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Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure - Commercial Department The following steps invovle to prcure any item
1. Received Requsition from concern Department
Description
A) Po creation
DR
No Entry
CR
No Entry
Material Receiving
Ap
C) While Inspection
No Entry
No Entry
Material
Ap Accurval
Liability
Liability
Cash
H) Ofter Reconciliation
Cash Clearing
Cash
I) Final Entry
Cash
Payables will use it for every invoice you enter for that supplier site.
If you do not assign a default Distribution Set to a supplier site, you
can always assign a Distribution Set to an invoice when you enter it.
Use Full Distribution Sets to create distributions with set percentage
amounts, or use Skeleton Distribution Sets to create distributions
with no set distribution amounts. For example, a Full Distribution
Set for a rent invoice assigns 70% of the invoice amount to the Sales
facility expense account and 30% to the Administration facility
expense account. A Skeleton Distribution Set for the same invoice
would create one distribution for the Sales facility expense account
and one distribution for the Administration facility expense account,
leaving the amounts zero. You could then enter amounts during
invoice entry depending on variables such as that month's headcount
for each group.
7)What is the meaning of GRN?
Ans) GOODS RECEIPT NOTE MEANS IT PROVES THAT
MATERIAL IS DELIVERED AT STORES DEPARTMENT. GRN
IS THE BASE DOCUMENT AND IMPORTANT DOCUMENTS
FOR PROOF OF RECEIPT OF MATERIAL AT WARE
HOUSE.THIS CAN BE PREPARED BY STORES DEPARTMENT
AND APPROVED BY PLANT HEAD. GRN CONTAINS
ORDERED QTY,RECEIVED QTY AND ACCEPTED QTY. BILL
WILL BE PASSED BASED THE GRN NOTE. ONCE THE GRN
IS PREPARED AUTOMATICALLY INVENTORY WILL BE
UPDATED AND ACCORDINGLY PAYMENT WILL BE
RELEASED TO THE VENDOR.
GRN contains the following details.
1.Ordered quantity .
2.Received Quantity.
ThebasetablesinAPareasfollows:
1)ap_invoices_all
2)ap_invoice_payments_all
3)ap_invoice_distibutions_All
4)ap_payment_schdules
5)ap_payment_dustributions_all
6)ap_checks_all
7)ap_accounting_events_all
8)ap_bank_accounts_all
9)ap_bank_accounts_uses_all
10) WhatistheprocessofcreatinganInvoicesandtransferringittoGL?
Ans)
1.createbatch
2.createinvoice
3.createdistribution
4.validatetheinvoice
5.actionsapprove
6.ifindividualcreateaccountingclickok
7.Ifbatchgotobatchcreateaccounting.
8.CreateaccountinghitsPayableAccounting(Transfer)??Programwhichwillcreateaccounting.
9.RunTransfertoGLConcurrentProgram
10.JournalImport
11.Postjournals
12.Hitsbalances.
11)HowdouTransferfromAPtoGL?
Ans)PayablestransfertoGLprogramisusedtotransferfromAPtoGL.
12)HowmanytypesofinvoicesarethereinAP.
Ans)
1.Standaradinvoice
2.DebitMemo
3.CreditMemo
4.MixedInvoice
5.RetainageInvoice
6.Transportationinvoice
7.Prepaymentinvoice
8.ExpensesReportInvoice
9.PaymentRequestInvoice
10.Podefault
13)Howmanytypesofpurchaseordertypes/agreementsarethere?
A)StandardPurchaseOrder:Yougenerallycreatestandardpurchaseordersforonetime
purchaseofvariousitems.Youcreatestandardpurchaseorderswhenyouknowthedetailsofthe
goodsorservicesyourequire,estimatedcosts,quantities,deliveryschedules,andaccounting
distributions.Ifyouuseencumbranceaccounting,thepurchaseordermaybeencumberedsince
therequiredinformationisknown
B)PlannedPO:Aplannedpurchaseorderisalongtermagreementcommittingtobuyit
itemsorservicesfromasinglesource.Youmustspecifytentativedeliveryschedulesandall
detailsforgoodsorservicesthatyouwanttobuy,includingchargeaccount,quantitiesand
estimatedcost.
EX:BuyinggoodsforChristmasfromaspecificdealer.
C)ContractPO:Youcreatecontractpurchaseagreementwithyoursuppliertoagreeon
specifictermsandconditionswithoutindicatingthegoodsandservicesthatyouwillbe
purchasingi.e.for$amountyoumustsupplythismuchquantity.Youcanlaterissuestandard
POreferencingyourcontractsandyoucanencumberthesepurchaseordersifyouuse
encumbranceaccounting.
D)BlanketPO:Youcreateblanketpurchaseagreementswhenyouknowthedetailofgoodsor
servicesyouplantobuyfromaspecificsupplierinaperiod,butyoudonotyetknowthedetail
ofyourdeliveryschedules.Youcanuseblanketpurchaseagreementstospecifynegotiated
pricesforyouritemsbeforeactuallypurchasingthem.
ABlanketPurchaseAgreementisasortofcontractbetweentheyouandursupplieraboutthe
priceatwhichyouwillpurchasetheitemsfromthesupplierinfuture.Hereyouenterthepriceof
theitemnotthequantityoftheitems.Whenyoucreatethereleaseyouenterthequantityofthe
items.Thepriceisnotupdatableintherelease.Thequantity*pricemakestheReleased
Amount.Nowsupposeyourcontractwithyoursupplierissuchthatyoucanonlypurchasethe
itemsworthafixedamountagainstthecontract.
14.Payment
Method:
Check
Electronic
wire
Clearing
Check:
You can pay with a manual payment, a Quick payment, or in a
payment batch.
Electornic:
Electronic An electronic funds transfer to the bank of a supplier.You
create electronic payments either through the e- Commerce
Gateway, or by delivering a payment batch file to your bank. For
both methods, Payables creates a file during payment batch creation.
If you are using the e-Commerce Gateway to create the file of
payments, an EDI translator is required to create the EDI Formatted
file prior to delivering it to your bank.For electronic funds transfers,
the file is formatted and delivered to your ap.out directory for
delivery to your bank.
Wire:
SET UP:
1)we have to create one special calendar
2)we have to create one full distribution set
Procure to pay (p2p) is a process of requesting, purchasing, receiving, paying for and accounting
for goods and services. Procure to Pay Lifecycle is one of the important business Process in
Oracle Applications. Its the flow that gets the goods required to do business. It involves the
transactional flow of data that is sent to a supplier as well as the data that surrounds the
fulfillment of the actual order and payment for the product or service.
Create a requisition>> create RFQ>> create a quotation from quote analysis>> generate a
PO>>receipt of material>> create Invoice in payables>> transfer to GL
Can we automatically Close the Purchase order without receiving the full quantity?
The Receipt Close Tolerance lets you specify a quantity percentage within which Purchasing
closes a partially received shipment. For example, if your Receipt Close Tolerance is 5% and you
receive 96% of an expected shipment, Purchasing automatically closes this shipment for
receiving.
When does a Purchase Order line get the Status Closed for Receiving?
Goods have been received on the system against this line but an invoice has not been
matched to the order.
Can we match an Invoice against a line even when it is Closed for Invoicing?
The Close for invoicing status does not prevent you from matching an invoice to a purchase
order or to a receipt.
What is Invoice Validation Process?
Before you can pay or create accounting entries for any invoice, the Invoice Validation process
must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and distribution
information for invoices you enter and automatically applies holds to exception invoices. If an
invoice has a hold, you can release the hold by correcting the exception that caused Invoice
Validation to apply the hold by updating the invoice or the purchase order, or changing the
invoice tolerances.
A prepayment is a type of invoice you enter to make an advance payment. We can adjust
prepayment against standard invoice in future.
It can use the Payables Open Interface Import program to create Payables invoices from
invoice data in the Payables Open Interface Tables
example: AGIS Transactions are coming to payables through Payables Open Interface Tables
Payable open interface import? (Expense Report Import)?
Use Payables Open Interface Import to import invoices from the Payables Open Interface
Tables.
What is Multi Currency payments?
Multi currency is possible but we have to set up at the time of Bank Creation.
Can we implement MRC at Payables?
Yes, but we have to enable multiple currency option at payable options
What does the Unaccounted Transaction Sweep Report do?
It will sweep the transaction to next period.
What reports should I run before closing the period?
Period close exception report, Unposted transaction
What is the program to transfer data from AP to GL?
Transfer Journal Entries to GL (Parameter-Ledger ,End date)
What is meant by void payments?
When you void a payment, Payables automatically reverses the accounting and payment
records so your general ledger will have the correct information, and so the status of the paid
invoices is reset to Unpaid. Payables also reverses any realized gains or losses on foreign
currency invoices recorded as paid by the payment
What are the types of journal categories available in the AP?
Payable
What is meant by matching and what are the types of matchings available?
2 way-Invoice and PO, 3 way-Invoice,PO and Receipt and 4 way-Invoice,PO,Receipt and
Inspection
What is a Hold and Release? Types of hold?
Hold means restriction in invoice for further processing.User can define any kind of holds to
hold the invoice for further processing.
Type:-Manual and System hold
How to approve n no. of invoices?
You can be Approved n number of invoices using the Request "Invoice Validation"
Optionally change the invoice currency, which is your functional currency unless you have a
supplier site default. If you enter a foreign currency, enter exchange rate information when you
create invoices based on the template.
10. What are the prerequisites for auto creation of Debit Memo of RTS
transactions?
Check the check box Create Debit memo for RTS transactions under purchasing Tab page in
Supplier site. And in purchase module in Returns Form Check the Check Box Create debit
memo.
The functionality of Debit Memo is same as Credit Memo. Both are to reduce the liability.
The purpose of Debit Memos is to record a credit for a supplier who does not send you a
credit memo.
Unlike in AR, both Credit memo and Debit memo are with negative signs in Payables.
5. Prepayment: Prepayments are the invoices raised to record advance payments to a
supplier or employee.
6. Expense Reports: Expense reports are the invoices that represent amount due to an
employee for all his business related expenses.
7. Retainage Release Invoices: Retainage release is the act of releasing, or paying, that
portion of a payment that was withheld until a substantial portion or all of the service
procurement work is completed. The amounts retained during the life of the contract must
be released and paid to the supplier or sub-contractor once all or a substantial portion of the
work is completed.
Oracle Payables uses the Retainage Release Request to create a type of invoice called
Retainage Release. A retainage release invoice has lines, which are copied from the
original standard progress invoices, which show an amount left to be released.
Retainage release invoices can only be entered manually in the Invoice Workbench
window.
8. Withholding Tax: After you apply withholding tax to an invoice, you can optionally
create invoices to remit withheld tax to the tax authority.
Payables can automatically create withholding tax invoices, or you can perform this
task manually. If you choose to automatically create withholding tax invoices, you must
choose whether to do this during Invoice Validation or during payment processing.
9. PO Price Adjustment Invoices: PO Price Adjustment Invoices are used for recording
the difference in price between the original invoice and the new purchase order price.
For example, If a supplier sends an invoice for a change in unit price for an invoice you
have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the
invoiced unit price of previously matched purchase order shipments or distributions without
adjusting the quantity billed.
PO price adjustment invoices can be matched to both purchase orders and invoices.
10. Quick invoices: Used for quick, high-volume invoice entry for invoices that do not
require extensive validation and defaults. After entry, you import these into the Payables
system. Validation and defaulting occur during import
When we enter transactions in Purchasing, the accounting entries will get generated with
respect to the following accounts.
1. When Creating a receipt:
Inventory Receiving A/C DR
Accrual Account CR
2. At the time of Receiving transactions:
Asset clearing A/c or Inventory valuation a/c DR
Inventory Receiving A/c CR
3. When a Payables invoice matched with PO:
Accrual A/C DR
Liability A/c
4. when asset addition done:
Asset A/c DR
Asset Clearing A/c CR(Asset item)
(OR)
expense a/c DR
inventory Valuation A/C(Inventory item)
When we enter transactions in Payables, the accounting entries will get generated with
respect to the following accounts.
1. Invoice: When we create accounting for an invoice, the accounting will be generated with
respect to the following accounts.
Item Expense A/C
Liability A/C
DR
CR
2. Payment: There are two stages in which the accounting may generate, based on the
accounting option that we setup in Payables.
> Direct Pay-No Clearance: In this stage, there will be no clearance process separately and
the cash account will get credited directly.
Liability A/C
Cash A/C
DR
CR
> Pay and Clear: In this stage, the payment and clearance process will have separate
accounting entries.
At the time of Payment:
Liability A/C
Cash Clearing A/C
DR
CR
DR
Cash A/C
CR
When we enter transactions in Receivables, the accounting entries will get generated with
respect to the following accounts.
1. Accounting for invoice:
Receivables A/C DR
Revenue Account Cr
2. Credit memo:
Revenue Dr
Receivables A/C CR
3. Receipts:
Cash A/C DR
Receivables A/c CR
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3) Can you give a sample Process Flow for Procure to Pay Cycle?
Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure - Commercial Department The following steps invovle to prcure any item
1. Received Requsition from concern Department
2. Request for Quotation from Suppliers at least three
3. Finalize the best Quotation by keeping in mind about our companies standard
4. Check the Budget for the same
5. Negociate with supplier for more economic pricing and finalize the payment
terms
6. Process the PO and forward to the supplier to supply the goods and services
Pay Cycle - Finance Department
The following steps need to be fulfil
1. Invoice should be match with PO
2. Invoice should has all the supporting documents such as PO copy,Delivery note
duly signed by reciever (our staff who authorized to received goods / store keeper)
3. If the invoice is for services then it should be forwarded to the concern
department head or project manager for his confirmation of work done and his
approval
4. Even if it not the services invoice, it should forwarded to the concern person's
approval who request the PO for the same
5. Finance can reject the invoice if it is not budgeted and ask for the reasons.
6. After receiving all the confirmation and approvals from the concern department
heads the invoice will be update in to the accounting system first in order to avoid
any duplication of Invoice and PO (it shown on accounting package if the invoice is
duplicate if not, altelast it tells you if the PO already used or cancel)
7. Finance approved the invoice and process the payment base on payment terms
with the supplier.
Description
DR
CR
A) Po creation
No Entry
No Entry
Material Receiving
C) While Inspection
Entry
No
No Entry
Varience
Ap Accurval
H) Ofter Reconciliation
Clearing
Cash
I) Final Entry
Material
Cash
Inv Org
Cash
Interface table: is the table where the data gets validated before
data get posted to the base tables. There are many interfaces which
are seeded with Oracle. You can consider as the entry point of the
data, and the interface checks the sanity of data.
Base tables: As told earlier once the data is validated will get
updated in the base tables, and is considered as the data which is in
the base table is accurate and used in many ways. (Reporting..etc..)
ThebasetablesinAPareasfollows:
1)ap_invoices_all
2)ap_invoice_payments_all
3)ap_invoice_distibutions_All
4)ap_payment_schdules
5)ap_payment_dustributions_all
6)ap_checks_all
7)ap_accounting_events_all
8)ap_bank_accounts_all
9)ap_bank_accounts_uses_all
10) WhatistheprocessofcreatinganInvoicesandtransferringittoGL?
Ans)
1.createbatch
2.createinvoice
3.createdistribution
4.validatetheinvoice
5.actionsapprove
6.ifindividualcreateaccountingclickok
7.Ifbatchgotobatchcreateaccounting.
8.CreateaccountinghitsPayableAccounting(Transfer)??Programwhichwillcreateaccounting.
9.RunTransfertoGLConcurrentProgram
10.JournalImport
11.Postjournals
12.Hitsbalances.
11)HowdouTransferfromAPtoGL?
Ans)PayablestransfertoGLprogramisusedtotransferfromAPtoGL.
12)HowmanytypesofinvoicesarethereinAP.
Ans)
1.Standaradinvoice
2.DebitMemo
3.CreditMemo
4.MixedInvoice
5.RetainageInvoice
6.Transportationinvoice
7.Prepaymentinvoice
8.ExpensesReportInvoice
9.PaymentRequestInvoice
10.Podefault
13)Howmanytypesofpurchaseordertypes/agreementsarethere?
A)StandardPurchaseOrder:Yougenerallycreatestandardpurchaseordersforonetimepurchaseof
variousitems.Youcreatestandardpurchaseorderswhenyouknowthedetailsofthegoodsorservices
yourequire,estimatedcosts,quantities,deliveryschedules,andaccountingdistributions.Ifyouuse
encumbranceaccounting,thepurchaseordermaybeencumberedsincetherequiredinformationisknown
B)PlannedPO:Aplannedpurchaseorderisalongtermagreementcommittingtobuyit
itemsorservicesfromasinglesource.Youmustspecifytentativedeliveryschedulesandalldetailsfor
goodsorservicesthatyouwanttobuy,includingchargeaccount,quantitiesandestimatedcost.
EX:BuyinggoodsforChristmasfromaspecificdealer.
C)ContractPO:Youcreatecontractpurchaseagreementwithyoursuppliertoagreeonspecificterms
andconditionswithoutindicatingthegoodsandservicesthatyouwillbepurchasingi.e.for$amountyou
mustsupplythismuchquantity.YoucanlaterissuestandardPOreferencingyourcontractsandyoucan
encumberthesepurchaseordersifyouuseencumbranceaccounting.
D)BlanketPO:Youcreateblanketpurchaseagreementswhenyouknowthedetailofgoodsorservices
youplantobuyfromaspecificsupplierinaperiod,butyoudonotyetknowthedetailofyourdelivery
schedules.Youcanuseblanketpurchaseagreementstospecifynegotiatedpricesforyouritemsbefore
actuallypurchasingthem.
ABlanketPurchaseAgreementisasortofcontractbetweentheyouandursupplieraboutthepriceat
whichyouwillpurchasetheitemsfromthesupplierinfuture.Hereyouenterthepriceoftheitemnotthe
quantityoftheitems.Whenyoucreatethereleaseyouenterthequantityoftheitems.Thepriceisnot
updatableintherelease.Thequantity*pricemakestheReleasedAmount.Nowsupposeyourcontract
withyoursupplierissuchthatyoucanonlypurchasetheitemsworthafixedamountagainstthe
contract.
14.Payment
Method:
Check
Electronic
wire
Clearing
Check:
You can pay with a manual payment, a Quick payment, or in a
payment batch.
Electornic:
Electronic An electronic funds transfer to the bank of a supplier.You
create electronic payments either through the e- Commerce
Gateway, or by delivering a payment batch file to your bank. For
both methods, Payables creates a file during payment batch
creation. If you are using the e-Commerce Gateway to create the file
of payments, an EDI translator is required to create the EDI
Formatted file prior to delivering it to your bank.For electronic funds
transfers, the file is formatted and delivered to your ap.out directory
for delivery to your bank.
Wire:
Wire Funds transfer initiated be contacting the bank and requesting
wire payment to the bank of a suplier.A payment method where you
pay invoices outside of Payables by notifying your bank that you
want to debit your account and credit your suppliers account with
appropriate funds. You provide your bank with your suppliers bank
information, and your bank sends you confirmation of your
transaction. Your suppliers bank sends your supplier confirmation of
the payment. You then record the transaction manually.
Clearing:
Clearing Payment for invoices transferred from another entity within
the company without creating a payment document.Payment
method you use to account for intercompany expenses when you do
not actually disburse funds through banks. You do not generate a
payment document with the Clearing payment method. When you
enter the invoice, you enter Clearing for the payment method.You
can record a Clearing payment using a Manual type payment only.
Ans) some times suppliers would not be sending any invoices. but still
the payment have to made to home: rent, lease rentals. in this situation we have to
create invoice every period wise. For that purpose we have to create one
recurringinvoice template. Template means with one master copy creating the
multiple invoices is called template. Here we are creating the one invoice master
copy is formally known as recurring invoice or recurring invoice template.
SET UP:
1)we have to create one special calendar
2)we have to create one full distribution set
3)we have to enter payment terms in the recurring invoice window
4)enter the template no, first invoice amount, special invoice amounts
The second option is to describe a personal or professional weakness that could also be
considered to be strength and the steps you have taken to combat it. An example would be: I
know my team think Im too demanding at times I tend to drive them pretty hard but Im
getting much better at using the carrot and not the stick.
Why do you want to leave your current employer?
A: in response to this HR interview question state how you are looking for a new challenge,
more responsibility, experience and a change of environment. Do not be negative in your reasons
for leaving. It is rarely appropriate to cite salary as your primary motivator.
Why have you applied for this particular job?
A: Through this HR interview question the employer is looking for evidence that the job suits
you, fits in with your general aptitudes, coincides with your long-term goals and involves doing
things you enjoy. Make sure you have a good understanding of the role and the organisation and
describe the attributes of the organisation that interest you most.