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Oracle Finance Functional Interview Questions and Answers
Oracle Finance Functional Interview Questions and Answers
Raju OracleApps
Techno Functional Consultant at Oracle Applications
1. What is journal, how many types of journal?
Journals it is used to record the business transaction it contains debit and credit lines always
debit must be equal to credit. Types of journals are Suspense Journal or Unbalanced Journal,
Recurring Journals and Reversal journals.
3. It is used to restrict the end users from entering the code combinations. It will work at
structure level
segment. When setting up the values, you will indicate the type of account as Asset, Liability,
Owner's Equity, Revenue, or Expense.
Balancing Account Each structure must contain only one balancing segment. Oracle General
Ledger ensures that all journals balance for each balancing segment.
Cost Center This segment is required for Oracle Assets. The cost center segment is used in
many Oracle Assets reports and by Oracle Workflow to generate account numbers. In addition,
Oracle Projects and Oracle Purchasing also utilize the cost center segment.
Intercompany General Ledger automatically uses the intercompany segment in the account code
combination to track intercompany transactions within a single ledger. This segment has the
same value set and the same values as the balancing segment.
For example, use a primary ledger for corporate accounting purposes that use the corporate chart
of accounts and subledger accounting method, and
use a secondary ledger for statutory reporting purposes that use the statutory chart of accounts
and subledger accounting method.
This allows you to maintain both a corporate and statutory representation of the same legal
entity's transactions in parallel.
Reporting Currency Vs Secondary Ledger
Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C's that define a
ledger, we have a chart of accounts, calendar, accounting method, and currency. If you only need
multiple currencies to support your reporting requirements, use reporting currencies. If you need
to account for your data using different calendars, charts of accounts, accounting methods in
addition to currency, use a secondary ledger.
Planned PO: Planned PO is a longterm agreement committing to buy items or services from a
single source. You must specify tentative delivery schedules and all details for goods or services
that you want to buy, including charge account, quantities, and estimated cost.
Contract PO: Contract PO is created when you agree with your suppliers on specific terms and
conditions without indicating the goods and services that you will be purchasing.
1. What is Key flex filed how many types in GL, AP, AR, & FA?
Key Flex field: is used to capture mandatory information of the organizations
In GL 3 types 1. Accounting flex field (mandatory) 2. Reporting attribute (optional) 3. Gl ledger
flex field (optional)
IN AP No flex fields
IN AR Two types 1. Sales Tax Location flexfield (mandatory) 2. Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.
Its negative amount identified by Customer and sent to Supplier. Ex: Purchase Returns.
Its negative amount identified by Supplier and sent to the Customer. Ex: TDS Payables
In Payable we are receiving the material from supplier. so we have to pay the amount to the
supplier. in case supplier has send the goods more than what we order at the point of we have to
return the goods reduce the accounting balance.We send a memo to the supplier is called as debit
memo or supplier send a memo is called as credit memo. Both of the reducing our liability. Ex:
In Payables Debit Memo and Credit Memo functionality is same It decreases the supplier
balance (i.e. decreases the liability) Eg Supplier has send you invoice X with an amount of $100
but Later we found there is mismatch in quantity (more quantity billed)so we will inform to
customer. Then customer has sent you the credit memo but if customer says send me the debit
memo then you will generate debit memo from your end. Both are same as functionality.
1. What is Debit Memo and Credit Memo in AR?
In AR Debit memo is Positive Amount for example we are selling the product to the customer.
Either we may forget to add a freight charges or some other thing. So at that time we are prepare
or Rise the Debit memo it is increased the Org balance.
(Customer is Under Charged at that time Org prepare Debit memo)
In AR Credit memo is Negative Amount if you billed more than your customer then Org need to
raise Credit memo to give the credit to your Customer, so it is decreasing the Org balance.
(Customer is Over Charged at that time Org prepare Credit memo)