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1. What is journal, how many types of journal?

Journals it is used to record the business transaction it contains debit and credit lines always debit must
be equal to credit. Types of journals are Suspense Journal or Unbalanced Journal, Recurring Journals and
Reversal journals.
2. P2P Process & O2C Process
A. P2P process start with
Requisitions RFQQuotationsAnalysisPOReceivingInvoicesPayment.
B. O2C processing four high-level processes i.e. Order, Invoices, Recognize the COGS and Cash
Sales orderBook OderRelease the OrderConfirm the OrderClose the OrderImport
InvoicePrint the InvoiceRevenue RecognitionDefer the Cost of Goods enter ReceiptApply the
3. What is Translations & Revaluation and which level its working?
Translation: It is used to translate functional currency balances into foreign currency balances at
the account level
Revaluation: It is used identify the unrealized gain or loss .which is occurring on the currency

On 01-Dec-2009
-Functional Currency is USD
-Foreign Currency is INR.
-Conversion Rate is 2.
-Created invoice for 100 INR, validated and accounted. Not Paid.

As per the above journal lines on 01-Dec-2009, customer is liable to pay 200 USD to the supplier.

-End of the period, conversion rate has been changed to 2.5.
-So customer's liability will get increased to 250 USD(100*2.5).
-So customer suppose to pay 250 USD instead of 200 USD to the supplier.
-This is the true liability at the end of the period and this need to be reflected in customer's General
Ledger. Loss 50 USD should be populated in Loss account.
-Revaluation adjusts these amounts and keeps gain/loss amounts in Unrealized Gain/Loss accounts
defined in Revaluation window.
4. What is Security Rules and Cross validation Rules?
A. It is used to restrict the users from entering the segments. It will work at the responsibility level.

B. It is used to restrict the end users from entering the code combinations. It will work at
structure level

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

Points to Remember:
-Dynamic instertion can be enabled or disabled at any time.
-You can define cross validation rules to prevent incorrect account combinations from being created by
dynamic insertion.
-If you are defining an Accounting Flexfield for Oracle Projects, you must define your segment with the
Allow Dynamic Inserts option set to Yes.
6. Difference between Standard Accrual and Standard Cash?
Standard Accrual
In case of Standard Accrual, Invoice and Payment Accounting will be there.
Reason: Transaction happens in two phases.
1)Order goods and receive goods(Create PO, Create Receipt, Create Invoice and account it)
2)Pay the amount for received goods within due time set by the supplier( Pay the invoice and account it)
Since you are not paying the amount immediately, you need to keep track of the amount needs to pay to
the supplier after phase one. You maintain this amount in LiabilityA/C(Cr). After second phase, you debit
your LiabilityA/C and credit your CachA/C which shows your cash flow from your organization to the
Standard Cash
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to the supplier. So you don't have any
debt to the supplier to record. so there is nothing to record in LiabiltyA/C.
7. Explain Flexfield Qualifiers in GL?
Need to assign qualifiers to individual accounting key flexfield segments to identify or represent the
purpose in COA.

Natural Account Each Accounting Flexfield structure must contain only one natural account segment.
When setting up the values, you will indicate the type of account as Asset, Liability, Owner's Equity,
Revenue, or Expense.
Balancing Account Each structure must contain only one balancing segment. Oracle General Ledger
ensures that all journals balance for each balancing segment.
Cost Center This segment is required for Oracle Assets. The cost center segment is used in many Oracle
Assets reports and by Oracle Workflow to generate account numbers. In addition, Oracle Projects and
Oracle Purchasing also utilize the cost center segment.
Intercompany General Ledger automatically uses the intercompany segment in the account code
combination to track intercompany transactions within a single ledger. This segment has the same value
set and the same values as the balancing segment.

8. Primary Ledger Vs Secondary Ledger Vs Reporting Currency
Primary Ledger Vs Secondary Ledger
Use secondary ledgers for supplementary purposes, such as consolidation, statutory reporting, or
adjustments for one or more legal entities within the same accounting setup. For example, use a primary
ledger for corporate accounting purposes that use the corporate chart of accounts and subledger
accounting method, and use a secondary ledger for statutory reporting purposes that use the statutory
chart of accounts and subledger accounting method. This allows you to maintain both a corporate and
statutory representation of the same legal entity's transactions in parallel.
Reporting Currency Vs Secondary Ledger
Reporting Currencies are not the same as secondary ledgers. Looking at the 4 C's that define a ledger, we
have a chart of accounts, calendar, accounting method, and currency. If you only need multiple currencies
to support your reporting requirements, use reporting currencies. If you need to account for your data
using different calendars, charts of accounts, accounting methods in addition to currency, use a secondary
9. What is Adjusting Period?
Typically, the last day of the fiscal year is used as an adjusting period to perform adjusting and closing
journal entries. Once you begin using your accounting calendar, you cannot change its structure to
remove or add an adjusting period. Choosing whether to include an adjusting period or not in your
calendar is a very important decision. You can have an unlimited number of adjusting periods.
10. What is 2 way, 3 way and 4 way matching?
Answer Making payments to the suppliers in 3 ways. what ever you have ordered for the PO we will
make the payment for the suppliers in 2-way(we will compare two documents PO and Invoice).
eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so
that we will make payment for that 100 items.

2) In 3-Way we will compare 3 documents


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

3) IN 4-Way we will compare 4 documents


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

11. What is Payment Terms and How to define Payment Terms?

Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts
for each invoice you enter. Payment terms will default from the supplier site. If you need to change the
payment terms and the terms you want to use are not on the list of values, you can define additional terms
in the Payment Terms window.
12. What is SWEEP Program? Explain Process Of Sweep Program?
This particular program is run in order to transfer un-accounted invioce to next opened period during
period end closing of Accounts Payable. In fact you can't close Payable Period if you have Un-Accounted
Invoice in Payables. In order to negotiate (Transfer) these invoice to next open period this program is run.
So that the Payable period can be closed.
13. How many types of Purchase Orders (POs)?
Standard Purchase Order: Its a legal document to buy the goods or services by supplier it will be
created when we know the goods or services, price, quotation, delivery schedule and accounting
distribution and also is one time purchase order
Blanket PO: Blanket PO is created when you know the detail of the goods or services you plan to buy
from a specific supplier in a period, but you do not know the detail of your delivery schedules.
Planned PO: Planned PO is a longterm agreement committing to buy items or services from a single
source. You must specify tentative delivery schedules and all details for goods or services that you want
to buy, including charge account, quantities, and estimated cost.
Contract PO: 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.
Particulars SPO PPO BPA CPA
Terms and

Goods or Services


May be /May not


Delivery Schedule

May be/May not


14. Explain Approval Hierarchies in PO.

Approval hierarchies let you automatically route documents for approval. There are two kinds of approval
hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.
If an employee/supervisor relationship is used, the approval routing structures are defined as you enter
employees using the Enter Person window. In this case, positions are not required to be setup.
If you choose to use position hierarchies, you must set up positions. Even though the position hierarchies
require more initial effort to set up, they are easy to maintain and allow you to define approval routing
structures that remain stable regardless of how frequently individual employees leave your organization or
relocate within it.
15. What is SLA?
16. What is MOAC?

17. How many types of AP Invoices?

AP INVOICES: 11 invoice are there
1) Regular invoice (9) 2) Special invoice(2)

1)Regular Invoice
1. Standard invoice 2. Credit memo 3. Debit memo 4. Prepaid invoice 5. Expense report
6. Quick invoice 7. Mixed invoice 8. PO default 9. Withholding Tax invoice

2)Special Invoice
1. Recurring invoice2. Interest invoice

18. How Many types of AR Invoices?

1. Invoice 2. Credit memo 3. Debit memo 4. Deposit 5. Guaranty 6. Chargeback 7. Bills Receivables.

19. Difference between Standard and mixed Invoices?
Standard Invoices: Standard Invoice are invoices from a supplier representing an amount due for goods
or services purchased. Standard invoices can be either matched to a purchase order or not matched.
Standard invoices must be positive amounts.

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

20. Difference between AP Invoice and AR Invoices?

AP Invoice: it is nothing but what amount going out towards receiving Raw material from the
vendor or supplier. (Expenses)
AR Invoice: it is nothing but what amount coming in buy selling the product to customer or
parties (Revenues)

21. What is Pre Payment in AP?

Prepayment is Advance Payment made to supplier by Organization or Employee. Later it will apply
against the feature debit items.
These are two types Permanent Prepayment, Temporary Prepayment.

22. What is Key flex filed how many types in GL, AP, AR, & FA?

Key Flex field: is used to capture mandatory information of the organizations

In GL 3 types 1. Accounting flex field (mandatory) 2. Reporting attribute (optional) 3. Gl ledger
flex field (optional)
IN AP No flex fields
IN AR Two types 1. Sales Tax Location flexfield (mandatory) 2. Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.

23. What is Debit Memo and Credit Memo in AP?

Its negative amount identified by Customer and sent to Supplier. Ex: Purchase Returns.
Its negative amount identified by Supplier and sent to the Customer. Ex: TDS Payables

In Payable we are receiving the material from supplier. so we have to pay the amount to the
supplier. in case supplier has send the goods more than what we order at the point of we have to
return the goods reduce the accounting balance.
We send a memo to the supplier is called as debit memo or supplier send a memo is called as
credit memo. Both of the reducing our liability.

Ex: In Payables Debit Memo and Credit Memo functionality is same It decreases the supplier
balance (i.e. decreases the liability) Eg Supplier has send you invoice X with an amount of $100
but Later we found there is mismatch in quantity (more quantity billed)so we will inform to
customer. Then customer has sent you the credit memo but if customer says send me the debit
memo then you will generate debit memo from your end. Both are same as functionality.

24. What is Debit Memo and Credit Memo in AR?

In AR Debit memo is Positive Amount for example we are selling the product to the customer.
Either we may forget to add a freight charges or some other thing. So at that time we are prepare
or Rise the Debit memo it is increased the Org balance.
(Customer is Under Charged at that time Org prepare Debit memo)

In AR Credit memo is Negative Amount if you billed more than your customer then Org need to
raise Credit memo to give the credit to your Customer, so it is decreasing the Org balance.
(Customer is Over Charged at that time Org prepare Credit memo)