Question { TCS, 2017 }

Explain the Document Method ?

Answer

Question is not clear. If it is related to document sequence numbering method, there here is a short answer.
1. Set the profile option "Sequence Numbering" at the application or responsibility or user level to "Partially Used". You can also select "Always used" if you want to enforce sequencing to ALL the documents in an application. If "Always used", we can not save a transaction if sequence numbering is not defined for application-category-ledger combination.
2. Create a sequence with starting number and sequence type. sequence type is automatic/manual/gapless. Automatic type will automatically creates unique sequence numbers, but system does not ensure "gapless". For manual type, the user should manually enter the sequence number. System only ensures the unique sequence and does not enforce continuity and gapless. Gapless numbering enforces gapless apart from unique sequence. If set to "Gapless", system does lot of validations before sequence is generated (I think, it creates audit details also, but not sure), hence there may be performance issue.
3. Assign Sequence. Here you assign the sequence created in the prev step to application-category-ledger combination. For example you can assign a sequence to Payables-Standard Invoices-Vision Operations Ledger. (There are two methods - Automatic and Manual. Automatic means creating payable documents through concurrent process and manual means creating documents manually).
In GL, there are accounting and reporting sequences which I will explain separately.

Question { Deloitte, 4022 }

Period closing process Ap and GL?

Answer

For AP, there are few standard steps.
1. Complete the invoice import process - Make sure that no records get struck in invoice interface table.
2. Run Invoice Validation with option as "All" and make sure that all the invoices are validated in the period in which closing is done.
3. All the invoices are approved (if applicable), accounted and transferred to GL.
4. All the payment batches (which belongs to the closing period) are in either confirmed status or in cancelled status.
5. Accounting is done for all payment batches and transferred to GL.
6. Optionally use sweep program to transfer documents to next period. (Better to get concurrence from finance before any sweep).
7. Run "AP Data Validation Report" (available in R12.2, check if it is available in earlier versions). This report can be used to check all the errors.
8. Run standard reconciliation reports like Posted invoice register, Posted Payment Register, Trial balance report.
Standard formula is Prev period closing balance in trial balance+invoice register total-payment register total = current period trial balance closing balance.
Compare the results with the account analysis report and GL trial balance reports.

Note: It is very easy to list down the above steps, but in reality, reconciliation is a very tedious process (atleast for few months), nothing tally in one go.

Question { Deloitte, 3847 }

Why assign balancing segment flex field qualifier in company segment ?

Answer

As per the accounting practice, accounting has to tally (debit total =credit total) for each company to take the financial statements. Now how does Oracle Apps identity which is a company segment? You could enter CMP, COMP, COMPANY, Company, Co, etc to define a company. Irrespective of what name you give it for a company, if you attach a qualifier as balancing segment, system knows that balancing has to be done at that level.

Question { Deloitte, 3794 }

What is difference between security rule and cross-validation rule and what is difference between both of?

Answer

Security rule is defined for a segment (not for the code combination) and the rule should be attached to the responsibilities. if it is not attached to a responsibility, then the rule is not applicable to that responsibility
Cross validation rule is defined for the code combination to prevent the usage of some code combination. It is applicable to ALL the users who use the corresponding ledger.

Question { Deloitte, 3096 }

What is difference between consolidation and revaluation?

Answer

Both are entirely different. Consolidation is the process of transferring the accounting details from one or more subsidiary ledger to a parent ledger.
Revaluation is revaluing the foreign currency transactions for asset and liability accounts based on the period end conversion rate (There is no revaluation if there is no conversion rate change between the transaction time and the period end).
Translation is translating the accounting information from one currency into another currency.

Question { Infosys, 3816 }

what is drill down in oracle apps r12? What is GL Drilldown?

Answer

When the accounting entries are created in the subledger module and transferred to GL, link is established between the GL journal line and the corresponding subledger transaction. Using drill down, we can "drill down" from GL journal line to the subledger transaction.

Question { 8149 }

what is CCID in oracle apps ? how it works explain detail ?

Answer

CCID - Code combination id. In Oracle Apps, flexfield is a combination of one or more fields, each field having different characteristics. A unique number called CCID is assigned to a unique flexfield combination. In transactions, we enter the flexfield details, but only CCID is getting stored in subledger tables.

Question { Dhanush Infotech, 2092 }

what is the impact if i wrongly assign the account type to an segment value in oracle apps r12?

Answer

There are two groups of accounts.
1. Balance sheet accounts - Asset, Liability and Equity
2. Income Statement Accounts - Revenue and Expense

If the mis-classification is WITHIN the group i.e asset type is classified as liability or vice versa, then impact is minimal. If the mis-classification is between the groups (Ex: liability is classified as expense), then impact is high.

At the beginning of the year, the balances of all the asset and liability code combinations from the prev year are rolled forward and the balances of revenue and expenses are made to zero.

Note: Oracle prevents changing of account type for a code combination once it is used .(You can change it for the account value, not for the account code combination)

Question { Cap Gemini, 2450 }

What are the sources of invoice?

Answer

Sources of AP Invoices are
1. From external system - Invoice details received from third party system into interface table and then import
2. Invoices created automatically for "Pay on Receipt".
3. From Receivables and Projects modules
4. From Expense report/recurring invoice details (In Fusion, expense report is separated as Expense cloud and we can not enter expence report directly in payables)
5. Direct from vendor and entered manually

For Receivables,
1. From thirdparty systems - Invoice details are populated in interface table and autoinvoice is run
2. From Order Management
3. Entered Manually

Question { 1854 }

where should Accrual account define in account payable that will affected during Invoicing?

Answer

Expense accrual accounts are defined in Purchasing options and Inv accrual accounts are defined in the Inv Org.
When expense accounts are received, expense is debited and exp accrual is credited. In the same way, when inventory item is received, inventory - Dr and Inv Accrual - Cr
When invoice is created and matched with PO/Receipt, the corresponding accrual is relieved and liability is credited.

Question { Hitachi, 2107 }

in Oracle Payable s we are not matching Po how to clear accrual account in P2p cycle?

Answer

If invoice is matched to PO/Receipt, Accrual account is derived from PO/Receipt. If you are using PO/Receipt for your purchases, but not matching in the invoices, then the user (who enters invoice) should manually enter the accrual account (entered in PO) in the invoice line/distribution.
But for asset items, user needs to enter asset clearing account in the distribution, if mass addition is used. again in this case, we need a manual adjustment journals in GL to relieve accrual and asset clearing.
Note: Question asked in the interview is a hypothetical scenario to test the accounting knowledge of the candidate. It may not happen for all the invoices, may happen for some invoices.

Question { Doyensys, 2015 }

Why do we use Check Positive Pay ?

Answer

Below one is a generic concept of check positive pay. I didn't use it in Oracle apps.

Check positive pay is a fraud detection process. Whenever the company pays CHECK to the suppliers/employees, the CHECK details like account number, check number, issue date, check amount, etc are sent to the corresponding bank (mostly electronically) for the issued checks. Now when the supplier deposit the check, the bank software will automatically verify if there is/are corresponding check details provided to bank by the company.
If the details match, then vendor will be paid. If there is no matching record found, then bank will intimate the same to the company and company has to take necessary action. For this service, banks might charge a fee also.

Question { Hitachi, 2727 }

While Performing Data Migration from Legacy system to Oracle what are the requisites you will perform as a functional consultant for GL, AP, AR, and PO.

Answer

First and important step is to prepare the data template. We need to include all the required fields and also we should mention
1. which are all the mandatory fields
2. available values in case of LOV
3. If one field depends on the value of another field
4. Restrictions on size and format of the field, if any, etc

After data collection, we need to do preliminary validation if data is given in excel format. Also we can write few important validations in the code before the data is imported to staging/temporary table.

I usually pick one or two records from the excel file and enter manually in the Oracle apps (then I will delete those records from the excel file) to check if everything is ok.