Oracle Receivables Interview Questions and Answers (FAQS)

1.What are the Key Flex Fields in Oracle Receivables?

Sales tax Flexfields

Territory Flexfields

2.What is the Payment Term in AR?

How You are going to Receive the Amount from Customers , for Goods or Services like Installments, Due Dates & Discount Dates

3.How you define a Remittance Bank?

Navigation =>Setup/Receipts/Bank

This you can use for How Your Customer’s are sending Amounts for Cost Of Goods or Services to Banks and What are the accounts will be reflect.

4.What are the Pre-Requisites for Generating Receipts?

Receipt Class & Receipt Source & Banks

5.What is a Receipt Class? Payment Method?

this tells you what are the Accounts Related for Customer Receipts and Bank Account Name of the Customers and Payment Method.

6.What is Receipt Source?

This will describe you Generating the Receipts Automatically or Manually.

7.What is a Territory? What is the Importance in AR?

Using this Territory’s You can Classify Your Sales Persons & Customers

8.When you defining a Sales Person, What are the Accounts you should use?

Receivables A/c, Revenue A/c, Freight A/c

9.How many Sales Credits we have? Describe each in one line?

1: Quota Sales: This you can assign to the sales persons but the Revenue should take 100%

2:Non-Quota Sales: This is the Additional sales what you are going to assign to your sales persons

10.What is the Importance of Defining a Collector? Where we will use him?

The Collector we will assign him A profile Class. So he is responsible the Related Customers

11.What are the Quick-codes in Oracle Receivables? Describe?

Freight Carriers, Demand Class, Customer Category, Customer Class

12.How will you send the Information about Invoices? Describe the Frequency?

Through Statement Cycles, The Interval between dates like Weekly, Monthly, Quarterly

13.What is used to notify customers of past due items?

Dunning Letters

14.What is Default Auto Cash Rule Sets Available?

Clear the Invoice Amount, Past due Invoices, Oldest Invoice First, On Account, Group with the payment terms

15.If you want check the Credit of a Customers How many Forms it should enable, what are those?

Three Forms should be Enabled;

1:Order Type

2:Payment Terms

3:Customer Screen

16.What is the Maximum Credit Limit Per Order?

Total Credit Limit

17.If one Customer have two Profile Amounts? If yes describe?

Yes, with 2 Different Currencies Like INR & USD

18.How many ways you can create a Customer?

Standard, Quick

19.What does stands for SIC?

Standard Industry Code

20.What does stands for GSA?

General Sales Administration

21 BRS - Bank Reconciliation Statement

A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company’s own records with the bank statement on a particular date.

The differences may arise because of the following reasons:

1. Cheques deposited into bank but not yet collected by bank

2. Cheques issued by the organization but not yet presented for payment

3. Cheques directly deposited by customers into the bank

4. Bank charges debited by bank

5. Interest credited or some receipts directly collected by bank based on org. request.

6. Some payments directly made by bank based on the organizations request.

So, the statement shows the reasons as what are the reasons for difference in balance.

1. How do you create a Chargeback Invoice ?

A. Using Receipts window

2. How do you adjust the amount of advance already received against an Invoice ?

A. Create an Invoice for Deposit and receive an amount against this deposit Invoice. Then Create the regular invoice and in the column of Commitments enter the number of Deposit Invoice. The Regular Invoice gets matched with the Deposit Invoice for the amount of Regular invoice or deposit invoice which ever is lower

3. How do you write off small amounts while accounting the receipt against an invoice?

A. Using Receipts window. You have the button for write offs.

4. How do you Account for bank charges deducted from amount received against an invoice?

A. Using Quick cash window also you can enter receipts. Here you have the option of accounting the bank charges deducted on receipt. However, this has to be enabled by putting the Value in profile option AR: Create Bank Charges = YES.

5. How do you create a credit note against an invoice ?

A. You have separate window to create such credit note. Navigation Transactions => Credit Transactions.

6. How do you adjust a regular Invoice with a Credit Note ?

Enter the amount 0 in receipt window and in invoice matching window select the invoice as well as the credit note. This will knock off the invoice against the credit note.

7. What are different types of Receipt Reversals ? What is the difference between them ? What are the accounting entries ?

A. Standard Reversal and Debit Note Reversal. Standard Reversal reopens the invoice matched in that receipt. You can match a new receipt against this invoice.

Debit Note Reversal does not reopens the earlier matched invoice but it creates a new debit note which can be matched with another receipt.

8. When are the following accounts are used Unbilled Receivable and Unearned Revenue ?

A. When you use Invoicing Rule, the receivables are accounted on different dates as defined in the rule. Till such time receivables are accounted, the amount is debited to Unbilled Receivables.

If you use Accounting Rule, the revenue is accounted on different dates. Till such time revenue is accounted, the amount is credited to Unearned Revenue..

9. What is the difference between Unidentified Receipt, Unapplied Receipts and On Account Receipts ? What are the Accounting Entries for each of this ?

A. Unidentified Receipts: The Customer is yet to be identified and so receipt is not matched.

Unapplied Receipts: The Customer is identified and entered but the amount is not matched with any of his invoice. On Account Receipts: The Customer is entered and instead of matching the amount to any of his invoice it is matched with the On Account option. This option is available as first item in the pick list of invoices.

10. What is the difference between earned discounts and Unearned discounts ? How do you account the Unearned discount? What are the accounting entries involved ?

A. The cash discounts are mentioned in the payment terms. Considering the due date and

the receipt date the discount is automatically calculated while entering the receipt. If

however you want to increase the amount of invoice you can manually increase it. The

amount automatically calculated as per terms is the Earned Discount. The manually

added amount is the Unearned Discount. This however, depends upon the option given in

System Options in Setup.

11. What are the Key Flexfields in AR.

A. Sales Tax Location Flexfield

Territory Flexfield

AR Setup Related

12. What is difference between transaction type and transaction source ?

A. Transaction type can either be Invoice, Credit Note, Debit Note, Deposit. Etc. This also decides whether to account in GL, Whether to consider in receivables, the accounts to be debited, credited, the tax calculation options, and some other options which are defauled.

Transaction Source decides whether the source of entry is manual or automatic. It also mentions whether transaction and batch numbering is manual or automatic. If automatic the last entered number is to be mentioned to start the automatic numbering.

IF the source is automatic, that means the transactions are to be uploaded through interface either from OE or legacy system. Then some other options are to be set.

13. What is AutoAccounting ?

A. This is the account generator in Accounts receivables. This decides accounts for

Receivables

Revenue

AutoInvoice Clearing

Freight

Tax

Unbilled Receivable

Unearned Revenue

From where the accounts are defaulted ?

Sales reps

Transaction Lines

Transaction Types

Taxes

Or you can have Constant values

14. What is AutoCashRule Set ?

This decides the sequence of the invoice matching rules for unmatched receipts entered though quich cash or AutoLockBox(interface). The rules are already defined in the system. Like “Match Payment with Invoice”, “Apply to the Oldest Invoice First”, “Clear the Account”, etc.

15. Where do you attach the Set Of Books ? Can you attach more than one set of books ? if you have more then one set of books then how Receivables is configured ?

You attach the set of books in System Options in Setup. Only one set of books can be attached. If you have more then one set of books then AR is to be set in multi org environment. By specifying the “MO Operating Unit” and the “GL Set of Books Name”.

16. How do you define document numbering for receipts ? can you have different sequences for each Payment Method.

In system administration. You can have different sequences for different payment methods.

17. What is difference between Receivables and A/C Receivables.

Accounts receivable are usually current assets that arise from selling merchandise or providing services to customers on credit. Accounts receivable are also known as trade receivables.

Receivables is the term that refers to both trade receivables and nontrade receivables. Nontrade receivables are receivables other than accounts receivable. Some examples of nontrade receivables include interest receivable, income tax receivable, insurance claims receivable, and receivables from employees.