Interview Questions on Oracle AR (Account Receivables) 

Questions in Accounts Receivables

1. How do you create a Chargeback Invoice ?
A. Using Receipts window

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