ORACLE PAYABLES FAQs
The following are the basic questions and answers for them, useful for beginners in interview stand point:
1. What are the modules that are interfaced with Oracle payables?
General Ledger, Purchasing.
2. How does the information defaults in payables?
Financial Option à Payables à Supplier à Supplier Site à Invoice à Distribution and Schedule of Payment.
3. What is a distribution set? What are the types of distribution set?
Distribution Set is to automatically distribute Invoice amount in to different GL Account code Combination. The types of Distribution Set are:
Full Distribution and Skeleton Distribution Set
Full Distribution means we know the exact percentage and exact account code combination. The sum of the distribution percentages must equal 100 or 0.
Whereas in Skeleton distribution set we do not know the percentage but we know the GL Account Code Combination. So percentage may not be entered here.
4. What are the types of invoices used in payables?
Standard, Credit Memo, Debit Memo, Mixed, Prepayment, Expense Report, Withholding Tax,
5. What are the encumbrance options for AP? How are they used?
Requisition Encumbrance, and PO Encumbrance available in Financial Option.
Encumbrance used to reserve the Funds at the time of raising the Requisition or creating of
6. What are the different types of supplier sites?
Pay, Primary Pay, RFQ, Purchasing, Procurement Card.
7. What are the types of Accounting Methods?
Accrual method and Cash method.
8. What is Automatic Offset Methods?
Payables automatically create balancing accounting entries for your invoice and payment transactions.
Three types of Offset Methods are there
1. Balancing,
2. Account. And
3. None
9. What is Pay Group?
Pay Group is to group invoices into supplier category for payments.
10. How do you create interest invoice?
In Payable Option under Interest Tab Allow Interest Invoices. Enable this option if you want to allow Payables to calculate interest for overdue invoices and create interest invoices for selected suppliers. Payables automatically creates interest invoices when you pay overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice using a manual payment, Payables warns you that interest is due on the invoice and you should pay the invoice in a payment batch or with a Quick payment.
11. What is GL Date Basis & Prepayment settlement date?
The date you want Payables to use as the default accounting date for invoices during invoice entry.
• Invoice Date. Invoice date you enter during invoice entry.
• System Date. Current date for your Payables system. The date you enter the invoice.
• Goods Received/Invoice Date. Date that you enter in the Date Goods Received field. If no value is entered, then the invoice date is used.
• Goods Received/System Date. Date that you enter in the Date Goods Received field. If no value is entered, then the system date is used.
Prepayment Settlement Days. Number of days you want Payables to add to the system date to calculate a default settlement date for a prepayment. Payables prevents you from applying the prepayment to an invoice until on or after the settlement date.
12. What are the levels of Tax calculation?
Level at which the tax has to be calculated.
Levels: Invoice line level, Invoice header level and Tax code level
13. What is additional Pay through Days?
Days specified in this column is added to the system date to select the invoice for payment which has the maturity date falling within these days
14. What are Term date basis & pay date basis?
Term date basis
Date from which the due date will be calculated based on the payment term.
Pay date basis
Selection criteria of invoices based on the due date or scheduled discount date.
15. What is withholding invoice and what are its steps?
Invoice created on the withheld amount that has to be paid to the tax authority from the supplier.
Types: Manual and automatic withholding. Only when allow manual withholding is enabled manual creation of invoice is possible.
Steps: Enable use withhold invoice, Select option when to apply and to create withhold invoice.
Continued in next post...
Comments
1 comments to "ORACLE PAYABLES FAQs"
June 22, 2013 at 9:34 AM
In recent times, large cash-rich companies are taking advantage of discounting in reverse, so as to extend credit to suppliers that themselves may be finding it hard to get outside financing at an affordable cost of interest. Using this type of set-up, the buying company expects for a discount on its purchases in exchange for paying suppliers without delay.
Invoice Finance
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