Oracle Receivables

Oracle Receivables Question Bank

ORACLE RECEIVABLES FAQS

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Contents

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Receivables Questions
1.Describe the main tables involved in AR, and what is the data stored in them? Ans:RA_BATCHES_ALL Information about Transaction BATCHES RA_CUSTOMER_TRX_ALL Header information about Transaction RA_CUSTOMER_TRX_LINES_ALL Lines information about Transaction RA_CUST_TRX_LINE_GL_DIST_ALL Distribution information about Transaction RA_CUST_TRX_LINE_SALESREPS_ALL Sales representative of Transaction Information AR_PAYMENT_SCHDULES_ALL Information about Payment Schedules AR_APPLICATION_PAYABLES_ALL RA_INTERFACE_ERRORS Errors in AutoInvoice Interface Data RA_INTERFACE_LINES_ALL Use this table to enter Header and Lines information in AutoInvoice Interface program RA_INTERFACE_DISTRIBUTIONS_ALL Distribution Table in AutoInvoice Interface program RA_INTERFACE_SALESCREDITS_ALL Sales Credits information in AutoInvoice Interface 2.What do you mean by HZ_ in customer tables? Ans:HZ stands for Human Zone(HZ_). Anytihing which is related to the human like Customer profiles, their accounts, locations, relationships are stored in these tables only. From release 11i TCA came into picture in Accounts Recievable module, where oracle has grouped all the customer information at one place. Most important tables in TCA areHZ_PARTIES, HZ_CUST_ACCOUNTS_ALL, HZ_CUST_ACCT_SITES_ALL, HZ_CUST_SITE_USES_ALL, HZ_LOCATIONS, HZ_PARTY_SITES HZ_PARTY_SITE_USES, HZ_CONTACT_POINTS and few to name. 3.How many Flex fields are there in AR and what are they? Ans: Required Key Flex fields: 1. Territory Flex field 2. Sales Tax Location flex field - This Flex field is used for calculating the Location based tax (i.e.) Sales tax. Optional Key Flex fields: 1. Transaction flex field (required only if Auto Invoicing is enabled) 2. System Items Flex field (If Inventory or OM is installed this should be defined there. other wise, it should be set up in AR).
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4. How many payment methods can be assigned to a customer? Ans. Unlimited 5. What are the two types of commitments in Oracle Receivables? Ans. Deposits and Guarantees 6. While entering Invoices manually, Ship to Address of the customer is mandatory? Ans. It is not mandatory 7. Name the two Invoicing Rules in Oracle Receivables? Ans. Bill in Advance and Bill in Arrears 8. Assuming a payment term IMMEDIATE is attached to a Transaction Type, can we raise an Invoice with Payment term 30 Days for the transaction type? Ans. Yes 9. In which of the following field, Standard Memo Lines appear as List of values Ans. Invoice Lines Description 10. Why Auto Cash Rule Sets are defined ? Ans. Automatically apply receipts to invoices 11. If a value in a Profile class is changed, the system will Ans. Prompt the user whether to update for all customers or only for new customers. 12. Which is of the following is a mandatory descriptive Flexfield to be defined before importing simple invoices through Auto Invoice? Ans. Line Transaction Flexfield 13. Name the interface tables used for Auto Invoice Lines and Distributions Ans. RA_INTERFACE_LINES_ALL and RA_INTERFACE_DISTRIBUTIONS_ALL 14. What are the valid values for the column LINE_TYPE in the interface table? Ans. . LINE, TAX, FREIGHT & CHARGES 15. Can the user import invoices with user defined code combinations without using auto accounting? Ans. Yes 16. Which of the following information is not required when the user is importing Credit memos? Ans. Payment terms 17. Miscellaneous Receipts can be imported into Oracle Receivables using Auto Lockbox-whether it is True/False?
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Ans. False

18. In which top Lockbox transmission formats are normally copied? Ans. $AR_TOP/bin 19. Assuming a transaction number is not assigned to a receipt in the transmission file and Auto Cash rules are not used, what status will the system assigns? Ans. Assign a status of Unapplied 20. What are Dunning Letters ? Ans. Reminder Letters The notes that we send to the customer to do his payments are called as Dunning letters. Statement cycles: These are legal documents just like invoices. Any transactions that we are raising a customer are going to be printed on a paper. These are called as the statement cycles.

AR: http://www.udeps.com/OracleFin.html

21. What is TCA? Tables? Ans. Trading Community Architecture. It is a centralized repository of business entities such as Partners, Customers, and Organizations etc. It is a new framework developed in Oracle 11i. HZ_PARTIES: The HZ_PARTIES table stores basic information about parties that can be shared with any relationship that the party might establish with another party. Although a record in the HZ_PARTIES table represents a unique party, multiple parties can have the same name. The parties can be one of four types: Organization for example, Oracle Corporation Person for example, Jane Doe Group for example, World Wide Web Consortium Relationship for example, Jane Doe at Oracle Corporation. HZ_LOCATIONS: The HZ_LOCATIONS table stores information about a delivery or postal address such as building number, street address, postal code, and directions to a location. This table provides physical location information about parties (organizations and people) and customer accounts. HZ_PARTY_SITES: The HZ_PARTY_SITES table links a party (see HZ_PARTIES) and a location (see HZ_LOCATIONS) and stores location-specific party information. One party can optionally have one or more party sites. One location can optionally be used by one or more parties. This party site can then be used for multiple customer accounts within the same party. HZ_CUST_ACCT_SITES_ALL
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HZ_CUST_SITE_USES_ALL HZ_CUST_CONTACT_POINTS etc. 22. What are Base Tables and Interface Tables for Customer Conversions, Autolockbox, Auto Invoice? Ans. A) Customer Conversion: Interface Tables : RA_CUSTOMERS_INTERFACE_ALL, RA_CUSTOMER_PROFILES_INT_ALL, RA_CONTACT_PHONES_INT_ALL, RA_CUSTOMER_BANKS_INT_ALL, RA_CUST_PAY_METHOD_INT_ALL Base Tables : RA_CUSTOMERS, RA_ADDRESSES, RA_SITE_USES_ALL, RA_CUSTOMER_PROFILES_ALL, RA_PHONES etc B) Auto Invoice: Interface Tables : RA_INTERFACE_LINES_ALL, RA_INTERFACE_DISTRIBUTIONS_ALL RA_INTERFACE_SALESCREDITS_ALL, RA_INTERFACE_ERRORS_ALL Base Tables : RA_CUSTOMER_TRX_ALL, RA_CUSTOMER_TRX_LINES_ALL, RA_CUST_TRX_LINE_GL_DIST_ALL, RA_CUST_TRX_LINE_SALESREPS_ALL, RA_CUST_TRX_TYPES_ALL C) AutoLockBox: Interface Tables : AR_PAYMENTS_INTERFACE_ALL (POPULATED BY IMPORT PROCESS) Interim tables : AR_INTERIM_CASH_RECEIPTS_ALL (All Populated by Submit Validation) AR_INTERIM_CASH_RCPT_LINES_ALL, AR_INTERIM_POSTING Base Tables : AR_CASH_RECEIPTS_ALL, AR_RECEIVABLE_APPLICATIONS_ALL, AR_PAYMENT_SCHEDULES_ALL ( All Populated by post quick cash) 23. What are the tables in which Invoices/transactions information is stored? Ans. RA_CUSTOMER_TRX_ALL, The RA_CUSTOMER_TRX_ALL table stores invoice, debit memo, commitment, bills receivable, and credit memo header information. Each row in this table includes general invoice information such as customer, transaction type, and printing instructions. RA_CUSTOMER_TRX_LINES_ALL, The RA_CUSTOMER_TRX_LINES_ALL table stores information about invoice, debit memo, credit memo, bills receivable, and commitment lines (LINE, FREIGHT and TAX). RA_CUST_TRX_LINE_SALESREPS_ALL, The RA_CUST_TRX_LINE_SALESREPS_ALL table stores sales credit assignments for invoice lines. If Receivables bases your invoice distributions on sales credits, a mapping exists between the sales credit assignments in this table with the RA_CUST_TRX_LINE_GL_DIST_ALL table.
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The RA_CUST_TRX_LINE_GL_DIST_ALL table stores the accounting records for revenue, unearned revenue, and unbilled receivables for each invoice or credit memo line. Oracle Receivables creates one row for each accounting distribution, and at least one accounting distribution must exist for each invoice or credit memo line. Each row in this table includes the General Ledger account and the amount of the accounting entry. The RA_CUST_TRX_LINE_SALESREPS_ALL table stores sales credit assignments for invoice lines. If Receivables bases your invoice distributions on sales credits, a mapping exists between the sales credit assignments in this table with the RA_CUST_TRX_LINE_GL_DIST_ALL table. 24. What are the tables in which Receipt information is stored? Ans. AR_PAYMENT_SCHEDULES_ALL, The AR_PAYMENT_SCHEDULES_ALL table stores all transactions except adjustments and miscellaneous cash receipts. Oracle Receivables updates this table when activity occurs against an invoice, debit memo, chargeback, credit memo, on-account credit, or receipt. Transaction classes determine if a transaction relates to either the RA_CUSTOMER_TRX_ALL table or the AR_CASH_RECEIPTS_ALL table. Using the CUSTOMER_TRX_ID foreign key column, the AR_PAYMENT_SCHEDULES_ALL table joins to the RA_CUSTOMER_TRX_ALL table for non-payment transaction entries, such as the creation of credit memos, debit memos, invoices, chargebacks, or deposits. Using the CASH_RECEIPT_ID foreign key column, the AR_PAYMENT_SCHEDULES_ALL table joins to the AR_CASH_RECEIPTS_ALL table for invoice-related payment transactions. AR_CASH_RECEIPTS_ALL, The AR_CASH_RECEIPTS_ALL table stores one record for each receipt that you enter. Oracle Receivables concurrently creates records in the AR_CASH_RECEIPT_HISTORY_ALL, AR_PAYMENT_SCHEDULES_ALL, and AR_RECEIVABLE_APPLICATIONS_ALL tables for invoice-related receipts. For receipts that are not related to invoices, such as miscellaneous receipts, Receivables creates records in the AR_MISC_CASH_DISTRIBUTIONS_ALL table instead of the AR_RECEIVABLE_APPLICATIONS_ALL table. AR_RECEIVABLE_APPLICATIONS_ALL, The AR_CASH_RECEIPTS_ALL table stores one record for each receipt that you enter. Oracle Receivables concurrently creates records in the AR_CASH_RECEIPT_HISTORY_ALL, AR_PAYMENT_SCHEDULES_ALL, and AR_RECEIVABLE_APPLICATIONS_ALL tables for invoice-related receipts. For receipts that are not related to invoices, such as miscellaneous receipts, Receivables creates records in the AR_MISC_CASH_DISTRIBUTIONS_ALL table instead of the AR_RECEIVABLE_APPLICATIONS_ALL table. Cash receipts proceed through the confirmation, remittance, and clearance steps. Each step creates rows in the AR_CASH_RECEIPT_HISTORY table. 25. What are the tables in which Accounts information is stored?
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Ans. RA_CUST_TRX_LINE_GL_DIST_ALL 26. What are the different statuses for Receipts? Ans. Unidentified Lack of Customer Information Unapplied Lack of Transaction/Invoice specific information (Ex- Invoice Number) Applied When all the required information is provided. On-Account, Non-Sufficient Funds, Stop Payment, and Reversed receipt. 27. What is Autolockbox? Ans. Auto lockbox is a service that commercial banks offer corporate customers to enable them to out source their account receivable payment processing. Auto lockbox can also be used to transfer receivables from previous accounting systems into current receivables. It eliminates manual data entry by automatically processing receipts that are sent directly to banks. It involves three steps Import (Formats data from bank file and populates the Interface Table), Validation(Validates the data and then Populates data into Interim Tables), Post Quick Cash(Applies Receipts and updates Balances in BaseTables). 28. What is Transmission Format? Ans. Transmission Format specifies how data in the lockbox bank file should be organized such that it can be successfully imported into receivables interface tables. Example, Default, Convert, Cross Currency are some of the standard formats provided by oracle. 29. What is Auto Invoice? Ans. Autoinvoice is a tool used to import and validate transaction data from other financial systems and create invoices, debit-memos, credit memos, and on account credits in Oracle receivables. Using Custom Feeder programs transaction data is imported into the autoinvoice interface tables. Autoinvoice interface program then selects data from interface tables and creates transactions in receivables (Populates receivable base tables) . Transactions with invalid information are rejected by receivables and are stored in RA_INTERFACE_ERRORS_ALL interface table. 30. What are the Mandatory Interface Tables in Auto Invoice? Ans. RA_INTERFACE_LINES_ALL, RA_INTERFACE_DISTRIBUTIONS_ALL RA_INTERFACE_SALESCREDITS_ALL. 31. What are the Set up required for Custom Conversion, Autolockbox and Auto Invoice? Ans. Autoinvoice program Needs AutoAccounting to be defined prior to its execution. 32. What is AutoAccounting? Ans. By defining AutoAccounting we specify how the receivables should determine the general ledger accounts for transactions manually entered or imported using Autoinvoice. Receivables automatically creates default accounts(Accounting Flex field values) for

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revenue, tax, freight, financial charge, unbilled receivable, and unearned revenue accounts using the AutoAccounting information. 33. What are Autocash rules? Ans. Autocash rules are used to determine how to apply the receipts to the customers outstanding debit items. Autocash Rule Sets are used to determine the sequence of Autocash rules that Post Quickcash uses to update the customers account balances. The default auto cash rule set can be specified in the System Option. 34. What are Grouping Rules? (Used by Autoinvoice) Ans. Grouping rules specify the attributes that must be identical for lines to appear on the same transaction. After the grouping rules are defined autoinvoice uses them to group revenues and credit transactions into invoices debit memos, and credit memos. 35. What are Line Ordering Rules? (Used by Autoinvoice) Ans. Line ordering rules are used to order transaction lines when grouping the transactions into invoices, debit memos and credit memos by autoinvoice program. For instance if transactions are being imported from oracle order management , and an invoice line ordering rule for sales_order_line is created then the invoice lists the lines in the same order of lines in sales order. 36. In which table you can see the amount due of a customer? Ans. AR_PAYMENT_SCHEDULES_ALL 37. How do you tie Credit Memo to the Invoice? Ans. At table level, In RA_CUSTOMER_TRX_ALL, If you entered a credit memo, the PREVIOUS_CUSTOMER_TRX_ID column stores the customer transaction ID of the invoice that you credited. In the case of on-account credits, which are not related to any invoice when the credits are created, the PREVIOUS_CUSTOMER_TRX_ID column is null. 38. What are Transaction types? Types of Transactions in AR? Ans. Types of transactions: Invoice transaction Deposit transaction Debit memo transaction Credit memo Transaction Charge back transaction Guarantee Transaction Invoice Transaction: Its a standard transaction where we raise the invoice by taking the parameters of profile class, payment terms and customer account details. Deposit Transaction: A supplier asks a customer to deposit some amount as surety. When he pays it then the deposit transaction will be raised. The advance amount paid is called as the deposit amount.

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Gurantee Transaction: When a third party is giving guarantee to a customer then it is called as guarantee transaction. The third party gives assurance of the amount whenever the customer fails to pay his credit then we raise the guarantee transaction. Debit memo transaction: A substitute for a invoice is the debit memo transaction. Suppose we have raised a transaction for 10000 instead of 15000. Instead of canceling it we raise a debit memo of 5000 and the balance becomes 15000. Credit memo transaction: When the customer is not liable to pay the amount which is included in the invoice then he will send a note of credit memo. Then the supplier raises a credit memo transaction to that. Charge back Transaction: It is raised to cancel the due amount in the customer account inorder to raise a new invoice along with the interest with the new credit period on request of customer. Sales tax: In a sales tax based system, receivables calculates the tax based on the address components of out sales tax structure(for ex state.country.city) Hierarchy of tax calculation: Customer site level Header Location Item Transferring the amount AR to GL. 39. What are the different workbenches available in AR? Ans. The works under AR are classified into 4 work benches 1. Transaction work bench These deals with the transactions such as invoices, collections, receipts etc. 2. Receipts work bench This tracks the receipts received from the customer manually or automatically. The customer requires a bank to pay the cheques and the supplier requires an internal bank account. 3. Bills receivable work bench 4. collection work bench. 40. What are the modules that are interfaced with Oracle Receivables? Ans. i.. General Ledger ii. Order Management iii. Fixed Asset iv. Inventory 41. What is an Application Rule set? Ans. Application rule sets specify the default payment steps for your receipt applications and how discounts affect the open balance for each type of associated charges. By defining your own application rule set, you can determine how Receivables reduces the balance due for a transactions line, tax, freight, and finance charges. Receivables provide the following application rules:

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Line First - Tax After: Apply to the open line item amount first. Apply any remaining amount in the following order: tax, freight, and then finance charges. Line First - Tax Prorate: Apply a proportionate amount to the open line item amount and the open tax amount for each line. Apply any remaining amount to freight and then to finance charges. Prorate All: Apply a proportionate amount to the line, tax, freight, and finance charges. 42. What are Transaction Sources? Ans. Receivables uses transaction sources to control the transaction and transaction batch numbering, provide default transaction types for transactions in batch, and to select validation options for imported transactions. Receivables provide the following predefined transaction sources: MANUALOTHER, DM Reversal, and Chargeback. 43. What are Adjustment Approval Limits? Where & why are they used? Ans. Approval limits, defined in the approval limits window are used for adjustments created in receivables and request for credit Memos initiated from I-Receivables. Receivables use transactions that have a document type of Adjustment when we create an adjustment in the Adjustments, Submit Auto Adjustments and Approve Adjustments windows. When you enter an adjustment that is outside the approval limit range, Receivables assigns the adjustment a status of pending until someone with the appropriate approval limits either approves or rejects it. 44. What are the pre-requisites for entering a standard invoice in Receivables? Ans. Transaction source and Transaction Type, Customer with Business purpose usage and payment terms should have been predefined. And the class should be selected as Invoice. 45. What are the types of tax methods in Receivables? Ans. (I) Location Based Tax (i.e.) Sales Tax (ii) VAT Tax 46. What are Receipt Classes and Receipt Sources? Ans. Receipt Class: It is to define the processing steps, payment method name, and remittance bank for processing the payments received from customers. Receipt Source: It will be used to enter receipts in batches for both manual and automatic receipts. It is a grouping of Receipt class, Payment method and Remittance bank account. 47. What are Accounting Rules and Invoicing Rules? Where it is used? Ans. Accounting rules is to create revenue recognition schedules for the invoices. Accounting rules determine the number of periods and Percentage of total revenue to record in each accounting period. It can be used with transactions that are imported into Receivables using Auto Invoice and with invoices that was created manually in the Transaction windows. If you want to credit an invoice that uses invoice and accounting rules to schedule revenue and billed receivable recognition, you can specify

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How you want to adjust this invoices revenue account assignments by choosing a Rules Method in the Credit Memos window. You can assign a default accounting rule to your items in the Master Item window (Invoicing tabbed region) and to your Standard Memo Lines in the Standard Memo Lines window. Attention: Invoicing and Accounting Rules are not applicable if you are using the Cash Basis method of accounting. If you use the Cash Basis method, Auto Invoice will reject any transaction lines that are associated with invoice or accounting rules. 48. What are the pre-requisites for entering a Manual receipt in AR? Ans. Invoices should have been defined against which the receipts will be applied and the payment method should be predefined and attached to the receipts. 49. What is a Receivable Activity? Ans. It is an activity specific to the organizational needs for Miscellaneous Receipts, Finance Charges, Bank Errors and Adjustment transactions . 50. What are Statement Cycles? How can you print a Statement for a customer? Ans. Statement cycles are to determine when to send statements to the customers. You assign these cycles to your customer and site level profiles. Receivables let you generate statements for all customers associated with a specific statement cycle. 51. What is taxable Basis available for a Tax Code? Ans. (I) Before Tax (ii) After Tax (iii) Prior Tax (iv) Quantity Based Tax. 52. What are the various Discount bases available for defining a payment term? Ans. Invoice Amount: Calculate the discount amount based on the sum of the tax, freight charges, and line amounts of your invoices. Lines Only: Calculate the discount amount based on only the line amounts of your invoices. Lines, Freight Items and Tax: Calculate the discount amount based on the amount of line items, freight, and tax of your invoices, but not freight and charges at the invoice header level. Lines and Tax, not Freight Items and Tax: Calculate the discount amount based on the line items and their tax amounts, but not the freight items and their tax lines, of your invoices. 53. What are Natural Application only and Allow over Application options in transaction types? Ans. Natural Application Only: Receivables does not allow the creation sign (Positive, Negative or any sign) of the transaction to be changed by virtue of receipt application or any other activity against the transaction. For Example : if the Receipt is $1500 against the Invoice value of $1000 then the Receivable allows only $1000 to be applied against the transaction and thus the balance is brought down to 0. Allow Over Application: Receivables will allow the transactions to be over applied. If the Receipt is $1500 against the Invoice value of $1000 then the receivables will allow the
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entire balance and the due for the transaction will become -$500. (i.e.) It will allow the creation sign to be violated. 54. What are Transmission Formats? What are the transmission formats provided by receivables? Ans. Transmission format window is used to define the transmission formats that auto lockbox uses when importing data into receivables. Transmission formats specify how data in the lockbox bank file is organized so that it can be successfully imported into the receivables interface tables. 1. Example (arxmpl.ctl): A format that contains an example of lockbox header information, several receipt records, and overflow receipt records 2. Default (ardefd.ctl): A standard BAI (Bank Administration Institute) format used by most banks. 3. Convert (arconv.ctl) : A standard format used for transferring payment information from other systems. 4. Cross Currency (arxcurr.ctl) : A default format used for importing cross currency receipts. 5. Zinging (arzeng.ctl): A format used to import bank files in the Japanese Zen gin format (Alternate Names Receipt Matching Window) 55. What are various Business Purpose Usages given by receivables, which can be assigned to a customer? Ans. Ship-to, Bill-to, Statement, Dunning, Legal, Marketing Etc. are the various Business purpose Usages given by Receivables. The Bill-to site is mandatory for customers. Others are Optional. 56. What are Customer Profile Classes? Ans. The Customers are categorized in terms of their credit worthiness, credit limits offered to them, payment terms, finance charges percentage etc. This process of setting the profile parameters for each category of customers is referred to as the profile class. 57. What are the Customer Interface Tables provided in AR? Ans. RA_CUSTOMER_INTERFACE. RA_CUSTOMER_PROFILES_INTERFACE. RA_CUSTOMER_BANKS_INTERFACE. RA_CUST_PAY_METHOD_INTERFACE. RA_CONTACT_PHONES_INTERFACE 58. What are Standard Memo Lines? Ans. Memo lines are used to increase the customer balance which could be due to omission of tax, freight, charges, and consultation charges. 59. What is the Transaction Process of invoices with Rules? Ans. Invoicing rules let you determine when to recognize your receivable for invoices that span more than one accounting period. You can assign invoicing rules to invoices

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that you manually enter or import into Receivables through Auto Invoice. Receivables provide the following invoicing rules: Bill in Advance: Use this rule to recognize your receivable immediately. Bill in Arrears: Use this rule to recognize the receivable at the end of the revenue recognition schedule. Once rules have been associated with an invoice, Receivables creates the revenue distributions for the invoice when you run the Revenue Recognition program for the period in which the rules fall. 60. What is the difference between Deposit and Guarantee Transactions? Ans. Deposit: It is the pre-payments made by a customer that should be adjusted against the future debit transactions that are raised with respect to these pre-payments. Guarantee: It is a documentation of the promise made by the customer to obtain the goods from the organization. This promise is documented as a guarantee. The customer does not make payment for the guarantee. 61. What are methods of creating batch receipts? Ans. There are three methods of creating batch receipts: 1. Manual Entry 2. Manual Quick 3. Automatic. 62. What are Standard and Factoring Methods of Remittance? Ans. Standard remittance: The supplier remits the bills of exchange to the bank for collection and the same will be collected on the maturity date of the note. Factored remittance: It means discounting the bills of exchange with the bank before the maturity date. The onus of collection could be with recourse or without recourse. 63. What are Standard Remittances and Bills Receivable Remittances? Ans. Standard remittance is remitting the cheque/dd to the bank for collection. Bills Receivable remittances means remitting the Bills Receivable to the bank for collection on maturity date. 64. What are the various statuses for a receipt? Ans. Approved: This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts. Confirmed : For manually entered receipts, this status indicates the receipt belongs to a receipt class that requires remittance. For automatic receipts, this status indicates the receipt has been confirmed. Remitted : This receipt has been remitted. This status is valid for both automatic and manually entered receipts. Cleared : The payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts. Reversed : This receipt has been reversed. You can reverse a receipt when your customer stops payment on a receipt, if a receipt comes
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from an account with nonsufficient funds or if you want to reenter and reapply it in Receivables. You can reverse cash receipts and miscellaneous receipts. 65. What are chargebacks and adjustments? How to create them? Ans. Chargeback is postponing of payment date. It can be done only in the receipts workbench. In this process the old invoice is cancelled and a new transaction is created for the postponed date. 66. What are Standard Reversal and Debit memo Reversal in receipts? Ans. Standard Reversal: When you create this type of reversal, Receivables automatically creates reversal journal entries for your general ledger and reopens all of the debit and credit items that were closed with the original receipt. You can create a standard reversal for a transaction related to a chargeback if there is no activity against the chargeback and the chargeback has not been posted to the general ledger. If the chargeback has been posted to the general ledger, you must create a debit memo reversal (see below). If you create a standard reversal for a receipt that you have applied, Receivables reverses any adjustments or chargebacks that you created, as long as you have not posted these adjustments to your general ledger. Debit Memo Reversal: When you create this type of reversal, Receivables does not update any of the receipt activity associated with the original receipt. The new debit memo reversal is actually a new receivable that replaces the item closed by the original receipt. Receivables require that you create a debit memo reversal if: You are reversing a receipt that you previously applied to a chargeback and this chargeback has had any activity against it (for example, another receipt, credit memo, or adjustment), or the chargeback or adjustment was posted to your general ledger When you create a debit memo for a receipt reversal, Receivables creates a line on your debit memo that displays the original receipt number associated with the debit memo. In addition, when you save your reversal, Receivables assigns a unique transaction number to your new debit memo. Attention: You cannot create a debit memo reversal for a miscellaneous (noninvoice related) receipt. 67. What are Cross Currency Receipts? How do you create them? Ans. When your customer remits payment for an invoice, debit memo, or chargeback, the receipt is usually in the same currency as the transaction. However, there may be times when your customer remits payment in a currency that is different than the currency of the open debit item. For these occasions, Receivables lets you create cross currency receipt applications to let you fully or partially process the payment. For example, you create Invoice 101 in Canadian dollars (CAD) but your customer sends a receipt in Deutsche marks (DEM) as payment. Using the remittance information provided by your customer, you can either fully or partially apply this receipt to Invoice 101. Receivables automatically calculate the open balance on the invoice (if any) and the foreign exchange gain or loss (FXGL) for this application.

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You can apply receipts to transactions using any currency defined in Oracle General Ledger.

68. What are the setups related to Automatic Receipts? Ans. Receivables automatic receipts feature to automatically generate receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time by transferring funds from the customers bank account to yours on the receipt maturity date. You can also manage your cash flow by deciding when, where, and how much you should remit to your bank. Creating automatic receipts involves three steps: Create: Select the invoices to include in your automatic receipts. Approve: Update, delete, and approve the receipts that you have selected. Format: Format your automatic receipts onto paper to send to your customer for confirmation or notification before remitting them to your bank on either paper or magnetic media. This step is optional, as it depends upon the type of automatic receipt you create. 69. What are the clearance methods in Receivables and how are they used? Ans. Directly: Choose this method if you do not expect the receipts to be remitted to the bank and subsequently cleared. These receipts will be assumed to be cleared at the time of receipt entry and will require no further processing. Choosing this method is the same as setting Require Bank Clearance to No in previous releases of Receivables. By Automatic Clearing: Choose this method to clear receipts using the Automatic Clearing program. By Matching: Choose this method if you want to clear your receipts manually in Oracle Cash Management.

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