In this post, I’ll go over some of the most common Oracle Payables interview questions. For most of these questions, I’ve attempted to combine the details answers with a working example in order to help interviewers in their preparations.
(1) What are the different types of invoices in Oracle Apps?
Ans: Below are the different types of Invoices in Oracle Apps R12
- Mixed Invoice
- Credit Invoice
- Debit Invoice
(2) In Oracle Apps, what is a Mixed Type Invoice?
Ans: In Oracle Payables, a Mixed Invoice is one of the invoice forms. For this Mixed Type Invoice, you can enter both the Negative and Positive Amount. This payment form does not require the sum to be entered in particular signs (Positive or Negative) like Standard, Prepayment, Credit & Debit Memo Invoices.
(3) What is the difference between a manual and a system hold?
Ans: System Holds are applied to invoices when something is mismatched in the standard process, such as the invoice header total and line total being equal. Other System Holds, such as Invoice Matching, are applied when something exceeds the Invoice Tolerance Limit.
The term “system hold” refers to a function of setup Controls. However, a manual hold is something that is manually entered into an invoice for some purpose, such as a damaged product purchased from the supplier that necessitates deferring payment for that invoice.
(4) In an AP Invoice, what is Pay Alone?
Ans: Invoice Payment and Pay Alone are two terms that are used interchangeably. This is the AP Invoice Flag, which indicates that this invoice will be charged separately. For eg, Supplier A has three invoices, but we’ve activated the Pay Alone Flag for one of them. When the Payment Batch is run, the system will generate one check for two invoices and a separate check for the Pay Alone Invoice. This is how the Pay Alone system works.
(5) Is it possible to pay the AP invoice before the due date?
Ans: Yes, we are able to pay the invoice before the deadline. When making a manual payment, there is no need to worry, but when making a payment batch, we must enter the Pay Through Date. If we enter the Pay Through Date as “21-Dec,” this Payment Request will only select AP invoices that are due before “21-Dec-2019.”
(6) How Oracle Payables Calculates AP Invoice Payment Due Date?
Ans: Payment of Invoices The due date is determined by two factors.
1.Terms of Payment Added to the Invoice
2. The date of the invoice
If the payment terms are 30 days and the invoice date is “21-Dec-2019,” so the payment due date is “21-Jan-2020.”
(7) What is the difference between the Primary and Secondary Ledgers in Oracle Payables?
Ans: The Main Ledger is the Primary Ledger, and the Secondary Ledger is the Primary Ledger’s Replica. The Primary Ledger is where we do all of our transactions. The disparity between the Organization Requirement and the Statutory Requirement is the key reason for using Primary and Secondary Ledger.
For eg, one US-based company has an office in India, and the US company’s calendar runs from October to September, while the Indian calendar runs from April to March. This is where the Primary and Secondary Ledger principle comes into play. Where we can design the primary calendar according to US standards, but the secondary calendar according to India’s Statutory Requirements.
(8) What does Oracle call a recurring invoice?
Ans: ‘Recurring,’ as the name implies. Recurring means that something happens over and over again. Oracle has given the Recurring Invoice to every organization that books the Office Rent invoice every month for the same sum or any other fixed expenses every month. We simply need to set up a recurring invoice for that number, and the system will generate an invoice on the first day of each month.
(9) What is the Payables Trial Balance Report’s Purpose?
Ans: The Total Liability or Outstanding Supplier in the System is shown in the Payables Trial Balance Report. The Liability at the System Supplier and Site Level is shown in this report. This section contains summary information for all unpaid amounts for validated supplier invoices.
(10) What does AP and GL reconciliation facilitate?
Ans: We aim to match the Gross Liability from Payables with the Liability accounts total in the GL during the AP and GL reconciliation. In Payables, we have a collection of Liability accounts that we only use in Invoice Headers to book Liabilities, and we only match these Liability GL accounts in the AP and GL reconciliation study.
We used the Payables Trial Balance report to determine the total AP liability, and then ran the GL Trial Balance report to reconcile the Payables Trial Balance Report Total with the GL trial Liability Accounts.
(11) What is distribution set in Oracle Payables?
Ans: The combination of several Distribution lines using different -2 GL accounts is known as a Distribution package. For example, we booked most of the AP invoices in two separate GL accounts combinations, so each time we need to book the AP invoices expenses in these two GL accounts, we need to enter two lines in the invoice distributions, but this process can be made query quickly and easily.
Oracle Payables has a feature called Distributions Sets, which allows us to create any number of GL accounts lines for a given Distribution package, and then we don’t have to create Distribution lines manually in Oracle Payables Invoices. Simply enter the Distributions Set in the Ap invoice Lines, and the Oracle framework will build invoice distribution lines with the GL accounts specified in the Distribution Set in Oracle Payables R12.
(12) What are the different types of calendars in Oracle Payables?
Ans: Accounting Calendar The Accounting Calendar is linked to the Ledger to which the GL Ledger is attached during the production process. The accounting calendar is the system calendar; if we need to enter a transaction in the system for a specific date, the period should be available in the accounting calendar. We can’t do any transactions for that time if it’s closed. The device is fully regulated by this.
Special Calendar There is no link between Special Calendar and Accounting. This Calendar is defined for use in Recurring Invoices, Payables Tax Setups, and Payments Terms.
(13) What are the different types of Special calendars?
Ans: Below are the different types of special calendars
- Recurring Invoice
- Withholding Tax
- Payment Terms
- Key Indicator
(14) Is it possible to make a cross-currency payment in Oracle Payables r12?
Ans: The term “cross currency” refers to a currency that If I receive a Supplier Invoice in USD, but I plan to pay it in my base currency, INR. In Oracle Payables, this is referred to as cross currency. We don’t have a cross currency option in Oracle Apps r12.
(15) In Oracle Payables r12, can we do multi-site payments for the same supplier?
Ans: Yes, in Payables r12, we can do a single payment for multiple site invoices for the same supplier. In Oracle r12, this feature is open.
(16) What is the procedure for generating and moving invoices to GL?
Ans: Below are the procedures for creating and moving invoices to GL
- Create batch
- Create invoice
- Create distribution
- Validate the invoice
- Actions -à approve
- if individual create accounting click ok
- If batch go to batch create accounting.
- Create accounting hits Payable Accounting(Transfer) Program which will create accounting.
- Run Transfer to GL Concurrent Program
- Journal Import
- Post journals
- Hits balances.
(17) How does the payment system operate?
Ans: An account’s open objects can only be cleared if an identical offsetting amount is posted to the account. To put it another way, the sum of the objects allocated to each other must equal zero. The machine enters a clearing document number and the clearing date in these things during clearing. Invoices in a vendor account are marked as paying, and products in a bank clearing account are marked as cleared in this way.
In most cases, the payment programme is used to settle invoices. As a result, manual clearing of open items is rarely needed. If, for example, you request a refund from your provider or have set up a direct debit procedure, you may need to manually clear products.