Account s Payable Scenarios – R12 Instance

FAQ For Oracle Apps

1. What are the two key flexfields in Oracle Receivables and what is its purpose ?

Location Flexfield : - Mandatory
This Flexfield is used for calculating the Location based tax (i.e) Sales tax.

Territory Flexfield : (Max 20 segments) - Optional
This Flexfield is used for tracking the location in which the sale is taking place.
This Flexfield is for ascertaining the profitability of each of the sales location through generating reports.

2. What are the modules that are interfaced with Oracle Receivables ?

i. General Ledger
ii. Order Management
iii. Fixed Asset
iv. Inventory

3. What is Auto invoice ? What are its related setup steps ?
Auto invoice is the process used for importing the transactions from feeder moudles like project accounting, order entry etc. and also from exisiting applications/systems if the receivable moudle is installed for the first time.

To invoke auto invoicing the navigations is
Interfaces : Auto Invoices
Run a program called AutoInvoice Master Program and specify the Invoice source and submit it. If any error occured during validation all the transactions will be stored in the below mentioned tables
RA_INTERFACE_ERRORS_ALL

4. What are the database tables involved for performing Autoinvoice ?

1. RA_INTERFACE_LINES_ALL
2. RA_INTERFACE_SALESCREDITS_ALL
3. RA_INTERFACE_DISTRIBUTIONS_ALL

5. What is an Application Rule set ?
Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction's line, tax, freight, and finance charges.
Receivables provides the following application rules:
· Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.
· Line First - Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
· Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.

6. What is a flexible address format ? How can a user-defined format be defined and where will this be affected ?

Oracle Applications let you enter customer, supplier, bank, check, and remit–to addresses in country–specific formats. For example, if you have customers in Germany, you can enter German addresses in the format recommended by the Bundespost, or you can enter addresses for customers in the United Kingdom in the format recommended by the Royal Mail.
This is done by using descriptive flexfields to enter and display address information in the appropriate formats. The flexfield window opens if the country you enter has a flexible address style assigned to it, which lets you enter an address in the layout associated with that country. If there is no address style associated with the country, Oracle Receivables uses the standard address format.
Attention: (Receivables users only) If you use a Sales Tax Location Flexfield that contains a segment other than country and wish to set up a flexible address format for your home
country, every component in your Sales Tax Location Flexfield structure must also exist in your flexible address style for that country.

7. What do you mean by Auto Accounting ?
It helps the Receivables to determine the general ledger accounts for transactions that are entered manually or import using AutoInvoice.
Receivables creates default accounts for revenue, receivable, freight, tax, unearned revenue,unbilled receivable, finance charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts using this information. When you enter transactions in Receivables, you can override the default general ledger accounts that AutoAccounting creates. You can control the value that AutoAccounting assigns to each segment of your Accounting Flexfield, such as Company, Division, or Account.
You must define AutoAccounting before you can enter transactions in Receivables.
8. What are the different classes of Transactions available in Receivables ?
(i) Chargeback (ii) DebitMemo (iii) Credit Memo (iv) Deposit (v) Guarantee (vi) Invoice
9. What are Transaction Sources ?
Receivables uses transaction sources to control the transaction and transaction batch numbering, provide default transaction types for transactions in batch, and to select validation options for imported transactions. Receivables provides the following predefined transaction sources: MANUAL–OTHER, DM Reversal, and Chargeback.
10. What are Adjustment Approval Limits ? Where & why are they used ?
Approval limits, defined in the approval limits window are used for adjustments created in receivables and request for credit Memos initiated from I-Receviables. Receivables uses transactions that have a document type of Adjustment when we create an adjustment in the Adjustments, Submit Auto Adjustments and Approve Adjustments windows.
When you enter an adjustment that is outside the approval limit range, Receivables assigns the adjustment a status of pending until someone with the appropriate approval limits either approves or rejects it.
11. What are the pre-requisites for entering a standard invoice in Receivables ?
Transaction source and Transaction Type, Customer with Business purpose usage and payment terms should have been predefined. and the class should be selected as Invoice.
12. What are the types of tax methods in Receivables ?
(i) Location Based Tax (i.e) Sales Tax (ii) VAT Tax
13. What is an Autocash Rules ?
Autocash rule set provides a set of rules which Receivables should follow for applying the receipts against the transactions.The default autocash rule set can be specified in the System Option.
14. What are Accounting Rules and Invoicing Rules ? Where it is used ?

Accounting rules is to create revenue recognition schedules for the invoices. Accounting rules determine the number of periods and
percentage of total revenue to record in each accounting period. It can be used with transactions that are imported into Receivables using AutoInvoice and with invoices that was created manually in the Transaction windows.

If you want to credit an invoice that uses invoice and accounting rules to schedule revenue and billed receivable recognition, you can specify
how you want to adjust this invoice’s revenue account assignments by choosing a Rules Method in the Credit Memos window.
You can assign a default accounting rule to your items in the Master Item window (Invoicing tabbed region) and to your Standard Memo
Lines in the Standard Memo Lines window.

Attention: Invoicing and Accounting Rules are not applicable if you are using the Cash Basis method of accounting. If you use the Cash Basis method, AutoInvoice will reject any transaction lines that are associated with invoice or accounting rules.
15. What is revenue recognition ?
Run the Revenue Recognition program to generate the revenue distribution records for your invoices and credit memos that use
Invoicing and Accounting Rules. You assign accounting rules to recognize revenue over several accounting periods. The Revenue Recognition program will create distribution records for the invoices and credit memos that you create in Receivables and import using AutoInvoice.
The Revenue Recognition program uses the accounting distribution sets that you specify in the Transactions window or import into Receivables
using AutoInvoice to determine the accounts of your newly created revenue distribution records.

There are two Revenue Recognition programs: Revenue Recognition and Revenue Recognition Master. The Revenue Recognition Master program is for parallel processing only and takes advantage of the Oracle scalability feature to reduce processing time by running on multiple processors, or workers. The Revenue Recognition Master program determines the maximum number of parallel processors needed for your transaction volume and uniformly distributes the processing over these workers. You can set a maximum number of processors for the Revenue Recognition Master program to use at runtime. This scheduling capability allows you to take advantage of off–peak processing time. You choose the Revenue Recognition program that you want to use at runtime.
16. What are the pre-requisies for entering a Manual receipt in AR ?
Invoices should have been defined against which the receipts will be applied and the payment method should be predefined and attached to the receipts.
17. What is a Receivable Activity ?
It is an activity specific to the organisational needs for Miscellaneous Receipts, Finance Charges, Bank Errors and Adjustment transactions.
18. What are Receipt Classes and Receipt Sources ?
Receipt Class : It is to define the processing steps, payment method name, remittance bank for processing the payments received from customers.
Receipt Source : It will be used to enter receipts in batches for both manual and automatic receipts. It is a grouping of Receipt class, Payment method and Remittance bank account.
19. What are Statement Cycles ? How can you print a Statement for a customer ?
Statement cycles is to determine when to send statements to the customers. You assign these cycles to your customer and site level profiles. Receivables lets you generate statements for all customers associated with a specific statement cycle.
20. What is Autolockbox ? What are its related steps ?
AutoLockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing. An AutoLockbox operation can process millions of transactions a month.

AutoLockbox eliminates manual data entry by automatically processing receipts that are sent directly to your bank. You specify how you want this information transmitted and Receivables ensures that the data is valid before creating QuickCash receipt batches. You can automatically identify the customer who remitted the receipt and optionally use AutoCash rules to determine how to apply the receipts to your customer’s outstanding debit items.

You can also use AutoLockbox for historical data conversion. For example, you can use AutoLockbox to transfer receipts from your previous accounting system into Receivables. AutoLockbox ensures that the receipts are accurate and valid before transferring them into Receivables.

AutoLockbox is a three step process:

1. Import: During this step, AutoLockbox reads and formats the datafrom your bank file into the AutoLockbox table using an SQL*Loader script.

2. Validation: The validation program checks data in theAutoLockbox tables for compatibility with Receivables. Oncevalidated, the data is transferred into QuickCash tables. At this point, you can optionally query your receipts in the QuickCashwindow and change how they will be applied before submitting thefinal step, Post QuickCash.

3. Post QuickCash: This step applies the receipts and updates yourcustomer’s balances.
21. What is an Aging Bucket ?
Aging Bucket are time periods that are used to review and report on open receivables. For example. The 4 bucket aging buket that receivables provides consists of 4 periods :
(i) -999 - 0 past due (ii) 1 - 31 days past due (iii) 31 - 61 days past due (iv) 61 - 91 days past due
When we create our collection reports or view our customer accounts, we can specify an Aging Bucket and 'as of date' and Receivables will group the transaction and their amounts in the appropriate days past due period.
22. What are Tax Exemptions, Tax Exceptions and Tax Groups ?
Exemptions : It is to reduce the gross tax associated with a tax code and enables us to arrive at the effective tax rate. It can be applied on customers,items and Range of items. It can be restricted to the specific locations of the customers. The tax authorities can specify excemptions for Location based taxes and Vat.
Exceptions : When the tax authorities provides a different Location based tax rate for the inventory items sent to specific Locations, this rate is refered to as Tax Exception rates. It can be applicable for individual Inventory or range of Items and not for customers.
Tax Groups : It is used to group multiple VAT codes. Hence we can apply multiple VAT codes to a single distribution line. For Example : Grouping GST and Ontario PST and apply that tax group to a distribution line. The tax calculation creates two tax lines, one for GST and other for Ontario PST.
23. What are Dunning Letters ?
Dunning Letters are the Warning/Reminder letters to the customers for their overdues.
24. What are Grouping Rules and Line Ordering Rules ?
Grouping Rules : It specifies how the lines, which have been imported from external sources should be grouped into Invoices, Debit memo and Credit memos. Auto Invoices requires mandatory grouping of certain transactions attributes. Receivables automatically applies this mandatory transactions to any grouping rule which have been defined. Therefore the grouping rules specify the attributes, which should be identical across the lines, so that they can form part of one transactions.
Line Ordering Rules : It specifies the order and number in which the lines will appear in the transaction after it is grouped. We can attach the Line Ordering Rule to the same grouping rule . Line ordering Rule is optional.
25. What are Bill Receivable Transactions ? What are its related setup steps ?
A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable
document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding.
Related Setup Steps :

26. What are taxable Basis available for a Tax Code ?
(i) Before Tax (ii) After Tax (iii) Prior Tax (iv) Quantity Based Tax.
27. What are the various Discount basis available for defining a payment term ?
Invoice Amount: Calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices.
Lines Only: Calculate the discount amount based on only the line amounts of your invoices.
Lines, Freight Items and Tax: Calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level.
Lines and Tax, not Freight Items and Tax: Calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices.
28. What are Natural Application Only and Allow Over Application options in transaction types ?
Natural Application Only : Receivables does not allow the creation sign (Positive, Negative or any sign) of the transaction to be changed by virtue of receipt application or any other activity against the transaction. For Example : if the Receipt is $1500 against the Invoice value of $1000 then the Receivable allows only $1000 to be applied against the transaction and thus the balance is brought down to 0.
Allow Over Application : Receivables will allow the transactions to be overapplied. If the Receipt is $1500 against the Invoice value of $1000 then the receivables will allow the entire balance and the due for the transaction will become -$500. (i.e) It will allow the creation sign to be violated.
29. What are Transmission Formats ? What are the transmission formats provided by receivables ?
Transmission format window is used to define the transmission formats that auto lockbox uses when importing data into receivables. Transmission formats specify how data in the lockbox bank file is organised so that it can be successfully imported into the receivables interface tables.
1. Example (arxmpl.ctl) : A format that contains an example of lockbox header information, several receipt records, and overflow receipt records
2. Default (ardefd.ctl) : A standard BAI (Bank Administration Institute) format used by most banks.
3. Convert (arconv.ctl) : A standard format used for transferring payment information from other systems.
4. Cross Currency (arxcurr.ctl) : A default format used for importing cross currency receipts.
5. Zengin (arzeng.ctl) : A format used to import bank files in the japanese Zengin format (Alternate Names Receipt Matching Window)
30. What are various Business Purpose Usages given by receivables, which can be assigned to a customer ?
Ship-to, Bill-to, Statement, Dunning, Legal, Marketing Etc. are the various Business purpose Usages given by Receivabels. The Bill-to site is mandatory for a customers. Others are Optional.
31. What are Customer Profile Classes ?
The Customers are categorized in terms of thier credit worthiness, credit limits offered to them, payment terms, finance charges percentage etc. This process of setting the profile parameters for each category of customers is refered to as the profile class.
32. What are the Customer Interface Tables provided in AR ?
1. RA_CUSTOMER_INTERFACE 2. RA_CUSTOMER_PROFILES_INTERFACE 3. RA_CUSTOMER_BANKS_INTERFACE 4. RA_CUST_PAY_METHOD_INTERFACE 5. RA_CONTACT_PHONES_INTERFACE
33. What are Standard Memo Lines ?
Memo lines are used to increase the customer balance which could be due to omission of tax, freight, charges, consultanting charges.
34. What is the Transaction Process of invoices with Rules ?
Invoicing rules let you determine when to recognize your receivable for invoices that span more than one accounting period. You can assign invoicing rules to invoices that you manually enter or import into Receivables through AutoInvoice. Receivables provides the following invoicing rules:

• Bill in Advance: Use this rule to recognize your receivableimmediately.
• Bill in Arrears: Use this rule to recognize the receivable at the end of the revenue recognition schedule.

Once rules have been associated with an invoice, Receivables creates therevenue distributions for the invoice when you run the Revenue Recognition program for the period in which the rules fall.

35. What is the difference between Deposit and Gurantee Transactions ?
Deposit : It is the pre-payments made by a customer that should be adjusted against the future debit transactions that are raised with respect to this pre-payments.
Gurantee : It is a documentation of the promise made by the customer to obtain the goods from the organisation. This promise is documented as a gurantee. The customer does not make payment for the guarantee.
36. What are the methods of creating credit transactions ?


37. What are methods of creating batch receipts ?
There are three methods of creating batch receipts:
1. Manual Entry 2. Manual Quick 3. Automatic
38. What are Standard and Factoring Methods of Remittance ?
Standard remittance : The supplier remits the bills of exchange to the bank for collection and the same will be collected on the maturity date of the note.
Factored remittance : It means dicounting the bills of exchange with the bank before the maturity date. The onus of collection could be with recourse or without recourse.
39. What are Standard Remittances and Bills Receivable Remittances ?
Standard remittance is remitiing the cheque/dd to the bank for collection.
Bills Receivable remittances means remitting the Bills Receivable to the bank for collection on maturity date.
40. What are the various statuses for a receipt ?
Approved : This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.
Confirmed : For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For
automatic receipts, this status indicates the receipt has been confirmed.
Remitted : This receipt has been remitted. This status is valid for both automatic and manually entered receipts.
Cleared : The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within
Receivables. This status is valid for both automatic and manually entered receipts.
Reversed : This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes
from an account with non–sufficient funds or if you want to re–enter and reapply it in Receivables. You can reverse cash receipts and miscellaneous receipts.
41. What are chargebacks and adjustments ? How to create them ?
Chargeback is postpoment of payment date.It can be done only in the receipts workbench.In this process the old invoice is cancelled and a new transaction is created for the postponed date.
42. What are Standard Reversal and Debit memo Reversal in receipts ?

Standard Reversal: When you create this type of reversal, Receivables automatically creates reversal journal entries for your general ledger and reopens all of the debit and credit items that were closed with the original receipt. You can create a standard reversal for a transaction related to a chargeback if there is no activity against the chargeback and the chargeback has not been posted to the general ledger. If the chargeback has been posted to the general ledger, you must create a debit memo reversal (see below).
If you create a standard reversal for a receipt that you have applied, Receivables reverses any adjustments or chargebacks that you created, as long as you have not posted these adjustments to your general ledger.
Debit Memo Reversal: When you create this type of reversal, Receivables does not update any of the receipt activity associated with the original receipt. The new debit memo reversal is actually a new receivable that replaces the item closed by the original receipt. Receivables requires that you create a debit memo reversal if:
– you are reversing a receipt that you previously applied to a chargeback and this chargeback has had any activity against it (for example, another receipt, credit memo, or adjustment), or
– the chargeback or adjustment was posted to your general ledger When you create a debit memo for a receipt reversal, Receivables creates a line on your debit memo that displays the original receipt number associated with the debit memo. In addition,when you save your reversal, Receivables assigns a unique transaction number to your new debit memo.
Attention: You cannot create a debit memo reversal for a miscellaneous (non–invoice related) receipt.
43. What are Cross Currency Receipts ? How do you create them ?
When your customer remits payment for an invoice, debit memo, or chargeback, the receipt is usually in the same currency as the transaction. However, there may be times when your customer remits payment in a currency that is different than the currency of the open debit item. For these occasions, Receivables lets you create cross currency receipt applications to let you fully or partially process the payment.
For example, you create Invoice 101 in Canadian dollars (CAD) but your customer sends a receipt in Deutsche marks (DEM) as payment.
Using the remittance information provided by your customer, you can either fully or partially apply this receipt to Invoice 101. Receivables automatically calculates the open balance on the invoice (if any) and the foreign exchange gain or loss (FXGL) for this application.
You can apply receipts to transactions using any currency defined in Oracle General Ledger.
44. What are the setups related to Automatic Receipts ?
Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time by transferring funds from the customer’s bank account to yours on the receipt maturity date. You can also manage your cash flow by deciding when, where, and how much you should remit to your bank.
Creating automatic receipts involves three steps:
Create: Select the invoices to include in your automatic receipts.
Approve: Update, delete, and approve the receipts that you have selected.
Format: Format your automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. This step is optional, as it depends upon the type of automatic receipt you create.
45. What are the clearance methods in Receivables and how are they used ?
Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables.
By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program.
By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.


ORACLE GL QUESTIONS

1. What is a flexfield? What are Key and Descriptive Flexfields ?

A flexfield is a field made up of sub–fields, or segments.

Two Types

A.Key Flexfields
B. Descriptive Flexfields.

A.Key Flexfields

Key Flexfields is a intalligent key code made up of sections, where one or more parts may have meaning. An intelligent key code uniquiely identifies an object such as on account, an asset, a part or a job. Intelligent keys are useful in applications because they are usually easier for a user to remember and use than a unique number.

B.Descriptive Flexfields

Descriptive flexfields provide customizable ”expansion space” on forms. We can use descriptive flexfields to track additional information, important and unique to the business, that would not otherwise be captured by the form. A descriptive flexfield appears on a form as a single–character, unnamed field enclosed in brackets. Each field or segment in a descriptive flexfield has a prompt, just like ordinary fields.

2.What is the key flexfield name in GL ?

Accounting Key flexfield

3.What is segment? What are the maximum segments that can be there for GL?

A segment is a single sub–field within a flexfield. A segment is represented in database as a single table column.

Maximum 30 Segments

4.How many Flexfield Structures can you create for GL?

In Oracle General Ledger, we can have n no of flexfields structures.

5.What is a value Set ? What are the format types and validation types available in value set ?
value set
A group of values and related attributes assigned to an account segment or to a descriptive flexfield segment. Values in each value set have the same maximum length, validation type, alphanumeric option, and so on.

Format types:

Character
Date
Date time
Standard Date
Standard Date time
Time

Validation types:

Dependent
Independent
None
Pair
Special
Table
Translatable Independent
Translatable Dependent

6.what are flexfield Qualifiers and Segment Qualifiers ?

Flexfield Qualifiers
A flexfield qualifier identifies a particular segment of a key flexfield. It is to identify a particular segment for the purpose like security or computations. A flexfield qualifier acts as an "identification tag" for a segment.
Segment Qualifiers
A segment qualifier identifies a particular type of value in a single segment of a key flexfield. A segment qualifier acts as an "identification tag" for a value. In the Accounting Flexfield, segment qualifiers can identify the account type for a natural account segment value, and determine whether detail posting or budgeting are allowed for a particular value.

7. What are the flexfield Qualifiers and Segment Qualifiers available in GL ?

Flexfield Qalifiers

Balancing Segment : Company
Natural Account Segment : Account
Cost Center Segment
Inter Company Segment

Segment Qualifiers:

For Company : Allow Posting & Allow Budgeting

For Account : Allow Posting, Allow Budgeting, Account type, Cotrol Account & Reconciliation Flag

In Account type : Asset, Expenses,Liability, Ownership/Stockholders Equity & Revenue


8. What do you mean by Dynamic Inserts ?

A feature specific to key flexfields that allows to enter and define new combinations of segment values directly into a flexfield pop-up window. The new combination must satisfy any cross-validation rules, before your flexfield accepts the new combination.
9. What is a Roll up group ?
Rollup group is to identify a group of parent values for reporting or other application purposes. It is used to create summary accounts for reporting purposes.

10. What are Security Rules and Cross Validation Rules ? How it can be set ?

Security Rules

Security Rule to limit the access of different segment values for different responsibilities

To assign security rules:

1. Navigate to Security Rules window & Security rules
2. Assign it to application and responsibility that uniquely identifies the responsibility to which we want to assign security rules.

Cross Validation Rule

A cross–validation rule defines whether a value of a particular segment can be combined with specific values of other segments.Cross–validation (also known as cross–segment validation) controls the combinations of values that we can create when we enter values for key flexfields.It is assigned to Chart of account

11. How do you define Parent-Child Relationship for segment values?

In segment value enable the parent value,define the child range and enter the low high ranges of child value
12.What is Chart of Accounts? What are its pre-requisites?
chart of accounts
The account structure your organization uses to record transactions and maintain account balances.

Pre-Requisites for Chart of Accounts
1.Segment
2.Value Set
3.Flexfield Qualifier
4.Values
5.Segment Qualifier

13.What are period types? What are period types provided in GL?
Period
A unit of time, such as one week, two weeks, or a month, on which your accounting calendar is based.
Period types

1.Month
2.Year
3.Quater
4.Half yr
5.Half month
6.Week

14.What is an Accounting Calender ?

Accounting calender is to specify the number of periods in the year for the purpose of transaction and manintaing accounting data

15.How do you open and close period in GL?

Navigate Open/close, in open/close window click open the next period push button to open next period
To close the period choose close option from the open period lov

16.Period status in GL:

Open: Journal entry and posting allowed.
Closed: Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed.
Permanently Closed: Journal entry and posting not allowed. It cannot be reopened. Reporting and inquiry allowed.
Never Opened: Journal entry and posting are not allowed. This is the period preceding the first period ever opened in the calendar, or to any period that has been defined, but is not yet future–enterable. We cannot change this period status.
Future– Entry: Journal entry is allowed, but posting is not. The period is not yet open, but falls within the range of future-enterable periods designated in the Set of Books window. We cannot change this period status without using the concurrent process to open the period.

17. Transcation calender:

This is a calender which determines which days in a week are business days and specifies other non-business days,such as holidays.

Where it is used:

It must be assigned for set of books for which averege balancing is enabled to control transcation posting.

18. Monetary currency:

Monetary currency is a currency which has monetary value
Eg: USD,INR etc..

functional currency vs reporting currency:
The principal currency used to record transactions and maintain accounting data within General Ledger is functional currency where as the reporting currency is used for financial reporting.
19. conversion types:
A process that converts foreign currency transactions in to functional currency.
Types:
corporate
reporting
spot
user
Purposes:
For Year end Reporting purposes, the foreign currency balances need to be converted into
the functional currency balances.

20. Set of Books:

A financial reporting entity that uses a particular chart of accounts, functional currency and accounting calendar. There must be at least one set of books for each business location.

Mandatory accounts in SOB:

Retained earning account
suspense account
Rounding off difference account
Reserve for encumberance

21. Prerequisites for journal:

Period
Currency
Category
Source

22. Different types journal:

Reverse journal
Tax journal
Statistical journal
Suspense journal
Recurring journal
Foreign currency journal

23. Journal Import:

A General Ledger program that creates journal entries from transaction data stored in the General Ledger GL_INTERFACE table.

Steps in journal import:

GL/Journal/Import/Run->Give specific selection criteria using request id and press import.

24. How to validate a journal import? How do you track errors during journal import?
Validation can be done through
-Batch Level Validation
-Journal Level Validation
-Journal Entry Line Level Validation
-Account Validation
-Effective Date Validation
-Descriptive Flexfield Validation

Errors can be tracked through
-Batches
-Accounts
-Reference
-Journal lines
-Descriptive Flexifields


25. Mass allocation:
A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions, and so on.
Process steps for mass allocation:

Formula creation
Validatation
Generation
Submission

26. Types of Recurring Journal:

Regular
Skeleton
Formula-statistical
Formula-currency


27. Journal Sources:
It is an indicator by which General Ledger identifies and differentiates the origin of journal entries.
Journal Categories:
Journal entry categories specify what kind of transaction the journal entry represents. It is used to indicate the purpose or nature of your journal entry.
28. Suspense accounts
Suspense account is a balancing account which is used to post out-of-balance journal entries, General Ledger automatically posts the journal difference against this account.
summary account
An account whose balance represents the sum of other account balances. Summary accounts is used for faster reporting and inquiry as well as in formulas and allocations.
intercompany account
A general ledger account that is defined in an Accounting Flexfield to balance intercompany transactions.
29 Encumbrance:
An entry is made to record anticipated expenditures of any type. We can create requisition encumbrances and purchase order encumbrances automatically .We can have manual encumbrances also.
encumbrance type
Commitment
Obligation
Invoice
Labour
PO
Internal trading
30. Journal entry which dont want contra entry are:
suspense journal
Encumbrance journal
31) Journal Approval:

This is a method whereby we set up source of journal which requires approval or validation process.

enter journal ---validate if approval reqd approve it
if appvl not reqd

While creating the journal source Check the box REQUIRE JOURNAL APPROVAL

32)Budgetary Control

This is the option used to have control over the amount spent against budgets.

Two types
Account wise
Journal entry source & category as a way of

33) Multiple Reporting Currency

Multiple Reporting Currencies (MRC) is a set of unique feature
imbedded in Oracle Applications that permits an organization to report
in multiple functional currencies.

Using MRC, you can maintain and report accounting records at the
transaction level in more than one functional currency. You do this by
defining one or more reporting sets of books, each associated with a
primary set of books. Each set of books has its own functional currency.

34)Average Balance Processing

The amount computed by divinding an aggregate balance by the number of calendar days in the related range.

The set up steps are in SOB Avg balances tab Check ENABLE AVERAGE BALANCES.

35) Budget

A predetermined estimate of cost for a task or cost center or a project

36) Funding Budget

Funding Budget are those budgets in which we enforce budgetary control

Non-Funding Budget

This budget is used only for reporting purpose where we don't enforce any budgetary control.

In SOB level and under budgetary control tab enable budgetary control then all budgets created willl be funding budget by default

37)Budget Organisation

An entity (depart or cost center or divisiion or other groups) responsible for entering and maintainng budget data.

We can define budget orgn for the co then assign the appropriate a/c to each budget orgn.
Then that budget orgn becomes responsible for entering and maintaining budget data.

38)Budget Formulas

A mathematical expression used to calculate budget amounts based on actual results, other budget amounts and statistics.
With Budget formulas we can automatically create budgets using complex equations, calculations and allocations.

39)Mass Budget

MassBudgeting gives you the flexibility to allocate budget amounts to
ranges of accounts throughout your organization using simple
formulas.

Process Steps:

GL/Budgets/Define/Mass

40)Diff budget journal and budget amount

We use budget journal for funding budget
We can have audit trail only if we enter budgets thru budget journals
Budget amount is used for non-funding budget

41) How to transfer budgt amounts

Under a budget we can opt to transfer budget amount from one orgn to another orgn(account wise also)

Gl/Budget/transfer/select the budget from which budget we have to transfer, then choose from budget orgn
and TO orgn, then allocate the a/c code combination and click transfer amounts.

42) Upload Budget

We can upload amounts from budgets developed from an outside source (eg spread sheet) and transfer it to the GL Budget Interface table.

The utility used is ADI Application Desktop Integrator. We can upload budget amounts to your budget orgn from any existing a/c that falls
within the a/c ranges assigned to your budget orgn. At your request, gl uploads your budget interface data and automatically updates your fincl records
to include this budget informtn.
Once u upload ur budget data u can review the budget spread sheet upload execution report for the status of your uploaded budget infn.

43)Budgetary Control
It is an option used to control actual and anticipated expenditure against a budget

What is online funds checking

Funds check is the process of verifying that sufficient funds are available to cover an expdre.

44) Funds check level Options

The Options for budgetary control settings are as follows:

Absolute : If this is selected the transactions are rejected unless funds are available
Advisory : If this is selected the transactions are approved even when no funds or insufficient funds available (with warnings)
None : ------------------------------do------------then all transactions are approved.

45) Budgetary control group

We define one or more budg control groups to attach to sites or users. We can create budg control groups by specifiying funds check level.
By journal source and category, together with tolerance %, amount, and an override amount (per journal) allow for insufficient funds transactions.
We can also create additional budgetary control groups to give people different budgetary control tolerances and abilities to override
insufficient funds transactions.


46) what do you meant by encumbrance Accounting ? What are its related setup steps ? what are the types of encumbrance

encumbrance

An entry made to record an anticipated expenditure of any type the primary purpose of tracking encumbrances is to aviod overspending a budget.
Setup Step

Enable the budgetary control flag for a set of books.When you enable budgetary control flag in set of books, the system automatically creates encumbrance from requistion , purchase orders and other transcation from feeder system such as purchase and payable.

1. navtigate to the encumbrance type
2. enter name and description
3. enable encumbrance type
4. save your work.

when you do not enable budget control flag ,you can still enter manually encumbrance via journal entry. you cannot do encumbrance from requisition and purchase order.

Encumbrance Type

lets you classify and track

commitment : A encumbrance you record when complete a purchase requisition.

obligation : A encumbrance you record when we turn the purchase requisition into purchase.

47 )How do you create encumbrance?

you can create encumbrance either manual or automatic

48) How to view funds available for Budget Transcations?

1. Navigate to the funds avaiable Inquiry window
2. Enter the budget Name for the enquiry .
3. Enter the period name for the inquiry
4. select an amount type.
5. Enter an encumbrance type. you can view all encumbrance type
by entering ALL.
6.Do one of the following:
1. choose the find button to query all acounts that meet your
selection critieria.
2. Navigate to the funds avaiable region and query a partial or complete account.

49) what is year end Encumbrance Processing ? How is it performed?

Performing Year - end encumbrance processing

Performing year-end processing is to identify outstanding purchase order and requisition encumbrance , To cancel some or all of these encumbrance and to carry forward encumbrance , budget , and funds available balance in the new fiscal year

You can carry forwards encumbrance into the fiscal year. if you do not carry forwards encumbrance , you might want to cancel exisiting requistion and purchase order behind the encumbrance.

To perform year end encumbrance processing.

1. Identify outstanding encumbrance in oracle Purchasing to determine which encumbrance to cancel or to carry forward.
2. Review purchase order and reqisition encumbrance by requesting the following reports.
a) Encumbrance Details Report in oracle Purchasing
b) open encumbrance balance with transaction details report.
3. Define the MassCancel criteria in oracle purchase to select the encumbrance you want to cancel.
4. Run MassCancel in oracle purchasing to cancel selected outstanding purchase order and requisition encumbrance.
5. Post all encumbrance , budget , and actual journal entries.
6. Request the encumbrance Trial balance report in general ledger to review in details encumbrance balance and activity for the general ledger accounts before year -end carry forward.
7. close the last period of the current fiscal year ,
8. open the first period of the fiscal year.
9. open the next encumbrance year
10. open the next budget year.
11. carry forward year -end encumbrance.
12. Request the encumbrance Trial balance Report.

50) How can you inquire Account Balance?

navigation path

Inquiry / account

by giving the date , account number , we can see the account balance for period.

51) What is step-down AutoAllocation?

You must create journal batches in a specific sequence when using step -down autoallocation. order your journal batches so that the posted result of one step are used in the next step of the AutoAllocation set.

52) what are Statistical Accounts?

Defining Statistical Accounts
General Ledger lets you maintain statistical as well as monetary balances for any account. However, in some cases you may want to set up separate accounts specifically for statistical information. For example, you might want to enter the units sold statistic in your Sales Revenue and Sales Expense accounts, but enter the square feet statistic in only a single account, say the SQFT account.

53) what are GL Tax Assignments? what are the level of tax calculation?

You can assing Input tax - AP and Output tax - AR , for general ledger journal entry

level of tax calculation

1) set of books level
2) account level

54) what is Mass Maintenance ? What are the business Rules for Mass Maintenance?

use Mass maintenace to move balance by period from one account to another or merger balance by period from multiple accounts into a single account.. The moved / merged balances are added to the existing balance in your target accounts.
Archieve and purge account balance , as well as journal batches, entries , lines, and associated journal reference for one or more accounting periods, provided the periods are permanently closed.
you can arhieve and purge actual , budget, or encumbrance balances. In addition , for translated actual and budget balances

55) what is Multi-currency accounting ? what are the setup steps?

One set of books will have functional currency, when we want Multi-currency accounting , we have set foreign currency in another set of books. same company will have two set of books , one for functional currency, and another foreign currency.

setup step
1) create a another set of books with chart of account , calendar , currency. ( currency otherthan funtional currency)
2) go to the Multiple Reporting currenies tap , enable as Reporting set of books
3) Assign the reporting set of books to primary set of books , define conversion type , rate , application .

58) what is EMU currencies?

European Monetary Union currency

59)GCS and GIS setup steps

Consolidation Process
To consolidate your financial results in an orderly manner, the table below lists our recommended consolidation steps. For detailed information on consolidating multiple Oracle Applications and Non-Oracle Applications instances, carefully review the Global Consolidation System.
Consolidation Step
Description


Define a Consolidation Chart of Accounts:Define and maintain flexible charts of accounts to accommodate your unique business needs.
Each subsidiary will require their own set of books or their own applications instance to meet their operational or local accounting needs. You must define a standard consolidation chart of accounts for the consolidated parent set of books.
Map Data:Define how your subsidiaries' accounts map to the parent set of books.
Mapping determines how your subsidiary balances roll up into the consolidated parent ledger.
Gather Data:Collect data from disparate systems into the GCS application.
If using multiple database instances:Oracle Applications - Use Cross Instance Data Transfer. See: Gathering Subsidiary Data from Multiple Instances Using Oracle Applications.Non-Oracle Applications - Use SQL Loader or the customizable spreadsheet front-end to load data from diverse sources into the GCS open interface. See Gathering Subsidiary Data from Multiple Instances Using Non-Oracle Applications.
Prepare Subsidiary Data:Prepare your subsidiary balances before you transfer them to the parent.
Revalue and translate foreign subsidiaries' account balances to update functional currency equivalents before you transfer balances to the parent.Note: If you use Multiple Reporting Currencies, you may be able to bypass the translation step by consolidating directly from a subsidiary reporting set of books to your consolidated parent set of books. See: Preparing Subsidiary Data.
Transfer Data:Transfer subsidiary financial information to the consolidated parent set of books.
Simplify transfer balances or transactions from your subsidiaries to the consolidated parent set of books.
Post Consolidated Data:Post the consolidation journals in the parent set of books to update consolidated balances.
Each consolidation journal submitted by each of the subsidiaries needs to be posted to the parent set of books to update its balances.
Eliminate Balances:Eliminate intercompany balances and minority interests related to internal transactions.
Use automatic intercompany eliminations to generate elimination sets. For formula-based eliminations, you can also use recurring journals.
Report:Deliver consolidated financial information throughout the enterprise.
Use the Financial Statement Generator (FSG) to create a consolidated report from the parent set of books, or create separate reports in each of the subsidiary sets of books.You can also use Applications Desktop Integrator (ADI) to extend reporting to a spreadsheet environment. Use ADI to create printed reports or create your reports in HTML to publish to the web or your corporate intranet.
Analyze:Review and analyze your consolidated reports to assess the effectiveness of your company's global strategies.
Use GCS to drill from consolidated balances in the parent set of books directly to the subsidiary set of books within the same instance. You can also drill between a subsidiary's translated balance to its original balance. GCS provides you with the flexibility to drill between summary accounts, detail accounts, and the original journal entries.Directly link your data to Oracle Financial Analyzer, an online analytical processing application, to analyze consolidated balances and prepare operational and financial analyses for your management team.

GIS

Prerequisites
. Define your GIS subsidiaries.
. Define a responsibility for each of your GIS subsidiaries and have your system administrator set the transaction security for each responsibility.
. Define transaction types.
. Define your subsidiaries’ intercompany clearing accounts.

60.What is FSG? What are the components of FSG?
Financial Statement Generator
A powerful and flexible tool that can be used to build customised reports without programming. Reports can be defined online with complete control over the rows, columns and contents of the report.
components of FSG
1.Row set
2.Column set
3.Row order
4.Content set

61.What is the security provision in FSG ?

Using system administrator responsibility, we can define security rules to control what financial information specific users can print when they run FSG reports.

To enable FSG security:
1. Define security rules for specific account segment values.
2. Assign security rules to specific responsibilities.
3. Set the profile option FSG: Enforce Segment Value Security to Yes.

62.What is the reporting set of books ?

Reporting set of books is a set of books which is having same Chart of accounts and calender as that of primary set of books but having different currency other than functional currency for the purpose of reporting financial results

63.What is the difference between revaluation and transalation ?

Translation is a process that allows to restate functional currency account balances into a reporting currency using average, periodic, or historical rate.
Whereas revaluation is a process that allows to revalue assets and liabilities denominated in a foreign currency using a period-end (usually a balance sheet date) exchange rate and any gain or loss is accounted.

64.Set up steps for Revaluation?

Define an unrealized gain/loss account.
Define a revaluation rate for each currency for each period for which we want to run revaluation.
Enter account ranges for which we want to run revaluation

65.Set up steps for Transalation?

Define a period in the calendar that precedes the first period we want to translate.
Define a period in the calendar following the period we want to translate.
Enter period and historical rates for the targeted currency.
Review the setting of the profile option GL: Owners Equity translated as PTD

66.What is Cumulative Translation Adjustment account?

Cumulative Translation Adjustment account is to account the net difference needed to balance the translated chart of account while doing the translation

67.What do you mean by Poplist, List of Value and Long List of Value?

Poplist
Choose the poplist if values are less than 10

List of values

List of values is used when values are between 10 to 200

Long List of Value
The LongList feature requires a user to enter a partial segment value before the list of values retrieves all available values
It contains more than 200 values

68.In Value set, How will you restrict wrong entry of values and also ensure security rules?

Using format validation we can specify the format type,Maximum size, Maximum & Minimum value, Precission and so on to restrict the wrong entry of values
By enabling security type as Hierarchical security or Non-Hierarchical security we can create security rule to ensure security

69.What is summary Templates? How will you create it?

Summary templates to create summary accounts, whose balances are the sums of multiple detail accounts. It is used to perform online summary inquiries, as well as to speed the
processing of financial reports, MassAllocations, and recurring journal formulas.

Creating a new summary account template:

1. Navigate to the Summary Accounts window.
2. Enter a Name for the summary account template.
3. Enter the Template.
4. Enter the Earliest Period for which you want General Ledger to maintain your actual, encumbrance and budget summary account balances. General Ledger maintains summary account balances for this accounting period and for subsequent periods.
5. If you are using budgetary control for your set of books, set the budgetary control options for the summary template.

70.What are Year -end closing steps? How will you get Opening balances for a new year?

1) Run " Post all Journals"
2) Run " Close process - Create Income statement closing Journals "
3) Run " Close process - Create Balance Sheet closing Journals "
4) Close the period - Navg to Setup - Open/close, Select the period as close

Account s Payable Scenarios – R12 Instance

Account s Payable Scenarios – R12 Instance
Topics covered
1. Bank Setup
2. Supplier Setup
3. Invoice creation
4. Creation of Quick Payments
5. Changing Check Format Templates
6. Extracting XML to input Word Templates for Check Printing

Responsibility used: Payables Manager.
Scenario 1
Setup: Banks and Bank Branches.
After Logging in to the application and clicking on “Bank and Bank Branches” a Java based window will open up. Clicking on Create button will open up the screen to Create New Banks.

Choose “Create New Bank” and enter the details.
“Save and Next”

Step 3 : Need to create an Address for the bank.

Step 4: Enter Address and “Apply”
Step 5: Make sure the screen looks like this
Step 6 : Create Contact
On Applying, a confirmation that the bank is created
Next step is to create a branch for the bank we just created.
Click on Bank Branches Tab.
Branch Details: Enter details and click finish.
Next is to create an Account for this branch.
Navigation: In Bank Branches, scroll to bottom and you will see “Create Account”
Bank Account Owner is the Legal Entity i.e Vision Operations in our case. Tick Payables.
Details
Only Cash account is mandatory, leave others as default. Next add Organization, as one organization is mandatory.
Next we need to create Payment Documents to setup a check format this bank.

Click on Manage Payment Documents, create new and enter the format. How to Create Formats is discussed later in this exercise. Apply and Close Window. Scenario 1 is complete.


Scenario 2: Creation of Suppliers
Click on create Supplier
After creating supplier the next step is to create an Address Book for this supplier and in the same screen create a site.
After creating a supplier you need to create a supplier site if u did not create the site in the address screen.
Next is to attach a payment method to this supplier
Next is to create bank details for this supplier
This completes the creation of Suppliers.
Scenario 3: Creation of Invoices.
Set the profile option “AP: Use Invoice Batch Controls” to No, otherwise only Invoice Batches Screen will popup.


Enter Lines and amount
Enter Distributions, make sure the account no and the line total matches the distribution total.
Save the Invoice.
Validate the invoice -> Actions-> Validate-> OK
Scenario 3: To make a Quick Pay and apply to the invoice we just created.
Actions-> Pay in full-> Ok will open up the payments screen.
Payment Screen

Save, will trigger the Format Payment Instructions concurrent request.
Go to View->Concurrent Request
To verify the details, on the invoice screen->Payment schedules click on Payments Overview

Scenario 4
Changing AP Check Formats
n Can create an XML output and then use this XML to populate the word template.
n Search for an existing format and download the RTF and make modifications to that template and attaching them to the custom template.
Steps for creating an XML output
Nav-> Payment Administration-> formats-> Click on Task

Create a new Format
NavigateOracle Payments Set UpFormats - Formats - Go to TaskCreate a new Format and attach XML Publisher Template = Extract IdentityData Extract = Oracle Payments Funds Disbursement Payment Instruction Extract, Version 1.0

Query a Bank AccountSelect the Account and Click Manage Payment Documents.Create a New Document and attach the Format you created.


Create a Profile Class this is used in the payments screen.
NavigateOracle Payments Set UpPayment Process Profiles - Go to TaskCreate a Payment Process Profile and attach the Format you just created.
This profile is used during the creation of the payment.

Now we will create an Invoice and make a quick payment
Enter an Invoice.Account the Invoice.Create a Quick Payment use the profile we created and save.Use the New PPP and Payment Document you created to produce an output fileThis Output file will be in XML format and will include all the fields of the Data Extract.
The Format Payment Instructions would give the output as follows. Make sure that the output of this program is set to an output of XML, otherwise if its PDF then the XML would not open.
Sample XML file would looks like this

In Microsoft Word (or other Format editor)
Load the XML file into the template builder.Open the Template that you wish to modifySelect the fields from the extract that you wish to add to your template.The new Template when finished can be attached to a new Payment Format which can be used on a new PPP and Payment Document.

Once the changes are completed attach the newly build format to your bank account.

Metalink Access Reference Doc id : 465389.1
For modifying of the formatting like 'Amout in words in Arabic" etc mofidy IBY_FD_EXTRACT_EXT_PUB.pkb package.