Real Time Interview Question with Answer for O2C Flow

Real Time Interview Question for O2C Flow 

Question	Answer
What are the issue for NOT routing Auto invoice Master Program?	1. The document sequencing feature is enabled, but no 'Automatic' document sequence exists within Oracle Receivables for this document category and date. 2.Invalid sales credit type name (SALES_CREDIT_TYPE_NAME) 3.Invalid salesrep number (SALESREP_NUMBER) 4.Invalid bill to customer reference (ORIG_SYSTEM_BILL_CUSTOMER_REF) 5.Invalid transaction type name (CUST_TRX_TYPE_NAME) 6.The Bill To address reference must exist in Oracle Receivables, and it must be assigned to the Bill To customer You must supply  7.payment terms for your non-credit transaction 8.The Bill To address id must exist in Oracle Receivables, and it must be assigned to the Bill To customer 9.Please supply both an invoicing rule and an accounting rule for this invoice. 10. You must supply an invoice number when your batch source indicates manual invoice numbering; otherwise you must leave invoice number blank 11.Invalid Warehouse ID (WAREHOUSE_ID) 12.Unable to derive a gl date for your transaction.  Please ensure that your transaction is in a gl period which you have defined 13.The total amount of your credit memo cannot exceed the balance of the debit item it is crediting 14.You can not apply more than the original line amount 15.You cannot apply a transaction with a negative amount to another transaction with a negative balance and vice versa
What are the Major tables in AR?	RA_CUSTOMER_TRX_ALL , RA_CUSTOMER_TRX_LINES_ALL, RA_CUST_TRX_LINE_GL_DIST_ALL , AR_PAYMENT_SCHEDULES_ALL
What is mean by Transaction Source & Receipt Source?	Transaction source-Automatic or manual, It provides transaction and batch Auto numbering Receipt Source-Automatic or Manual, Provides auto numbering through receipt class
What is Auto accounting?	The Accounts in receivables picked from auto accounting. It will decide from where the account has to pick whether From customer site, Transaction type, Memo line or Salesperson.
Entry in Receivables?	Receivable Ac Dr                                 Cash / Bank Ac Dr To Revenue Ac Cr                               To Receivables Ac Cr
When exactly revenue is recognized at O2C flow?	When you ship confirm one or more order lines in Oracle Order Management and then run the applicable Cost Management cost and accounting processes, the cost of goods sold associated with the sales order line is immediately debited to a Deferred COGS account pending the invoicing and recognition of the sales order revenue in Oracle Receivables. When Oracle Receivables recognizes all or part of the sales revenue associated with a sales order line, you run a cost process that calculates the percentage of total billed revenue recognized. Oracle Inventory then creates a cost recognition transaction that adjusts the Deferred COGS and regular COGS amount for the order line. The proportion of total shipment cost that is recognized as COGS will always match the proportion of total billable quantity that is recognized as revenue. Cuncurrent we have to run for revenue recognition:-Record Order Management Transactions,Collect Revenue Recognition Information,Generate COGS Recognition Events   Refer More http://www.anilrpatil.com/oracle/Revenue_Recognition_1.htm
How revenue recognition linked AR to Order management?	While we are defining Order transaction type->Finance Tab we have to assign Accounting rule and Invoicing rule
What are Deferred COGS and COGS?	The value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account
What is Aging Bucket?	Ageing report  for debtor whether 4 bucket,7 bucket
AR Transaction Type what are all available in LOV?	Invoice, Debit Memo,Credit Memo,Deposit,Bills receivable,Chargeback,Guarantee
What are the checkbox available in Transaction Type?	Allow open receivable,Post to GL,Allow overapplication,default tax classification,Allow frieght
Scenario which affect the customer balance not to GL?	Discount / offer / Sample
What are the receivable activities?	Earned/Unearned discount,Refund,TDS receivable
What is Auto lockbox?	Lockbox is a tool service offered by banks to companies in which the company receives payments from their customers. The Bank informs the company of all the payments received normally sends a Flat file which has all the information of customer payments.
Auto lockbox Setups?	Internal Bank AC in Receivable,,Receipt Clause,Receipt Method,Receipt source,Lockbox (Lockbox number),Lockbox Transmission format,Auto cash rule
How Auto lockbox functions in Oracle?	Its functions through the auto cash rule that post program to apply the receipt aount to customer account open items.In transition format importing the data from lock box file to receivalce through control file in to the interface.
What are the events for close the AR period?	Incomplete,Unaccounted,Not posted to GL
What is AP & AR netting?	Net for payable and receivable transaction for a same supplier and customer
Can we sweep AR incomplete transaction to close the period?	No,Sweep option is not available in AR ,It’s at AP level
Can U Merge the Customers?	Yes we can merge.
What is Accounting Rules?	Determines the period in which the revenue is to be recognized. We can create Fixed and Variable.
What is Invoicing Rules?	Determines when to bill the customers in relation to Accounting Rule period.Two types are Billing in Advance and Billing in Arrears.
Can we apply accounting rule without opening AR and GL period?	NO
Accounting for  Billing in Arrears	Receivables Ac       Dr xx          1000 To Unbilled Receivables    xx        750  (Invoice rule – in Arrear) To Revenue    xx                        250  (Accounting Rule-4 Monthly)
Accounting for Billing in Advance	Receivables  Ac     Dr xx          1000 To Unearned Revenue    xx        750  (Invoice rule – in advance) To Revenue    xx                        250  (Accounting Rule-4 Monthly)
What is Deferred Revenue or Unearned Revenue?	Deferred Revenue is Unearned Revenue actually a liability for the company. (The company is liable to provide the goods or services for which cash is received or will be received in advance). As and when the goods or services are delivered, the Deferred Revenue is reduced (debited) and revenue is recognized.
What is the use of System Options - Allow Invoice Deletion?	It will allow us to delete the transaction at any point of time.
What is the use of System Options - Allow Payment of Unrelated Transactions?	To allow receipt applications to debit items of unrelated customers, check the Allow Payment of Unrelated Invoices check box. If you check this check box, Receivables lets you select debit items for unrelated customers and apply your receipts to them in the Applications window.AP/AR Netting is possible for this.
What is the use of System Options - Allow change to printed  Transactions?	To allow changes to be made to transactions that have already been printed, check the Allow Change to Printed Transactions check box. This option also determines whether you can update a customer's address when printed, posted, or applied transactions are assigned to that address.
What is the use of System Options - Create Reciprocal Customers?	To automatically create a reciprocal relationship between two customers when you are defining customer relationships, check the Create Reciprocal Customer check box. A reciprocal relationship is one in which related customers can apply payments to each other’s invoices.
What is the use of System Options – Purge Interface tables?	To purge the Auto Invoice Interface tables, check the Purge Interface Tables check box. If you check this check box, Receivables only deletes the records that have successfully transferred into permanent Receivables tables. If you check this check box, you will not have to run the Auto Invoice Purge program after running Auto Invoice
Grouping Rule.--system option we have to attach mandatorily, why?	Enter the default Grouping Rule Name you want Auto Invoice to use. Auto Invoice uses grouping rules to group revenue and credit transactions into invoices, debit memos, and credit memos.
What is the use of Line ordering Rule?	We will attach this to grouping rule
What is the use of Realized Gain / loss - get impacted?	At the time currency fluctuation, the difference amount will impact this account
Overdue Interest - create one invoice	Late charge
How Cancelling an Invoice?	1.Remove at transaction type -open receivable and post to GL and use this transaction type in transaction and complete 2. In the transaction line add one more line with -ve amount and complete the transaction.accounting effect is null.
on account	Unapplied and on account is same but if we will do on-account ,it will hit the customer balance.
Unapplied	Pending amount not applied to receipt
Unidentified	No customer
How to Cancel an Receipt.	Its not possible to cancel receipt, we have reverse the receipt.
Chargeback: What is the actual due date and entry?	We can extend the due date for customer payment. At Transaction Receivables (Invoice)  Dr 100 Revenue Ac                 Cr 100 At Receipt                                    Apply Chargeback      Cash Ac                      Dr 50    Receivables (Chargeback) Dr 50   Receivables (Invoice)  Cr 50     Receivables (Invoice)       Cr  50       Knock up Entry                            When chargeback receive Chargeback                        Dr 50     Cash Ac         Dr    50 Receivables (Chargeback) Cr 50      Chargeback   Cr     50
What is mean by Write-off and entry?	When you enter a receipt and combine it with a positive adjustment, Any excess nominal amount at the time of receipt we will write off. Receivable Ac    Dr  100 To Write off Ac  Cr  100
Adjustments - Approval Limits - Process	User wise we have to assign for approval limit for receipt write off,adjustment,credit memo,
Credit Note - RMA - Approval Process	We will tick the Allow overapplication at transaction type ,It will create automatically credit memo to the invoice already made.
What is Earned Discount and Entry?	Receivable activity,-Earned discount is one taken inside the discount period. Earned/Unearned Discount   Dr  100 To Receivable Ac                  Cr  100
What is Un earned Discount and entry?	Receivable activity,An unearned discount is one taken after the discount period passes. You cannot choose this option if the system option Unearned Discounts is set to No. Earned/Unearned Discount   Dr  100 To Receivable Ac                  Cr  100
Where should the customers send the payments of Invoices?. Where the setups to be done.	Remit to address
What is the Transaction Type? What are the different transaction Type. What is the impact if  Customer address is not falling in the range defined in setup.	Credit Transactions: Invoice: Debit Memo: Charge back: Guarantee: Deposit
How can i reduce the Invoice amount?	We will raise the credit memo
What are the Accounts to be use in Transaction Types?	Revenue, Receivables, Freight, Tax, Clearing, Unearned, Unbilled
How can i Assign a Deposit amount to an Invoice? Whether multiple deposit can be adjusted in single invoice.	In transaction form ,we will apply deposit in action tabI
What is the Guarantee?	It is agreement between both sides for goods or services in the future , specific range of periods
Consolidated Billing Cycle  - PROXIMA Payment terms.	Its for 11i which has changed to BFB in R12.
What is Balance forward Billing?	1.A balance forward bill includes all of a customer's transactions for the billing period and any balance carried forward from the previous billing period. 2.A balance forward bill can have a daily, weekly, or monthly billing period depending on the balance forward billing cycle assigned to the payment term. 3.Refer for more in http://www.oracleappshub.com/release12/r12/balance-forward-billing-in-r12/
What is Proxima payment term?	This was in 11i which has abolished from R12 where we are giving the cut off day for the payment term.
Statement of Account.  Generate a customer statement report	Define statement cycles to determine when to send statements to your customers. You enter statement cycles when you define or modify individual customer and site profile classes in the Customer Profile Classes window
Dunning - generate a dunning letter for a customer.	Use dunning letters to inform your customers of past due invoices, debit memos, and chargebacks. When you print your dunning letters, Receivables prints a copy of each invoice which has line items that are past due.
Application Rule set	Line after tax
Receipt Application methods	Automatic and manual
11i vs R12 Difference	Refer to know more in http://dillipkumarjena.blogspot.in/2012/09/aim-implementation-of-new-company-step.html
Whether Batch Invoices in AR possible?	Yes
Whether Batch Receipt in AR possible?	Yes
Can we Copy INVOICES in AR?	Yes,Its new function in R12.Go to transaction-> copy invoice
How to refund for a customer who returns goods and wants a refund for $600 in R12 In above scenarios customer does not want Credit Memo or On- Account Credit, he wants refund check. and as we know we do not issue check from AR. How can we issue Check from AP and how offsetting is done for the same in R12 ?	In receipt form,click on Refund attribute and provide the payment method and save
What are the  set ups required for Automatic Receipts?	Receipt Source-Automatic  and Receipt Class-Automatic
Can we create manual Customer Number - options?	Any thing Either Manual or Automatic we can create.
Custom Object creation - MD50 / 70	Customer wise TDS report,Debtor ageing report
How to assign a tax to a specific vendor ?not tax category	Attach tax category in  Item Category then attach item category in Supplier additional information
Back Orders	stock does not exist @ sellers warehouse
Drop Shipment	• A orders item x from B • B orders item x from C • C ships Item x to A. • B bills A for the order, C bills B for the order
Back to Back Orders	In Back to Back order the shipment process is also completed through OM as a standard order after the item is received against a PO.
What is the major difference between drop shipment and back to back order?	• In B2B the source will be internal but the item would be procured after the order is created or after the demand is made. • In Drop Ship the source will be external • In Drop Ship orders, material is directly shipped to the customer from the supplier. Thus, inventory is not affected. In this case, only logical receiving is done. But in the case of Back-to-Back orders, material is taken from inventory. • Drop Ship orders may have many Purchase Orders connected to them. In Back-to-Back orders one PO is tied to one Sales Order
Configurator	It will create * item for all sum item created at BOM for that particular FG.
Modifier	Used for discount,surcharge etc.
Qualifier	Used for modifier ,its customer wise
What flow of O2C?	Create Order,Book the order,Do lunch Pick release,Transact move order,Ship confirm,Run Workflow background process,Auto invoice master program,Transaction,Receipt
What are the pre-requisites of O2C flow?major set ups	Transaction type,Transaction source,Order type
How we are linking from order management to AR	In order type ,finance tab give the AR transaction type and source
What are transaction type in AR?	Invoice,BR,DM,CM,Guarantee,Deposit
What is set up for Bills receivable ?	Transaction type,Customer as a drawee
What is refund process and set ups required?	Receivable activity,Receipt -payment attribute
How Refund  linking to AP module?	Through Payment method
Whether customer as a suplier we have to set up in case of refund process?.	No
Which source is taking to payable invoice from AR?	Credit memo source
What is the entry for AR invoice	Receivable to revenue
What is credit profile and how its function?	To restrict the user to overapplication amount at SO order level
Whether credit profile at order management level or AR invoice level?	Order level credit check uses the credit profile attached to the customer Bill-to site
How credit profile used customer Account level and Site level and whats the pre requisite?	defined at order (header) level. Credit checking will use order totals.
What is major changes in AR in R12?	MOAC,SLA,AP/AR Netting,Deffered COGS,Chargeback,Refund process,Legal Entity,BFB,day wise revenue recognition
What is document sequence?	To reduce manual work and make user friendly.Each document will get serial numbered.
How We Define document sequence for AR?	In Sys Admin->Application  based on transaction type wise
How many types of receipt ?	Automatic Receipt and Manual receipt
What is Unapplied Receipt and Entry?	Whenever the receipt is not applied to transaction it will be in Unapplied Status. Cash A/C  Dr                           100 To Unapplied Receipt Ac Cr   100
What is Unidentified Receipt and Entry?	Whenever the receipt without customer applied to transaction it will be in Unidentified Status. Cash A/C  Dr                           100 To Unidentified Receipt Ac Cr   100
What is On account Receipt and Entry?	Whenever the receipt is fully applied to transaction it will be in On account Status. Cash A/C  Dr                           100 To Onaccount Receipt Ac Cr   100

Q. What Are The Tables That Replaced RA_CUSTOMERS, RA_ADDRESSES_ALL and RA_SITE_USES ?
A. Following tables on the left are replaced with the tables on the right
RA_CUSTOMERS => HZ_CUST_ACCOUNTS
RA_ADDRESSES_ALL => HZ_LOCATIONS
RA_SITE_USES => HZ_CUST_ACCOUNT_SITE_USES.

Make a note that RA_CUSTOMERS,  RA_ADDRESSES_ALL and RA_SITE_USES are still available as views in R12.