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1. What are the two key flexfields in Oracle Receivables and what is its purpose ? Location Flexfield : - Mandatory This Flexfield is used for calculating the Location based tax (i.e) Sales tax. Territory Flexfield : (Max 20 segments) - Optional This Flexfield is used for tracking the location in which the sale is taking place. This Flexfield is for ascertaining the profitability of each of the sales location through generating reports. 2. What are the modules that are interfaced with Oracle Receivables ? i. General Ledger ii. Order Management iii. Fixed Asset iv. Inventory 3. What is Auto invoice ? What are its related setup steps ? Auto invoice is the process used for importing the transactions from feeder moudles like project accounting, order entry etc. and also from exisiting applications/systems if the receivable moudle is installed for the first time. To invoke auto invoicing the navigations is Interfaces : Auto Invoices Run a program called AutoInvoice Master Program and specify the Invoice source and submit it. if any error occured during validation all the transactions will be stored in the below mentioned tables RA_INTERFACE_ERRORS_ALL 4. What are the database tables involved for performing Autoinvoice ? 1. RA_INTERFACE_LINES_ALL 2. RA_INTERFACE_SALESCREDITS_ALL 3. RA_INTERFACE_DISTRIBUTIONS_ALL 5. What is an Application Rule set ? 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.
6. defined in the approval limits window are used for adjustments created in receivables and request for credit Memos initiated from I-Receviables. freight. such as Company. Division. What do you mean by Auto Accounting ? It helps the Receivables to determine the general ledger accounts for transactions that are entered manually or import using AutoInvoice. you can override the default general ledger accounts that AutoAccounting creates. provide default transaction types for transactions in batch. every component in your Sales Tax Location Flexfield structure must also exist in your flexible address style for that country. •Prorate All: Apply a proportionate amount to the line. check. . Oracle Receivables uses the standard address format. and finance charges. You can control the value that AutoAccounting assigns to each segment of your Accounting Flexfield.•Line First . What is a flexible address format ? How can a user-defined format be defined and where will this be affected ? Oracle Applications let you enter customer. Attention: (Receivables users only) If you use a Sales Tax Location Flexfield that contains a segment other than country and wish to set up a flexible address format for your home country. and Chargeback. This is done by using descriptive flexfields to enter and display address information in the appropriate formats. which lets you enter an address in the layout associated with that country. bills receivables accounts. What are Transaction Sources ? Receivables uses transaction sources to control the transaction and transaction batch numbering. and AutoInvoice clearing (suspense) accounts using this information. Apply any remaining amount to freight and then to finance charges. freight. What are Adjustment Approval Limits ? Where & why are they used ? Approval limits. finance charges. For example. supplier. tax. if you have customers in Germany. unearned revenue. you can enter German addresses in the format recommended by the Bundespost. 7. 10. and remit–to addresses in country–specific formats. receivable. 8. If there is no address style associated with the country. What are the different classes of Transactions available in Receivables ? (i) Chargeback (ii) DebitMemo (iii) Credit Memo (iv) Deposit (v) Guarantee (vi) Invoice 9. Receivables provides the following predefined transaction sources: MANUAL–OTHER. tax. DM Reversal. and to select validation options for imported transactions.Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. or you can enter addresses for customers in the United Kingdom in the format recommended by the Royal Mail.unbilled receivable. When you enter transactions in Receivables. bank. You must define AutoAccounting before you can enter transactions in Receivables. or Account. The flexfield window opens if the country you enter has a flexible address style assigned to it. Receivables creates default accounts for revenue.
12. you can specify how you want to adjust this invoice’s revenue account assignments by choosing a Rules Method in the Credit Memos window. Receivables assigns the adjustment a status of pending until someone with the appropriate approval limits either approves or rejects it. The Revenue Recognition program will create distribution records for the invoices and credit memos that you create in Receivables and import using AutoInvoice. Attention: Invoicing and Accounting Rules are not applicable if you are using the Cash Basis method of accounting. and the class should be selected as Invoice.e) Sales Tax 13. You assign accounting rules to recognize revenue over several accounting periods. What is revenue recognition ? Run the Revenue Recognition program to generate the revenue distribution records for your invoices and credit memos that use Invoicing and Accounting Rules. 14. When you enter an adjustment that is outside the approval limit range. Accounting rules determine the number of periods and percentage of total revenue to record in each accounting period. You can assign a default accounting rule to your items in the Master Item window (Invoicing tabbed region) and to your Standard Memo Lines in the Standard Memo Lines window. What is an Autocash Rules ? Autocash rule set provides a set of rules which Receivables should follow for applying the receipts against the transactions. The Revenue Recognition program uses the accounting distribution sets that you specify in the Transactions window or import into Receivables using AutoInvoice to determine the accounts of your newly created revenue distribution (ii) VAT Tax . What are the types of tax methods in Receivables ? (i) Location Based Tax (i.The default autocash rule set can be specified in the System Option.Receivables uses transactions that have a document type of Adjustment when we create an adjustment in the Adjustments. What are Accounting Rules and Invoicing Rules ? Where it is used ? Accounting rules is to create revenue recognition schedules for the invoices. 15. AutoInvoice will reject any transaction lines that are associated with invoice or accounting rules. It can be used with transactions that are imported into Receivables using AutoInvoice and with invoices that was created manually in the Transaction windows. Submit Auto Adjustments and Approve Adjustments windows. If you use the Cash Basis method. What are the pre-requisites for entering a standard invoice in Receivables ? Transaction source and Transaction Type. If you want to credit an invoice that uses invoice and accounting rules to schedule revenue and billed receivable recognition. 11. Customer with Business purpose usage and payment terms should have been predefined.
payment method name. For example. What is Autolockbox ? What are its related steps ? AutoLockbox (or Lockbox) is a service that commercial banks offer corporate customers to enable them to outsource their accounts receivable payment processing. 18. 20. Receivables lets you generate statements for all customers associated with a specific statement cycle. you can use AutoLockbox to transfer receipts from your previous accounting system into Receivables. remittance bank for processing the payments received from customers. 19. What are the pre-requisies for entering a Manual receipt in AR ? Invoices should have been defined against which the receipts will be applied and the payment method should be predefined and attached to the receipts. It is a grouping of Receipt class. AutoLockbox ensures that the receipts are accurate and valid before transferring them into Receivables. You can set a maximum number of processors for the Revenue Recognition Master program to use at runtime. You can also use AutoLockbox for historical data conversion. There are two Revenue Recognition programs: Revenue Recognition and Revenue Recognition Master. The Revenue Recognition Master program determines the maximum number of parallel processors needed for your transaction volume and uniformly distributes the processing over these workers. Bank Errors and Adjustment transactions. This scheduling capability allows you to take advantage of off–peak processing time. You can automatically identify the customer who remitted the receipt and optionally use AutoCash rules to determine how to apply the receipts to your customer’s outstanding debit items. 17. You specify how you want this information transmitted and Receivables ensures that the data is valid before creating QuickCash receipt batches. You choose the Revenue Recognition program that you want to use at runtime. Payment method and Remittance bank account. Finance Charges. Receipt Source : It will be used to enter receipts in batches for both manual and automatic receipts. AutoLockbox eliminates manual data entry by automatically processing receipts that are sent directly to your bank. 16. What are Statement Cycles ? How can you print a Statement for a customer ? Statement cycles is to determine when to send statements to the customers.records. What is a Receivable Activity ? It is an activity specific to the organisational needs for Miscellaneous Receipts. AutoLockbox is a three step process: . You assign these cycles to your customer and site level profiles. or workers. The Revenue Recognition Master program is for parallel processing only and takes advantage of the Oracle scalability feature to reduce processing time by running on multiple processors. An AutoLockbox operation can process millions of transactions a month. What are Receipt Classes and Receipt Sources ? Receipt Class : It is to define the processing steps.
3. 22. which have been imported from external sources should be grouped into Invoices. 2. What are Dunning Letters ? Dunning Letters are the Warning/Reminder letters to the customers for their overdues. Hence we can apply multiple VAT codes to a single distribution line.61 days past due (iv) 61 . Tax Exceptions and Tax Groups ? Exemptions : It is to reduce the gross tax associated with a tax code and enables us to arrive at the effective tax rate. It can be restricted to the specific locations of the customers. AutoLockbox reads and formats the datafrom your bank file into the AutoLockbox table using an SQL*Loader script. we can specify an Aging Bucket and 'as of date' and Receivables will group the transaction and their amounts in the appropriate days past due period. one for GST and other for Ontario PST. 21. Import: During this step. For example. The tax calculation creates two tax lines.91 days past due When we create our collection reports or view our customer accounts. What are Grouping Rules and Line Ordering Rules ? Grouping Rules : It specifies how the lines. Tax Groups : It is used to group multiple VAT codes. the data is transferred into QuickCash tables.1. What is an Aging Bucket ? Aging Bucket are time periods that are used to review and report on open receivables. this rate is refered to as Tax Exception rates. The 4 bucket aging buket that receivables provides consists of 4 periods : (i) -999 . It can be applied on customers. Post QuickCash. It can be applicable for individual Inventory or range of Items and not for customers. 24. Exceptions : When the tax authorities provides a different Location based tax rate for the inventory items sent to specific Locations. Post QuickCash: This step applies the receipts and updates yourcustomer’s balances. Debit memo and Credit memos. The tax authorities can specify excemptions for Location based taxes and Vat.items and Range of items.0 past due due (ii) 1 . you can optionally query your receipts in the QuickCashwindow and change how they will be applied before submitting thefinal step. Validation: The validation program checks data in theAutoLockbox tables for compatibility with Receivables. Auto Invoices requires mandatory grouping of certain transactions . For Example : Grouping GST and Ontario PST and apply that tax group to a distribution line. Oncevalidated.31 days past (iii) 31 . What are Tax Exemptions. At this point. 23.
We can attach the Line Ordering Rule to the same grouping rule . but not the freight items and their tax lines. What are the various Discount basis available for defining a payment term ? Invoice Amount: Calculate the discount amount based on the sum of the tax.e) It will allow the creation sign to be violated. 27. What are taxable Basis available for a Tax Code ? (i) Before Tax (ii) After Tax (iii) Prior Tax (iv) Quantity Based Tax. Lines and Tax. Receivables automatically applies this mandatory transactions to any grouping rule which have been defined. For Example : if the Receipt is $1500 against the Invoice value of $1000 then the Receivable allows only $1000 to be applied against the transaction and thus the balance is brought down to 0. freight. which should be identical across the lines. so that they can form part of one transactions. but not freight and charges at the invoice header level. What are Natural Application Only and Allow Over Application options in transaction types ? Natural Application Only : Receivables does not allow the creation sign (Positive. Negative or any sign) of the transaction to be changed by virtue of receipt application or any other activity against the transaction. What are Bill Receivable Transactions ? What are its related setup steps ? A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). 25. What are Transmission Formats ? What are the transmission formats provided by receivables ? Transmission format window is used to define the transmission formats that auto lockbox uses when importing data into receivables. the open debt exchanged for the bill. Related Setup Steps : 26. Transmission formats specify how data in the lockbox bank file is organised so that it can be successfully . and tax of your invoices. 28. 29. Allow Over Application : Receivables will allow the transactions to be overapplied. for the related amount. not Freight Items and Tax: Calculate the discount amount based on the line items and their tax amounts. (i. and line amounts of your invoices. of your invoices. Lines Only: Calculate the discount amount based on only the line amounts of your invoices. Lines. Line Ordering Rules : It specifies the order and number in which the lines will appear in the transaction after it is grouped. Bills receivable are often remitted for collection and used to secure short term funding. Freight Items and Tax: Calculate the discount amount based on the amount of line items. Line ordering Rule is optional. If the Receipt is $1500 against the Invoice value of $1000 then the receivables will allow the entire balance and the due for the transaction will become -$500. Therefore the grouping rules specify the attributes. The bill receivable document effectively replaces. freight charges.attributes.
credit limits offered to them. consultanting charges. 4. Bill-to. Example (arxmpl. freight. 3.ctl) : A standard BAI (Bank Administration Institute) format used by most banks. 34. 4. The Bill-to site is mandatory for a customers. are the various Business purpose Usages given by Receivabels.ctl) : A format that contains an example of lockbox header information. 31. What are Standard Memo Lines ? Memo lines are used to increase the customer balance which could be due to omission of tax. What are Customer Profile Classes ? The Customers are categorized in terms of thier credit worthiness. which can be assigned to a customer ? Ship-to. payment terms.ctl) : A default format used for importing cross currency receipts. What is the Transaction Process of invoices with Rules ? Invoicing rules let you determine when to recognize your receivable for invoices that span more than one accounting period.imported into the receivables interface tables. Marketing Etc. Dunning. finance charges percentage etc.ctl) : A format used to import bank files in the japanese Zengin format (Alternate Names Receipt Matching Window) 30. 3. Others are Optional. Receivables provides the following invoicing rules: • Bill in Advance: Use this rule to recognize your receivableimmediately. Statement. and overflow receipt records 2. Legal. Default (ardefd. 32. This process of setting the profile parameters for each category of customers is refered to as the profile class. 1. 2. RA_CUSTOMER_INTERFACE RA_CUSTOMER_PROFILES_INTERFACE RA_CUSTOMER_BANKS_INTERFACE RA_CUST_PAY_METHOD_INTERFACE RA_CONTACT_PHONES_INTERFACE 33. . several receipt records. 5. Zengin (arzeng. charges.ctl) : A standard format used for transferring payment information from other systems. Convert (arconv. Cross Currency (arxcurr. What are various Business Purpose Usages given by receivables. You can assign invoicing rules to invoices that you manually enter or import into Receivables through AutoInvoice. 5. What are the Customer Interface Tables provided in AR ? 1.
Manual Quick 3. What are Standard Remittances and Bills Receivable Remittances ? Standard remittance is remitiing the cheque/dd to the bank for collection. Bills Receivable remittances means remitting the Bills Receivable to the bank for collection on maturity date. 39. What are the various statuses for a receipt ? Approved : This receipt has been approved for automatic receipt creation. Confirmed : For manually entered receipts. Gurantee : It is a documentation of the promise made by the customer to obtain the goods from the organisation. Remitted : This receipt has been remitted. . What is the difference between Deposit and Gurantee Transactions ? Deposit : It is the pre-payments made by a customer that should be adjusted against the future debit transactions that are raised with respect to this prepayments. What are the methods of creating credit transactions ? 37. Automatic 38. What are Standard and Factoring Methods of Remittance ? Standard remittance : The supplier remits the bills of exchange to the bank for collection and the same will be collected on the maturity date of the note. This status is only valid for automatic receipts. This promise is documented as a gurantee. this status indicates the receipt has been confirmed. Once rules have been associated with an invoice. The customer does not make payment for the guarantee.• Bill in Arrears: Use this rule to recognize the receivable at the end of the revenue recognition schedule. 35. For automatic receipts. What are methods of creating batch receipts ? There are three methods of creating batch receipts: 1. 36. Factored remittance : It means dicounting the bills of exchange with the bank before the maturity date. this status indicates the receipt belongs to a receipt class that requires remittance. This status is valid for both automatic and manually entered receipts. Cleared : The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts. 40. The onus of collection could be with recourse or without recourse. Receivables creates therevenue distributions for the invoice when you run the Revenue Recognition program for the period in which the rules fall. Manual Entry 2.
In this process the old invoice is cancelled and a new transaction is created for the postponed date. 41. Receivables lets you create cross currency receipt applications to let you fully or partially process the payment. You can apply receipts to transactions using any currency defined in Oracle General Ledger. You can also manage your cash flow by deciding when. Attention: You cannot create a debit memo reversal for a miscellaneous (non–invoice related) receipt. 43. What are chargebacks and adjustments ? How to create them ? Chargeback is postpoment of payment date. You can create a standard reversal for a transaction related to a chargeback if there is no activity against the chargeback and the chargeback has not been posted to the general ledger.Reversed : This receipt has been reversed. you must create a debit memo reversal (see below). For example. where. Receivables automatically creates reversal journal entries for your general ledger and reopens all of the debit and credit items that were closed with the original receipt. If the chargeback has been posted to the general ledger. if a receipt comes from an account with non–sufficient funds or if you want to re–enter and reapply it in Receivables. Using the remittance information provided by your customer. as long as you have not posted these adjustments to your general ledger.when you save your reversal. or – the chargeback or adjustment was posted to your general ledger When you create a debit memo for a receipt reversal. the receipt is usually in the same currency as the transaction. you create Invoice 101 in Canadian dollars (CAD) but your customer sends a receipt in Deutsche marks (DEM) as payment. The new debit memo reversal is actually a new receivable that replaces the item closed by the original receipt. If you create a standard reversal for a receipt that you have applied. Receivables automatically calculates the open balance on the invoice (if any) and the foreign exchange gain or loss (FXGL) for this application.It can be done only in the receipts workbench. or adjustment). You can reverse cash receipts and miscellaneous receipts. credit memo. another receipt. What are Standard Reversal and Debit memo Reversal in receipts ? Standard Reversal: When you create this type of reversal. However. What are Cross Currency Receipts ? How do you create them ? When your customer remits payment for an invoice. For these occasions. Receivables reverses any adjustments or chargebacks that you created. there may be times when your customer remits payment in a currency that is different than the currency of the open debit item. In addition. debit memo. 44. These agreements let you collect payments on time by transferring funds from the customer’s bank account to yours on the receipt maturity date. Receivables does not update any of the receipt activity associated with the original receipt. Receivables requires that you create a debit memo reversal if: – you are reversing a receipt that you previously applied to a chargeback and this chargeback has had any activity against it (for example. Receivables creates a line on your debit memo that displays the original receipt number associated with the debit memo. and how . What are the setups related to Automatic Receipts ? Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements. you can either fully or partially apply this receipt to Invoice 101. Receivables assigns a unique transaction number to your new debit memo. 42. You can reverse a receipt when your customer stops payment on a receipt. Debit Memo Reversal: When you create this type of reversal. or chargeback.
delete. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables. Format: Format your automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. as it depends upon the type of automatic receipt you create. This step is optional. What are the clearance methods in Receivables and how are they used ? Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. Creating automatic receipts involves three steps: Create: Select the invoices to include in your automatic receipts. and approve the receipts that you have selected. By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. Approve: Update. 45. . By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.much you should remit to your bank.