Oracle Apps Interview Questions

Q) What is the difference between Financial and Payables Options in Account Payables?
Ans) Financial Option works for purchasing, AP and FA modules, where as payable option works for payables only.

Q) What is Pay on receipt?
Ans)This is a feature in AP to PO Cycle. We have to enable this option to generate invoices automatically when you receive the goods.

Q) What is Hold ? Explain types of Holds?
Ans) Hold is to prevent invoices from payment.
There are 3 types of Holds

1) Invoice Hod- You can manually apply one or more holds on invoice name by using the invoice hold tab on invoice workbench.
2) Schedule Payment Hold - You can hold payment on invoices by placing holds on one or more schedule payment.
3) Supplier Hold - In supplier site you can put holds
a) Hold all invoices b) Hold unmatched invoices c) Invoice amount limit- If invoice amount exceeds the limit specified.

Q)What is the difference between debit memo and Credit memo in Oracle Payables.
Ans) In Oracle Payables the functionality of the debit memo and credit memo is same. Since both are reduces the supplier balances.
Only difference is debit memo generates customer and sends to the supplier where as credit memo sends supplier to customer.

Q) What is the difference between a direct loan and extended repayment schedule loan(ERS)?
Ans) A direct loan is direct payment to customer handled through a check being sent from account payable. The resulting bills from this loan create new invoice in Account Receivable(AR).

Eg- Customer A requests a $10000 loan from you. You create the direct loan in Oracle Loans and send the customer checks for $10000 through Account Payable. The instalments to pay the loan will be created as invoices in Account receivables when they are due.

Extended Repayment Schedule(ERS) Loan
An ERS loan is covering an existing invoice in Accounts Receivable to a loan. No funding is required for this type of loan.

Eg- Customer B has an outstanding invoice in AR for $5000. They inform you that they will have trouble making payment on this invoice so you agree to convert it to a loan and charge them interest over a period of time. When creating loan in Oracle Loans, you select the Extended Repayment Schedule type and this will allow you to select any invoice from AR.

Once the loan is created, the adjustment API will adjust the original invoice in AR down to $O. The loan will then be billed out in installments according to your loan setup. So the original $5000 will be billed out in several invoices overtime in AR and be charged interest.