Oracle Functional Interview Qs?

What is Aging Periods?

Aging periods nothing but the periods that we setup to control and maintain the supplier outstanding bill towards the invoice. Form this we can able to study the due date of the supplier form the generation (making) of invoice.

Following is setup for define aging periods AP= setupàcalendaràdefine their your select .Aging periods then define your own aging calendar

What is the difference between conversions and interfaces?

Conversion is a process by which we transfer legacy data from temporary tables to base tables.
An interface also does the same but is a daily process and most of the interfaces are automated by scheduling. Example: AutoInvoice

What is FSG and what is its use?

Financial Statement Generation (FSG), we can create different financial statement and we will get financial reports. It is a powerful tool or utility provided by Oracle Corporation using which we can prepare financial reports like profit&loss ac, balance sheet ac etc without any programming or coding .using simple sets like rows, columns

What is Distribution Set and How to define Distribution Sets?

Specify a distribution set for the invoice. A distribution set is a template for invoice distributions. When you specify a distribution set for an invoice, Payables automatically creates invoice distributions based on the distribution set.
There are two types distribution sets
Full Distribution Set
Skeleton Distribution Set

What is Payment Terms and How to define Payment Terms?

Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter. Payment terms will default from the supplier site. If you need to change the payment terms and the terms you want to use are not on the list of values, you can define additional terms in the Payment Terms window.

Defining Payment Terms

Example: Payment Term - 10/30 Net 45
your supplier has just notified you that they are going to offer 10% discount if you pay their invoices in 30 days. The entire invoice amount will be due in 45 days. In this case, you will set up payment terms as follows.
Navigation Path: Payables->Setup->Invoice->Payment Terms

System Created Invoices/Creating Invoices Automatically in Payables

A. Recurring Invoices
you can set up your system to automatically create periodic invoices, for example, rent invoices.

B. RTS Invoices
if you use Return to Supplier feature in Oracle Purchasing, the system creates these debit memos directly in your Payables system.
C. Retroactive Price Adjustment Invoices
If Oracle Purchasing users use the Retroactive Pricing of Purchase Orders feature, the system automatically creates Adjustment and PO Price Adjustment invoices.

What is Adjusting Period?
Typically, the last day of the fiscal year is used as an adjusting period to perform adjusting and closing journal entries. Once you begin using your accounting calendar, you cannot change its structure to remove or add an adjusting period. Choosing whether to include an adjusting period or not in your calendar is a very important decision. You can have an unlimited number of adjusting periods.

What is meant by accrual write-off?

The liability for the un-invoiced receipts is kept in the AP Accrual Account (which is a suspense account) till the time you have an invoice for the receipt. This will happen as soon as you create the receipt (if you are using accrue on receipt) or at period close. The same is accrued as soon as you enter an invoice for these receipts.

When you might want to write off this liability?

Here are some reasons:

1. What PO warehouse has received may not be the one finance/accounting has invoiced. Hence you PO remain open as if it is not invoiced.

2. Sometimes finance may invoice without matching and pay vendor. Hence vendor may not question and procurement is also not questioning because they have received material.

3. Lot of times finance creates invoice for freight with accrual account with no reference to PO. This gets qualified for write-off.

4. Invoicing for more quantity than what has been received. On the similar note invoicing in advance but never received.

What is the difference between Accrual Write off Process in R12 and R11i?

In R11i Accrual Write Offs only affected the Accrual Reconciliation Report. One had to pass manual Journal Entries in GL to adjust the GL Inventory AP Accrual Account. In other words without Manual Journals the write off process had no impact in GL.

in R12 the adjustment in GL is automated. No Manual Journal is required. The create Accounting program and Transfer to GL program will transfer the write off journals automatically to General ledger.

What is SWEEP Program? Explain Process Of Sweep Program?

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

What is Automatic Offset?

It is a Accounts Payable feature & quite similar to Intercompany function in General Ledger.

It is used to Create multiple Liability lines for the transactions between sister concerns (May be between sister companies).

For Ex: Say two companies purchasing goods from same supplier. But when invoice is created only one supplier liability line is created whereas both the companies are liable to pay.

Automatic Offset function helps here to create multiple liability lines to balance the journal at balancing level.
You can set this option at accounting area of Payable Option.
There are three radio buttons 1. None 2. Accounts & 3. Balancing under Automatic Offset. On selecting.............
1. None: No Automatic Offset will be done
2. Accounts: The distribution line segments will be copied to the liability lines excepting Accounts segment which copied from the liability line itself.

3. Balancing: Only Balancing segment from distribution line segments will be copied to the liability lines excepting Accounts segment which copied from the liability line itself.

Diff between Function and Procedure?

1. Function is mainly used in the case where it must return a value. Where as a procedure may or may not return a value or may return more than one value using the OUT parameter.
2. Function can be called from SQL statements where as procedure cannot be called from the sql statements
3.Functions are normally used for calculation where as procedures are normally used for implement business logic.
4. You can have DML (insert, update, delete) statements in a function. But, you cannot call such a function in a SQL query.
5. Function returns 1 value only. Procedure can return multiple values (max 1024).

Explain if translation is necessary when using multi reporting currency?

First let us see what is Translation? Translation is a process that allows you to restate your financial functional currency into a reporting currency.
Now let us see what is MRC? MRC is a unique feature in Oracle that allows you to maintain and report in more than one functional currency.
So with MRC you can report in more than one currency than why do you have to do translation. If the report is a consoliated report than yes translation is necessary.

What is the navigation for applying Cross-Validation?

Cross-Validation Rules :cross-validation rules Determain which combination of Valid segment values are invalid regrdless of the user s responsbility.
1.Enable The Cross-Validation Rules at Structure level
Nav:setup > Financials > Flefields > Key > segment.
2.Define the Cross-Validation Rules
Nav:setup > Financials > Flefields > Key > Rules

Auto Invoice: is a program that can be used to import and validate transaction data from other financial systems from which one can create invoices, debit memos, credit memos, and on-account credits. It rejects transactions with invalid information to insure the integrity of the data. This fits well with in Oracle ERP or to integrate with any third party application.

Top 10 reasons for using Auto Invoice

1. Powerful Interface Tool

2. Supports Oracle & Non-Oracle Systems

3. Import Large Amount of Data

4. Calculate or Import Tax

5. Group Lines & Invoices

6. Online Error Correction

7 .Lines Validation

8. Derive GL Date

9 .Import Flex fields

10. Import or Derive Accounting Info

Accrual Basis vs. Cash Basis Accounting

Accrual Basis vs. Cash Basis Accounting

There are two basic accounting methods available in the business world: Cash or Accrual. The following bulletin is intended to give a simple overview on this important topic; describe its impact on the accounting entries and reporting and finally how they are implemented in Oracle applications.

Cash Basis Accounting

With the cash method of accounting, you record income only when you receive cash from your customers. You record an expense only when you write the check to the vendor. Most individuals use the cash method for their personal finances because it’s simpler and less time-consuming. However, this method can distort your income and expenses, especially if you extend credit to your customers, if you buy on credit from your suppliers, or you keep an inventory of the products you sell.

Under the cash basis accounting, revenues and expenses are recognized as follows:

* Revenue recognition: Revenue is recognized when cash is received.

* Expense recognition: Expense is recognized when cash is paid.

Accrual Basis Accounting

With the accrual method, you record income when the sale occurs, whether it be the delivery of a product or the rendering of a service on your part, regardless of when you get paid. On the other hand, you record an expense when you receive goods or services, even though you may not pay for them until later. The accrual method gives you a more accurate picture of your financial situation than the cash method. This is because you record income on the books when it is truly earned, and you record expenses when they are incurred. Income earned in one period is accurately matched against the expenses that correspond to that period, so you get a better picture of your net profits for each period.

Under the accrual basis accounting, revenues and expenses are recognized as follows:

* Revenue recognition: Revenue is recognized when both of the following   conditions are met:

a. Revenue is earned

I.e. when products are delivered or services are provided.

b. Revenue is realized or realizable.

What is the use of lockboxes?

Auto Lockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing. An Auto Lockbox operation can process millions of transactions a month. Auto Lockbox 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 Quick Cash receipt batches.

Steps for lock box are:

1. The first step involves reading and formatting data from your bank file into Auto Lockbox tables.

2. The second step involves submitting the validation program which checks data in the Auto Lockbox tables for compatibility with Receivables.

3. Once data is validated, it is transferred into Quick Cash tables. At this point, you can optionally query your receipts in the Quick Cash window and change how they will be applied before submitting the final step,

4. Post Quick Cash. Submitting Post Quick Cash updates your customer’s balances.

What is AUTO Accounting what are the steps for setting up auto accounting?

Auto Accounting is a mechnism for generating defualt accounting flexfields for revenue , receivables, frieght and tax based on the other parameters associated with the invoice you are entering.. since auto accounting looks at the following tables to get the data so please set/define the following depending upon your requirement. 

1. Salesrep.2. Transaction Types.3. Standard Lines.4. Taxes.5. Customer bill-to-site

Receivables uses the Auto Accounting rules to determine the GL Accounts that you Enter manually or import using Auto invoice. Receivables creates the Default accounts for the Receivable, revenue, Freight, Tax, Unerned revenue, Finance charges, Unbilled receivables, Bills receivables, and Auto invoice Clearing Accoutns.You need to define these accoutns before you start entering the transactions in AR. However, you can overide these accounts during the Transaction Entry in AR.Setup Autoaccounting:AR>Setup>Transactions>AutoAccountingSelect the Type of the accoutn you wish to define the auto accoutning.In the Segments Block:Choose the segment for which you wish to assign the Auto accounting.Choose the Table Name : Sales Rep, Trxn Type, Site, Std Lines.If you wish to use a Default Constant value, then enter the value in the Constant Field.

What is an Invoice?

AR invoice is a document sent to the customer with details like, Bill-to customer code, product code, qty sent, price, currency, credit terms, tax details, etc. Based on this invoice, customer will make payment to the company and the same is applied against the invoice. AP invoice is the document received from the supplier and contains information such supplier details, product code, qty, price and tax details. This invoice is entered in the AP module and payment is made to the supplier against this invoice.

There are 2 types of invoices-

1. Periodic 2. Milestone

Also, Invoice is an information sheet which a company sends to the buyer along with the good. It explains the details of the goods in the shipment and also the prices. Invoices can contain all sorts of data regarding the shipment and goods depending on the company and product.

Can you disable budgetary control for a set of books?

You can, however existing encumbrances are not cleared from the feeder systems. Therefore it is not recommended. If you do change the budgetary control options for an existing set of books, you must do two things for the change to be reflected.

–Run the Period Map Maintenance concurrent request, it must complete successfully.

–Exit Oracle Applications and restart. You must completely exit the application…it is not sufficient to select Sign on again from the Oracle Applications Special menu.

The Multiple Reporting Currencies (MRC) feature allows you to report and maintain accounting records at the transaction level, in more than one functional currency. You do this by defining one or more reporting sets of books, in addition to your primary set of books. In your reporting sets of books, you maintain records in a functional currency other than your primary functional currency. You can set up multiple reporting sets of books and associate them with a primary set of books.Your primary functional currency is the currency you use to record transactions and maintain your accounting data within Oracle Applications. The functional currency is generally the currency in which you transact most of your business and the one you use for legal reporting.

A reporting functional currency is a currency other than your primary functional currency for which you need to report accounting data. You must define a set of books for each of your reporting functional currencies.

When you enter transactions in Oracle Applications, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies. You log into a reporting responsibility to inquire and report on transactions and account balances in your reporting functional currencies.

Oracle Applications Support for MRC

· Receivables, Purchasing, Payables, General Ledger

The following Oracle Applications support Multiple Reporting Currencies:

· Cash Management 

· Projects

· Cost Management [Cost Management amounts are converted to a specified reporting currency when you request a report. The converted amounts, however, are not stored in the Cost Management subledger. ] MRC is specifically intended for use by organizations that must regularly and routinely report their transactions and financial results in multiple currencies, other than their primary functional currency. If you only need to report balances in a currency other than your primary functional currency, the General Ledger Translation feature is probably sufficient.

 * MRC is not intended as a replacement for General Ledger’s translation feature.

3) You operate in a country that is part of the European Monetary Union (EMU), and you want to concurrently report in Euro in preparation for the pan-European currency.

2) Your company is multinational, and you need to report financial information in a common functional currency other than that of the transaction or your primary functional currency.

1) You operate in a country whose unstable currency makes it unsuitable for managing your business. As a result, you need to manage your business in a more stable currency and still be able to report your transactions and account balances in the unstable local currency.

Typically, you should consider using MRC when:

In Oracle Applications you record day-to-day business transactions in your organization’s primary set of books or post transactions to the primary set of books from your subledger. From the primary set of books, you can report your account balances in your primary functional currency. To use MRC, you must define additional sets of books, called reporting sets of books, and associate them with a primary set of books. When defining a reporting set of books, you specify your reporting functional currency as the set of book’s functional currency. This is the currency in which you want to inquire and report your transactions and account balances.

For example, assume your business is located in Canada. You use a primary set of books whose functional currency is Canadian Dollars (CAD), but you also need to inquire and report on your transactions and balances in U.S. Dollars (USD), since this is the functional currency of your parent organization. You define a reporting set of books with a functional currency of USD, then you associate this reporting set of books with your primary set of books. [The full range of General Ledger functionality is available from a reporting set of books. You can post journals, revalue and translate balances, perform consolidations, query account balances, submit standard General Ledger reports, and define custom financial reports.]

2- Transaction-Level Conversion:

When you enter transactions in Oracle Applications that support MRC, they are converted, as needed, into your primary functional currency and each of your reporting functional currencies, as follows:

Primary functional currency transactions: All transactions denominated in your primary functional currency are recorded in this currency. The transactions are also converted automatically to each of your reporting functional currencies.

Foreign currency transactions: Transactions denominated in a foreign currency are converted automatically to your primary set of books’ functional currency and to each of your reporting functional currencies.

3- Sub ledger Transactions:

 When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. The primary functional currency amounts and their associated reporting currency amounts are stored together in your subledgers. You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books.

Since conversion occurs when the transactions are entered, your reporting currency amounts are always synchronized with your primary currency amounts.

4- General Ledger Journals

  Journal entries that originate in General Ledger, such as manual journals, recurring journals, and MassAllocations, as well as journals that you import from sources other than Oracle Applications’ subledgers, are converted to your reporting functional currencies when you post the journals in General Ledger in your primary set of books.

The converted journals are then copied from your primary set of books to each of the associated reporting sets of books. The converted journals must be posted separately in each reporting set of books.

The balances in your reporting sets of books will not be synchronized with the balances in the associated primary set of books until you:

- Post your subledger transactions to General Ledger from both your primary and associated reporting sets of books

- Post all journals in your primary set of books

- Post the converted journals in each of the associated reporting sets of books

Step Description

Step 1 ­ Enable or define primary set of books :Set of Books window(General Ledger)

When to Use MRC:

MRC Features

1- Reporting Sets of Books:

Inquiry and Reporting in Multiple Currencies

Oracle Subledgers: When you enter transactions into the subledgers of Oracle Applications that support MRC, the transactions are converted to your reporting functional currencies at the time of original entry. As a result, your reporting currency information is immediately available for inquiry and reporting in the subledgers. Each inquiry or report that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To do so, you log into a reporting responsibility, then view and report transactions in the reporting currencies associated with that responsibility. You must post subledger transactions to General Ledger in both the primary set of books and in each reporting set of books. After you have posted the transactions, you can log into a General Ledger reporting responsibility, post the newly created journals, then report on the journals and the account balances of the associated reporting set of books.

Oracle General Ledger: For General Ledger journals, you must complete the posting process in both your primary set of books and each associated reporting set of books before you can report on the updated balances. Note that separate balances are updated for each set of books. Before you can report on your updated balances, you must also post your sub ledger transactions to General Ledger from both your primary and associated reporting sets of books, and post the newly created journals in both your primary and associated reporting sets of books. Each General Ledger report or inquiry that normally displays information in the primary functional currency can also be displayed in any of the associated reporting currencies. To inquire or report on the account balances of a reporting set of books, you log into the associated General Ledger reporting responsibility. When you inquire on account balances in a reporting set of books, you can drill down to the sub ledger details (in your reporting functional currency) using General Ledger’s standard drilldown features.

For reconciliation purposes, you can use the Financial Statement Generator (FSG) to create a custom comparison report that lists balances from your primary and reporting sets of books in separate columns. Use this report as the basis for reconciling your primary and reporting sets of books.

Euro Support: MRC allows Oracle Applications to support organizations that are transitioning from their national currency to the Euro:

Transition Period: If you currently use Oracle Applications, you can continue to maintain your current set of books in your national currency and use MRC to begin reporting transactions and financial results in the Euro. If you are implementing Oracle Applications for the first time, you can set up your primary set of books using Euro as the functional currency and use MRC to report transactions and financial results in your national currency.

Currency Conversion: MRC observes the fixed-rate relationships you defined between the Euro and EMU currencies, as well as the effective starting dates of those relationships, when converting transaction amounts to or from the Euro or EMU currencies. When converting amounts from your primary functional currency to your reporting functional currencies, MRC fully complies with the conversion guidelines established by the European Commission.

Setting up MRC the following provides a summary of the steps you must follow to set up MRC in your applications. These steps are described in more detail in the next section. Note: You must install MRC before you can begin the setup steps in this section. See: Oracle Applications Installation Manual for information about installing MRC.

Step 2 ­ Enable and/or define reporting currencies: Currencies window (General Ledger)

Step 3 ­ Define reporting sets of books: Set of Books window (General Ledger)

Step 4 ­ Assign reporting sets of books to primary set of books: Assign Reporting Sets of Books window (General Ledger)

Step 5 ­ Define conversion options for each application: Conversion Options window (General Ledger)

Step 6 ­ Define General Ledger conversion rules: GL Conversion Rules window (General Ledger)

Step 7 ­ Define reporting responsibilities: Responsibilities window (System Administrator)

Step 8 ­ Assign reporting sets of books to reporting responsibilities: System Profile Values window (System Administrator) Daily rates are used to convert your primary set of book’s transactions to the appropriate reporting currencies. If you do not currently maintain daily rates, you must do so when you implement MRC. · Assets

Can you please tell me what is there any difference between Payables Open Interface Import" Program and the "Payables Invoice Import" program?

Payables Open Interface Import” imports the lines from AP_INVOICES_INTERFACE and creates the supplier invoices

"Payables Invoice Import" creates the Internal Invoices

Paybles open Interface import : Importing of the invoice lines from paybles module  which are generated in purchasing module during the purchasing.

Invoice Import : Importing of the invoice lines generated through quick invoices, expence reports etc. this occurs within the paybles module.

What is Dynamic Insertion?

In GL, you can dynamically create new account code combinations when entering data by enabling dynamic insertion in the Key Flexfield Segments window. The alternative method for this is, you can require all accounts to be defining manually in the Accounts Combinations window.

Points to Remember:
-Dynamic insertion can be enabled or disabled at any time.
-You can define cross validation rules to prevent incorrect account combinations from being created by dynamic insertion.
-If you are defining an Accounting Flexfield for Oracle Projects, you must define your segment with the Allow Dynamic Inserts option set to yes.

What is Encumbrance?
A method of tracking and controlling an organization’s spending from the very early stage of initial documented evidence showing intention to buy to the final stage of actual expenditure. It is a management tool used to reflect commitments in the accounting system and attempt to prevent overspending. Mostly Used by Government and Non-Profit Firms

R12 Standard Accrual and Cash Accounting in Payables

Standard Accrual
In case of Standard Accrual, Invoice and Payment Accounting will be there.
Reason: Transaction happens in two phases.
1) Order goods and receive goods (Create PO, Create Receipt, Create Invoice and account it)
2)Pay the amount for received goods within due time set by the supplier( Pay the invoice and account it)
Since you are not paying the amount immediately, you need to keep track of the amount needs to pay to the supplier after phase one. You maintain this amount in Liability A/C (Cr). After second phase, you debit your Liability A/C and credit your Cash A/C which shows your cash flow from your organization to the supplier.
Here are the details of accounting for an item purchase of cost 100 dollars.
Note: Payment accounting may happen in two stages based on option selected in Payables->Setup->Options->Payables Options->Accounting Option tab->Payment Accounting.

Standard Cash
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to the supplier. So you don't have any debt to the supplier to record. So there is nothing to record in Liability A/C.
Here are the details of accounting for an item purchase of cost 100 dollars.
Note: Payment accounting may happen in two stages based on option selected in Payables->Setup->Options->Payables Options->Accounting Option tab->Payment Accounting.

R12 Sub ledger Accounting (SLA)

It is a rule-based accounting engine, toolset & repository supporting Oracle E-Business Suite modules

Allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements.
Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full audit ability and reconciliation.
Introduces a common data model and UI across subledgers, replaces various disparate 11i setups, providing single source of truth for financial and management analysis.

Explain Request Groups and Request Sets in Concurrent Programs?

Grouping concurrent programs and other requests together allows you to control access and streamline processing. In Oracle Applications, you group programs and requests into request groups and request sets.

Request Groups
A request group is a collection of reports and other concurrent programs. You use request groups to implement security at the responsibility level. Request groups are normally associated with a responsibility, in which case they are referred to as request security groups. Any user of a responsibility has access to the reports in that responsibility’s request security group. Additionally, you can define a request group to have an access code. You can then define the form so that it allows users to select only those reports or concurrent programs belonging to a request group with an assigned code.

Request Sets
A request set is a collection of concurrent programs set up to run in a specified sequence from a single transaction. Request sets can also have run and/or print options, which apply to everymember of the set. Programs in a request set can share parameters; therefore a parameter value needs to be entered only once for multiple programs. Any user can create a request set.

What is Revaluation in GL

Revaluation adjusts liability or asset accounts that may be materially understated or overstated at the end of a period due to a fluctuation in the exchange rate between the time the transaction was entered and the end of the period.
Revaluation is performed only on Assets and Liabilities.
1. Revaluations are typically used to update foreign currency balances that will be cleared or settled at future date to the current exchange rates. An example of this is Accounts Payable. If you have an invoice that is over 60 days old, and the exchange rate has had a material change, you will want to revalue this balance to the current exchange rate.
2. Revaluations on Fixed Assets is useful to accurately describe true value of the goods after some period of time. This brings fair market value of your fixed assets in current period.

Example:
On 01-Dec-2009
-Functional Currency is USD
-Foreign Currency is ABC
-Conversion Rate is 2.
-Created invoice for 100 ABC, validated and accounted. Not Paid.
Accounting..
                                           Entered Amount(ABC)   Accounted Amount(USD)
Item Expense A/C---------Dr----100---------------------200
Liability A/C--------------Cr----100---------------------200
As per the above journal lines on 01-Dec-2009, customer is liable to pay 200 USD to the supplier.
-End of the period, conversion rate has been changed to 2.5.
-So customer's liability will get increased to 250 USD (100*2.5).
-So customer suppose to pay 250 USD instead of 200 USD to the supplier.
-This is the true liability at the end of the period and this need to be reflected in customer's General Ledger. Loss 50 USD should be populated in Loss account.
-Revaluation adjusts these amounts and keeps gain/loss amounts in Unrealized Gain/Loss accounts defined in Revaluation window.

Primary Ledger Vs Secondary Ledger Vs Reporting Currency

Primary Ledger Vs Secondary Ledger
Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or adjustments for one or more legal entities within the same accounting setup. 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.

Foreign Currency Concepts: Conversion, Revaluation, Translation

What is Conversion?
Conversion refers to foreign currency transactions that are immediately converted at the time of entry to the ledger currency of the ledger in which the transaction takes place.
What is Revaluation?
Revaluation adjusts liability or asset accounts that may be materially understated or overstated at the end of a period due to a fluctuation in the exchange rate between the time the transaction was entered and the end of the period.

What is Translation?
Translation refers to the act of restating an entire ledger or balances for a company from the ledger currency to a foreign currency

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

 Answer Making payments to the suppliers in 3 ways. What ever you have ordered for the PO we will make the payment for the suppliers

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

Eg: Suppose we had given PO for 100 items, for that we will receive invoice for 100 items. so that we will make payment for that 100 items.

2) In 3-Way we will compare 3 documents

PO+reciept+Invoice

Eg: Suppose we have ordered 100 items in PO. But we had received only 80 items, but we had received invoice for 100 items. so, we will make payment for only 80 items

3) IN 4-Way we will compare 4 documents    

PO+Receipt+Invoice+Inspection

Eg: Suppose we have 100 items in PO. Suppers send us 80 items we will do inspection on    those items what ever we have received, If 10 items got damaged. Finally, we are going to make payment to the 70 items only.

What is a Hold? Explain the types of Hold

Hold is term payable manually apply. to prevent invoices from payament. There are 3 types of holds.1. Invoice Hold.- you can manually apply one or more holds on invoice name by using the invoice hold tab on invoice work bench

2. schedule payament Hold- you can hold payament on invoices by placing holds on one or more schedule payments.

3. sulpplier Hold - In supplier site ypu can defaualt the foloowing holds a)Hold all invoices- It holds all invoices relating to the supplier name where this optiuon is defaulted.

  b)Hold Unmatched invoices- It holds the unmatched invoices i,e if the invoices do not match PO Or PO recipts the invoice is prevented from payament.

 c) Invoice Amt Limit- If the amoount exceeds the invoice amount limmit. then the invoice is prevented from payament.

  d)Invoice Unvalidated- Its prevents the payament for unvalidated invoices, Unvalidated are those invoices in which the distrubution amount does not match with the

amonth entered on work bench, or If the tax amount does not match.

2. Holds are placed during validation. There are differenttypes of holds such as Matching required hold, No rate Hold,Distribution  Variance Hold, Invoice amount limit exceeded

hold and Unapproved Invoice Hold

Can you hold the partial payment if yes then how?

Answer Yes . We can hold partial payment. we can make part payment against the invoice. after the part paymetns we can hold the invocie for payemnts

2. Yes We can Hold Partitial payment. Hold on Partial payment can be applied using "Schedule payment" SPlit the payament into two. this way one line can place hold the other one made payment

Can you cancel the invoice? If yes, explain?

Select the invoice and go to Actions cilck on cancel button.It is only possible if you selceted "Allow Adjustment to Paid Invoices" in Payables Options