Wednesday, March 23, 2016

Oracle Applications Account Payable (AP) Interview Questions and Answers (FAQS)

What are the mandatory steps for Payable module before entering transactions?
Create application user sign–ons and passwords.
Define your chart of accounts.
Define your accounting period types and accounting calendar periods.
Define a set of books. Specify a set of books name and assign it a calendar, functional currency, and a chart of accounts structure.
After choosing your set of books, use the Application Developer responsibility to set the GL Set of Books ID profile option to Updateable.
After choosing your set of books, use the System Administrator responsibility to set the GL Set of books Name profile option. If you are not using multiple organizations feature, set the option for the Oracle Payables application. If you are using multiple organizations feature, set the option for each unique combination of organization and responsibility.
Define Payables Lookups.
Define Purchasing Lookups.
Enter locations.
Enter employees. If you have Oracle Human Resources installed, use the People window. See: Entering a New Person (Managing People Using Oracle HRMS). If you do not have Oracle Human Resources  installed, use the Enter Person window.
If Oracle Inventory or Oracle Purchasing is installed, you must define at least one Inventory  Organization before defining Financials Options.
Define payment programs.
Install or upgrade Payables.
Select your primary set of books.
Use the System Administrator responsibility to assign your set of  books to a responsibility.
Define Financials options.
Define Payables options.
Define your payment terms.
If you plan to use automatic withholding tax, define Tax Authority type suppliers. You must do this before defining tax codes and tax groups.
Define bank accounts.
Define Suppliers.
Open your Payables accounting period.
Set up Print Styles and Drivers for the Supplier Mailing Labels Report.

2.What is ‘pay date basis’? Explain the different options available in it.
Pay Date Basis. The Pay Date Basis default for each new supplier you enter. The Pay Date Basis for a supplier defaults to the new supplier sites you enter for the supplier. You can override the default for each supplier and supplier site.
Discount. Payables selects invoices for payment based on the scheduled payment discount date.
Due. Payables selects invoices for payment based on the scheduled payment due date, regardless of any available discounts.

3.How to record a refund from a one-time supplier? Explain accounting entries also.
By entering the Debit Memo we can record the recover from supplier, The one time supplier is only for the information on suppliers not for the controlling.
The accounting entries for the same as follows

ACCOUNTING ENTRIES FOR ENTER INVOICE AT APPROVAL:-
Charge A/c….Dr                     XXX
To Liability A/c                       XXX

ACCOUNTING ENTRIES FOR ENTER INVOICE AT PAYMENT:-
Liability A/c….Dr                   XXX
To Cash Clearing A/c              XXX
In this case if we want refund from the supplier to raise the Debit memo against the Goods or Services.

ACCOUNTING ENTRIES FOR DEBIT MEMO AT APPROVAL:-
Liability A/c….Dr                   XXX
To Charge  A/c                        XXX

ACCOUNTING ENTRIES FOR ENTER INVOICE AT PAYMENT:-
Cash Clearing A/c…. Dr         XXX
To Liability A/c                       XXX

4.What do you mean by pay through date and additional pay through days?
Pay Through Date. Payables selects all approved and unpaid invoices that have a due date on or before the Pay Through Date. You cannot update this field after invoice selection for a payment batch.
Additional Pay Through Days. Number of days between your regular payment batches. Payables uses the additional pay through days to determine the default Pay Through Date when you initiate a payment batch. For example, if you define 5 as the value in this field, Payables adds 5 days to the system date to calculate the default Pay through Date when you initiate a payment batch.

5.How to define a payment term, if you require to pay a supplier 50% on delivery and 50% on installation?
This can be solved in so many ways, by using special calendar we can resolve this problem.

6.How to identify the Set of Books name in payables?
1.  Choose set of Books
2.  Payables options Accounting Methods Region
3.  Profile Options

7.In case of void and re-issue, whether the same document will be issued or new document will be issued?
Allow Void and Reissue. If you enable this option, you can reissue a Quick payment. You may need to reissue a check for a Quick payment if it is spoiled during printing. When you reissue a check, Payables voids the old check and creates a replacement check. The checks are identical except that the new check as a new check number, payment date, and payment exchange rate if you are using multiple currencies.  You cannot select the Void and Reissue option for future dated payments

8.What are different calculation levels of Automatic tax calculation?
Calculation Level. If you enable the Use Automatic Tax Calculation option, select the level at which you want Payables to automatically calculate sales tax. This value defaults to new suppliers you enter.
Header. Automatically create tax distributions based on the Invoice Amount and Tax Code in the Invoices window:
Tax Code. Automatically create tax distributions based on the distribution Amount, Tax Code, and Includes Tax check box in the Distributions window. When calculating tax amounts, group lines with the same tax code and Includes Tax check box setting together, calculate tax, and then round the tax amount.
Line. Automatically create tax distributions based on the distribution Amount, Tax Code, and Includes Tax check box in the Distributions window. When calculating tax amounts, calculate tax for each distribution, round the tax amount, then add the tax amounts.

9.Is it possible to un-apply a pre-payment invoice if it is already applied to a standard invoice?
Yes, we can unapply the prepayments at any status except when it is cancelled. Prepayment apply will not calculate discounts as it is already paid.

10.what options are to be enabled if invoice Currency and Payment Currency are different?
As the invoice currency and payment currency should be same due to which there is no option available with respect to this.

11.List any five standard reports in oracle payables.
 Five Standard Reports
1.  Invoice Aging Report
2.  Invoice Audit Report
3.  Payables account analysis Report
4.  Payment Batch Control Report
5.  Payment distribution Report

12.How to set different interest rates for different suppliers?
There are no such options available for defining different interest rates for different suppliers. There are only uniform interest rates.

13.When ‘tax code’ at invoice header will be mandatory?
Require Tax Entry at Header. If you enable this option, Payables requires you to enter a Tax Code and Tax amount in the Invoices window when you enter an invoice.
The calculation should be Header, in this situation the tax code at header level should be mandatory.

14.Is ‘Invoice received date’ mandatory or optional?
Invoice received date is optional if the terms date is set to other than Invoice Received date.

15.Explain the relevance of ‘Pooled Account’.
Pooled Account. If you use Automatic Offsets and you want to associate multiple companies with this bank account, then enable this option. When you enable the Automatic Offsets Payables option, Payables creates one offsetting liability distribution for each invoice distribution. If you then pay the invoice from a pooled bank account, then which Payables accounts for the invoice payment, Payables creates one  corresponding cash accounting entry for each liability distribution.

16.What is accounting entry if we take any discount on payment?
Liability A/c ……Dr               XXX
To Discount A/c                      XXX
To Cash Clearing A/c              XXX

17. When I’m trying to ‘Approve’ invoice, Approve button is grayed out. What could be the reason?
Allow Online Approval. Enable this option if you want to allow users to submit Payables Approval in the Invoices window and the Invoice Batches window.

If you are not enable the above circled item then the above case will arise.

18.How to resolve the following error: “The payment date must be on or after the system date”.
The above error can be resolved by checking the circled item
Allow Pre–Date. If you enable this option, Payables allows you to create payments with a payment date before the system date for any payment except a manual payment.

19.What is the accounting entry for foreign currency payment in case of realized gain or realized loss?
Liability A/c … Dr                              XXX
To Realized Gain A/c             XXX
To Cash Clearing A/c              XXX
Liability A/c … Dr                              XXX
Realized Loss A/c … Dr                     XXX
To Cash Clearing A/c              XXX

1.What are different status in payment batch ?
ANS – Status  (Payment Batches window only). Payables displays the status of the payment batch. Payables displays the status in red if there is an error, for example, if the concurrent manager goes down during a process.
Suggestion: If you are in the Payment batches window and you want to monitor  the status of a payment batch that is, choose Refresh Status from the Tools menu.
1.  Building. Payables is determining which invoices will be paid by each payment document.
2.  Built. Payables has determined which invoices will be paid with each payment document. You can now review the Preliminary Payment Register, Modify the Payment Batch, or Format the Payment Batch.
3.  Cancelled. You have cancelled the payment batch.
4.  Cancelling. Payables is cancelling the payment batch.
5.  Confirmed. You have confirmed the payment batch.
6.  Confirming. Payables is either confirming or partially confirming the payment batch based on the action you selected in the Confirm Payment Batch window.
7.  Formatted. Payables has completed formatting your payments and has created the output file that you can use to print checks or, if you are making electronic payments, you can deliver the output file to the e-Commerce Gateway or your bank for processing.
8.  Formatting. Payables has created the output file that you can use to print checks or, if you are making EFT payments, you can deliver the output file to your bank for processing.
9.  Modified. Payables has modified the payment batch based on the modifications you made in the Modify Payment Batch window.
10.      Modifying. Payables is modifying the payment batch based on the modifications you made in the Modify Payment Batch window.
11.      Rebuilding. You have modified a payment batch, and Payables is rebuilding the modified payment batch.
12.      Restarting. You have confirmed a partial payment batch and have chosen Restart Payment Batch in the Confirm Payment Batch window. Payables is rebuilding and reformatting the remaining portion of the payment batch.
13.      Selected. Payables has selected invoices that match the payment batch criteria you entered.
14.      Selecting. Payables is selecting invoices that match the payment batch criteria you entered.
15.      Unstarted. The payment batch is unstarted.

2. Explain The concept of Automatic Offset ?
If you enter invoices for expenses or asset purchases for more than one balancing segment, you might want to use Automatic Offsets to keep your Payables transaction accounting entries balanced.
If you do not use Automatic Offsets, Payables creates a single liability accounting entry for invoice transactions (if you use accrual basis accounting) and a single cash type accounting entry for payment transactions.
When you use Automatic Offsets, Payables automatically creates balancing accounting entries for your transactions. The GL account that each of the offsetting accounting entry is charged to depends on which method you use, Balancing or Account:
·                     Balancing. Payables builds the offsetting GL account by taking the balancing segment (usually the cost center code) from the invoice distribution and overlaying it onto the appropriate default GL account, for example the Liability account from the supplier site.
·                     Account. The Account method takes the opposite approach with one segment (the designated account segment) being retained from the default GL account and all other segments being retained from the invoice distribution.
Although Payables builds the GL account to which amounts are charged differently depending on the method you use, in either case Payables automatically allocates the amount across the following accounting entries for an invoice:
·                     Liability
·                     Withholding Tax (if you apply the withheld amount at Approval time)

Payables also allocates the following entries for a payment:
·                     Cash (if you use a pooled bank account)
·                     Cash Clearing (if you use a pooled bank account, and if you account for payments at clearing time)
·                     Discount
·                     Exchange Gain/Loss
·                     Future Dated Payment
·                     Rounding
·                     Withholding Tax (if you apply the withheld amount at Payment time)
·                     Bank Charges
·                     Bank Errors

Automatic Offsets affects only accounts listed above. For accounts other than these, for example, Interest Liability, you must make manual journal entries in your general ledger to keep the entries balanced at the balancing segment level. 
Example
The following diagram illustrates how Payables builds a GL account on a liability distribution using the two different methods:

3.What is an ERS? How is it setup?
Payment on Receipt enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions. Invoices are created using a combination of receipt and purchase order information, eliminating duplicate manual data entry and ensuring accurate and timely data processing. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) and Self Billing.
You can automatically create invoices with multiple items and distribution lines, and include tax.
You define which supplier sites participate in Payment on Receipt and enforce matching rules to ensure the proper payments are made to the suppliers.

Amount – Payment on Receipt builds invoices with the following information: Determined by multiplying the Quantity received by the Purchase Order Item Unit Price.

Payment Terms  - Defaulted from the purchase order payment terms or from the supplier site payment terms, depending on your Oracle Public Sector Payables setup.

Tax  - Based on Tax Codes on each purchase order shipment, or the default tax hierarchy in Payables.
If the purchase order currency and the supplier site Payment Currency (in the Supplier Sites window) are not fixed–rate currencies (for example, not euro–related currencies), Payment on Receipt builds the invoices this way, regardless of the supplier site Invoice Currency:

Invoice Currency – Defaulted from the purchase order Currency.

Payment Currency – Defaulted from the purchase order Currency.
If the purchase order currency and the supplier site Payment Currency are fixed–rate currencies (for example, euro–related currencies), Payment on Receipt builds the invoices this way, regardless of the supplier site Invoice Currency:
Invoice Currency – Defaulted from the purchase order Currency.

Payment Currency - Defaulted from the supplier site Payment Currency. For example, if the purchase order Currency is francs and the supplier site Payment Currency is the euro, the Payment Currency on the invoice is the euro.
Defaulted from the supplier site Invoice Currency if no supplier site Payment Currency is defined and the supplier site Invoice Currency is a fixed–rate currency.
Defaulted from the purchase order Currency if the supplier site Invoice Currency is not a fixed–rate currency. If the Alternate Pay Site is populated for the Supplier Site used on the Purchase Order, the invoice created is for the Alternate Pay Site,  otherwise the Supplier Site on the Purchase Order is used. 
The Supplier Site used for the invoice must be defined as a Pay Site.

5.What is the format of Interest Invoice number?
Ans. Interest Invoice format no. is splited into three segments they are Invoice No on which interest is calculated, INT and no. of times paid the Example as follows
Invoice No.
113 – INT- 1
Description
113 is stands for the invoice No. On which interest is paid or calculated
INT – Is the symbol for Interest
1 is the suffix attached to the interest invoice depends on the No. Of times interest paid on a particular Invoice e.g. if you paid interest for second time then the invoice will generate with suffix 2

6. What are different types of special calendar?
There are four special calendars they are
1.  Recurring Invoice
2.  Withholding Tax
3.  Payment Terms
4.  Key Indicator

7.How the terms date will be calculated for recurring invoices?
When Payables creates recurring invoices, the invoice date is the first date of the period in which the recurring invoice is created. The Terms Date depends on the Terms Date Basis setting at the supplier site, but is calculated differently than for regular invoices:
If the Terms Date Basis is set to System Date, then the Terms Date is the same date that the recurring invoice was created.
If the Terms Date Basis is set to anything else, then the Terms Date is the invoice date, which is the first day of the period in which the recurring invoice is created.

8.What is the default invoice date for recurring invoices?
Every month first date will be the default date for recurring invoice.

9.How to define foreign currency recurring Invoice Template ? What are the additional considerations?
Optionally change the invoice currency, which is your functional currency unless you have a supplier site default. If you enter a foreign currency, enter exchange rate information when you create invoices based on the template.

10. What are the prerequisites for auto creation of Debit Memo of RTS transactions?
Check the check box “Create Debit memo for RTS transactions” under purchasing Tab page in Supplier site. And in purchase module  in “Returns Form” Check the Check Box Create debit memo.

11.What is the number format of invoice generated based on ERS? Name the profile option related to this.
The Name of the Profile is  PO: ERS invoice Number Prefix.
The number format of invoice generated are,
Default Profile name.
Depends upon the Invoice summery level (Purchasing Tab page in Supplier site) the number will vary either Receipt No. or Packing slip No. Or Supplier No.
System generated No.

12.What reports will be shown if you run concurrent program for Expense report?
Payables Invoice Import Audit Report
Payables Invoice Import Exceptions Report
Payables Invoice Import Prepayments Applied Report

13.What is the relevance of Withholding tax group?
Use this window to define withholding tax groups that include multiple Withholding Tax type tax codes. You can assign the same tax code to more than one group. When you assign a withholding tax group to an invoice or distribution, Payables calculates invoice withholding tax based on every tax code in the withholding tax group. For example, you assign a withholding tax group to an invoice or distribution if you need to withhold taxes at both the local and country level, each withheld at different rates and remitted to different tax authorities. You define and assign to the invoice or distribution a Withholding Tax Group that includes both taxes.
You rank all of the tax codes in a withholding tax group when you define the group. When you enter an invoice and enter a withholding tax group, Payables calculates the taxes in order of rank. Lower ranked taxes are applied to the amount of the invoice or distribution amount less the previous withholding tax amounts.

14. What are different rate structure for Withholding Tax ?
Period Limit. After you pay a certain amount for a withholding tax in a period, Payables does withhold further taxes. For example, for each special calendar period, Payables withholds no more than $10,000.
If you select this value you must enter values for the Period Limit, and Calendar fields. You cannot enter values for the Amount Basis and Period Basis fields.

Flat Rate. The withholding tax has no amount or period limits. If you select this value you cannot enter a value in the Amount Basis, Period Basis, and Period Limit fields.

Amount Ranges. The tax rate depends on how much you have already paid during a time period. Base the paid amount on either the gross amount of total paid invoice amounts, or on the total amount of tax withheld. The time period can be per withholding tax calendar period or per invoice. For example, define a tax that for each invoice that withholds at a rate of 10% until you have paid $1000 in tax, after which it withholds at 15%. If you select this value you must enter values for the Amount Basis and Period Basis fields. If you select Period as your Period Basis, you must also select a Calendar. You cannot enter a value for Period Limit.

15. What is the relevance of  ‘Period Basis’ field in withholding tax details from and when it can be chosen?
Period Basis. To enter amount ranges in the Tax Rates region, select Amount Ranges as the Rate Type, and specify an Amount Basis and a Period Basis.
Invoice. Select Invoice if you want to apply an amount range to each invoice.
Period. Select Period to apply an amount range to a Withholding Tax period. If you enter a value here, then specify the name of the special calendar that uses the periods you want to use.

16. What are the Pre – requisites for Withholding Tax Invoices?
Tax authority to defined as supplier
Tax codes & Tax groups to be defined
Special calendar to be defined
Enable the Check box Use withholding Tax under Withholding Tab page in payables options.

17. How to view supplier Balance?
(N) – Invoices – Inquiry – Invoices, here you can find out balance of supplier (B)  “Calculate Balance Owed” by providing supplier information at Header.
OR
Go to the Invoice work bench and go to the Menu – View – Find  the screen will be opened as find invoice in that give your supplier name and site and click on the  “Calculate Balance Owed”

18.What is the format of Withholding Tax Invoice Number?
Withholding Tax – System Generated No. – Invoice distribution Line No.

19. What are there any payable options related to expense Report.
Default Template
Payment Terms
Pay Group
Payment priority
Apply advance
Automatically Create employee as supplier
Hold unmatched Expense Report

1.Explain different types of transaction in Receivables.
Invoice In Oracle Projects, a summarized list of charges, including payment terms, invoice item information, and other information that is sent to a customer for payment.
Debit memos Debits that you assign to a customer to collect additional charges. For example, you may want to charge a customer for unearned discounts taken, additional freight charges, taxes, or finance charges.
Charge backs A new debit item that you assign to your customer when closing an existing, outstanding debit item.
Credit memo In Oracle Receivables, a document that partially or fully reverses an original invoice. You can create credit memos in the Receivables Credit Transactions window or with Auto Invoice.
Deposit A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of goods and services
Guarantee A contractual obligation to purchase a specified amount of goods or services over a predefined period of time.

02. What is Application Rule Set?
Application Rule Sets
Use the Application Rules Sets window to review existing and define new application rule sets. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transaction’s line, tax, freight, and finance charges.
Receivables provides the following application rules:
Line First – Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges.
Line First – Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges.
Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges.

To define an application rule set:
1. Navigate to the Application Rule Sets window.
2. Enter a Name and Description for this rule set.
3. Enter the Sequence number for this application rule. Receivables apply payments in this sequence, beginning with the lowest sequence number.
Note: You cannot enter a sequence number for the Over application rule. By default, this rule is last in the sequence for each application rule set.

4. Enter an application Rule. Each rule will correspond to a line type (for example, lines, freight, or charges), so you should give your rule a descriptive name. Each rule set must have at least one application rule.
Attention: Receivables automatically assigns the Over application rule to each application rule set. You cannot delete this rule. The Over application rule applies any remaining amount after the balance due for each item has been reduced to zero. If the transaction type of the debit item allows over application, this rule prorates the remaining amount between each line and its associated tax amount, making these amounts negative. If the transaction type does not allow over application, either you can place the remaining amount on–account or leave it ’Unapplied’.

5. Enter Rule Details for this application rule. This section indicates the type of charges and the tax handling for this rule. Choose a Type of Line, Freight, or Charges. You need to enter at least one type for your rule set.

6. If you chose a Type of ’Line’, choose a Tax Treatment. Choose one of the following:
Prorate: Choose this option to proportionately reduce the net amount of the line and associated tax amounts.
Before: Choose this option to first reduce the open tax amount, then apply any remaining amount to the line.
After: Choose this option to reduce the open line amount, then apply any remaining amount to the associated tax.
Note: The default Tax Treatment for your Freight and Charges types is None. This option ignores tax, since you cannot tax freight and charges in Receivables. You cannot choose None for your Line type.

7. To automatically adjust this line type to account for any rounding corrections within this rule set, check the Rounding Correction box. When an amount is prorated among several line types, Receivables must use one of the line types to account for the rounding adjustment. Each application rule set must have one and only one rounding correction line type.
Suggestion: Assign the Rounding Correction to the line type that is usually the largest portion of your invoices. By doing this, the rounding correction will have the least effect on the overall remaining and applied amounts for this line type.

8. Repeat the previous steps for each rule you want to add to this rule set.
9. Save your work.

10. When you are satisfied with this rule set definition, check the Freeze box. Receivables verify that your application rule set is defined properly and that it does not violate any basic application guidelines. If this rule set fails validation, Receivables displays an error message. In this case, modify your rule set definition, and then check the Freeze box again to revalidate it.
Attention: A rule set must be ’frozen’ before you can assign it to a transaction type or use it as your default rule it in the System Options window. Additionally, after you freeze an application rule set, you cannot update or delete it.

03. Explain Auto Accounting.
Define Auto Accounting to specify how you want Receivables to determine the general ledger accounts for transactions that you enter manually or import using Auto Invoice. Receivables create default accounts for revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivables accounts, and Auto Invoice clearing (suspense) accounts using this information. When you enter transactions in Receivables, you can override the default general ledger accounts that Auto Accounting creates. You can control the value that Auto Accounting assigns to each segment of your Accounting Flex field, such as Company, Division, or Account. You must define Auto Accounting before you can enter transactions in Receivables.
Suggestion: If you use the multiple organization support feature, you can set up Auto Accounting to derive the Product segment of your Revenue account based on inventory items. To do this, define the Product segment of your Revenue account to use Standard Lines and specify a Warehouse ID when entering transactions.

To define Auto Accounting:
1. Navigate to the Automatic Accounting window.
2. Enter the Type of account to define. Choose from the following:

Auto Invoice Clearing: The clearing account for your imported transactions. Receivables use the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only use the clearing account if you have enabled this feature for the invoice batch source of your imported transactions.

Bills Receivable: The bills receivable account for your transaction. Receivables use this account when you exchange transactions for bills receivable.

Factored Bills Receivable: The factored bills receivable account for your bills receivable transactions.

Freight: The freight account for your transaction.

Receivable: The receivable account for your transaction.

Remitted Bills Receivable: The remitted bills receivable account for your bills receivable transactions.

Revenue: The revenue and finance charges account for your transaction.

Tax: The tax account for your transaction.

Unbilled Receivable: The unbilled receivable account for your transaction. Receivables use this account when you use the Bill In Arrears invoicing rule. If your accounting rule recognizes revenue before your invoicing rule bills it, Receivables uses this account.

Unearned Revenue: The unearned revenue account for your transaction. Receivables use this account when you use the Bill In Advance invoicing rule. If your accounting rule recognizes revenue after your invoicing rule bills it, Receivables uses this account.

Unpaid Bills Receivable: The unpaid bills receivable account for your bills receivable transactions.

3. For each segment, enter either the table name or constant value that you want Receivables to use to get information. When you enter an account Type, Receivables displays all of the segment names in your Accounting Flexfield Structure. Segments include such information as Company, Product, Department, Account, and Sub–Account. Receivables lets you use different table names for different accounts. Choose one of the following table names:

Bill To Site: Use the bill–to site of the transaction to determine this segment of your revenue, freight, receivable, Auto Invoice clearing, tax, unbilled receivable, and unearned revenue account.

Drawee Site: Use the drawee site table to determine this segment of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account.

Remittance Banks: Use the remittance banks table to determine this segment of your factored bills receivable and remitted bills receivable account.

Salesperson: Use the salesperson’s table to determine this segment of your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with this salesperson. If you choose this option for your unbilled receivable account, Receivables uses the receivable account associated with this salesperson. If the transaction has a line type of ”LINE” with an inventory item of freight (”FRT”), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.

Standard Lines: Use the standard memo line or inventory item on the transaction to determine this segment of your revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue account. If you choose this option for your AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to this standard memo line item or inventory item. If the transaction has a line type of ”LINE” with an inventory item of freight (”FRT”), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.

Taxes: Enter this option to use tax codes when determining your tax account.

Transaction Types: Use the transaction types table to determine this segment of your revenue, freight, receivable,  AutoInvoice clearing, tax, unbilled receivable, and unearned revenue account, and of your bills receivable, factored bills receivable, remitted bills receivable, and unpaid bills receivable account. If the transaction has a line type of ”LINE” with an inventory item of freight (”FRT”), AutoAccounting uses the accounting rules for the freight type account rather than the revenue type account.

4. If you did not enter a Table Name, enter a Constant value for this segment, or select one from the list of values. Enter a Constant value if you want AutoAccounting to always use the same value for this Accounting Flexfield segment. Be sure to enter information that is valid for this segment. For example, if you defined your Company flexfield segment as a two–character segment with valid values ranging from 00 to 10, you must enter a two–character value within this range.

5. Save your work.

4. What is Auto Cash Rule Set?
Define Auto Cash Rule Sets to determine the sequence of Auto Cash Rules that Post Quick Cash uses to update your customer’s account balances. You specify the sequence and the Auto Cash Rules for each Auto Cash Rule Set. The Auto Cash Rule Sets you define display as list of values choices in the Customers, Customer Addresses, Customer Profile Classes, and the System Options windows. Post Quick Cash first checks the customer site, then the customer profile class, and finally at the system options level to determine the Auto Cash Rule Set to use.
 Receivables provides a default AutoCash Rule Set when you assign a customer to a credit profile, but you can modify individual AutoCash Rule Set assignments at both the customer and customer site levels. If you do not assign an AutoCash Rule Set to a customer’s credit profile, and you enter a receipt for this customer, Receivables uses the AutoCash Rule Set that you entered in the System Options window along with the number of Discount Grace Days you specified in this customer’s credit profile to apply the receipt. If you assign an AutoCash Rule Set to a customer, but none of the AutoCash Rules apply, Receivables places the remaining amount Unapplied or On–Account, depending on how you set the Remaining Remittance Amount option for the rule set.
If you have set up your system to use bank charges and a tolerance limit, Post QuickCash will also consider these amounts if the current AutoCash rule fails (this is true for all rules except ’Apply to the Oldest Invoice First’). If it finds a match, Post QuickCash applies the receipt; otherwise, it looks at the next rule in the sequence. You can disable an existing AutoCash Rule Set by changing its status to Inactive and then saving your work.

Prerequisites
Define system options

To define an AutoCash Rule set:
1. Navigate to the AutoCash Rule Sets window.
2. Enter the Name of this AutoCash rule set.
3. Enter a description for this AutoCash rule set (optional).
4. Enter the type of Discount you want to automatically give to your customer for this AutoCash Rule Set. Choose one of the following Discount options:

Earned Only: Your customer can take earned discounts according to the receipt terms of sale. You negotiate earned discount percentages when you define specific receipt terms. You can enter this option if Allow Unearned Discounts is set to yes in the System Options window. In this case, Receivables only allows earned discounts for this AutoCash Rule Set.

Earned and Unearned: Your customer can take both earned and unearned discounts. An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No.

None: Your customer cannot take discounts (this is the default).
5. To include transactions in dispute when calculating your customer’s open balance, check the Items in Dispute check box.
6. To include finance charges when calculating your customer’s open balance, check the Finance Charges check box.

7. Define the Automatic Matching Rule for this AutoCash Rule set.

8. If this rule set will include the Apply to the Oldest Invoice First rule, choose how you want to apply any Remaining Remittance Amount. Receivables uses this value to determine how to enter the remaining amount of the receipt if none of the AutoCash Rules within this rule set apply. Choose ’Unapplied’ to mark remaining receipt amounts as Unapplied. Choose ’On–Account’ to place remaining receipt amounts On–Account.

9. To automatically apply partial receipts when using the Apply to the Oldest Invoice First rule, check the Apply Partial Receipts check box. A partial receipt is one in which the receipt minus the applicable discount does not close the debit item to which this receipt is applied. The applicable discount that Receivables uses for this rule depends upon the value you entered in the Discounts field for this AutoCash Rule Set. If you exclude finance charges (by setting Finance Charges to No) and the amount of your receipt is equal to the amount of the debit item to which you are applying this receipt minus the finance charges, Receivables defines this receipt as a partial receipt. In this case, Receivables does not close the debit item because the finance charges for this debit item are still outstanding.
If Apply Partial Receipts is set to No, this AutoCash Rule Set will not apply partial receipts and will either mark the remaining receipt amount ’Unapplied’ or place it on–account, depending on the value you entered in the Remaining Remittance Amount field.

10. Enter a Sequence number to specify the order of each rule in this AutoCash Rule Set (optional). Receivables uses the rule assigned to sequence 1, then sequence 2, and so on when applying receipts using this AutoCash Rule Set.

11. Enter one or more AutoCash Rules for this AutoCash rule set. Choose from the following AutoCash rules:

Apply to the Oldest Invoice First: This rule matches receipts to debit and credit items starting with the oldest item first. This rule uses the transaction due date when determining which transaction to apply to first. This rule uses the values you specified for this AutoCash Rule Set’s open balance calculation to determine your customer’s oldest outstanding debit item.
Post QuickCash uses the next rule in the set if any of the following are true:
– all of your debit and credit items are closed
– the entire receipt amount is applied
– it encounters a partial receipt application and Allow Partial
Receipts is set to No for this AutoCash Rule Set
– the next oldest debit item includes finance charges and Finance Charges is set to No for this AutoCash Rule Set This rule marks any remaining receipt amount ’Unapplied’ or places it on–account, depending on the value you entered in the Remaining Remittance Amount field for this AutoCash Rule set

Clear the Account: Post QuickCash uses this rule only if your customer’s account balance exactly matches the amount of the receipt. If the receipt amount does not exactly match this customer’s account balance, Post QuickCash uses the next rule in the set. This rule calculates your customer’s account balance by using the values you specified for this AutoCash Rule Set’s open balance calculation and the number of Discount Grace Days in this customer’s profile class. This rule also includes all of this customer’s debit and credit items when calculating their account balance. This rule ignores the value of the Apply Partial Receipts option.
This AutoCash Rule uses t he following equation to calculate the open balance for each debit item:

Open Balance = Original Balance + Finance Charges – Discount
Receivables then add the balance for each debit item to determine the customer’s total account balance. The ’Clear the Account’ rule uses this equation for each invoice, chargeback, debit memo, credit memo, and application of an Unapplied or On–Account receipt to a debit item.
Note: The discount amount for each item depends upon the payment terms of the item and the value of the Discounts field for this AutoCash Rule Set. The number of Discount Grace Days in this customer’s credit profile, along with the payment terms assigned to their outstanding invoices, determine the actual due dates of each debit item.

Clear Past Due Invoices: This rule is similar to the ’Clear the Account’ rule because it applies the receipt to your customer’s debit and credit items only if the total of these items exactly matches the amount of this receipt. However, this rule only applies the receipt to items that are currently past due. A debit item is considered past due if its due date is earlier than the receipt deposit date. This rule considers credit items (i.e. any pre–existing, unapplied receipt or credit memo) to be past due if the deposit date of the receipt is either the same as or later than the deposit date of this pre–existing receipt or credit memo. In this case, this rule uses a pre–existing receipt or credit memo before the current receipt for your AutoCash receipt applications. If this AutoCash Rule Set’s open balance calculation does not include finance charges or disputed items, and this customer has past due items that are in dispute or items with balances that include finance charges, this rule will not close these items. This rule ignores the value of the Apply Partial Receipts option.

Clear Past Due Invoices Grouped by Payment Term: This rule is similar to the ’Clear Past Due Invoices’ rule, but it first groups past due invoices by their payment term, and then uses the oldest transaction due date within the group as the group due date.
When using this rule, Receivables can only apply the receipt if the receipt amount exactly matches the sum of your customer’s credit memos and past due invoices. A debit item is considered past due if the invoice due date is earlier than the deposit date of the receipt you are applying. For credit memos, Receivables uses the credit memo date to determine whether to include these amounts in the customer’s account balance. For example, if you are applying a receipt with a receipt date of 10–JAN–93, credit memos that have a transaction date (credit memo date) on or earlier than 10–JAN–93 will be included. Credit memos do not have payment terms, so they are included in each group.

Match Payment with Invoice: This rule applies the receipt to a single invoice, debit memo, or chargeback that has a remaining amount due exactly equal to the receipt amount. This rule uses the values that you enter for this AutoCash Rule Set’s open balance calculation to determine the remaining amount due of this customer’s debit items. For example, if Finance Charges is No for this rule set and the amount of this receipt is equal to the amount due for a debit item minus its finance charges, this rule applies the receipt to that debit item. If this rule cannot find a debit item that matches the receipt amount, Post QuickCash looks at the next rule in the set. This rule ignores the value of the Apply Partial Receipts
option.
12. Save your work


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