Friday, 19 November 2021

Top 20 Oracle Accounts Payable Interview Questions & Answers

  

Ques: 1). Describe the Accounts Payable.

Answer:

The Accounts Payable application component keeps track of and maintains all vendor accounting data. It's also a key component of the purchasing system, as deliveries and invoices are tracked by vendors. In reaction to the operative transactions, the system automatically activates postings. Similarly, the system feeds figures from bills to the Cash Management application component to help with liquidity planning.

 

Ques: 2). What does the term "invoice" mean?

Answer:

An invoice or bill is a commercial document sent by a seller to a buyer that details the products, quantities, and agreed-upon prices for goods or services provided by the seller. The buyer must pay the supplier according to the payment conditions stated on the invoice.

In the rental business, an invoice must include a particular reference to the duration of the time being invoiced, so the invoicing amount is based on quantity, price, discount, and duration rather just quantity, price, and discount. In general, each line of a rental invoice refers to the real hours, days, weeks, months, and so on that have been billed.

 

Ques: 3). What's the difference between an EFT and a wire transfer?

Answer:

The most common electronic payment methods are EFT and WIRE. After WIRE, EFT stands for electronic fund transfer and is the second fastest means of electronic payment. EFT is a batch-oriented system for transferring payments from one bank to another, which takes 2 to 4 days to clear and settle. WIRE, on the other hand, is a real-time gross settlement (RTGS) system for transferring funds in real-time and on a gross basis. The clearing and settlement processes take place on the same day. WIRE is more expensive than EFT, but it is also faster.

 

Ques: 4). What does GRN stand for?

Answer:

The merchandise has been delivered to the shops department, according to a goods receipt note. The GRN, together with other crucial documentation, serves as verification of material receipt at the warehouse. This can be prepared by the stores department and approved by the plant manager. GRN contains the ordered quantity, received quantity, and acceptable quantity. On the basis of the GRN note, the bill will be passed. The inventory will be automatically updated after the GRN is prepared, and payment will be released to the vendor.

GRN contains the following details.

1.Ordered quantity .

2.Received Quantity.

3.Defective quantity in received quantity .

4.Quality standards details.

 

Ques: 5). Can you give a sample Process Flow for Procure to Pay Cycle?

Answer:

Process flow for Procure to pay will go through two departments (Commercial & Finance)

Procure - Commercial Department 

The following steps involve to procure any item

  1. Received Requsition from concern Department
  2. Request for Quotation from Suppliers at least three
  3. Finalize the best Quotation by keeping in mind about our companies standard
  4. Check the Budget for the same
  5. Negociate with supplier for more economic pricing and finalize the payment terms
  6. Process the PO and forward to the supplier to supply the goods and services

 Pay Cycle - Finance Department

The following steps need to be fulfil

  1. Invoice should be match with PO
  2. Invoice should has all the supporting documents such as PO copy, Delivery note duly signed by receiver (our staff who authorized to received goods / store keeper)
  3. If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval
  4. Even if it not the services invoice, it should forwarded to the concern person's approval who request the PO for the same
  5. Finance can reject the invoice if it is not budgeted and ask for the reasons.
  6. After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, at least it tells you if the PO already used or cancel)
  7. Finance approved the invoice and process the payment base on payment terms with the supplier.

 

Ques: 6). How does the payment system operate?

Answer:

An account's open items can only be removed if an identical offsetting amount is posted to the account. To put it another way, the sum of the things assigned to each other must equal zero. The system enters a clearing document number and the clearing date in these objects during clearing. Invoices in a vendor account are marked as paid, and items in a bank clearing account are marked as cleared in this fashion.

In most cases, the payment programme is used to settle invoices. As a result, manual clearance of open items is rarely required. However, you may have to manually remove objects on occasion if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

 

Ques: 7). What is the process of creating an Invoices and transferring it to GL?

Answer:

 1. create batch

2. create invoice

3. create distribution

4. validate the invoice

5. actions -à approve

6. if individual create accounting click ok

7. If batch go to batch create accounting.

8. Create accounting hits Payable Accounting(Transfer) ??Program which will create accounting.

9. Run Transfer to GL Concurrent Program

10. Journal Import

11. Post journals

12. Hits balances.

 

Ques: 8). What Is Gl Date Basis & Prepayment Settlement Date?

Answer:

The date you want Payables to use as the default accounting date for invoices during invoice entry Invoice Date. Invoice date you enter during invoice entry. System Date. Current date for your Payables system. The date you enter the invoice. 

Goods Received/Invoice Date. Date that you enter in the Date Goods Received field. If no value is entered, then the invoice date is used.

Goods Received/System Date. Date that you enter in the Date Goods Received field. If no value is entered, then the system date is used.

Prepayment Settlement Days. Number of days you want Payables to add to the system date to calculate a default settlement date for a prepayment. Payables  prevents you from applying the prepayment to an invoice until on or after the settlement date.

 

Ques: 9). What's the difference between interface and base tables?

Answer:

The following is a comparison of the interface and base tables.

Interface table: The interface table is where the data is checked before being posted to the base tables. Oracle is seeded in a large number of interfaces. You can think of the interface as the data's entry point, and it checks the data's sanity.

Base tables: As told earlier once the data is validated will get updated in the base tables, and is considered as the data which is in the base table is accurate and used in many ways. (Reporting..etc..)

The base tables in AP are as follows:

1) ap_invoices_all

2) ap_invoice_payments_all

3) ap_invoice_distibutions_All

4) ap_payment_schdules

5) ap_payment_dustributions_all

6) ap_checks_all

7) ap_accounting_events_all

8) ap_bank_accounts_all

9) ap_bank_accounts_uses_all

 

Ques: 10). How many different forms of buy order agreements/orders are there?

Answer:

A) Standard Purchase Order: Standard purchase orders are used for one-time purchases of a variety of items. When you know the specifics of the goods or services you need, as well as expected pricing, quantities, delivery schedules, and accounting distributions, you may write standard purchase orders. Because the required information is known if you use encumbrance accounting, the purchase order may be encumbered.

B) Planned Purchase Order: A planned purchase order is a long-term commitment to purchase items or services from a single supplier. You must include preliminary delivery dates as well as all specifics for the items or services you wish to purchase, such as the charge account, quantity, and anticipated cost.

EXAMPLE: Buying Christmas gifts from a specific retailer.

C) Contract PO: You form a contract purchase agreement with your supplier to agree on particular terms and conditions without specifying the items and services you would be purchasing, such as "for $ amount, you must supply this much quantity.” You can then issue ordinary purchase orders referencing your contracts, and if you use encumbrance accounting, you can encumber these purchase orders.

D) Blanket Purchase Agreement: You construct blanket purchase agreements when you know the details of the items or services you expect to buy from a specific provider over a period of time but not the details of your delivery schedules. Before actually acquiring your things, you can use blanket purchase agreements to define negotiated rates.

A Blanket Purchase Agreement is a type of contract between you and your supplier that specifies the price at which you will buy products from them in the future. The price of the item, not the quantity, is entered here. The amount of the items is entered when the release is created. In the release, there is no way to change the pricing. The Released Amount is calculated by multiplying the amount by the price. Assume you have a contract with your supplier that states you can only buy products worth a certain amount against the contract.

 

Ques: 11). What exactly are recurring invoices? What are the procedures in setting up an AP?

Answer:

In some cases, suppliers fail to provide invoices. However, housing payments must be made: rent, lease rents. In this case, we must create invoices on a period-by-period basis. To accomplish this, we'll need to design a single recurring invoice template. The term "template" refers to the process of making several invoices from a single master copy. We're making a single invoice master copy, which is also known as a recurring invoice or recurring invoice template.

 SET UP:

 1) Create one special calendar

2) Create one full distribution set

3) Enter payment terms in the recurring invoice window

4) Enter the template no, first invoice amount, special invoice amounts

 

Ques: 12). What Are The Different Types Of Holds That Are Used To Prevent Invoice Payment?

Answer:

Holds that we can manually apply or that Payables automatically apply to block payment and, in some situations, the generation of accounting entries for an invoice. We can manually release specific holds that Payables applies during Approval, and we can remove holds that we apply.

Payables offers us with some default invoice holds, and we can construct our own based on our invoice approval requirements. We can also put a hold on the supplier rather than on each individual invoice to prohibit payment of supplier invoices.

There are two major category of hold

Manual Hold

System Hold.

Manual hold we can create and release manually where as system hold is created by system and normally released by system after due rectification.

There are three types of holds we can use to prevent payment of an invoice

Invoice Hold:We can manually apply one or more Invoice Hold Reason Approvals (”holds”) to an invoice using the Invoice Holds window of the Invoice Workbench.

Scheduled Payment Hold: We can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench.

Supplier Hold: In the Supplier Sites window, we can enable the Hold All Payments, Hold Unapproved Invoices, or Hold Unmatched Invoices options. We also have the option of specifying an Invoice Amount Limit for a supplier site.

 

Ques: 13). What Are The Invoice Matching Option?

Answer:

The following are the Invoice Matching Option  available :

Purchase Order Matching:

2–Way. When you match to a purchase order or receipt, Payables Approval performs these control checks:

Quantity billed <= Quantity ordered (Symbol mean lessor)

Invoice price <= Purchase order price

Receipts Matching:

3–Way. Control checks 1 and 2, plus:

Quantity billed <= Quantity received

Invoice Matching:

4–Way. Control checks 1, 2, and 3, plus:

Quantity billed <= Quantity accepted

 

Ques: 14). What is the difference between Oracle Payables' Primary and Secondary Ledgers?

Answer:

The Primary Ledger is the Main Ledger, while the Secondary Ledger is the Replica of the Primary Ledger. All of our transactions are recorded in the Primary Ledger. The main reason for using Primary and Secondary Ledger is the discrepancy between the Organizational and Statutory Requirements.

For example, a US corporation with an office in India has a calendar that runs from October to September, but the Indian calendar goes from April to March. This is when the notion of the Primary and Secondary Ledger comes into play. Whereas the primary calendar might be designed according to US standards, However, according to India's Statutory Requirements, the secondary calendar is used.

 

Ques: 15). What Are The Approval Levels That Match?

Answer:

We can execute online matching of invoices and original purchase orders or purchase order receipts if we utilise Oracle Payables with Oracle Purchasing or another connected purchasing product. Matching ensures that we only pay for the items and services we requested, and that our vendors do not overcharge us. The Payables Approval Program applies holds to invoices that exceed the amount and quantity tolerances we establish, preventing payment until the holds are released.

 

Ques: 16). How does the payment system operate?

Answer:

Open items on an account can only be cleared if an equal and opposite amount is posted to the account. To put it another way, the total number of items assigned to each other must be zero. During clearing, the machine enters a clearing document number and the clearing date in these items. Products in a bank clearing account are marked as cleared, and invoices in a vendor account are indicated as paying.

The payment programme is typically used to settle invoices. As a result, removing open things manually is rarely required. You may need to manually clear products if, for example, you request a refund from your supplier or have set up a direct debit mechanism.

 

Ques: 17). What should be the setup steps when i wish to implement TDS features only?

Answer:

Setup only Step 16-21 of the India Localization Setups. Refer to the Setup Overview chapter of the India Localization User Guide.

Following India Localization Setups need to be completed:

Define TDS Related Information for the Organization

Define Income Tax Authority

Define TDS Sections

Define TDS Tax Codes

Defining TDS year Information

Define TDS Details for Suppliers

 

Ques: 18). What causes the Error? When attempting to match an invoice to a PO, does App-Sqlap-10715 appear?

Answer:

When an invoice is matched to a PO for the complete quantity, the PO is ready for invoicing. If the invoice line is rejected (using the Discard button), the Match button becomes available again, reversing the PO match, and the invoice is matched to the same PO for a different quantity. The following message appears at that time: APP-SQLAP-10715: For invoicing purposes, this purchase order line has been closed. Before continuing with this match, you might want to look over the purchase order.

When we trash a line in R12, the status is only updated at validation time. When we match or reverse POs, we update the quantity billed and amount billed, but the status is only affected when we validate the invoice. Validate the invoice before proceeding with any other actions on the invoice after pressing the Discard button. For more information, see Doc ID 456370.1 and Bug 5927520.

 

Ques: 19). How a PO Match comes over as Exclusive Tax Lines for a reason?

Answer:

Taxes are always exclusive in PO, unless otherwise specified in the PO application/product design. As a result, in AP, taxes on an invoice linked to a PO are calculated as exclusive taxes. More information may be found in Bug 6748767 R12: APXINWKB - JAPAN INCLUSIVE TAX, PO MATCH COMES OVER AS EXCLUSIVE TAX LINES. For more details, see Doc ID 549988.1.

 

Ques: 20).  What Are Offset Taxes and How Do They Work? What Is It Used For?

Answer:

Offset Taxes: Offset tax codes are used on invoices to record self–assessed taxes while reducing or totally offsetting tax burden. Because offset taxes have negative–amount rates, you must input negative–amount invoice tax distributions when using them.

It is utilised in the European Union, and if you are a member of the EU, you can use the Intra–EU VAT Audit Trail report to report on these zero–rated taxes.



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