODE,

--MATERIAL_COST,

INVENTORY_ITEM_STATUS_CODE,

LAST_UPDATE_DATE,

LAST_UPDATED_BY,

CREATION_DATE,

CREATED_BY)

VALUES

(

-- v_item_id, ---INVENTORY_ITEM_ID

'2780280000', --SEGMENT1

'1002000030', --SEGMENT2

'TESTING INTERFACE for the item', --DESCRIPTION

'EACH', --PRIMARY_UNIT_OF_MEASURE

'EA', --PRIMARY_UOM_CODE

'', --ITEM_TYPE

700, --LIST_PRICE_PER_UNIT

113, --TEMPLATE_ID

--- NULL, --REVISION

1, --PROCESS_FLAG,

1, --SET_PROCESS_ID,

'CREATE', --TRANSACTION_TYPE,

25, --ORGANIZATION_ID,

'MNJ', --ORGANIZATION_CODE

--decode(upper(r_invinterface_rec.item_type),'CLIENT_PUB',0,r_invinterface_rec.estimated_item_cost),--MATERIAL_COST

'Active', --item status

SYSDATE, --LAST_UPDATE_DATE,

1003, --LAST_UPDATED_BY,

SYSDATE, --CREATION_DATE,

1003 --CREATED_BY );

2) Run item open interface program

 Navigate to inventory responsibilty

        Item > Import > Import Items.

Flex field values insertion in to values set

Flex field values insertion in to the values set

1) insert into applsys.fnd_flex_values

2) insert into applsys.fnd_flex_values_tl

INSERT INTO applsys.fnd_flex_values

(flex_value_set_id, flex_value_id,

flex_value, last_update_date,

last_updated_by, creation_date,

created_by, last_update_login,

enabled_flag, summary_flag,

start_date_active, end_date_active

)

VALUES (lv_segment1_set_id, -- FLEX_VALUE_SET_ID

lv_flex_value_id, -- FLEX_VALUE_ID

r_item_temp_table_data.segment1, -- FLEX_VALUE

SYSDATE, -- LAST_UPDATE_DATE fnd_global.user_id, -- LAST_UPDATED_BY

sYSDATE, -- CREATION_DATE

fnd_global.user_id, -- CREATED_BY

fnd_global.login_id, -- LAST_UPDATE_LOGIN 'Y', -- ENABLED_FLAG

'N', -- SUMMARY_FLAG

SYSDATE, -- START_DATE_ACTIVE

NULL -- END_DATE_ACTIVE

);

INSERT INTO applsys.fnd_flex_values_tl

(flex_value_id, LANGUAGE, last_update_date,

last_updated_by, creation_date,

created_by, last_update_login,

description, source_lang,

flex_value_meaning

)

VALUES (

lv_flex_value_id, -- FLEX_VALUE_SET_ID

'US', -- language

SYSDATE, -- LAST_UPDATE_DATE

fnd_global.user_id, -- LAST_UPDATED_BY

SYSDATE, -- CREATION_DATE

fnd_global.user_id, -- CREATED_BY

fnd_global.login_id, -- LAST_UPDATE_LOGIN

r_item_temp_table_data.segment1, -- DESCRIPTION

'US', -- source_lang

r_item_temp_table_data.segment1-- flex_value_meaning

);

Cash Management interview

1. Can a bank statement line be matched against multiple subledger transactions? Automatically? How? Is the reverse true: Can multiple bank statement lines be matched against a subledger transaction?

Answer
------
Bank Statement Line may be manually matched against multiple subledger transactions. At this time, this may not be accomplished automatically. The reverse is not possible. Multiple bank statement lines may not be matched against a subledger transaction (manually or automatically).

2. What is the functionality of the 'Charges' field on the Bank Statement Form? When must it be populated?

Answer
------
Functionality of the Bank Statement's Charge Field:
The Amount Reconciled is derived from adding the Bank Statement's Charge and Amount Columns.
The Amount Column must be within tolerance for AutoReconciliation to occur (even if the netted value of Amount and Charge column equals the subledger transaction amount). Charge is not a required field.

3. What is the difference between Clearing a (subledger) transaction and Reconciling it? What is the purpose of these two distinctions?

Answer
------
Clearing a transactions creates accounting entries that recognize the movement of cash. Reconciling matches bank account activity to subledger (payment, receipt) activity. Transactions may be cleared prior to reconciliation if the user wishes to obtain a more accurate picture of cash (in the GL) but is not yet ready or willing to reconcile.

4. Cash Management only allows automatic matching to Remittance batches. Is there a plan to automatically reconcile normal receipt batches (non-remittance) to bank statement lines?

Answer
------
'Normal' Receipt Batches are used for grouping, managing, viewing and controlling receipts (see Receivables
User's Guide, p4-59, R11). There is no plan to provide functionality to reconcile (non remittance) receipt batches.

5. Why are NSF and Rejected bank statement lines included in the control total DR value, and Stop bank statement lines included in the control total CR value? ("negative" value transactions)

Answer
------
The following example should provide an explanation for the question above:
a. A check is received by the bank for $100.
b. The bank will create a (statement) entry of $100 to the recipients account. The amount is recognized but will not be available until the check clears.
c. During the clearing process it is discovered that there are insufficient funds in the account that distributed the check.
d. The receiving bank will make a reversing (statement) entry to back out the funds it had previously 'recognized'. This is why NSF bank statement lines are included in the control total values. Similar logic could be applied to other transaction types.

6. What are the implications of running Cash Management standalone, running Cash Management only with Oracle Payables, or running Cash Management only with Oracle Receivables?

Answer
------
Cash Management allows you to clear and reconcile payments created in Oracle Payables and receipts created in Oracle Receivables against your bank statement. It also provides extensive Cash Forecasting functionality.
When Cash Management is installed without Payables and Receivables, bank account reconciliation functionality is significantly limited. A user may only import or manually enter bank statements.
Reconciliation may not be performed and miscellaneous transactions may not be created. Without Payables or Receivables,
Cash Forecasting is still possible although additional setup will be required and the functionality may not be as complete.

7. What process do I need to run to import transactions from external systems for the Reconciliation Open Interface

Answer
------
In most of our applications, an open interface requires users to load transactions into open interface tables, and then import them from the open interface tables to the transaction tables. For the Reconciliation Open Interface, the users simply load transactions into the open interface table or define a view for Cash Management to access the transactions. There is no additional process to import from the open interface table.

Q: Setup: Is there any security to prevent changes to an existing "Forecast"?

A: No. The "Forecast" report was intended for internal use, not as an secure audit report.
The "Forecast" is a spreadsheet that collects data for you from your Oracle database. You can then do 'what if' scenarios by changing the data. Or, you can correct cells to reflect data that has not been entered into the Oracle applications. You can also add new rows with additional data. Of course, you can choose not to change any of the cells.

Q: Template: Can you create a 'Forecast' without creating a template?

A: No. There is no generic template available.
You must specify at least one row and column in a template to be able to generate a forecast.

Q: Template: How can I see my cash starting point on my forecast?

A: Use the 'GL Cash Position' source when you set up your template.

When your forecast is generated, you will see the 'GL Cash Position' at the bottom, grouped with the totals, not with the other rows.

Also note that your initial cash position is calculated differently depending on how your ‘Enable Average Balances’ option is set in Oracle General Ledger.

The navigation path in General Ledger is:
Setup -> Financials -> Books -> Define.

The ‘Enable Average Balance’ option is a checkbox in the ‘Standard Options’ alternate region.

When the ‘Enable Average Balances’ option is on (checkbox is marked), the forecast calculates the initial cash position from the End-of-Day balance, which is the actual balance of a general ledger account at the end of the day. The information comes from the GL_DAILY_BALANCES table.

When the ‘Enable Average Balances’ options is off (checkbox is not marked), the forecast calculates the initial cash position from General Ledger journal lines. The forecast starts with the beginning balance of the GL period for the forecast start date. Then the journal entry amounts are accumulated for each journal entry line whose effective date is between the period’s begin date and the forecast start date. The initial cash position is the sum of the beginning balance of the GL period and the journal entry amounts.

Q: Forecast: Why is there no output when the "Forecast" (CEFCAMTS) is run?

A: Generating the "Forecast" does NOT produce a report.

It creates a forecast, which is an interactive spreadsheet. To get a printed report of your forecast, you must run the Cash Forecast Report after generating the forecast. As parameters, you give it the Template Name and the Forecast Name.

Version 11.5 (11i) will produce a report along with generating the forecast.

Q: Forecast: Why does the output for the "Forecast" (CEFCERR) say, 'No data found'?

A: Generating the 'forecast' does NOT produce a report.

It creates a forecast, which is an interactive spreadsheet. When you generate the forecast, there are two concurrent requests submitted.

1. The first request generates the forecast, and no report is produced.
2. The second request is the "Cash Forecast Execution" Report, which is an exception report. If the "Cash Forecast Execution" Report says “No data found” then the forecast worked. If the "Cash Forecast Execution" Report has data on it, then the forecast did not work and the report lists the reasons why.

To get a printed report of your forecast, you must run the “Cash Forecast” Report after generating your forecast.

Q: Forecast: Why does the "Forecast" (CEFCAMTS) show all amounts as zeros?

A: This could occur for several different reasons.

1. You can create an empty forecast on purpose, just to get the spreadsheet.

This is called generating a 'manually entered cash forecast.' You can then enter the information in the cells yourself, just like 3 rd party spreadsheets. The advantage is that your forecast will be in the same format as other forecasts you generate.

2. Your template may not be set up correctly.

If someone has made changes to your template, it may no longer be retrieving the data you were expecting.

3. The Cash Forecasting views may not have data for the dates or periods you have requested.

If there are no records in these views for those dates or periods, then there is no data for your forecast. Cash forecasting retrieves data using the following views:

CE_AP_FC_DISC_INVOICES_V
CE_AP_FC_DUE_INVOICES_V
CE_AP_FC_PAYMENTS_V
CE_AR_FC_INVOICES_V
CE_AR_FC_RECEIPTS_V
CE_PAY_FC_PAYROLL_V
CE_PO_FC_ORDERS_V
CE_PO_FC_REQUISITIONS_V
CE_SO_FC_ORDERS_V

Please review Oracle Cash Management Technical Reference Manual, version 11, for detailed information on these views.

4. The Euro currency was not seeded correctly when Oracle added it to Cash Management's currencies.

The Cash Forecast will not generate correctly, until you fix the Euro currency. The problem has been fixed for version 11.5 (11i). However, if you have an earlier version of Cash Management, it is easy to fix this yourself.

A. Go into Cash Management, and navigate to: Setup -> Currency -> Codes
B. Query up the code "EUR".
C. Scroll to the right, and under Currency Derivation Type, make sure it says "Euro Currency". If it's null, set it to "Euro Currency" and save.
D. Regenerate your Cash Forecast, and it should generate legitimate numbers in the cells.

Q: Forecast: Why are some of the amounts zero when the "Forecast" (CEFCAMTS) is run?

A: Someone has changed the template on which this forecast is based.

When columns are added to a template, they are also added to all forecasts based on that template. However, the new cells in existing forecasts will have zero amounts in them. You must regenerate your forecast to populate the new cells.

Q: Forecast: What ways are there to generate a Forecast?

A: You can generate a forecast using three different methods. The first two produce identical results, so it should not matter which method you choose. The third method, however, produces a 'manually entered cash forecast.' It is a forecast with zeros in all the cells. You can then enter information in the cells yourself.

1. This method produces a forecast with amounts in the cells. Submit from the Concurrent Program form:

Other -> Programs -> Run

Select one of the following for the Request Name:
Cash Forecasting by Days
Cash Forecasting by GL Period

2. This method also produces a forecast with amounts in the cells. Navigate to one of the following:

Cash Forecasting -> Forecast Template
Cash Forecasting -> Forecasts
You can generate a forecast by using the Special Menu.
Special -> Submit Forecast

3. To create an empty forecast, navigate to:

Cash Forecast -> Forecast Template
Choose New, select a Template Name and a Forecast Name, and any other required fields. Choose the Review button, and you get a forecast with all the rows and columns from the template you used, but with zeros in all the cells. This is called a 'manually entered forecast.' You are expected to enter all amounts into the forecast yourself.

Q: Forecast: What is 'inflow' and 'outflow'?

A: 'Inflow' is any data that brings cash into your company, such as Oracle Receivables, Oracle Order Entry, and Oracle General Ledger.
'Outflow' is any data that takes cash out of your company, such as Oracle Payables, Oracle Purchasing, Oracle Payroll and Oracle General Ledger.

Q: Forecast: What does 'inflow' and 'outflow' mean for the General Ledger source types?

A: GL Encumbrances are 'outflow', because the forecast shows unused encumbered amounts for expenses and assets. To use this source you must set up the Forecast By to 'GL Period'.

GL Budgets can be 'inflow' or 'outflow'. The 'inflow' comes from revenue account budget amounts, and the 'outflow' comes from expense account budget amounts. To use this source you must set up the Forecast By to 'GL Period'.

GL Cash Position is inflow. The forecast shows a separate row along the bottom of the forecast along with inflow, outflow, and net amount totals.

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.
• Supplier’s 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 employee’s 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 memo’s 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)SetupCalendarSpecial 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) InvoicesEntryRecurring 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 user’s 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 supplier’s primary bank account.
• A function controls display of the bank accounts and supplier assignments tabs in the suppliers and banks windows. If a user’s 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 supplier’s bank.
• Wire: A funds transfer initiated by contacting your bank and requesting a wire payment to a supplier’s 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 payment’s 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 period’s accounted invoices (total invoice amount from the Posted Invoice Register) to the prior period’s accounts payables trail balance.
- Next, subtract the current period’s accounted payments (total cash plus discounts taken from the Posted Payments Register) from this total.
- This amount should be equal the current period’s 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

5. Q: Where do I set the default to post in detail or summary?

A: There is a region in Payables Options called Transfer to GL. This region controls the default values for the parameters of the Payables Transfer to General Ledger program. This assists users in ensuring that they consistently transfer their accounting entries to the general ledger interface in the same way. If the "Allow Override at Program Submission" parameter is disabled, then an accounting manager can safely delegate the submission and monitoring of this process to staff while still ensuring control. You can review additoinal information about the Transfer to GL tab of the Payables Options in Note 205704.1 and in Payables Transfer to GL (Posting) Setup and Usage Instructions.

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6. Q: Can I post to my primary set of books and my reporting set of books at the same time?

A: Yes, those who use the MRC (Multiple Reporting Currencies) feature in Release 11.5 can transfer accounting entries for the reporting sets of books and the primary set of books at the same time. In the Transfer to GL region in Payables Options, mark the Transfer Reporting Book(s) check box to enable this option. You can review additoinal information about the Transfer to GL tab of the Payables Options in Note 205704.1 and in Payables Transfer to GL (Posting) Setup and Usage Instructions.

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7. Q: How can I sweep transactions to the next period?

A. In order to sweep transactions, they must be unaccounted and the next period must be open. When you attempt to close a period in Control Payables Periods window, and have transactions that meet the requirements, you will be prompted to submit the Unaccounted Transactions Sweep Program.

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8. Q: What are journal categories?

A: Journal categories classifications used to indicate the purpose or nature of your journal entry. In Payables, they include Invoices (also called Purchase Invoices), Payments, and All (both Invoices and Payments) and Reconciled Payments (for Payment Clearing and Payment Unclearing Events). The type of journal category you can select depends on the accounting method that you have selected for your set of books.

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9. Q: What are the new or changed parameters for the Payables Transfer to General Ledger program?

A: There are several new parameters in Release 11i. They are:

o The "Transfer Reporting Book(s)" parameter has been added to simplify the transfer process if MRC (Multiple Reporting Currencies) is used. See question 3 above.

o The "Validate Accounts" parameter has been added to allow for the checking of the current account status in general ledger for each accounting entry.

o The "Post Through Date" parameter has been replaced by the "From Date" and "To Date" parameters.

o The "Journal Entry Category" parameter was renamed to "Journal Category".

o The "Audit/No Audit" parameters have been replaced by the "Transfer to GL Interface" parameter.

You can review additoinal information about these parameters in Payables Transfer to GL (Posting) Setup and Usage Instructions.

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10. Q: Can I drill down from GL journals to AP transactions?

A: Yes, the Common Accounting Module (XLA) offers enhanced drill down capabilities from Oracle General Ledger to the subledgers in Release 11.5. You can view the subledger accounting lines and the complete underlying transactions that make up the GL journal line. In GL, you can also drilldown to the subledgers from the Enter Journals and View Journals windows, in addition to drilling down from the account inquiry.

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11. Q: Where do the accounting entries, which are transferred to the GL_INTERFACE table, come from?

A: In Release 11.5, three tables are used to hold the accounting data created in Payables: AP_ACCOUNTING_EVENTS_ALL, AP_AE_HEADERS_ALL, and AP_AE_LINES_ALL. These tables are populated by the Payables Accounting Process. These tables are updated and data from these tables is transferred to the general ledger interface by the Payables Transfer to General Ledger program. You can review the Create Accouting 11i Setup and Usage document for more information about the Payables Accounting Process.

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12. Q: Why does the Payables Transfer to General Ledger process not find any transactions to transfer into the GL_INTERFACE table?

A: Transactions must be accounted before they can be transferred to the GL_INTERFACE table by the Payables Transfer to General Ledger program. You can review the Create Accouting 11i Setup and Usage document for more information about accounting transactions using the Payables Accounting Process.

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13. Q: Why do invoices and payments show as transferred to GL in Payables but do not show in GL?

A: You must run the Journal Import process and post the journals in GL.