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Monday, August 4, 2025
Wednesday, July 30, 2025
P2P - Oracle Cloud/Fusion Procure to Pay (P2P) Setups and Process Flow
P2P - Oracle Cloud/Fusion Procure to Pay (P2P) Setups and Process Flow
Pre-requisite Setups P2P Process:
1. Employee/User – Supervisor Setup
2. Buyer Setup
3. Supplier Setups
a. Supplier
b. Supplier Address
c. Supplier Sites
d. Supplier Contacts
4. Payment Setups
a. Payment Templates
b. Payment Formats
c. Payment Document
d. Payment Process Profile (PPP)
e. Payment Process Request Template (Optional)
5. Approval Setups
a. Requisition Approval
b. Purchase Document Approval
c. AP Invoice Approval
P2P Process Flow:
01. Create Requisitions
02. Approve Requisitions
03. Create Purchase Orders
04. Approve Purchase Orders
05. Receive Goods
06. Create Payables invoice with Match PO Lines
07. Invoice Payment to Supplier with Electronic Method
08. Transfer Payables data to General Ledger
09. Transfer Payments data to General Ledger
10. Verify the Journal Batches
Monday, July 14, 2025
AR FAQS - Accounts Receivable Interview Interview Questions and Answers
Basic Concepts and Definitions
Q1: What is Accounts Receivable (AR)?
A: Accounts
Receivable refers to the amount of money owed to a company by its customers for
goods or services provided on credit. It is recorded as an asset on the balance
sheet.
Q2: How do you record AR in financial statements?
A: AR is
recorded as a current asset on the balance sheet. When the payment is received,
it reduces the AR balance and increases the cash balance.
Q3: What is the difference
between AR and AP?
A: Accounts
Receivable (AR) is the money owed to a company by its customers, while Accounts
Payable (AP) is the money a company owes to its suppliers or vendors.
Q4: What is the aging schedule in AR?
A: An aging
schedule categorizes AR based on the length of time an invoice has been
outstanding. Common categories are 0-30 days, 31-60 days, 61-90 days, and over
90 days.
Q5: What is the difference
between billing and invoicing?
A: Billing is
the process of requesting payment, often on a recurring basis, while invoicing
is the act of creating and sending an itemized bill for goods or services
rendered.
Process and Workflow
Q6: Describe the Accounts Receivable process.
A: The AR
process involves invoicing customers, recording payments, reconciling accounts,
managing customer disputes, and following up on overdue payments.
Q7: How do you handle late payments or overdue invoices?
A: I follow up
with the customer via email or phone, send reminders, and escalate the issue if
necessary. I also evaluate the need for adjusting payment terms or offering discounts to encourage
prompt payment.
Q8: What are the steps involved in reconciling AR?
A: The steps
include matching payments received to outstanding invoices, identifying
discrepancies, investigating variances, and adjusting records as necessary.
Q9: How do you manage cash application in AR?
A: Cash
application involves matching payments received with the correct customer
accounts and invoices. I ensure that payments are applied accurately and
promptly, and any discrepancies are resolved.
Q10: What is the role of credit management in AR?
A: Credit
management involves assessing a customer's creditworthiness, setting credit
limits, and monitoring credit terms to minimize the risk of non-payment.
Tools and Software
Q11: What AR software or tools have you used?
A: I have
experience with ERP systems like SAP, Oracle, and QuickBooks. I am also
familiar with AR automation tools and reporting software such as Microsoft
Excel and Tableau.
Q12: How do you use Excel in AR management?
A: I use Excel
for data analysis, creating aging reports, tracking payments, and performing
reconciliations. Functions like VLOOKUP, pivot tables, and conditional
formatting are particularly useful.
Q13: Have you worked with any automated AR systems?
A: Yes, I have
experience with automated AR systems that streamline invoicing, collections,
and reporting. Automation helps reduce errors and improves efficiency in managing receivables.
Q14: How do you ensure data accuracy in AR software?
A: Regular
reconciliations, data validation checks, and proper documentation of
transactions help ensure data accuracy. I also use automated alerts for any
inconsistencies.
Q15: How do you handle system errors or discrepancies in
AR?
A: I
investigate the source of the error, consult with the IT department if
necessary, and correct the discrepancy. If it’s a recurring issue, I work on
improving the process or system configuration.
Reporting and Analysis
Q16: What reports are crucial for AR management?
A: Aging
reports, cash flow forecasts, collection reports, and customer account
statements are essential for monitoring and managing AR.
Q17: How do you analyze AR aging reports?
A: I review the
aging report to identify overdue accounts, assess the risk of non-payment, and
prioritize collection efforts.
I also look for trends or patterns that may indicate underlying issues.
Q18: What KPIs do you track in AR?
A: Key
performance indicators (KPIs) include Days Sales Outstanding (DSO), aging
percentage, collection effectiveness
index, and bad debt ratio.
Q19: How do you improve DSO (Days Sales Outstanding)?
A: Improving
DSO involves faster invoicing, proactive collection efforts, offering
early payment discounts, and regularly reviewing credit terms and customer
payment behavior.
Q20: Can you explain how to calculate bad debt expense?
A: Bad debt
expense is calculated based on historical data, either by using the percentage
of sales method or the accounts receivable aging method, where a percentage of
outstanding receivables is estimated to be uncollectible.
Problem-Solving and Scenarios
Q21: How do you handle a situation where a customer
disputes an invoice?
A: I first
verify the details of the invoice and gather supporting documentation. Then, I
contact the customer to understand their concerns and work towards resolving
the issue, either by adjusting the invoice or providing clarification.
Q22: Can you describe a time when you had to deal with a
difficult customer regarding payment?
A: I had a
customer who consistently delayed payments. I worked closely with them to
understand their financial situation and negotiated a payment plan that worked
for both parties, which eventually resolved the issue.
Q23: How do you handle a large volume of AR transactions?
A: I prioritize
tasks based on due dates and amounts, use automation tools to streamline
processes, and regularly review reports to ensure that everything is on track.
Q24: What steps do you take to reduce bad debts?
A: I conduct
thorough credit checks before extending credit, monitor aging reports, follow
up on overdue accounts promptly, and work with customers to set up payment
plans if necessary.
Q25: How do you handle discrepancies between the AR
ledger and the bank statement?
A: I perform a
bank reconciliation by comparing the AR ledger to the bank statement,
identifying discrepancies, and investigating any unmatched transactions.
Corrections are made accordingly.
Compliance and Regulations
Q26: How do you ensure compliance with accounting
standards in AR?
A: I stay
updated on relevant accounting standards (e.g., IFRS, GAAP) and ensure that AR
processes, including revenue recognition and bad debt provisioning, comply with
these standards.
Q27: What is the role of internal controls in AR?
A: Internal
controls in AR help prevent errors and fraud. These controls include
segregation of duties, approval processes for credit terms, and regular audits
of AR transactions.
Q28: How do you handle AR in a multi-currency
environment?
A: I use the
company’s ERP system to manage multi-currency transactions, ensuring that
foreign exchange rates are accurately applied and that currency gains or losses
are recorded appropriately.
Q29: What are the tax implications of AR?
A: Depending on
the jurisdiction, AR can have tax implications such as sales tax or VAT. It’s
important to ensure that the correct tax is applied to invoices and that tax
returns reflect AR balances accurately.
Q30: How do you manage AR during an audit?
A: I ensure
that all documentation, such as invoices, payment records, and reconciliations,
is organized and readily available. I also prepare detailed reports and explain
any discrepancies or adjustments during the audit process.
Teamwork and Collaboration
Q31: How do you collaborate with other departments to
manage AR?
A: I work
closely with the sales, credit, and finance teams to ensure that credit terms
are appropriate, invoicing is accurate, and any disputes or payment issues are
resolved efficiently.
Q32: How do you handle conflicts between the sales and AR
teams?
A: I mediate
discussions to ensure both sides understand each other’s priorities. For
example, I work with sales to balance the need for customer satisfaction with
the importance of timely payments.
Q33: Can you describe a time when you improved
communication within the AR team?
A: In a
previous role, I introduced regular team meetings and status reports to improve
transparency and coordination. This helped reduce errors and ensured that
everyone was on the same page.
Q34: How do you train new team members on AR processes?
A: I provide
comprehensive training that covers the AR workflow, software, and reporting
tools. I also pair new hires with experienced team members for hands-on
learning.
Q35: How do you handle a high workload within the AR
team?
A: I prioritize
tasks, delegate responsibilities, and, if necessary, suggest hiring temporary
help. I also look for ways to streamline processes to reduce manual work.
Strategic and Advanced Questions
Q36: How do you assess the creditworthiness of a
customer?
A: I review the
customer’s financial statements, credit scores, payment history, and industry
reputation. I also assess their ability to meet payment terms based on their
current financial situation.
Q37: What strategies do you use to optimize AR
collections?
A: I implement
proactive collection efforts,
offer payment plans,
negotiate early payment discounts, and maintain strong relationships with
customers to encourage timely payments.
Q38: How do you handle AR during periods of economic
downturn?
A: During
economic downturns, I closely monitor AR aging, adjust credit terms, and work
with customers to set up flexible payment plans. I also increase communication
with customers to manage expectations.
Q39: How do you handle high-risk customers in AR?
A: I monitor
high-risk customers more closely, set stricter credit limits, and require more
frequent payment schedules or advance payments. I also review their accounts
regularly for any signs of financial distress.
Q40: What is your approach to continuous improvement in
AR?
A: I regularly
review AR processes for inefficiencies,
seek feedback from team members, and implement automation where possible. I
also stay informed about industry best practices and emerging technologies.
9. Advanced Process and Technical
Questions
Q41: How do you calculate Days Sales Outstanding (DSO),
and what does it indicate?
A: DSO is
calculated by dividing the total accounts receivable by the total credit sales
and then multiplying by the number of days in the period. It indicates the
average number of days it takes a company to collect payment after a sale. A
lower DSO is preferred as it shows efficient
collection.
Q42: What steps do you take to resolve unapplied cash in
AR?
A: I review the
payment details, match them with open invoices, communicate with the customer
if needed, and apply the cash to the correct invoice. If necessary, I research
further to find the correct allocation or escalate the issue.
Q43: How do you handle a situation where a customer
consistently delays payments despite multiple follow-ups?
A: I assess the
customer’s payment history, communicate directly to understand any challenges,
renegotiate payment terms if needed, and possibly escalate the issue to the
credit department or consider withholding further credit until the account is
settled.
Q44: What is the impact of AR on the cash flow statement?
A: AR impacts
the cash flow from operating activities. An increase in AR indicates that
revenue is recorded but not yet collected in cash, which reduces cash flow.
Conversely, a decrease in AR boosts cash flow as payments are collected.
Q45: How do you handle overpayments from customers?
A: I first
verify the overpayment, then decide whether to apply the excess amount to
future invoices, issue a refund, or hold the credit on the customer’s account,
depending on the customer’s preference and company policy.
Q46: What is a chargeback in AR, and how do you handle
it?
A: A chargeback
is a return of funds to a customer, often due to disputes or errors. To handle
it, I verify the validity of the chargeback, adjust the AR records, and work
with the customer and internal departments to prevent future issues.
Q47: How do you manage AR for a company with multiple
subsidiaries or locations?
A: I ensure
that each subsidiary/location has a clear AR process and that records are
consolidated accurately. I use an ERP system that supports multi-entity
accounting and regularly reconcile intercompany transactions.
Q48: Can you explain the concept of factoring in AR?
A: Factoring is
the sale of a company's receivables to a third party (factor) at a discount.
This provides immediate cash flow, but at the cost of a fee. It’s commonly used
when a company needs to improve liquidity quickly.
Q49: How do you handle intercompany transactions in AR?
A: I ensure
that transactions between related entities are accurately recorded and
reconciled. This involves eliminating intercompany balances during
consolidation and ensuring that all entries are properly documented.
Q50: What is the significance of the Allowance for
Doubtful Accounts, and how do you calculate it?
A: The
Allowance for Doubtful Accounts is a contra-asset account that estimates the
amount of receivables that may not be collected. It’s calculated based on
historical data, industry standards, and specific customer circumstances using
methods like percentage of sales or aging of receivables.
10. Customer and Dispute Management
Q51: How do you manage disputes regarding early payment
discounts?
A: I verify the
terms of the discount, check if the payment was made within the eligible
period, and communicate with the customer to resolve any discrepancies. If the
customer is not eligible, I provide a clear explanation and adjust the invoice
accordingly.
Q52: What is your approach to resolving disputes that
arise due to pricing discrepancies?
A: I review the
original sales agreement and invoice details, communicate with the sales
department, and discuss the issue with the customer. If a mistake was made, I
correct the invoice; if not, I provide the customer with documentation to
justify the pricing.
Q53: How do you handle situations where a customer claims
they never received an invoice?
A: I first
confirm that the invoice was sent and check the contact details. Then, I resend
the invoice and follow up with the customer to ensure they receive it. I may
also discuss alternative ways to send invoices, like electronic billing, to
prevent future issues.
Q54: How do you prioritize collections from different customers?
A: I prioritize
based on factors such as the aging of the receivables, the customer’s payment
history, the amount owed, and the impact on cash flow. High-risk and high-value
accounts usually get the most attention.
Q55: How do you handle a situation where a customer’s
payment is consistently short?
A: I discuss
the issue with the customer to understand why the payments are short. If it’s
due to disputes or cash flow issues, I work to resolve the underlying problem.
If it’s a recurring issue, I may adjust payment terms or escalate the matter.
Q56: What is your approach to managing customer disputes
that escalate into legal issues?
A: I gather all
relevant documentation, involve the legal department, and try to resolve the
issue through negotiation. If litigation is necessary, I provide the legal team
with all necessary support and continue to monitor the situation closely.
Q57: How do you maintain good relationships with
customers while ensuring timely payments?
A: Clear
communication, understanding customer needs, and being flexible within reason
help maintain good relationships. I ensure that customers are aware of payment
terms and deadlines, and I offer
solutions like payment plans if needed.
Q58: How do you handle a customer who disputes a late
fee?
A: I review the
invoice and payment history to confirm whether the late fee is valid. If it is,
I explain the reason for the fee to the customer. In some cases, I may offer to waive the fee as a
goodwill gesture if the customer has a good payment history.
Q59: How do you deal with a customer who refuses to pay
because of dissatisfaction with the product or service?
A: I coordinate
with the sales or customer service department to address the customer’s
concerns. If a resolution is reached, I negotiate a payment plan or settlement.
If no resolution is possible, I may need to escalate the issue.
Q60: How do you handle partial payments from customers?
A: I apply the
partial payment to the invoice and then follow up with the customer to arrange
payment of the remaining balance. If necessary, I discuss the reason for the
partial payment and work out a plan to collect the full amount.
11. Reporting and Analysis
Q61: How do you prepare an AR aging report, and what
information does it provide?
A: An AR aging
report categorizes receivables based on the length of time they have been
outstanding. I generate the report using accounting software, which helps
identify overdue accounts and prioritize collections.
Q62: How do you use AR reports to identify trends and
improve collections?
A: I analyze
aging reports, collection reports, and customer payment histories to identify
patterns in late payments, high-risk customers, or inefficiencies in the collection process. This
information helps me adjust strategies to improve collections.
Q63: What metrics do you monitor in AR to ensure efficiency?
A: Key metrics
include Days Sales Outstanding (DSO), aging percentage, collection effectiveness index (CEI), bad debt
ratio, and average days delinquent (ADD). These metrics provide insight into
the efficiency of the AR
process.
Q64: How do you calculate the Collection Effectiveness Index (CEI)?
A: CEI is
calculated by dividing the total amount collected during a period by the total
receivables at the beginning of the period plus new sales, and then multiplying
by 100. It measures how effective
the company is at collecting receivables.
Q65: How do you analyze customer payment behavior?
A: I review
payment histories, aging reports, and customer account trends to identify any
changes in payment behavior. I also consider external factors like industry
conditions or economic factors that may influence behavior.
Q66: How do you create cash flow forecasts based on AR?
A: I use
historical AR data, sales projections, and aging reports to estimate future
cash inflows. I factor in expected payment delays and potential bad debts to
create a realistic forecast.
Q67: How do you prepare an AR reconciliation report?
A: I compare
the AR ledger with supporting documentation, such as invoices and bank
statements, to ensure that all transactions are recorded correctly. Any
discrepancies are investigated and corrected.
Q68: What strategies do you use to reduce bad debt
expenses?
A: I implement
thorough credit checks, monitor aging reports closely, follow up on overdue
accounts promptly, and work with customers to set up payment plans if needed. I
also review and adjust credit policies regularly.
Q69: How do you ensure accurate AR reporting at month-end
close?
A: I ensure
that all transactions are recorded, reconciliations are completed, and any
discrepancies are resolved before closing the books. I also prepare detailed AR
reports and review them for accuracy.
Q70: How do you report AR performance to management?
A: I provide
management with regular reports that include key metrics (e.g., DSO, aging
analysis), trends, and any issues affecting
collections. I also make recommendations for improving AR performance.
12. Compliance and Regulations
Q71: How do you ensure compliance with Sarbanes-Oxley
(SOX) requirements in AR?
A: I ensure
that AR processes include proper internal controls, such as segregation of
duties, authorization of transactions, and documentation of all actions.
Regular audits and reviews also help maintain compliance.
Q72: How do you stay updated on changes in accounting
standards that affect AR?
A: I regularly
review updates from accounting bodies (e.g., FASB, IASB), attend webinars and
training, and participate in industry forums to stay informed of any changes
that affect AR.
Q73: What is the importance of internal controls in AR,
and how do you implement them?
A: Internal
controls help prevent errors and fraud in AR. I implement controls such as
segregation of duties, authorization requirements, regular reconciliations, and
automated alerts for unusual transactions.
Q74: How do you handle AR under different revenue recognition standards (e.g., ASC 606 or
IFRS 15)?
A: I ensure
that revenue is recognized when control of goods or services is transferred to
the customer, as per the contract. This may require adjusting AR processes to
align with performance obligations and timing of revenue recognition.
Q75: How do you manage AR for government contracts or
grants?
A: I ensure
compliance with government regulations, track contract-specific billing
requirements, and maintain detailed documentation to support audits and
compliance checks.
Q76: How do you handle AR in different tax jurisdictions?
A: I ensure
that AR processes comply with local tax regulations, such as VAT or sales tax,
by properly calculating and reporting taxes on invoices. I also work with tax
professionals to ensure compliance in complex scenarios.
Q77: How do you handle AR for export sales?
A: I ensure
that AR records reflect the correct exchange rates, taxes, and duties for
export sales. I also monitor foreign receivables closely to manage any currency
risk.
Q78: How do you manage AR in compliance with anti-money
laundering (AML) regulations?
A: I implement
controls to ensure that customer payments are legitimate, such as verifying
customer identities, monitoring payment patterns, and reporting suspicious
activities as required by AML regulations.
Q79: What are the implications of the General Data
Protection Regulation (GDPR) on AR processes?
A: GDPR
requires that customer data is handled securely and with consent. In AR, this
means ensuring that customer payment information is stored securely, access is
restricted, and customers are informed of their data rights.
Q80: How do you prepare for an AR audit?
A: I ensure
that all AR records, such as invoices, payment receipts, and reconciliations,
are organized and readily available. I also prepare reports and explanations
for any significant discrepancies or adjustments.
13. Teamwork and Collaboration
Q81: How do you collaborate with the sales team to ensure
accurate invoicing?
A: I maintain
clear communication with the sales team to ensure that all necessary
information, such as pricing, terms, and customer details, is accurate before
invoicing. Regular meetings and cross-functional reviews help prevent errors.
Q82: How do you work with the finance team to ensure
accurate AR reporting?
A: I
collaborate with the finance team to ensure that AR data is accurately recorded
in the general ledger and that any discrepancies are resolved before financial
reports are generated.
Q83: How do you handle conflicts between AR and other
departments?
A: I approach
conflicts with a problem-solving mindset, seeking to understand the
perspectives of all parties involved. I facilitate discussions to find a
solution that aligns with both operational goals and financial objectives.
Q84: How do you manage communication between the AR team
and customers?
A: I ensure
that communication with customers is clear, professional, and timely. Regular
follow-ups, consistent messaging, and addressing customer concerns promptly
help maintain positive relationships.
Q85: How do you ensure that the AR team meets its targets
and deadlines?
A: I set clear
goals, track progress regularly, and provide the team with the necessary
resources and support. I also encourage collaboration and continuous
improvement to meet targets efficiently.
Q86: How do you handle training new AR team members?
A: I provide
comprehensive training on AR processes, systems, and company policies. I also
assign a mentor or buddy to help new hires adjust and encourage ongoing
learning and development.
Q87: How do you handle a high workload within the AR
team?
A: I prioritize
tasks based on deadlines and importance, delegate responsibilities effectively, and look for ways to
streamline processes. If necessary, I consider bringing in temporary help or
redistributing tasks across the team.
Q88: How do you motivate the AR team to improve
performance?
A: I set clear
performance targets, provide regular feedback, and recognize achievements. I
also create opportunities for team members to learn new skills and take on
challenging projects.
Q89: How do you handle a situation where the AR team is
understaffed?
A: I reassess
the team’s workload, prioritize critical tasks, and seek temporary or
additional support if necessary. I also communicate the situation to management
and request resources to address the staffing
shortfall.
Q90: How do you foster a culture of continuous
improvement in the AR team?
A: I encourage
the team to regularly review processes, suggest improvements, and adopt new
technologies or methods. I also provide opportunities for professional
development and learning.
14. Strategic and Advanced Questions
Q91: How do you assess and mitigate the risk of bad debts
in AR?
A: I assess
risk by reviewing customer credit scores, payment history, and industry
conditions. To mitigate risk, I implement credit controls, monitor accounts
closely, and negotiate payment plans for high-risk customers.
Q92: What strategies do you use to improve the efficiency of the AR process?
A: I look for
opportunities to automate routine tasks, streamline workflows, and reduce
manual errors. I also regularly review and update AR policies to reflect best
practices and changing business needs.
Q93: How do you handle AR during a period of rapid
company growth?
A: I scale AR
processes to handle increased volume, invest in automation tools, and ensure
that the team is adequately staffed
and trained. I also monitor cash flow closely to manage any challenges that
arise from rapid growth.
Q94: How do you manage AR in a volatile economic
environment?
A: I closely
monitor customer payment behavior, adjust credit terms as needed, and maintain
strong communication with customers. I also work with management to implement
strategies that protect cash flow, such as tightening credit policies or offering discounts for early
payment.
Q95: How do you balance the need for strong collections
with maintaining positive customer relationships?
A: I focus on
clear communication and flexibility, working with customers to resolve issues
while ensuring that payments are collected. Building trust and offering solutions that meet both
parties’ needs is key to maintaining positive
relationships.
Q96: How do you handle AR for a company that is expanding
internationally?
A: I ensure
that AR processes comply with local regulations, manage currency risk through
proper hedging or currency adjustments, and establish clear communication with
international customers.
Q97: How do you prepare AR for a company going through a
merger or acquisition?
A: I ensure
that AR records are accurate and up-to-date, prepare detailed reports on
outstanding receivables, and work with the finance team to integrate AR
processes with those of the acquiring or merging company.
Q98: How do you handle a situation where the company’s AR
policy needs to be revised?
A: I assess the
current policy, gather input from relevant stakeholders, and propose changes
that address any issues or inefficiencies.
I also ensure that the revised policy is communicated clearly to the AR team
and implemented effectively.
Q99: How do you evaluate the effectiveness of the AR team?
A: I track
performance metrics, such as DSO, collection rates, and accuracy of reporting,
and provide regular feedback. I also conduct performance reviews and identify
areas for improvement or professional development.
Q100: How do you align AR goals with the overall
financial strategy of the company?
A: I ensure
that AR goals support the company’s financial objectives, such as optimizing
cash flow, reducing bad debt, and improving customer satisfaction. I also work
closely with the finance team to align AR strategies with broader financial
planning and decision-making.
PROC FAQs - Procurement Fusion Tax Best Practices and General Questions
1. Why tax is not calculated on Purchase Order?
The reasons for that a tax is not calculated on a Purchase Order are
multiples.
One of this reason is tax regime is subscribed to Legal entity and Use
subscription of Legal entity checkbox in Party tax profile screen of Business
Unit tax content is not checked.
Explanation:
When tax regime is subscribed to Operating unit, then the Use
subscription of Legal entity checkbox in Party tax profile screen
of Business Unit tax content should not be Checked.
When tax regime is subscribed to Legal entity, then the Use subscription
of Legal entity checkbox in Party tax profile screen of Business Unit tax
content should be checked.
If the checkbox values are not as per the above description, tax will
not be calculated.
2. How to create a default tax
setup?
Please see Practice 1 for this setup.
3. Is it possible to override
the defaulted tax code?
Yes, it is possible to override the default tax code.
We have many possibility to do this.
For example we can use: Product Fiscal Classification, Product Category,
User-Defined Fiscal Classification, Intended Use, Tax Classification.
In the next two points we show how exactlly the default tax can be
overriden using Tax Classification and Fiscal Classification.
4. How to override tax using
Tax Classification?
Please see Practice 2 for this setup.
5. How to override Tax using
User-Defined Fiscal Classification?
Please see Practice 3 for this setup.
6. How make tax not be
calculated on Purchase Order?
In order for the tax not to be calculated on Purchase Order, we can use
Tax Classification setup or User Defined Fiscal Classification setup.
In the next two points it will be shown how to do such a setup in order
that tax to not be calculated on Purchase Order.
7. How to use Tax
Classification that no tax applied?
Please see Practice 4 for this setup.
8. How to use User-defined
Fiscal Classification to make sure no tax is applied?
Please see Practice 5 for this setup.
9. How to have a different tax
on specific item categories?
Please see Practice 6 for this setup.
10. How make tax not be
calculated on specific item categories?
Please see Practice 7 for this setup.
11. How to default tax from
Supplier or from Supplier Site?
Please see Practice 8 for this setup.
12. How to default tax from Items?
Please see Practice 9 for this setup.
13. How to make tax not be
calculated for one supplier?
Please see Practice 10 for this setup.
14. How to create more than
one Supplier/ Customer with the same Tax Registration Number?
Receiving this error message when trying to create a Supplier:
This Tax Registration Number is already in use for Party Type: Third
Party and party name: XXXXXX for the same period.
STEPS TO REPRODUCE
- Find a supplier 'XXXXXX'
- In Tax Details page, have a Tax Registration
with registration number "EXEMPT" assigned.
- As per Oracle explanation, customer now needs
to create a new Tax Registration in the context of a Tax Regime.
- They have attempted to delete the existing
registration but the option is not available.
- While they can end-date the registration, an
attempt to create a new Supplier with the same Tax Registration results in
the above error.
The only way to enter duplicate Tax Registration Number (TRN) is to have
this setup:
1) “Allow Duplicate Registration Number” to be enabled for tax used (in
this case for TAX 1 that we defined in Practice 1 from above)
2) In Mange Tax Registration for Third Party Tax Profile for one
supplier we need to enter the required details and choose the regime and
tax as defined in Practice 1 from above
Make the registration as default registration
Save the registration details
Save the party tax profile information.
Now the duplicate tax registration number can be used in the context of
this tax.
This script can be used to see registration number for a supplier site:
SELECT *
FROM zx_registrations
WHERE
party_tax_profile_id IN (&siteID, &SupplierSiteIDs)
AND registration_number = &tax_reg_number;
15. Which are the main Fusion
tax tables that will contain the setup information that will help support in
troubleshooting Fusion tax information?
Following are the main Fusion tax tables that will contain the setup
information that will help support in troubleshooting Fusion tax information:
a. Tax Regimes: ZX_REGIMES_B
b. Taxes: ZX_TAXES_B
c. Tax Status: ZX_STATUS_B
d. Tax Rates: ZX_RATES_B
e. Tax Jurisdictions: ZX_JURISDICTIONS_B
f. Tax Rules: ZX_RULES_B
To get a dump of the Tax setups, you can use the following set of queries.
Please provide the tax regime code when prompted. If the issue is limited to a
tax then provide the tax name when prompted else please leave it blank.
SELECT * FROM zx_regimes_b
WHERE tax_regime_code = '&tax_regime_code';
SELECT * FROM zx_taxes_b
WHERE DECODE('&tax_name',null,'xxx',tax) = nvl('&tax_name','xxx')
AND tax_regime_code = '&tax_regime_code';
SELECT * FROM zx_status_b
WHERE tax = '&tax_name'
AND tax_regime_code = '&tax_regime_code';
SELECT * FROM zx_rates_b
WHERE tax = '&tax_name'
AND tax_regime_code = '&tax_regime_code';
SELECT * FROM zx_jurisdictions_b
WHERE DECODE('&tax_name',null,'xxx',tax) = nvl('&tax_name','xxx')
AND tax_regime_code = '&tax_regime_code';
SELECT * FROM zx_rules_b
WHERE tax = '&tax_name'
AND tax_regime_code = '&tax_regime_code';
16. Which are the main Fusion
tax tables that will contain the transaction information that will have the tax
details after tax is calculated?
Following are the main Fusion tax tables that will contain the
transaction information that will have the tax details after tax is calculated:
a. ZX_LINES: This table will have the tax lines for associated with PO
schedules.
TRX_ID: Transaction ID. This is linked to the PO_HEADERS_ALL.PO_HEADER_ID
TRX_LINE_ID: Transaction Line ID. This is linked to the
PO_LINE_LOCATIONS_ALL.LINE_LOCATION_ID
Requisition information is not present in this table
b. ZX_REC_NREC_DIST: This table will have the tax distributions for associated
with PO distributions.
TRX_ID: Transaction ID. This is linked to the PO_HEADERS_ALL.PO_HEADER_ID
TRX_LINE_ID: Transaction Line ID. This is linked to the
PO_LINE_LOCATIONS_ALL.LINE_LOCATION_ID
TRX_LINE_DIST_ID: Transaction Line Distribution ID. This is linked to the
PO_DISTRIBUTIONS_ALL.PO_DISTRIBUTION_ID
RECOVERABLE_FLAG: Recoverable Flag. If the distribution is recoverable then the
flag will be set to Y and there will be values in the RECOVERY_TYPE_CODE and
RECOVERY_RATE_CODE.
c. POR_REQ_DISTRIBUTIONS_ALL: This table will have the tax distributions for
associated with Requisition distribution.
RECOVERABLE_TAX: Recoverable tax amount
NONRECOVERABLE_TAX: Non Recoverable tax amount
d. ZX_LINES_DET_FACTORS: This table holds all the information of the tax line
transaction for both the requisitions as well as the purchase orders
TRX_ID: Transaction ID. This is linked to the POR_REQUISITION_HEADERS_ALL.REQUISITION_HEADER_ID
/ PO_HEADERS_ALL.PO_HEADER_ID
TRX_LINE_ID: Transaction Line ID. This is linked to the
POR_REQUISITION_LINES_ALL.REQUISITION_LINE_ID /
PO_LINE_LOCATIONS_ALL.LINE_LOCATION_ID
17. What Are The Primary
Purchasing and Tax Tables Populated for Requisitions and Purchase Orders?
Some common queries that can be used:
Purchase Order:
SELECT poh.segment1,
poh.po_header_id,
pol.line_num,
poll.shipment_num,
zxd.input_tax_classification_code,
zxd.user_defined_fisc_class
FROM ZX_LINES_DET_FACTORS zxd,
zx_lines zxl,
po_headers_all poh,
po_lines_all pol,
po_line_locations_all poll
WHERE poh.po_header_id = pol.po_header_id
AND pol.po_line_id = poll.po_line_id
AND zxd.trx_id = zxl.trx_id
AND zxl.trx_id = poll.po_header_id
AND zxd.entity_code = 'PURCHASE_ORDER'
AND poh.segment1 = '&po_number';
Note the po_header_id:
SELECT * FROM PO_HEADERS_ALL
WHERE PO_HEADER_ID = &po_header_id;
SELECT * FROM PO_LINES_ALL
WHERE PO_HEADER_ID = &po_header_id;
SELECT * FROM PO_LINE_LOCATIONS_ALL
WHERE PO_HEADER_ID = &po_header_id;
SELECT * FROM PO_DISTRIBUTIONS_ALL
WHERE PO_HEADER_ID = &po_header_id;
SELECT * FROM ZX_LINES_DET_FACTORS
WHERE APPLICATION_ID = 201
AND ENTITY_CODE = 'PURCHASE_ORDER'
AND EVENT_CLASS_CODE = 'PO_PA'
AND TRX_ID = &po_header_id;
SELECT * FROM ZX_LINES
WHERE APPLICATION_ID = 201
AND ENTITY_CODE = 'PURCHASE_ORDER'
AND EVENT_CLASS_CODE = 'PO_PA'
AND TRX_ID = &po_header_id;
SELECT * FROM ZX_REC_NREC_DIST
WHERE APPLICATION_ID = 201
AND ENTITY_CODE = 'PURCHASE_ORDER'
AND EVENT_CLASS_CODE = 'PO_PA'
AND TRX_ID = &po_header_id;
_______________________________________________________________________
Requisition:
select prh.segment1,
prl.line_num,
prd.recoverable_tax,
prd.nonrecoverable_tax,
zd.*
from
por_requisition_headers_all prh,
por_requisition_lines_all prl,
por_req_distributions_all prd,
zx_lines_det_factors zd
where
prh.requisition_header_id = prl.requisition_header_id and
prl.requisition_line_id = prd.requisition_line_id and
prl.requisition_line_id = zd.trx_line_id and
prl.requisition_header_id = zd.trx_id and
prh.segment1 = '&req_number';
select * from zx_lines_det_factors
where trx_id = &por_requisition_header_id;
_______________________________________________________________________
Checking vendor tax information:
select
ap.vendor_name vendor_name,
ap.vendor_id vendor_id,
aps.vendor_site_code vendor_site_code,
aps.vendor_site_id,
aps.party_site_id party_site_id_site,
zx.party_type_code,
zx.process_for_applicability_flag process_for_app_flag
from
POZ_SUPPLIERS_INT ap,
POZ_SUPPLIER_SITES_INT aps,
zx_party_tax_profile zx
where
ap.vendor_name = '&vendor_name' and
ap.vendor_id = aps.vendor_id and
aps.party_site_id = zx.party_id and
zx.party_type_code in ('THIRD_PARTY_SITE', 'THIRD_PARTY');
18. Which table is stored
the tax classification of Suppliers?
For finding Fiscal classification code on the supplier please use this
script:
SELECT
HZ_CODE_ASSIGNMENTS.*
FROM
(SELECT HzCodeAssignmentEO.*
FROM
HZ_CODE_ASSIGNMENTS HzCodeAssignmentEO,
HZ_CLASS_CATEGORY_USES
hccd,
zx_fc_types_b
zft
WHERE
HzCodeAssignmentEO.CLASS_CATEGORY = hccd.CLASS_CATEGORY
AND
HzCodeAssignmentEO.CLASS_CATEGORY = zft.OWNER_ID_CHAR) HZ_CODE_ASSIGNMENTS ,
ZX_PARTY_TAX_PROFILE,
HZ_PARTY_SITES ,
POZ_SUPPLIER_SITES_INT
WHERE
HZ_CODE_ASSIGNMENTS.OWNER_TABLE_NAME = 'ZX_PARTY_TAX_PROFILE'
AND
HZ_CODE_ASSIGNMENTS.OWNER_TABLE_ID = ZX_PARTY_TAX_PROFILE.PARTY_TAX_PROFILE_ID
AND
ZX_PARTY_TAX_PROFILE.PARTY_ID = HZ_PARTY_SITES.PARTY_SITE_ID
AND
POZ_SUPPLIER_SITES_INT.PARTY_SITE_ID = POZ_SUPPLIER_SITES_INT.PARTY_SITE_ID
AND
POZ_SUPPLIER_SITES_INT.VENDOR_SITE_CODE = '&SupplierSiteCode';
select * from
POZ_SUPPLIER_SITES_INT where party_site_id in
(SELECT
party_id FROM zx_party_tax_profile WHERE party_type_code = 'THIRD_PARTY_SITE' AND
tax_classification_code is not null);
19. Can we have INCLUSIVE
TAX on Purchase Order?
Inclusive tax is supported in fusion in Procurement from 18C.
Please refer the whats new URL as below
https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/r13-2018-procurement-wn.htm#F2698
Please see Practice 13 for this setup.
20. How to stop calculations
for all taxes on Purchase Order?
Please see Practice 11 for this setup.
21. How to stop a tax from
applying in Procurement but still in other modules?
Please see Practice 12 for this setup.
22. When using the register
supplier function, the system require us to enter a value for at least one of
these fields: D-U-N-S Number, Taxpayer ID, or Tax Registration Number.
Is that any way to disable this restriction?
At this time there is no way to made those fields non-mandatory.
NOTE: The explanation for the non-display of the
"*"-mandatory- for those three fields is because "*"
is for single mandatory field -- in this case at least one is required.
This issue has been identified as an Enhancement. Please create a new idea in
Idea Lab on Customer Connect to have this functionality considered in the
future.
For more details, please refer to: How To Log An Enhancement Request (in Idea
Labs) (Note: 2254478.1)
Using the Idea Lab, you will be able to:
- Socialize with Customer Community
- Voting Capability which allows you to vote on ideas that are important to
your business
- More clear statuses on your ideas, including the ability to communicate with
our Product Management team.
- Visibility to see other customer ideas
23. On Supplier Self Service
Registration Page: Company Details - There should be Tax Registration number
validation for UAE. There should be a field 'Are you UAE tax
registered' Yes/ No , if yes, the TRN field should be
mandatory.
How to do this?
Product Management team confirmed that this is not feasible: One
of the three fields (DUNS, TRN or Taxpayer ID) are required.
24. The user made the tax
registration number in supplier to mandatory. But the system is validating the
mandatory check only if user go to the particular tab Transaction Tax>Tax
Registrations>Registration Number.
If don't enter the registration number also it
allows user to save the records, unless user go to the above navigation.
Why this is happen?
Product Management team confirmed us that this is the behavior i.e. if
user do not access a tab, it will not enforce users for any required
validation.
25.
Why tax is not getting calculated while Uploading Purchase Orders (POs) through
FBDI template?
In FBDI template: Purchase Orders Import there are some fields in
po_line_locations_interface related tax:
Tax Classification Code, Intended Use, Product Category Code, Product
Fiscal Classification.
If any of these fields are used tax on PO imported will be calculated.
For example let use Tax Classification field for tax to be calculated on
a PO imported through FBDI template.
For this is necessary to have this setup:
- Setup for Tax Classification Code (see Practice 2 from this note)
- In FBDI template in field: Tax Classification
is necessary to insert exactly the name for tax classification defined
above in order that tax to be calculated. It is recommended to check a PO
already created manually and take from there exactly the name for Tax
Classification in order to insert the correct information in FBDi
template.
26.
How to Allow Suppliers With Duplicate Taxpayer ID?
Allowing Tax Payer ID sharing across suppliers in the same parent-child
hierarchy will allow to same Supplier Tax Identification Number for child
supplier. This only works if parent supplier and child supplier
relationship established.
Enabling this feature will not impact sharing of tax payer ID if parent-child
hierarchy is not established.
Tax Identification number is unique, and same number is not allowed for any
other suppliers.
There is no such task to allow duplicate tax payer ID except this procurement
new offering, but this new offering doesn't support duplicate tax payer id (it
supports only parent-child suppliers).
Please see these notes for more details:
-Implication Of Selecting Opt In Feature --Allowing Tax Payer ID Sharing Across
Suppliers (Doc ID 2391181.1)
-How to Allow Suppliers With Duplicate Taxpayer ID? Can We Use Supplier
Registration Process For Creating Suppliers With Duplicate Taxpayer ID? (Doc
ID 2488369.1)
Instead you can create more than a supplier with the same Tax Registration
Number.
For this setup please see this note: FAQs - Procurement Fusion Tax Best
Practices and General Questions (Doc ID 2377199.1)
Section: 14. How to create more than one Supplier/ Customer with the same Tax
Registration Number?
27.
How to create a supplier from an existing party (customer)?
When it is created a supplier from an existing party, the party
type has to be an organization to ensure supplier creation is
successful. When a supplier is created, the party_type mapped to the
supplier is 'Organization'.
It is possible to create a supplier via FBDI for an existing party
(customer) with the party type=Organization. Supplier and customer need to have
the same register id.
28. It
is possible to have a different tax classification code (TCC) for a supplier
and a customer that have the same name and the same register_id?
It is not possible to have different TCC for a supplier and a customer
that have the same name and the same register_id.
But as a workaround it can be sugessted to have the TCC setup as:
At the Supplier Site Level, set the TCC as 'AP TAX: Offset Tax'
And at the Customer Level, set the TCC as 'AR TAX: Regular Tax'
Now setup the defaulting hierarchy at the application tax options as:
For AP:
Default Heirarchy1 - Supplier Site
Default Heirarchy2 - Supplier
For AR:
Default Heirarchy1 - Customer
Default Heirarchy2 - Customer Site
29.
How to update by spreadsheet tax classification code (TCC) for a supplier?
The TCC it is possible to be imported through spreadsheet.
The following attributes can be uploaded:
1. Allow Tax Applicability
2. Allow offset Taxes
3. Tax Classification Code
Process:
1.Navigate to Set up and Maintenance
2.Choose the ‘Manage Tax Regimes’ Task.
3.In the ‘Transaction Tax Regimes’, Select the Download Tax Implementation
Workbook.
4.Save the file on the local folder.
5.Open the excel sheet, select the Tax registrations tab
6.Right click on the tab, and select Unhide.
7.The ‘Party Tax Profile Controls’ tab opens, where you can find
8.Enter the required data and save the file and generate the csv, as per the
‘Tax Impl Workbook Instructions’ tab.
9.After filling the excel up, Navigate to Transaction tax regimes, Choose
‘Upload Tax Implementation Workbook’.
10.Browse the file and select upload
Please see this note: Classification Code, Allow Tax Applicability, Allow
Offset Taxes (Doc ID 2247576.1) , for more details.
30)
How it is validation of Tax Registration Number (TRN)?
Validation for TRN is made in this order:
1) Tax
2) Tax Regime
3) Country Default Control
If at Manage Tax we don't have set nothing to Registration Number Control and
defaults for Validation Level then is going to Manage Tax Regime.
If at Manage Tax regime we don't have nothing is going to the last source:
Manage country Default Control.
Validation type behavior it is in this way :
Blank = to allow to fill any TRN Valid or invalid and Save the information at
supplier level ( working as expected)
Warning =to validate the TRN ,to provide a warning message if TNR is invalid
and to Save the information at supplier Level (not working as expected)
Error = to validate the TRN ,to provide a Error message if TRN is invalid and
to Not Save the information at supplier Level until the TRN is Valid ( working
as expected)
Warning configuration is not supported in Suppliers flow. In Supplier flow it
is necessary to use Error or no validation.
31)
How it is the correct way to insert Tax Registration Number (TRN) on supplier?
The correct ways to insert a TRN is to insert Registration number with
Tax Regime Code and Tax using Suppliers UI or from Manage Tax
Registration.
32)
Which is the functionality of field Registration Number from Supplier UI ?
The field Registration Number from Supplier UI showing the last
TRN inserted from Manage Tax Registration task.