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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.
Requisitions RFQQuotations’AnalysisPOReceivingInvoicesPayment.
B. O2C processing four high-level processes i.e. Order, Invoices, Recognize the COGS and Cash
Receipt.
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
fluctuation.
Example:
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.
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
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
supplier.
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.
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.
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.
PO+reciept+Invoice
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
PO+Receipt+Invoice+Inspection
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.
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.
Standard Purchase Order: It’s 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 long–term 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.
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?
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
AR TRANSACTIONS (Invoice) 7
1. Invoice 2. Credit memo 3. Debit memo 4. Deposit 5. Guaranty 6. Chargeback 7. Bills Receivables.
Mixed Invoices: Mixed Invoices can be matched to both purchase orders and invoices. Mixed invoices
can have either positive or negative amounts.
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)
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?
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.
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)