Questions in Accounts Receivables

1. How do you create a Chargeback Invoice ?

A. Using Receipts window
2. How do you adjust the amount of advance already received against an Invoice ?
A. Create an Invoice for Deposit and receive an amount against this deposit Invo
ice.
Then Create the regular invoice and in the column of Commitments enter the numbe
r
of Deposit Invoice. The Regular Invoice gets matched with the Deposit Invoice fo
r the
amount of Regular invoice or deposit invoice which ever is lower
3. How do you write off small amounts while accounting the receipt against an
invoice?
A. Using Receipts window. You have the button for write offs.
4. How do you Account for bank charges deducted from amount received against an
invoice?
A. Using Quick cash window also you can enter receipts. Here you have the option
of
accounting the bank charges deducted on receipt. However, this has to be enabled
by
putting the Value in profile option AR: Create Bank Charges = YES.
5. How do you create a credit note against an invoice ?
A. You have separate window to create such credit note. Navigation Transactions
=>
Credit Transactions.
6. How do you adjust a regular Invoice with a Credit Note ? Enter the amount 0 i
n
receipt window and in invoice matching window select the invoice as well as the
credit
note. This will knock off the invoice against the credit note.
7. What are different types of Receipt Reversals ? What is the difference betwee
n
them ? What are the accounting entries ?
A. Standard Reversal and Debit Note Reversal. Standard Reversal reopens the invo
ice
matched in that receipt. You can match a new receipt against this invoice.
Debit Note Reversal does not reopens the earlier matched invoice but it creates
a new
debit note which can be matched with another receipt.
8. When are the following accounts are used
Unbilled Receivable
Unearned Revenue
A. When you use Invoicing Rule, the receivables are accounted on different dates
as
defined in the rule. Till such time receivables are accounted, the amount is deb
ited to
Unbilled Receivables.
If you use Accounting Rule, the revenue is accounted on different dates. Till su
ch time
revenue is accounted, the amount is credited to Unearned Revenue..
9. What is the difference between Unidentified Receipt, Unapplied Receipts and O
n

Account Receipts ? What are the Accounting Entries for each of this ?
A. Unidentified Receipts: The Customer is yet to be identified and so receipt is
not
matched.
Unapplied Receipts: The Customer is identified and entered but the amount is not
matched with any of his invoice.
On Account Receipts: The Customer is entered and instead of matching the amount
to any of his invoice it is matched with the On Account option. This option is a
vailable
as first item in the pick list of invoices.
10. What is the difference between earned discounts and Unearned discounts ? How
do you account the Unearned discount? What are the accounting entries involved ?
A. The cash discounts are mentioned in the payment terms. Considering the due da
te
and the receipt date the discount is automatically calculated while entering the
receipt. If however you want to increase the amount of invoice you can manually
increase it. The amount automatically calculated as per terms is the Earned Disc
ount.
The manually added amount is the Unearned Discount. This however, depends upon
the option given in System Options in Setup.
11. What are the Key Flexfields in AR.
A. Sales Tax Location Flexfield
Territory Flexfield
AR Setup Related
12. What is difference between transaction type and transaction source ?
A. Transaction type can either be Invoice, Credit Note, Debit Note, Deposit. Etc
. This
also decides whether to account in GL, Whether to consider in receivables, the
accounts to be debited, credited, the tax calculation options, and some other op
tions
which are defauled.
Transaction Source decides whether the source of entry is manual or automatic. I
t
also mentions whether transaction and batch numbering is manual or automatic.
If automatic the last entered number is to be mentioned to start the automatic
numbering. IF the source is automatic, that means the transactions are to be
uploaded through interface either from OE or legacy system. Then some other opti
ons
are to be set.
13. What is AutoAccounting ?
A. This is the account generator in Accounts receivables. This decides accounts
for
Receivables
Revenue
AutoInvoice Clearing
Freight
Tax
Unbilled Receivable
Unearned Revenue
From where the accounts are defaulted ?
Sales reps
Transaction Lines
Transaction Types
Taxes
Or you can have Constant values

14. What is AutoCashRule Set ?

This decides the sequence of the invoice matching rules for unmatched receipts
entered though quich cash or AutoLockBox(interface). The rules are already defin
ed in
the system. Like Match Payment with Invoice , Apply to the Oldest Invoice First ,
Clear the Account , etc.
15. Where do you attach the Set Of Books ? Can you attach more than one set of
books ? if you have more then one set of books then how Receivables is configure
d ?
You attach the set of books in System Options in Setup. Only one set of books ca
n
be attached. If you have more then one set of books then AR is to be set in mult
i org
environment. By specifying the MO Operating Unit and the GL Set of Books Name .
16. How do you define document numbering for receipts ? can you have different
sequences for each Payment Method.
In system administration. You can have different sequences for different payment
methods.
1.What are the Key Flex Fields in Oracle Receivables?
Sales tax Flexfields, Territory Flexfields
2.What is the Payment Term in AR?
How You are going to Receive the Amount from Customers
, for Goods or Services like Installments, Due Dates & Discount Dates
3.How you define a Remittance Bank?
Setup/Receipts/Bank, This you can user for How Your Customer's are sending
Amounts for Cost Of Goods or Services to Banks and What are the accounts will be
reflect.
4.What are the Pre-Requisites for Generating Receipts?
Receipt Class & Receipt Source & Banks
5.What is a Receipt Class? Payment Method?
Which will tells you what are the Accounts Related for Customer Receipts and Ban
k
Account Name of the Customers and Payment Method.
6.What is Receipt Source?
This will describe you Generating the Receipts Automatically or Manually.
7.What is a Territory? What is the Importance in AR?
Using this Territory's You can Classify Your Sales Persons & Customers
8.When you defining a Sales Person, What are the Accounts you should use?
Receivables A/c, Revenue A/c, Freight A/c
9.How many Sales Credits we have? Describe each in one line?
1: Quota Sales: This you can assign to the sales persons but the Revenue should
take 100%
2:Non-Quota Sales: This is the Additional sales what you are going to assign to
your
sales persons
10.What is the Importance of Defining a Collector? Where we will use him?
The Collector we will assign him A profile Class. So he is responsible the Relat
ed

Customers
11.What are the Quick-codes in Oracle Receivables? Describe?
Freight Carriers, Demand Class, Customer Category, Customer Class
12.How will you send the Information about Invoices? Describe the Frequency?
Through Statement Cycles, The Interval between dates like Weekly, Monthly,
Quarterly
13.What is used to notify customers of past due items?
Dunning Letters
14.What is Default Auto Cash Rule Sets Available?
Clear the Invoice Amount, Past due Invoices, Oldest Invoice First, On Account, G
roup
with the payment terms
15.If you want check the Credit of a Customers How many Forms it should enable,
what are those?
3 Forms should be Enable,
1:Order Type
2:Payment Terms
3:Customer Screen
16.What is the Maximum Credit Limit Per Order?
Total Credit Limit
17.If one Customer have two Profile Amounts? If yes describe?
Yes, with 2 Different Currencies Like INR & USD
18.How many ways you can create a Customer?
Standard, Quick
19.What does stands for SIC?
Standard Industry Code
20.What does stands for GSA?
General Sales Administration
21. What are invoicing rules and accounting rules?
Accounting rules:Accounting rules determine the number of accounting periods and
the percentage of revenue that should be recognized in each accounting period.
Revenue Recognition program is then run to create revenue distribution for the p
eriods in which the rules fall. For deferred accounting rules, the revenue recog
nition cerates the distribution records for an unearned revenue account.You can
also use the accounting rules to determine revenue recognition schedules.
Invoicing rules: The invoicing rule determines the accounting period in w hich t
he receivable
amount is stored. You can either manually assign invoicing and accounting rules
to transactions
you create or import these rules into Receivables using the AutoInvoice utility.
The invoicing rules determine w hen to recognize the receivables for invoices th
at span overmultiple accounting periods.
There are tw o types of invoicing rules, bills in advance and bills in arrears.
The bills in advance rule is used to recognize the receivables at the time w hen
the bill is raised. It
is an invoice created before the revenue is recognized.
You use the bill in arrears rule if you w ant to record the receivables at the e

nd of the revenue
recognition schedule.
22. whar are receivable activities?
Receivables activities to provide default accounting information for miscellaneo
us cash,
discounts, finance charges, and adjustments.AR should derive the accounts for th
e expense or revenue generated by this
activity by determining a GL account source.Activity GL Account:Distribution Set
:
23. What are the commitments in AR
A commitment may be an oral or w ritten commitment for certain goods or services
for a prevailing
rate. In AR, you can create tw o types of commitments, Deposits and Guarantee.Co
mmitments do not include tax or freight charges. Use the transaction class, Guar
antee, to enter Invoices for a guarantee.
Monthend closing receivables
1.Complete Transactions
2.Review Unapplied Receipts
3.Reconcile Receipts to Bank Statement
4.Change Period Status to Close Pending
5.Create Accounting
6.Review Unposted Items Report
7.Reconcile Transaction Activity
Transaction Register
Sales Journals
Receipt Register
Receipt Journals Report
Journal Entries Report
8.Reconcile Outstanding Customer Balances ?Aging Report (run for last period)
Transaction Register
Adjustments Register
Invoice Exceptions
Applied Receipts Register
Unapplied Receipts Register
Aging Report (run for this period)
9.Post (GL) Receivables Transactions
10.Print Invoices
11.Print Statements
12.Print Dunning
13.Reconcile Receivables Activity to GL ?AR Reconciliation Report
AR-GL Reconciliation Report
Third Party Balances Report
Account Analysis Report
14.Close Receivables Period ?Subledger Close Exceptions Report
Change Period Status to Closed
Open Next Period
15.Do your Tax Reporting