faq's payables3 11

Oracle Financials Test No.11 Dt: 10th Feb 2006ORACLE - PAYABLES

1.What are the mandatory steps for Payable module before entering transactions?

Create application user sign–ons and passwords.

Define your chart of accounts.

Define your accounting period types and accounting calendar periods.

Define a set of books. Specify a set of books name and assign it a calendar, functional currency, and a chart of accounts structure.

After choosing your set of books, use the Application Developer responsibility to set the GL Set of Books ID profile option to Updateable.

After choosing your set of books, use the System Administrator responsibility to set the GL Set of books Name profile option. If you are not using multiple organizations feature, set the option for the Oracle Payables application. If you are using multiple organizations feature, set the option for each unique combination of organization and responsibility.

Define Payables Lookups.

Define Purchasing Lookups.

Enter locations.

Enter employees. If you have Oracle Human Resources installed, use the People window. See: Entering a New Person (Managing People Using Oracle HRMS). If you do not have Oracle Human Resources installed, use the Enter Person window.

If Oracle Inventory or Oracle Purchasing is installed, you must define at least one Inventory Organization before defining Financials Options.

Define payment programs.

Install or upgrade Payables.

Select your primary set of books.

Use the System Administrator responsibility to assign your set of books to a responsibility.

Define Financials options.

Define Payables options.

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Define your payment terms.

If you plan to use automatic withholding tax, define Tax Authority type suppliers. You must do this before defining tax codes and tax groups.

Define bank accounts.

Define Suppliers.

Open your Payables accounting period.

Set up Print Styles and Drivers for the Supplier Mailing Labels Report.

2.What is ‘pay date basis’? Explain the different options available in it.

Pay Date Basis. The Pay Date Basis default for each new supplier you enter. The Pay Date Basis for a supplier defaults to the new supplier sites you enter for the supplier. You can override the default for each supplier and supplier site.Discount. Payables selects invoices for payment based on the scheduled payment discount date.Due. Payables selects invoices for payment based on the scheduled payment due date, regardless of any available discounts.

3.How to record a refund from a one-time supplier? Explain accounting entries also.

By entering the Debit Memo we can record the recover from supplier, The one time supplier is only for the information on suppliers not for the controlling.The accounting entries for the same as followsAccounting entries for enter invoice at Approval:-

Charge A/c….Dr XXXTo Liability A/c XXX

Accounting entries for enter invoice at Payment:-

Liability A/c….Dr XXXTo Cash Clearing A/c XXX

In this case if we want refund from the supplier to raise the Debit memo against the Goods or Services.

Accounting entries for Debit Memo at Approval:-

Liability A/c….Dr XXXTo Charge A/c XXX



Accounting entries for enter invoice at Payment:-

Cash Clearing A/c…. Dr XXXTo Liability A/c XXX

4.What do you mean by pay through date and additional pay through days?

Pay Through Date. Payables selects all approved and unpaid invoices that have a due date on or before the Pay Through Date. You cannot update this field after invoice selection for a payment batch.

Additional Pay Through Days. Number of days between your regular payment batches. Payables uses the additional pay through days to determine the default Pay Through Date when you initiate a payment batch. For example, if you define 5 as the value in this field, Payables adds 5 days to the system date to calculate the default Pay through Date when you initiate a payment batch.

5.How to define a payment term, if you require to pay a supplier 50% on delivery and 50% on installation?

This can be solved in so many ways, by using special calendar we can resolve this problem.

6.How to identify the Set of Books name in payables?

1. Choose set of Books2. Payables options Accounting Methods Region3. Profile Options



7.In case of void and re-issue, whether the same document will be issued or new document will be issued?

Allow Void and Reissue. If you enable this option, you can reissue a Quick payment. You may need to reissue a check for a Quick payment if it is spoiled during printing. When you reissue a check, Payables voids the old check and creates a replacement check. The checks are identical except that the new check as a new check number, payment date, and payment exchange rate if you are using multiple currencies. You cannot select the Void and Reissue option for future dated payments

8.What are different calculation levels of Automatic tax calculation?

Calculation Level. If you enable the Use Automatic Tax Calculation option, select the level at which you want Payables to automatically calculate sales tax. This value defaults to new suppliers you enter.

Header. Automatically create tax distributions based on the Invoice Amount and Tax Code in the Invoices window:

Tax Code. Automatically create tax distributions based on the distribution Amount, Tax Code, and Includes Tax check box in the Distributions window. When calculating tax amounts, group lines with the same tax code and Includes Tax check box setting together, calculate tax, and then round the tax amount.

Line. Automatically create tax distributions based on the distribution Amount, Tax Code, and Includes Tax check box in the Distributions window. When calculating tax amounts, calculate tax for each distribution, round the tax amount, then add the tax amounts.

9.Is it possible to un-apply a pre-payment invoice if it is already applied to a standard invoice?

Yes, we can unapply the prepayments at any status except when it is cancelled. Prepayment apply will not calculate discounts as it is already paid.

10.what options are to be enabled if invoice Currency and Payment Currency are different?

As the invoice currency and payment currency should be same due to which there is no option available with respect to this.

11.List any five standard reports in oracle payables.

Five Standard Reports

1. Invoice Aging Report2. Invoice Audit Report



3. Payables account analysis Report4. Payment Batch Control Report5. Payment distribution Report

12. How to set different interest rates for different suppliers?

There are no such options available for defining different interest rates for different suppliers. There are only uniform interest rates.

13.When ‘tax code’ at invoice header will be mandatory?

Require Tax Entry at Header. If you enable this option, Payables requires you to enter a Tax Code and Tax amount in the Invoices window when you enter an invoice.

The calculation should be Header, in this situation the tax code at header level should be mandatory.

14. Is ‘Invoice received date’ mandatory or optional?



Invoice received date is optional if the terms date is set to other than Invoice Received date.

15.Explain the relevance of ‘Pooled Account’.

Pooled Account. If you use Automatic Offsets and you want to associate multiple companies with this bank account, then enable this option. When you enable the Automatic Offsets Payables option, Payables creates one offsetting liability distribution for each invoice distribution. If you then pay the invoice from a pooled bank account, then which Payables accounts for the invoice payment, Payables creates one corresponding cash accounting entry for each liability distribution.

16.What is accounting entry if we take any discount on payment?

Liability A/c ……Dr XXXTo Discount A/c XXXTo Cash Clearing A/c XXX

17. When I’m trying to ‘Approve’ invoice, Approve button is grayed out. What could be the reason?

Allow Online Approval. Enable this option if you want to allow users to submit Payables Approval in the Invoices window and the Invoice Batches window.

If you are not enable the above circled item then the above case will arise.



18.How to resolve the following error: “The payment date must be on or after the system date”.

The above error can be resolved by checking the circled item

Allow Pre–Date. If you enable this option, Payables allows you to create payments with a payment date before the system date for any payment except a manual payment.

19.What is the accounting entry for foreign currency payment in case of realized gain or realized loss?

Liability A/c … Dr XXXTo Realized Gain A/c XXXTo Cash Clearing A/c XXX

Liability A/c … Dr XXXRealized Loss A/c … Dr XXX

To Cash Clearing A/c XXX


faq's payables3 11

Documents

oracle payables

accounting entries

primary set of books

payables accounting

oracle payables application

supplier defaults

time supplier

payables options