Friday, February 22, 2013

Oracle Account payables interview Qs


Q/A
Details
Question
How many types of Invoices we can create in Oracle Payables?
Answer
A. Standard
B. Debit Memo
C. Credit Memo
D. Pre-Payment
E. Expense Report
F. Withholding Tax Invoice
G. Miscellaneous Invoice
Question
Describe the 4-Way Matching?
Answer
2 – Way Matching: The Invoice Amount Should match with PO, (Invoice with PO)
3 – Way Matching: The Receipts Should match with Invoice, (Invoice, PO with Receipts)
4 – Way Match: The Goods Should match with Inspection/Accepted (Invoice, PO, Inspections & Receipts)
Question
How many Holds we have?
Answer
System Hold and Manual Hold. Payables lets you apply holds manually on an invoice, Payments etc to prevent the payment from being made or to prevent the accounting entries to be created etc. Some of the Payable holds are -- Invoice Hold, Accounts Hold, Funds Hold, Matching Hold, Variance Hold, Misc hold.
Question
Can you Release Manual Holds? If Yes, How?
Answer
Yes. Holds – Release Holds
Question
How many ways you can pay the Invoice Amount?
Answer
Apply in Full
Schedule Payments
Installments
Question
What is the difference between Debit and Credit Memo?
Answer
Debit Memo will raise the Customer
Credit Memo will raise the Vendor
Question
Can you create a Duplicate Vendor ?
Answer
No
Question
Vendor Number Should be Generate Automatic or Manually?
Answer
Both, Manual And Automatic
Question
How many key flexfields are there in Payables?
Answer
No key flexfields in PO,AP
Question
What are Payment Terms?
Answer
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.
Question
What are the Payment Methods available?
Answer
• Check – You can pay with a manual payment, a Quick payment, or in a payment batch.
• Clearing – Used for recording invoice payments to internal suppliers.
• Electronic – You generate an electronic payment file that you deliver to your bank to create payments. Use Electronic if the invoice will be paid using EFT or EDI.
• Wire – Used to manually record a wire transfer of funds between your bank and your supplier’s bank.
Question
What are the line types of an Invoice?
Answer
Item: Item lines capture the details of the goods and services billed on your invoice.
Freight: Freight lines capture the details of your freight charges.
Miscellaneous: Miscellaneous lines capture the details of other charges on your invoices such as installation or service.
Tax: Payables integrates with Oracle E-Business Tax to automatically determine and calculate the applicable tax lines for your invoices.
Question
What are the Invoice Distribution Types?
Answer
Item
Freight
Miscellaneous
Tax
Withholding
Prepayment
Question
What are Holds in AP?
Answer
Holds can be placed by the system and some holds can be placed manually. Holds prevent payment and, sometimes, accounting of an invoice. Payables applies holds to invoices that fail the Invoice Validation process. Release holds from invoices to allow payment and accounting entry creation for the invoices.
Question
What are the Interface Tables in AP?
Answer
AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE
AP_INTERFACE_CONTROLS
————————————–
AP_SUPPLIERS_INT
AP_SUPPLIER_SITES_INT
AP_SUP_SITE_CONTACT_INT
AP_SUPPLIER_INT_REJECTIONS
Question
What is the API to cancel single AP Invoice?
Answer
AP_CANCEL_PKG.AP_CANCEL_SINGLE_INVOICE
Question
What is the API to find invoice status?
Answer
AP_INVOICES_PKG.GET_APPROVAL_STATUS
Question
Give some of the Oracle Payables interface?
Answer
a) Credit Card Transaction Interface
b) Invoice Import Interface
c) Payables Open Interface
d) Purchase Order Matching
Question
What are the key tables where supplier bank information are stored?
Answer
IBY_EXTERNAL_PAYEES_ALL
IBY_EXTERNAL_PAYERS_ALL
IBY_EXT_BANK_ACCOUNTS
IBY_PMT_INSTR_USES_ALL
Question
What is meant by with-holding tax invoice?
Answer
A separate tax invoice generated for withholding tax amount. Later this invoice will be knocked of when making the payment made to the authority.
Question
What are all the Modules Interacting with AP?
Answer
Cash Management
Oracle iExpenses
General Ledger
Oracle Assets
Subledger Accounting (R12)
HRMS
Project Accounting
Purchasing/iprocurement
Global Accounting Engine (11i)
Question
What are the mandatory setups in AP?
Answer
1- Financial Options
2- Define Suppliers
3- Define Payment Terms
4- Define Payment Methods
5- Define Banks and Banks Accounts And Banks Accounts Documents
6- Open AP Accounts Periods
Question
What is pay date basis?
Answer
The Pay Date Basis for a supplier determines the pay date for a supplier’s invoices.
• Due
• Discount
Question
What is the difference between quick payment and manual payment?
Answer
Quick Payment: It allows you to make a single payment against one or more invoices at a time to one supplier through payables.
Manual Payment: This is the process of entering the check details which has been paid manually in some emergency requirements into the payment form and selecting the invoices of the concerned supplier and check whether the total of the invoices and the paid amount at the header are same and save.
Question
What is terms date basis?
Answer
Terms Date Basis is to calculate due date.
Due date is calculated 4way. Eg: payment term is 30days

Due date = Sysdate + 30days
Due date = Invoice date + 30days
Due date = Goods Receive Date + 30days
Due date = Invoice Received date + 30days
Question
What are Aging Periods?
Answer
Aging periods are nothing but the periods that we setup to control and maintain the supplier outstanding bill towards the invoice. From this we can able to study the due date of the supplier form the generation of invoice.
Question
Types of Invoices
Answer
1. Standard Invoices: Standard invoices are the invoices issued by a supplier to the buyer, representing the amount due for the products or services the supplier has provided to the buyer.

Standard invoices can be either matched to a purchase order or not matched.

A standard invoice must be positive amount.

2. Mixed Invoices: Mixed invoices are the invoices which can have either positive or negative amounts and can be matched to both purchase orders and invoices.

For example, if there is a mixed invoice for $-1000, you can either match it to an invoice with $-1000 or to a purchase order with an amount $1000.

3. Credit Memo: Credit memo is an invoice raised by the supplier to the buyer with negative amount. It reduces the supplier balance and reduces the liability.

For example the customer has returned some of the goods that he purchased, the supplier sends a credit memo to the buyer to adjust the balance.

4. Debit Memo: Debit memo is an invoice raised by the customer to supplier with negative amount.

The functionality of Debit Memo is same as Credit Memo. Both are to reduce the liability.

The purpose of Debit Memos is to record a credit for a supplier who does not send you a credit memo.

Unlike in AR, both Credit memo and Debit memo are with negative signs in Payables.

5. Prepayment: Prepayments are the invoices raised to record advance payments to a supplier or employee.

6. Expense Reports: Expense reports are the invoices that represent amount due to an employee for all his business related expenses.

7. Retainage Release Invoices: Retainage release is the act of releasing, or paying, that portion of a payment that was withheld until a substantial portion or all of the service procurement work is completed. The amounts retained during the life of the contract must be released and paid to the supplier or sub-contractor once all or a substantial portion of the work is completed.

Oracle Payables uses the Retainage Release Request to create a type of invoice called Retainage Release. A retainage release invoice has lines, which are copied from the original standard progress invoices, which show an amount left to be released.

Retainage release invoices can only be entered manually in the Invoice Workbench window.

8. Withholding Tax:  After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.
                          
Payables can automatically create withholding tax invoices, or you can perform this
task manually. If you choose to automatically create withholding tax invoices, you must choose whether to do this during Invoice Validation or during payment processing.

9. PO Price Adjustment Invoices:  PO Price Adjustment Invoices are used for recording the difference in price between the original invoice and the new purchase order price.

For example, If a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed.

PO price adjustment invoices can be matched to both purchase orders and invoices.

10. Quick invoices: Used for quick, high-volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import
Question
What is the process/steps for Vendor Conversion?
Answer
Insert the Vendor info into the interface tables and perform the required validations:
AP_SUPPLIERS_INT
AP_SUPPLIER_SITES_INT
AP_SUP_SITE_CONTACT_INT
Run the below programs to load the data into the Base tables:
Supplier Open Interface Import
Supplier Sites Open Interface Import
Supplier Site Contacts Open Interface Import
Question
Explain the set up used for Automatic or Manual Supplier Numbering.
Answer
In the Financials Options window, you can set the Supplier Number entry option to either Autimoatic or Manual • Automatic: The system automatically assigns a unique sequential number to each supplier when you enter a new supplier. • Manual: You enter the supplier number when you enter a supplier
Question
What is Contract PO?
Answer
Contract PO is created when you agree with your suppliers on specific terms and conditions without indicating the goods and services that you will be purchasing.
Question
What is a Payable Document?
Answer
A medium you use to instruct your bank to disburse funds from your bank account to the bank account or site location of a supplier.
Question
In which table we can find the vendor number?
Answer
PO_VENDORS
Question
Give the cycle from creating an invoice to transferring it to GL in AP.
Answer
)Create Invoice 2)Validate Invoice 3)Create Accounting entries using Payables Accounting Process 4)Submit the Payables Transfer to General Ledger program to send invoice and payment accounting entries to the General Ledger interface. 4)Journal Import (GL) 5)Journal Post (GL)
Question
What are the Prepayment types?
Answer
Temporary and Permanent
Question
What is Aging Periods?
Answer
Aging Periods window are the time periods for the Invoice Aging Report. The Invoice Aging Report provides information about invoice payments due during the periods you specify.
Question
Whats the difference between the "Payables Open Interface Import" Program and the "Payables Invoice Import" program?
Answer
Payables Open Interface -- for importing regular invoices Payables Invoice Import -- for importing expense reports. In 11i renamed as Expense Report Import. In R12 renamed as Expense Report Export.
Question
What is prepayment & steps to apply it to an Invoice?
Answer
Prepayment is a type of invoice that you enter to make an advance payment to a supplier or employee.

To Apply it to an Invoice ,in the Invoices window, query either the prepayment or the invoice to which you want to apply it. Choose the Actions button and select the Apply/Unapply Prepayment check box. Click OK.
Question
Can you  hold the partial payment if yes then how?
Answer
Yes.
1.Go to the Invoice window. Go to the scheduled payments tab.
2.Click "Split" to split the scheduled payment into as many
payments as you wish.
3.Check "Hold" against the Payment line you wish to hold.
Question
What program is used to transfer AP transactions to GL?
Answer
In 11i "Payables Transfer to General Ledger" Program. In R12 "Transfer Journal Entries to GL" Program.
Question
What is use of AP Accounting Periods?
Answer
In Payables accounting periods have to be defined to enter and account for transactions in these open periods. Payables does not allow transaction processing in a period that has never been opened. These periods are restricted to Payables only. The period statuses available in Payables are Never Opened, Future,Open, Closed, and Permanently Closed.
Question
What are the different interface programs in AP?
Answer
Payables Open Interface Import to load Invoices and other transactions.
Supplier Open Interface Import to load Suppliers.
Supplier Sites Open Interface Import to load Supplier sites.
Supplier Site Contacts Open Interface Import to load Supplier Site contacts.
Question
What is Invoice Tolerance?
Answer
We can define the matching and tax tolerances i.e how much to allow for variances between invoice, purchase order, receipt, and tax information during matching. You can define both percentage–based and amount–based tolerances.
Question
What will accrue in Payables?
Answer
Expenses and Liabilities
Question
Which module is the owner of Vendor/Supplier tables?
Answer
PO
Question
In AP the suppliers didn’t visible in India Creditors Ledger Report Parameter?
Answer
Please check whether that particular supplier is available in Suppliers addition inforamtion or not.
Question
1. Describe the Payment Terms and Discounts?
Answer
In the Payment Terms window, you define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit Approval for the invoice. You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.
Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on one of the following:
o a specific day of a month, such as the 15th of the month
o a specific date, for example, March 15, 2002.
o a number of days added to your terms date, such as 14 days after the terms date
o a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.
Each payment terms line also defines the due or discount amount on a scheduled payment. When you define payment terms you specify payment amounts either by percentages or by fixed amounts.After you define your payment terms, in the Payables Options window you can select default payment terms that Payables automatically assigns to the suppliers and supplier sites you enter. The payment terms for a supplier site default to the invoices you enter for the site.The Payment Terms Which tells us The Installments of a Purchased Goods Are Services. And the Discount is it will depends upon the Discount dates.
Question
A Vendor must compulsory have what?
Answer
Primary Address
Question
Is there any chance to create Vendor only once? If Where should you create?
Answer
Yes, Enable the check box in the Vendor Classification Screen
Question
Can you cancel an Invoice? How?
Answer
Yes, Actions1 – Cancel Invoice
Question
How can you match PO with Invoice? What you should not take in the Invoice?
Answer
Match/Po Number,Distribution Set should not be taken care at this point. When you enter an invoice and match it to a purchase order, Payables automatically creates distributions for you and checks that your match is within the tolerance you define. After you save the match, Payables updates the quantity billed for each matched shipment and its corresponding distribution(s) by the amount you enter in the Quantity Invoiced field. Payables also updates the amount billed on the purchase order distribution(s).
Question
What you should take care When you Match Debit/Credit Memo with an Invoice?
Answer
The Invoice Should match with Po. When you enter a credit/debit memo, you can match it to existing invoice(s) to have Payables automatically copy the accounting information and create invoice distributions for the credit/debit memo. You can match the credit memo to multiple invoices, and at different levels of detail. Your available choices depend on whether the originating invoice was matched to a purchase order or not.

For example, if you receive a credit for items you returned to a supplier, you can enter a credit memo and match it to the original invoice you entered to ensure that the credit memo distributes the credit to the same accounts originally charged.

If the original invoice is not purchase order matched (basic invoice), you can:

o Match to an invoice. Payables prorates your credit amount based on the invoice distribution amounts of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the distributions of the original invoice.
o Match to specific invoice distributions. You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the original invoice distribution that you select. For example, you may order three chairs for three different departments and return one. You can match a credit/debit invoice to the original distribution for that department to ensure that the credit matches the charge.
If the original invoice is purchase order matched, you can:
o Match to specific invoice distributions. You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the original invoice distributions that you select.
Payables updates the quantity billed for each of the originally matched purchase order shipments and their corresponding distributions by the credit quantity you enter. Payables also updates the amount billed on the purchase order distributions.
o Match to purchase order shipments. Payables prorates, based on the quantity billed, your credit amount across all purchase order distributions associated with the purchase order shipment to which you match the credit/debit memo. Payables automatically creates invoice distributions for the credit/debit memo based on the purchase order distributions associated with the purchase order shipment you match to.
Payables updates the quantity billed for each purchase order shipment and its corresponding distributions by the amount of the credit/debit memo. Payables also updates the amount billed on the originally matched purchase order distributions.
o Record a Price Correction. Use a price correction when a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order. You can record a price correction by checking Price Correction when you match a credit/debit memo to a purchase order shipment or purchase order matched invoice distribution. When you record a price correction for a credit/debit memo, you are recording a price decrease from the original invoice.

Payables updates the invoiced unit price of previously matched purchase order shipment or distributions without adjusting the quantity billed so you can track price variances; Payables also updates the amount billed on the originally matched purchase order distributions.

To match a credit /debit memo to an invoice, invoice distribution, or a purchase order shipment:

1. Enter a Credit Memo or Debit Memo type invoice.
Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions.
2. Choose the Match button. In the Find Invoices to Match window, query the invoices you want to match and choose Find. If the credit/debit memo pertains to an invoice matched to a certain purchase order, query by purchase order number to see all invoices matched to that purchase order. Payables navigates to the Match to Invoice window.
Optionally choose the Invoice Overview button to review more information about an invoice.
3. Create invoice distributions by matching to one or more invoices. If you are matching to a non-purchase order matched (basic) invoice, select the invoice and enter a Credit Amount.

If you want to match in further detail, continue the match at the invoice distribution or purchase order shipment level:

o To match to invoice distributions, choose Distribute. For each invoice distribution you want to match to, select the distribution and enter a Credit Amount.
o To match to purchase order shipments, choose Match PO. For each shipment you want to match to, select the shipment and enter either a Quantity Invoiced or Match Amount. Payables automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which defaults from the purchase order.

4. Choose Match to create invoice distributions for the credit/debit memo based on the matches you made.
To review the new invoice distributions, choose the Distributions button from the Invoices Summary.
Question
How Will you group a similar type of Items?
Answer
Items List
Question
How many Payment Types U have?
Answer
Quick, Manual, Refund – for refunding an amt - Refund, Manual, Quick, Automatic Payment
Question
How will the system calculate the Discount?
Answer
Discount date. Invoice payments terms where we have to define the discount rates & dates- 1st discount, 2nd discount & 3rd discount

In the Payment Terms window, you define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit Approval for the invoice. You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.

Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on either a specific day of a month, such as the 15th of the month, or a number of days added to your terms date, such as 14 days after the terms date.

Each payment terms line also defines the due or discount amount on a scheduled payment. When you define Payment Terms you specify payment amounts either by percentages or by fixed amounts. Payables provides a predefined, unalterable payment term, called Prepayment Immediate, which Payables automatically assigns to all prepayments you enter. After you define your payment terms, you can select default system payment terms that Payables automatically assigns to the suppliers and supplier sites you enter. The payment terms for a supplier site default to the invoices you enter for the site.

Attention: If you update the payment terms on an invoice, Payables recalculates the scheduled payment for the invoice. Thus, you must reenter any manual adjustments you made to the previous scheduled payment. For example, if you updated the payment priority on a particular scheduled payment and then changed the payment terms, Payables would recalculate the scheduled payment using the same payment priority defaults as before and you would need to redo your updates.

To define payment terms:

1. In the Payment Terms window, enter a unique Payment Term name and a description which will appear on a list of values whenever you select payment terms.
For detailed information on any field.
If you are entering Day of Month terms, enter a Cutoff Day.
If you enable Automatic Interest, enter a unique value in the Rank field.
If you want to invalidate this payment term after a certain date, enter that date in the Effective Date/To field.
2. Enter each payment terms line.
Enter one of the following to determine the portion of an invoice due on the scheduled payment:
o % Due.
o Amount.
In the Due region, enter one of the following to determine the due date on the scheduled payment line:
o Fixed Date
o Days
o Day of Month, and Months Ahead.
3. If you are using discount terms, define payment terms lines in the First, Second, and Third Discount regions. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.
Enter one of the following to determine the portion of the invoice to discount on the scheduled payment:
o % Discount.
o Amount.
In the Discount region, enter the discount percent.
Enter one of the following to determine the due date on the scheduled payment line:
o Due Days
o Day of Month, and Months Ahead.
4. Save your work.
Question
What is a Distribution Set?
Answer
The Components of the Invoice like COGS, Freight, Tax…
You can use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. For example, you can create for an advertising supplier a Distribution Set that allocates advertising expense on an invoice to four advertising departments. You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you enter for that supplier site. If you do not assign a default Distribution Set to a supplier site, you can always assign a Distribution Set to an invoice when you enter it.

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account. A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month’s headcount for each group.If you enable and use a descriptive flexfield with your distribution set lines, the data in the flexfield will be copied to the invoice distributions created by the Distribution Set.

Note: Taxable distributions created by distribution sets are always inclusive of tax when you use Automatic Tax Calculation even if you have not checked the Includes Tax check box at the supplier site.

Creating Distribution Sets

To create a Full Distribution Set:
1. In the Distribution Sets window, enter the Name and Description of the Distribution Set you are creating.
2. Enter the Account and Description for each distribution and enter the Percentage of the invoice amount that you want to distribute to the Account. You can enter positive and negative percentages. Create as many distributions as you need. The sum of the distribution percentages must equal 100 or 0.
If you are creating a Distribution Set for a federally reportable supplier, optionally enter an Income Tax Type.
Optionally enter an Invoice Tax Code. The Tax Code will default based on the Tax Code Defaults hierarchy you defined in the Payables Options window. If the source Payables uses is Template, then Payables uses the value from the Distribution Set, even if the value is null.
3. Save your work. Payables automatically assigns type Full to your Distribution Set.

To create a Skeleton Distribution Set:
1. In the Distribution Sets window enter the Name and Description of the Distribution Set you are creating.
Attention: If you create a skeleton Distribution Set, include skeleton in the name to remind you to enter the line amounts.
2. Enter the Account and Description for each distribution and leave the Percentage at zero. Create as many distributions as you need.
If you are creating a Distribution Set for a federally reportable supplier, optionally enter an Income Tax Type.
3. Save your work. Payables automatically assigns type Skeleton to your Distribution Set.
Question
What is a Prepayment? Describe? How many we have?
Answer
Pay a prepayment just as you would any other invoice. However, you cannot partially pay a prepayment; you must fully pay it. You must fully pay a prepayment before you can apply the prepayment to an invoice. You can enter a Prepayment type invoice only in the Invoices window. You cannot enter a Prepayment type invoice in the Invoice Gateway The Advance Amount, Vendor, Employee

Select a Prepayment Type:
o Temporary. You can apply this prepayment to invoices after you approve and pay it.
o Permanent. You cannot apply this prepayment to invoices.
Question
How will the Endures knows on a Particular Supplier How many prepayments have Describe?
Answer
The Invoice screen after selecting the Vendor Name
Question
How will you apply the Prepayment?
Answer
Actions1 – Apply / Unapply Prepayment
Question
Can you pay unapproved Invoice Amount, if yes How?
Answer
No, You have to Approve it then only U can Pay
Question
What is Expense Report? and Template?
Answer
The Template is the Expense Items on an Employee, the Expense Report gives the Anticipated Expenses of an Employee in Your Organization.Use the Expense Reports window in Payables to enter expense reports for your employees. You can also use this window to review and modify expense reports that you entered in the Expense Reports window, that your organization’s employees entered in Oracle Web Employees, or that you have transferred from Projects. You can apply advances to expense reports to reduce the amount you pay. You can also apply a hold to an expense report to prevent payment. Before you can pay expense reports you must submit the Payables Invoice Import program to have Payables automatically create invoices from the expense reports. You can then create journal entries for posting to your general ledger.

The following are the steps you follow to process an expense report:

1. Enter employees, their locations, and their expense addresses in the Enter Person window.
2. Define the employee as a supplier using either of the following methods:
o Enable the Create Employee As Supplier Payables option to automatically create suppliers from employees when you submit Payables Invoice Import
o Enter the employee as a supplier in the Suppliers window before submitting Payables Invoice Import for expense reports.
3. Define expense report templates that model the different expense report formats you receive.
4. Enter expense reports.
5. Submit Payables Invoice Import to create invoices and invoice distributions for the expense reports. Review the Invoice Import reports, then correct any expense reports that caused exceptions and resubmit Payables Invoice Import.
6. Pay the invoices.
Question
What are the 2 important points you should take, when You are raising a Expense Report of Invoice?
Answer
One is In the Vendor Screen You have to take Type is “Employee”,
The second one is In the Prepayment Invoice the settlement Date You should take care
Question
Can U allow Zero Payments? If yes, How?
Answer
Yes, if you enabled the Allow Zero Payments Check box in the Bank Screen the Payments Options
Question
Can U pay Debit & Credit Memos Amount?
Answer
No
Question
Can U Enter Backdated Recurring Invoices? If how?
Answer
No
Question
What is the Prerequisite for Recurring Invoices?
Answer
Special Calendar
Question
How many sites exists for payment of invoices to employees?
Answer
Home, Office
Question
How will you transfer The payable data to GL? What is the Interface Name?
Answer
Payables Transfers to GL, It is Feeder System Interface
Question
Oracle Payables does not allow entry of invoices if the period status is
Answer
CLOSED
Question
How to Adjust Average Cost with Invoice Price Variances (IPV)
Answer
If you want to get your inventory cost, and ultimately your cost of goods, to reflect the actual cost you paid for your items, then you will want to interface the Invoice Price Variance (IPV) from Oracle Payables to Oracle Inventory/Cost Management.  The ability to perform this update of inventory cost is only for inventory organizations using the average cost costing method.  To understand this process, let’s look at the flow of cost from PO receipt to Transfer of Invoice Variances.  Here’s an overview of each step:

1.       Create and approve a PO

2.       Receive the item

3.       Enter and match an AP invoice (release any holds if necessary)

4.       Generate accounting for the AP invoice

5.       Transfer invoice variances to Inventory

Step 2 in the process (PO receipt) sets the initial average cost.  This cost will be used on all issues or shipments out of inventory.  Remember in average costing, we receive at PO price and issue out at average.

Once steps 3 (enter and match an AP invoice) and 4 (generate accounting) are complete, we are ready to run the Transfer Invoice Variance to Inventory program.  You can run the program from Cost Management for one inventory organization at a time.  This program will sum the difference between the invoice price and the PO price for each item/organization combination and then create an average cost update transaction.  This transaction will have an amount but not a quantity.  This amount is then applied to the remaining inventory on-hand.  So let’s look at a couple of examples and how your average cost will change.

Example 1:

    * PO Price $10
    * Receipt Quantity 100
    * Invoice Price $12
    * On-Hand 100
    * Beginning Average Cost $10
    * Ending Average Cost $12

In this example, we will apply the IPV of $2 to all 100 units in inventory.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer is $12.  This would correctly value our inventory at actual cost.

Example 2:

    * PO Price $10
    * Receipt Quantity 100
    * Invoice Price $12
    * On-Hand 10 (sold 90 units)
    * Beginning Average Cost $10
    * Ending Average Cost $30  (($200/10) + $10 = $30

In this example, we will apply the IPV of $2 to remaining 20 units in inventory.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer is $30.  This would result in lower margins the next time we sell and ship this item.

Example 3:

    * PO Price $10
    * Receipt Quantity 100
    * Invoice Price $12
    * On-Hand 0 (sold 100 units)
    * Beginning Average Cost $10
    * Ending Average Cost $10

In this example, we wouldn’t apply the IPV of $2 because the on-hand quantity is zero.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer would also be $10.
Question
Helpful Tips for a Successful R12 Oracle Payables Implementation
Answer
Please read the entire list before starting your R12 implementation or upgrade.

   1. Create a realistic schedule for your R12 implementation or upgrade.
   2. Conduct your implementation or upgrade on a parallel system.
   3. Allow yourself sufficient time to implement and perform user acceptance testing (UAT). This will give you time to assure that your system has been designed and setup to meet your business needs.
   4. Assure that as much data as possible is accounted and ALL accounting is transferred.
   5. Clear up any data issues in 11i before upgrading (i.e., Run the Accounting Health Check),
   6. Use the Maintenance Wizard for the upgrade.
   7. If possible, implement the most current version of R12 (i.e., R12.0.4 — see Metalink Note: 465776.1 / Patch 6435000.  In addition, apply the Oracle Financials and Oracle HRMS Release Update Packs 12.0.5 (RUP5) — see Metalink Note: 565898.1 / Patch 6836355
   8. Review the Oracle Financials Critical Patches Alert, see Note:557869.1. The alert includes the links to the R12 Known Issues documents, which list the critical patches for Oracle Payables, Subledger Accounting, E-Business Tax, and other Financials applications. Apply the critical patches to prevent encountering issues that have already been addressed.
   9. Apply the pre-upgrade patches BEFORE upgrading to R12.
  10. Apply the post-upgrade patches ASAP after completing the upgrade.
  11. Perform several month-end closes before considering a Go-Live date.
Question
How Payables Payment Terms Logic Works ?
Answer
How Payment Terms Work And What Is The Functionality Of Payment Terms When ?

The Payment Terms defined works on three basic fields on which you have entered/defined information.
The below combinations along with Invoice date defaults your Invoice Due Date.
In the Define Payment terms screen

Method 1)
---------
Invoice Date and No of Days entered in Payment term Days field

a)Days

Say, Invoice date is 28-Nov-2001 then if you enter 60 days then due date will
be 27-Jan-2001. It means it calculates no of days from the Invoice date.

Method 2)
---------
Invoice Date + Cut Off day + Day of month with Months ahead.

1) Cut-off Day
2) Day of Month with Months ahead

For example :

If you enter Payment Terms like this:
Cut of day 31 (Last day of a Month) Means even though invoice is 28th 1st what so ever, it calculates from the last day of month.

Day of a month  29
Months ahead    2   ( Two Months)

If invoice is dated 28-Nov-2001, with the above setup you get Due date as 29-Jan-2001 as due date.

It will always calculate from the End of Nov ie 30th Nov and Then it takes Two Months here it gives you always 29th of Second month from Invoice date.

ie

Invoice Date            Due Date

28-Nov-2001             29-Jan-2002
28-Dec-2001             28-Feb-2002
28-Jan-2002             29-Mar-2002

So on and so forth.

Either you give 29th or 30th what so ever, once you give the Day of Month you will get only that day as due date after Months specified in the Months ahead field.

This is how application works and desinged to work.

Please refer documentation for the following terms

Cutoff Day.
Days.
Day of Month
Months Ahead.

Further,
In case, you have  two invoice payment terms which you are not able to define in AP and the due dates are not defaulting as expected;

The two terms are:-

(1) 60 DAYS END OF MONTH go to month end and add 60 days
E.G: invoice dated 28 NOV, due date is 29 JAN

(2) 90  DAYS END OF MONTH go to month end and add 90 days
 E.G: invoice dated 28 NOV,  due date is 28 FEB

How would you define these?

The Payment Terms functionality does not support the above example
Question
R12 How to get Payment Method Defaulted In Supplier Creation page?
Answer
1. To ensure correct Setup, please perform the following:

a) Go to Setup > Payment > Payment Administrator > Payment Methods

b) Choose Payment Methods and then press Go To Task

c) Query for your Payment Method which you want to be defaulted and then press Go Button

d) Press Update (Not Update Usage Rules)

e) Under (Usage Rules) region you will find (Automatically assign Payment Method to all Payees) Check Box,Click on this Check Box to enable that option and then press Apply Button

2)Also follow the following setup steps in

a (1):

a) Go to Setup> Payment> Payment Administrator > Disbursement System Options and then press Go To Task

b) Under (Enterprise Level) region press View Settings

c) Under (Disbursement System Options: Enterprise-wide) you will find the option (Default Payment Method), press Update Button

d) There are two Options:

> Based Only on Payment Method Defaulting Rules Setup

> Override Defaulting Rules when Default Method Set for Payee

> Please choose the first option (Based Only on Payment Method Defaulting Rules Setup) and then press Apply Button 3) Retest your issue again and feed us back if your issue is resolved.
Question
iRececivables Uptake Of Oracle Payment
Answer
About the Integration:
Oracle Payments is a new product in release 12. The product known as iPayment will no longer exist in release 12, however all functionality that existed in it is contained within Oracle Payments.

The objective of the new product is to give any deploying company a highly configurable and robust solution to disburse and receive payments. Oracle Payments is a fundamental part of the Oracle Applications architecture, and is provided with multiple products that require support for payment processing services.

Oracle Payments provides the infrastructure needed to connect other products with third party payment systems and financial institutions. The product supports a number of payment features. Some features support just disbursement, some just capture, and other features are common to both.

In iReceivables we can pay for the customers invoices . After selecting the payment method ( Bank Transfer / Credit Card Payment) a receipt would be created in AR . In earlier releases for the capture of funds the iPayments extensions were used .
iReceivables would now call the Oracle Payment API’s for the funds capture. This is entirely in the background and there are no visible changes in the iReceivables user interface because of this integration.
Question
What has changed?
Answer
   1. The receipt class set up (in AR) has changed requiring the Oracle Payments ‘Payment Method’ to be attached to this kind of payments.
   2. Payment attributes of transactions will be stored in a centralized transaction payment-extension entity owned by Oracle Payments.
   3. In release 12, Oracle Payments owns the data model where all third party payment instruments are stored (these are instruments like customer credit cards and supplier bank accounts).
Question
What happens during the Transaction Entry and Authorization ?
Answer
A) During the Transaction Entry
The following are captured in iReceivables during the transaction entry ( paying the Invoice in iReceivables) for the funds capture.

    * Payment method
    * Payment instrument
    * Payment attributes

These values are passed on to Oracle Payments before the Authorization & Settlement API’s are
Called.The transaction authorization information is stored in Payments and linked with the extension entity, this is
no longer stored in AR tables.

B) During Authorization
Oracle Payments mandates that authorization is invoked before a transaction can be settled in Oracle Receivables. Oracle Payments will enforce that the settled amount is equal to or less than the authorized amount.

Based on the payment method passed to the Authorize API, Oracle Payments will perform different functions that depend on the nature of that payment method. For example, for payment methods in the credit card category, Oracle Payments will attempt to validate the credit card and reserve the transaction amounts for settlement. For payment methods in the bank account transfer category, Oracle Payments will not attempt to reserve the funds, but will try to validate the bank account information.
Question
What is the set up required ?
Answer
In Oracle Payments:
A (funds capture) payment method may be set up or a seeded payment method used. It is required for funds capture within Oracle Payments to set up a funds capture process profile, a payment system, and a payee (the definition of the internal organization that will receive the funds, also known as the first party payee).

Set up Oracle Payments, if you intend to use the Pay Invoice function for credit
cards or for bank account transfers using the ACH network.

In Receivables:
Define Receipt Class and Payment Method

If you are using the Pay Invoice function, define at least one receipt class and payment
method for each iReceivables payment instrument that you intend to use:
• Bank account transfers using Receivables direct debit.
• Credit card payments using Payments.
• ACH bank account transfers using Payments.

In iReceivables:
Go the iReceivable Setup Responcibility > System Parameters  and select the ‘Credit Card Receipt Method’ and
‘Bank Account Payment Method’  defined above . These would default to the receipts created from iReceivables.

Note:
iReceivables does not support cross-currency payments. Though a user can still pay invoices with a credit card
or bank account that has a different currency from that of the invoice, the receipt created in iReceivables
will have the same currency as the invoice.
Question
How to disable Create Online Accounting in Payables
Answer
(1) Log on to System Administrator Responsibility
(2) Navigate Applications->Menu
(3) Query up Menu “AP_APXINWKB_MENU”
(4) In the child records of AP_APXINWKB_MENU, you should see “Invoice Accounting”
(5) Uncheck the grant checkbox for “Invoice Accounting”.
(6) Log on to Payables Responsibility
(7) Create a invoice and approve it.
(8) Click on the Actions button.
(9) You should see “Online Accounting” checkbox disabled.
Question
Difference between Match and Quick Match
Answer
PO Default :

Enter PO Default as the invoice type if you know th purchase order you want to match to, but you do not know to which purchase order shipments or distributions you want to match. When you enter a PO Default invoice in the Invoice Workbench, Payables prompts you to enter the purchase order number and automatically enters the supplier name, supplier number, supplier site, and the purchase order currency for the invoice currency. When you choose the Match button,Payables will retrieve all purchase order shipments associated with the specified purchase order. You can then match to any shipment or distribution.

Quick Match:

Enter Quick Match as the invoice type if you want to match an invoice to all shipments on a purchase order. When you enter a Quick Match invoice in the Invoice Workbench, Payables prompts you to enter the purchase order number and automatically enters the supplier name, supplier number,supplier site, and the purchase order currency for the invoice currency. When you choose the Match button, Payables automatically matches to each shipment. You can choose to complete the match or override the matching information.
Question
Bank Account Access Options And Bank Account Grant Access Organizations
Answer
When we define Bank account we assign: Bank Account: Account Owner and Use

1. Bank Account Owner and Use:
1). Bank Account Owner: The name of the source account holder.
2). Account Use: Select the checkboxes that apply to your account: Payables, Payroll,
Receivables, Treasury.
Question
Bank accounts can be given Organization Access to other organizations under any Legal Entities as long as those Legal Entities are owned by the same Ledger of the Legal Entity that owns the bank account? What it means?
Answer
Yes..The LE and OU’s are indirectly tied with the ledger.. The ledger of the operating unit must be same as the primarly ledger of the Legal entity. Additionally, the user should have access to the operating units.
Question
why an Organization is not listed in the LOV of the Bank Account Grant Access Organizations window? Is it because the LE owning the bank account has its Ledger and that ledger do not have other OU since those are not linked to this ledger?
Answer
Yes, that is one reason.. another reason could be that user might not have access to that OU.
Question
Explain the concept of the ERS. Also give relevant set-ups and programs related to it.
Answer
Evaluated Receipt Settlement (ERS) also referred to as 'Pay on Receipt'. While defining supplier site in Purchasing tab, the "Pay on" field should be 'Receipt'.
Question
Can an invoice be accounted if there are holds applicable to the invoice?
Answer
Yes! An invoice can be accounted even if the holds are applied against it provided, Accounting Allowed check-box is enabled while defining the Invoice Hold.
Question
Can the same Invoice Number be entered for two different suppliers in Payables?
Answer
The invoice number should be unique for a given supplier; hence, the same Invoice Number can be used by multiple suppliers
Question
Control of Payables (AP) periods is at what level? At Operating Unit?
Answer
Though Payables (AP) operates at Operating Unit level, the control of period is at set of books level.
Question
Can the same bank account be assigned to multiple suppliers? What is the alternative if same bank account is to be shared across multiple suppliers (e.g. part of same group)?
Answer
Yes, While defining Internal bank accounts, "Allow Assignment to Multiple Suppliers" check-box should be enabled.
Question
What is "Zero Payment"? And what are the set-ups required to make a Zero Payment? Is it possible to ensure that only zero payments are allowed using a payable document?
Answer
While defining Bank Accounts, in Payable Options tab "Allow Zero Payments" check-box to be enabled. To ensure that only zero payments are allowed using a payable document, attach a payment format to the same which has "Zero Amount Payments Only" check-box enabled.
Question
A supplier is available in Invoice Inquiry; however, the supplier is not available while entering Invoices. What are the possible reasons for the same?
Answer
he possible for the unavailability of supplier are
- The 'Pay' check-box at supplier site (General tab) is disabled
- 'Inactive On' date is entered at the supplier site level i.e. supplier site is end-dated.
Question
While doing future dated payments, is the future dated payment account at the supplier site used?
Answer
It depends on the Payable Options's Accounting tab. There we have option to select whether the future dated payments account should be selected either from Supplier site or Payable documents.
Question
When the 'Payment Method' at invoice level is given as 'Electronic', sytem requires some additional details? What are they?
Answer
When the 'Payment Method' is selected as 'Electronic' system additionally requires a Bank account in the invoice currency to be assigned to the supplier.
Question
If there is a requirement that for specific supplier, each invoice should be paid by a separate check? Can that be achieved? If yes, how?
Answer
While defining supplier site in the Payments tab, the "Pay Alone" need to be checked so that each invoice is paid by a separate check.
Question
Let us assume that a check issued to supplier has become time-barred. And supplier returns it requesting for a new check. Can the existing check be voided and a new check be issued simultaneously?
Answer

Question
Can the payment date be before the system date i.e, is it possible to issue back-dated checks?
Answer
Yes
Question
While defining payable documents, document number is given as 1 to 4999. And an user has issued checks till 4999. What happens when 5000th check is being created using the same payable document?
Answer
Error:
The provided payment document is exhausted. Select a different payment document or select skipped document number, if any.
Question
Can you create an Invoice in USD, while the Standard PO has been created in EUR?
Answer

Question
What are the various possible period statuses in AP?
Answer
Various period statuses of AP module are
- Never Opened
- Open
- Closed
Question
Period Close Exception Report' lists some payments under the heading 'Future Dated Payments Requiring Maturity Event and Account'. What action should be taken to resolve this?
Answer
To resolve this issue 'Update Matured Future Payment Status' program needs to be submitted with appropriate Maturity Date.
Question
Can a period be closed if the Payment Batch in that period is in the status 'Formatted'?
Answer
Yes, If a period can be closed only after the payment is accounted and transferred to GL. Since, the status of payment is not 'Confirmed'; this payment will not allow for AP period closure.
Question
Will an Invoice without a Distribution Line come in the 'Period Close Exception Report'? What action will be required to resolve it
Answer
An Invoice without a distribution will not hinder period closing process. Hence, no action will be required.
However, it is recommended to enter distributions, if a valid invoice; else delete such invoices.
Question
What are the most common issues encountered while AP Period Closing process?
Answer
Without going to technicalility, on a broader level the most common issues are:
- Invoice (Distributions) not Validated
- Invoices on Hold
- Invoices not Accounted
- Payments not Accounted
- Invoices & Payments accounting entries not transferred to GL
- Maturity Accounting not done for Future Dated payments
 
The above issues may arise either because users forgot to run relevant programs or because of bugs (which are quite many in AP) and awaiting resolution from Oracle (after Service Request i.e SR is raised).
Question
Is is mandatory to resolve the issues in All the Operating Units of a given Legal Entity? Or  the period can be closed once issues of one Operating Unit are resolved?
Answer
It is mandatory to resolve all the issues of ALL the Operating of a given Legal Entity/ Set of Books (SOB).
Question
Explain the Interface process.
Answer
The interface process starts with uploading the legacy data, which is in the form of flat file to the temporary table, and validating the data in the temporary. After that the data to be transferred to the Interface tables. From there by running the Customer Open Interface concurrent program, the data that is in the interface tables are transferred to main tables.
Question
What are the various tables involved in AP Interface?
Answer
AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE
Question
What is the program used to import invoices from interface tables?
Answer
Payables Open Interface Import
Question
Invoices vs Invoice Batches
Answer

Question
Number of Tabs in Invoice Entry screen and what are they?
Answer
General, Lines, Holds, Veiw Payaments, Scheduled Payments, Veiw Prepayment Applicatons
Question
Where is the method of Supplier Number set? At what level is the supplier numbering controlled?
Answer

Question
What are the various statuses of invoices?
Answer

Question
How many key flexfileds are there in Payables
Answer
Payables doesn't have any key flexfield
Question
What are AP Accounting periods? How are they different from GL periods? Are there adjusting periods in AP?
Answer

Question
Can a partial payment of Prepayment be done?
Answer
No
Error: The Prepayment amount cannot be different from the total invoice amount which are selected for payment
Question
Can you hold partial payments? And how can that be achieved?
Answer

Question
How can the Invoice distributions' which can be transferred to Fixed Assets be identified in AP? Is there is any field explains/indicates the same?
Answer
Track as Assets
Question
When you return goods to supplier (RTS) whether system created Debit Memo or Credit Memo? And what is the set-up required for the system to create the relevant document automatically?
Answer
Debit Mome
Question
What does Accrual mean?
Answer

Question
An invoice is entered, validated and accounted. And thereafter, the invoice is cancelled; what will be the accounting status?
Answer

Question
How can we link an Employee to Supplier?
Answer

Question
Can you explain the concept of Automatic Offset in Payables? And how is this different from Autoaccounting in AR?
Answer

Question
Can two users use same payable document simultaneously? If yes, which user will get the document number assigned first?
Answer

Question
What are the various statuses of payment batch?
Answer

Question
Can the payment date be before invoice date?
Answer

Question
Can accounting of Payment be done before accounting invoice?
Answer
No
Question
Explain the concept of Proxima payment terms.
Answer

Question
What are the various type of Distribution sets? And what is thier purpose?
Answer

Question
Can an Invoice in INR be paid in USD currency? What are the alternatives available?
Answer

Question
Can multiple currency payments be done using same bank account? If yes, what are the relevant set-ups required?
Answer

Question
Can PO level DFF be transferred to AP Invoice? Any set-ups are required for the same?
Answer

Question
What is the name of program which is used to transfer accounting entries from AP to GL and what are the options available during submitting the program?
Answer

Question
Explain the concept of withholding tax along with relevant set-ups.
Answer

Question
What's the difference between the "Payables Open Interface Import"
Program and the "Payables Invoice Import" program?
Answer

Question
What are the tables associated with Invoice?
Answer
ap_invoices_all
ap_distributions_all
ap_holds_all
ap_interface_rejections
Question
What is Interest Invoice and how it can be created?
Answer

Question
Explain the set up used for Automatic or Manual Supplier Numbering.
Answer

Question
What is Accounting periods?
Answer
Accounting periods are the periods in which you perform your operations.Accounting periods are closed so as to ensure that no accounting entries can be passed in that period after they are clsoed.Suppose you have issued your results without closing your accounting periods and then you chnage some entries in that period thus in turn misleading the public at large.So it is important to close your accounting periods.Also, if accounting periods in Ap are not closed it shall not allow you to run GL.Prior to closng the periods it is important to ensure that all your invoices are validated and no hold exists on any one of them.If hold exists it shall not allow you to run GL.
Question
Types of Invoice in Payables?
Answer
1. Standard invoice
2. Debit memo
3. Credit memo
4. Prepayment
5. Expenses Report
6.PO defualt
7. Quick match
8. Mixed invoice
9. Withholding Tax
10. Interest invoice
11. Recurring invoice
Question
Use of recurring invoice?
Answer

Question
When does the Invoice price variance arise? What is the accounting entry?
Answer
Purchasing and Inventory provide you with visibility and control of your invoice price and exchange rate variances. Payables automatically calculates and records invoice price and exchange rate variances in your general ledger when you have matched, approved and posted your invoices. You can use the Invoice Price Variance Report to review the accuracy of your purchase order prices.

IPV= difference between invoice price and po price.

These IPV, PPV only for inventory and wip transactions.
Question
What is the difference between Standard Remittance and Factoring Remittance?
Answer

Question
How to refund for a customer who returns goods and wants a refund for $600 in R12 In above scenarios customer does not want Credit Memo or On- Account Credit, he wants refund check . and as we know we do not issue check from AR. How can we issue Check from AP and how offsetting is done for the same in R12
Answer

Question
What is Allow Zero Invoice. Give a example?
Answer

Question
What various types of matching. Explain them?
Answer

Question
Match/Hold: How do I remove a Final Matching hold so that I can pay the invoice?
Answer
This hold is in effect because the invoice was matched to a PO line that has a status of Final Closed. There is no way to manually remove the hold; the system must remove the hold. There are two workarounds for this situation:

Workaround #1: You need to reverse the distribution line that has the final match hold. You can then create a new PO line, and match to that line.

Workaround #2: You can manually create a distribution line on the invoice that is not matched to the PO, but is charged to the correct GL account. For More information on Final Match Holds see Note 1026090.6.
Question
How do I create a Withholding Tax invoice?
Answer
After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.

Payables can automatically create withholding tax invoices, or you can perform this task manually. If you chose to automatically create withholding tax invoices, you must choose whether to do this during Approval or during payment processing. Indicate this choice in the Withholding Tax region of the Payables Options window. See: Withholding Tax Payables Options.

If you choose to create withholding tax invoice manually, create an invoice for each Withholding Tax type invoice distribution on an invoice. Create the invoice for the tax authority supplier and site assigned to the Withholding Tax type tax name and for the amount of the Withholding Tax type invoice distribution.
Question
What is Purchase Price Variance?
Answer
Purchasing and Inventory provide you with visibility and control of your purchase price variances. When you use standard costing, Purchasing and Inventory automatically calculate and record purchase price variances as you receive your inventory items into inventory. If desired, Purchasing and Inventory automatically calculate and record purchase price variances for your outside processing receipts into work in process. You can use the Purchase Price Variance Report to review the accuracy of the standard costs for your purchased items and services.

PPV= standard cost - actual cost ie:difference between standard cost and po price.
Question
What is the process/steps for Vendor Conversion?
Answer
Insert the Vendor info into the interface tables and perform the required validations:
AP_SUPPLIERS_INT
AP_SUPPLIER_SITES_INT
AP_SUP_SITE_CONTACT_INT
Run the below programs to load the data into the Base tables:
Supplier Open Interface Import
Supplier Sites Open Interface Import
Supplier Site Contacts Open Interface Import
Question
Explain the set up used for Automatic or Manual Supplier Numbering.
Answer
In the Financials Options window, you can set the Supplier Number entry option to either Autimoatic or Manual • Automatic: The system automatically assigns a unique sequential number to each supplier when you enter a new supplier.
• Manual: You enter the supplier number when you enter a supplier
Question
Give the cycle from creating an invoice to transferring it to GL in AP.
Answer
1)Create Invoice 2)Validate Invoice 3)Create Accounting entries using Payables Accounting Process 4)Submit the Payables Transfer to General Ledger program to send invoice and payment accounting entries to the General Ledger interface. 4)Journal Import (GL) 5)Journal Post (GL)
Question
You have created a new SOB. How will you attach this SOB to AP?
Answer
Go to Payables Manager for the appropriate Operating Unit.
Navigation:Setup--->Set of Books--->choose.

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