ORACLE - RECEIVABLES

8) Is it possible to apply a receipt from one customer to another customers transaction? If Yes, how to
apply?
Yes, in Manual Quick batch receipt we have an option of Multiple under application type by selecting this
option we can assign more than two customers. This option will be activated only when we select the option
Allow payment of unrelated Transactions in System options

9) List different Application types of receipt while creating Manual-Quick batch receipt?
They Are
Auto Cash rule
Single
Multiple
On account
Unidentified
Unapplied

10) Can we define Memo Lines with Invoicing Rules?

Yes, There is an option available in Memo Lines
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11) What is the accounting entry, if we apply a deposit to an invoice?

Deposits
When you enter a deposit, Receivables creates the following journal entry:
DR Receivables (Deposit)
CR Revenue
When you enter an invoice against this deposit, Receivables creates the following journal entries:
DR Receivables (Invoice)
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)
DR Unearned Revenue
CR Receivables (Invoice)
When you apply an invoice to a deposit, Receivables creates a receivable adjustment against the invoice.
Receivables uses the account information you specified in your Auto Accounting structure to create these
entries.
When cash is received against this deposit, Receivables creates the following journal entry:
DR Cash
CR Receivables (Deposit)
12) What are the Key Flexi fields in AR? And for what purpose they will be used?
Two key Flexi field they are

Sales Tax Location Flex field

The following table lists details for this key flex field.
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The Sales Tax Location Flex field is used to calculate tax based on different components of your customers
shipping addresses for all addresses in your home country.
Territory Flex field
The following table lists details for this key flex field.

You can use the Territory Flex field for recording and customized reporting on your territory information.
Territory Flex fields are also displayed in the Transaction Detail and Customer Detail reports in Oracle
Receivables.
13) How to create On-account receipt? How to apply On-account receipt to Transaction?
While entering receipt click on the Application Button in that select the receipt amount against On-Account and
save then it will create On account receipt, When ever you want to apply this receipt to any invoice then first
make the receipt to Unapplied then apply to any invoices
14) Which one of the auto cash rules will use Remaining Remittance Amount Option?
Remaining Remittance Amount
If you are using the Apply to the Oldest Invoice First rule, Receivables lets you determine the status of any
remaining remittance amounts. If Receivables cannot fully or partially apply a receipt using any of the Auto
Cash rules in your Auto Cash Rule set, it will either mark the remaining amount Unapplied or place it On
Account. You choose one of these options in the Remaining Remittance Amount field in the Auto Cash Rule
Sets window.
15) What is the difference between Exemptions and Exception with related to taxes in AR?
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Define tax exemptions to fully or partially exempt a customer, item, or range of items from specific tax codes.
You can create exemptions against customers or items for either locations or specific tax codes.
Use the Item Tax Rate Exceptions window to assign special tax rates to products that you ship to specific
authorities.
You can only define a tax rate exception for items that can be entered on an invoice and have a status of 'Active.'
Item tax rate exceptions apply only to location based tax. Therefore, to use tax rate exceptions, your Location
Flex field Structure must be State. County .City. To use the exceptions that you define in this window, ensure
that the system option Use Item Tax Rate Exceptions is set to Yes.
16) When is Paying customer mandatory for a transaction?
Paying Customer is mandatory for automatic receipts and optional for manual receipt.
17) List the various levels from where tax codes can be defaulted to transaction?
Customer
Customer Site
Product
Revenue account
System Option
18) What are the different status of a receipt?
Approved
Cleared
Remitted
Confirmed
Reversed
19) What are the different sources from where we can set Tax account default while defining Auto
accounting?
Salesperson
Site
Standard lines
Taxes
Transaction Types
20) Can we define more than one receivable activity for the same type?
Define receivables activities to default accounting information for your miscellaneous cash, discounts, finance
charges, adjustments, and bills receivable. Activities that you define appear as list of values choices in various
Receivables windows. You can define as many activities as you need.

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21) Name the profile option, which allows for creating charge-back and adjustment transactions?
If the profile option AR: Cash Allow Actions is set to No, the Charge backs and Adjustments buttons are not
available in the Applications window
22) What is the relevance of Distribution set in AR?
Define distribution sets to account for your noninvoice related receipts. These receipts can include refunds,
revenue from the sale of stock, as well as interest and investment income. Receipts that are not related to an
invoice are known as Miscellaneous Transactions in Receivables.
23) Can we define Exception for a rate-based tax? If yes, explain.
No, Use the Item Tax Rate Exceptions window to assign special tax rates to products that you ship to specific
authorities.
You can only define a tax rate exception for items that can be entered on an invoice and have a status of
Active.
Item tax rate exceptions apply only to location based tax. Therefore, to use tax rate exceptions, your Location
Flex field Structure must be State.County.City. To use the exceptions that you define in this window, ensure that
the system option Use Item Tax Rate Exceptions is set to Yes.
24) What are the differences between Manual-regular and Manual-Quick batch receipts?
Manual regular
1. In manual regular directly updates the
customer balance.
2.Recipts can be applied only to the one
customer
3. We can edit the batch once we completed
also

Manual Quick Batch

1. Here after running the post Quick cash program it will update
the Customer Balance.
2. In this we can apply more than one customer by using
Application type i.e. Multiple
3. Here once we run the post quick cash program we cant edit
the batch.

25) Explain the relevance of Remit-To-Address?

Define remitto addresses to let your customers know where to send payment for their invoices. Receivables
uses the addresses that you define in the Remit To Addresses window to provide default remitto information
when you enter transactions.
If you use Auto Invoice but have not defined a remitto address for a location, Auto Invoice will reject all
invoices for which it could not determine a remitto address.
26) Explain the Risk Elimination Days option?
The debt will be cleared by the Automatic Clearing program y days after each receipts maturity date, where y is
the number of risk elimination days defined for the payment method/bank account combination assigned to the
receipt.
27) Is it mandatory to define a customer profile class?
Yes, Customer profile class A category for your customers based on credit information, payment terms,
currency limits, and correspondence types.
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