Please explain the order to cash and procure to pay cycle.

O2C and P2P

What is the Oracle Cloud Enterprise Structures

Enterprise
Division
Primary Ledger
Legal Entities
Business Units

General Ledger

1. List the mandatory Flexfield Qualifiers in Oracle Fusion financials?

a) Primary Balancing Segment – Company

b) Natural Account - Account

2. What Roles are used in GL?

a. General Accountant

b. General Accounting Manager

3. What is the role used to create User and assign roles?

a. IT Security Manager

4. What are the different types of Journals in General Ledger ?

1. Functional Currency Jv: This Journal, we enter Local Currency transaction purpose.

2. Foreign Currency Jv: this Journal, we enter other than local currency transaction
purpose...before we define exchange rates

3.Suspense Jv: this Journal, whenever debit is not equal to credit that time, we enable in set of
books window Suspense button, then it works otherwise it's not working

4.Tax Jv: this Journal, calculate taxation of Purchased items

5.Reverse Jv: this Journal whenever we enter recurring journal, at the time of we using..We have
two methods...one is Debit to Credit and second one is sign (+ to -)
 5. Which ESS job is Importing the journal from interface table OC ?

import Journal

6. Which ESS job is to create journals from the sub-ledger module ?

Create Accounting

7. What are the different types of conversion Rate ?

a) Spot Rate: b) Corporate Rate c) User Rate:

8. Definition of Retained Earnings Account in Oracle cloud financials?

a) GL posts the net balance of all income and expenses accounts from the prior year to this
account when you open the first period of a fiscal year.

9. How do you manage Journal Approvals?

a) BPM (Business Process Management)

Payables :

10. Types of Invoices in Oracle payable

Answers : Standard / Prepayment / Expense Report / Mixed Invoice / Credit Invoice Debit Invoice

What's the difference between an EFT and a wire transfer?

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,

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.

Difference Between the Manual Hold and the System Hold.

Answers :

System Hold apply to the Invoice if Something Mismatched in the Invoice as per the Standard
Process Like Invoice Header Total and Line Total Should be Equal, Invoice Tolerance Limit then
System Put the Hold. System hold is something related to setup Controls.

Manual Hold is something which put manually in the Invoice due to any reason like Product
received from the Supplier is Damaged so need to hold the Payment for that Invoice.

What we do in the AP and GL reconciliation ?

Answers :

In the AP and GL reconciliation, we try to Match the Total Liability from the Payables with the
Liability accounts total in the GL. We have some set of Liability accounts in the Payables, which
we only use in the Invoice Headers to book the Liability and we match only these Liability GL
accounts in the AP and GL reconciliation report.

What are 2-way, 3-way, and 4-way matching?

Ans: Making payments to the suppliers in 3 ways.

In 2-way(we will compare two documents PO and Invoice).

In 3-Way we will compare 3 documents PO+reciept+Invoice

IN 4-Way we will compare 4 documents PO+Receipt+Invoice+Inspection

What is SWEEP Program? Explain the Process Of the Sweep Program.

Ans: This particular program is run in order to transfer an unaccounted invoice to the next opened
period during the period-end closing of Accounts Payable. In fact, you can’t close the Payable Period if
you have an Un-Accounted Invoice in Payables. In order to negotiate (Transfer) these invoices to the
next open period, this program is run. So that the Payable period can be closed.

14. What is Pre-Payment in AP?

Ans: Prepayment is Advance Payment made to suppliers by Organization or Employee. Later it will
apply to the featured debit

What is the Distribution Type while entering the Invoice?

Item, Tax, Miscellaneous,Freight, Withholding Tax

From where liability account and what is the order?

 Invoice is unmatched with the PO invoice liability account has defaulted from the supplier definition

 Invoice is matched with the PO both the AP Accrual account and Liability accounts come from the related
Purchase order.

 In Oracle Payable, the default liability account is defined in the below order.

1. Supplier Site

2. Financials option

3. Subledger accounting Option.

What are the Accounting entries for Standard Invoice ?

Non-PO

Item expense DR
Liability CR

Tax Recoverable (If TAX) DR

Matched with PO :

Accrual DR
Liability CR

What are the Accounting entries for Payment?

Time of Payment

Liability A/C DR
Cash Clearing A/C CR

Time of Clearance

Liability A/C DR
Cash Clearing A/C CR

Oracle Receivable

: How many Types of Transactions we can create in Oracle AR?

We can Create 6 type of AR Transaction in AR as below.

1.Creditmemo
2.Invoice
3.Chargeback
4.Deposits
5.Guarenty
6.Bills Receivable

How can i reduce the Invoice amount?

Using with Credit Transactions

What is Auto Invoice?

A) Autoinvoice is a tool used to import and validate transaction data from other financial
systems and create invoices, debit-memos, credit memos, and on account credits in Oracle
receivables. Using Custom Feeder programs transaction data is imported into the
autoinvoice interface tables.

From where default Receivables and Revenue account is defined and it’s level.

1. Customer bill-to sites

2. Salespeople

3. Transaction types

4. Subledger accounting Option

What are the different statuses for Receipts?

A) Unidentified – Lack of Customer Information Unapplied – Lack of Transaction/Invoice

specific information (Ex- Invoice Number) Applied – When all the required information is
provided. On-Account, Non-Sufficient Funds, Stop Payment, and Reversed receipt.
What is AUTO Accounting and it’s level

Auto Accounting is a mechanism for generating default accounting flexfields for revenue , receivables, freight and tax based
on the other parameters associated with the invoice you are entering.

Level

1.Salesrep.

2.Transaction Types.

3.Standard Lines.

4.Taxes.

5.Customer bill-to-site

What is the Receivables Default account?

Receivable, revenue, Freight, Tax, Unearned revenue, Finance charges, Unbilled receivables, Bills receivables, and Auto
invoice Clearing Accounts

Accounting for invoice:

Receivables A/C DR
Revenue Account CR

Credit memo:
Revenue DR
Receivables A/C CR

Receipts:
Cash A/C DR
Receivables A/c CR

Purchasing :

When Creating a receipt:

Inventory Receiving A/C DR
Accrual Account CR
At the time of Receiving transactions:
Asset clearing A/c or Inventory valuation a/c DR
Inventory Receiving A/c CR