31 Most Important Oracle Fusion Financials Interview Questions

31 Most Important Oracle Fusion Financials Interview Questions

Question 1:

Can we Add Assets with Future Date Placed in Service in Fixed Assets?

Answer: We cannot add assets in the future FA periods in Asset Workbench, but we have the workaround for that as below:

We can use the 'Prepare Mass Additions' screen to create Future Additions using the following steps:

  1- Enter the 'Prepare Mass Additions' screen with future DPIS (date placed in service), ensure to place the queue = POST

     For example, the current open period is APR-XX and the DPIS = 01-AUG-XX

  2- You run depreciation every month, then when running the JUL-XX period with close option you'll find:

      Upon the running of depreciation of JUL-XX, JUL-XX is closed and AUG-XX is open and the program 'Process Pending Transactions' will be submitted and it will process the 'future add' line from FA mass addition and create the asset in AUG-XX period.

31 Most Important Oracle Fusion Financials Interview Questions

Question 2:

Define mass additions process in Oracle Fusion Financials?

The mass additions process lets you add new assets or cost adjustments from other systems to your system automatically without reentering the data. For example, you can add new assets from invoice lines brought over to Oracle Assets from Oracle Payables, or from CIP asset lines sent from Oracle Projects.

Question 3:

What is Revaluation in Oracle Fusion Financials ?

Answers :

We use Revaluation for the Foreign currency amounts.  This helps to evaluate the exact amount of Liability and revenue for the period During Month End or unrealized gain/loss amount which occurred due to foreign exchange rate fluctuations. Revaluation happens on the account level. We can choose for which account we need to run the Revaluation. For Example, My Total Liability as per my GL account is 2 Lakh in which many of the invoices are foreign currency. So system has fetch the exchange rate as per the Invoice Date and calculate the Liability but in actual this Liability is Wrong because if now I have to pay this Invoice I have to pay with the Current Exchange rate so that is the same thing Revaluation process does in the General Leger In which It create the Revaluation Journal based on the Current Exchange rate for the difference of the exchange rate price and evaluate the final Profit and Loss so by this way , we do have right figures in the hand about liability and the revenue . Revaluation only do for GL accounts.  Revaluation process runs during the period end. This process creates the Journal Entry that either Increase or decrease the functional currency amount for that GL account. In the Revolution Process also, this unrealized gain/loss Journal will be auto revered during the beginning of the next period. So, this makes the revaluation process completes.

Question 4:

What is Translation in Oracle Fusion ?

Answers: 

If you have a Requirment to prepares the Financial ratings in other currency from your functional Leger currency, then translation is the best option for this. This helps to convert your GL balances from your Functional Currency to any other currency. The Good part of the Translation is this, you can do the translation for your Actual and Budgeted GL Balances.

Oracle has given the Translation Program to convert the Balances to create financial reporting’s. You need to run this Program once your GL Period has been end.

Question 5:

What are the Types of Journal Entries in Oracle Fusion Financials?

Manual Journal Entry: - Most Common Journal entry to create the Basic GL journal Accounting Transactions.

Reverse Journal Entry: - This Journal entry related to the reversal of the Original Manual Journal entry.  We can Post, the Reverse Journal in the Current Open Month or in the Future Opening Periods too.

Recurring Journal entries: - This type of Journal Entries crested only once but it automatically repeats for each Accounting Period or Month as per the rules.

Mass allocation: -

Mass Allocations are journal entries that utilize a single journal entry formula to allocate balances across a group of cost centers, departments, divisions or other segments.

Question 6:

What is Balancing segment in the Chart of accounts in Oracle Fusion Financials?

Answers:

Balancing Segment is one of the Import part of the chart of Accounts or Accounting Flexfield. In Oracle Accounting Flexfield is the combination of Multiple segments values. Each Segment values represent the one of the characteristics of the Chart of Account like (Company, Location, Cost Center, Department, Sub Account, Project like many). But in these GL segments combination we should have one Segment which could be act like Balancing Segments.

Balancing Segments helps to ensure that all journal entries balance for each value of the balancing segment and to ensure that entries that impact more than one balancing segment use the appropriate intercompany Account. Balancing Segments helps to make balancing the GL journals. We can define only one balancing segment for a one chart of account. It is best practice for the balancing segment to equate to company so that the debits and credits in the General Ledger balance by company.

Question 7:

What are the Ledger Components in Oracle Fusion Financials?

Answers:

Ledger consists of 4C’s. 4 C’s are.

1.Chart of Accounts: Chart of Account is the Accounting Flex Field attached to this ledger.

2.Calendar: - Ledger Financial Year will be based on this Calendar.

3.Currency: - Ledger Functional currency. GL reporting will be based on this Currency. Based on this System Determines the foreign Currency in the Leger.

4.Accounting Method: - This determine the Costing method of this Ledger more about Inventory. Two Costing Methods (Standard Cost and Average cost)

Question 8:

Can We close the Accounting Period’s for the Different Business Units under single Ledger separately?

 

Answers :

No, we cannot close the Accounting Period for Different Business units for the same ledger separately. The Reason is We are sharing the Same Ledger so in the Ledger there will be only one Calendar which is shared to both Business Units. So, it means if one Business unit will close the Accounting Period then the period will be close to both Business unit for this Ledger.

Question 9:

What are the types of Key Flexfields available in Oracle Fusion Fixed Assets module?

In Fixed Assets, we do create three types of Key Flexfield

Asset Key Flexfield

Asset Category Flexfield

Asset Location Flexfield

Question 10:

What is Asset Key in Fixed Asset?

The asset key allows you to group assets or identify groups of assets quickly. It does not have financial impact; rather it can be used to track a group of assets in a different way than the asset category. For example, use an asset key to group assets by project.

Question 11:

Which are the Asset Types in Oracle Fusion Fixed Asset?

Valid asset types are:

Capitalized: Assets included on the company balance sheet. Capitalized assets usually depreciate. Charged to an asset cost clearing account.

CIP (Construction-In-Process): Unfinished assets being built, not yet in use and not yet depreciating. Once you capitalize a CIP asset, Oracle Assets begins depreciating it. Charged to a construction-in-process clearing account.

Expensed: Items that do NOT depreciate; the entire cost is charged in a single period to an expense account. Oracle Assets tracks expensed items but does not create journal entries for them. Oracle Assets does not depreciate expensed assets, even if the Depreciate check box in the Books and Mass Additions Prepare windows is checked for that asset.

Group: A group asset is a collection of member assets. You can add member assets to a group asset, transfer assets out, or between groups assets. Group asset cost is the sum of all the associated member assets costs. A group may contain many individual assets that were placed into service in different years but share one depreciation account maintained for the group. Group asset depreciation, known as group depreciation, is computed and stored at the group level.

Question 12:

What is Accumulated Depreciation in Oracle Fusion Financials’ Fixed Assets?

You normally enter zero accumulated depreciation for new capitalized assets. If you are adding an asset that you have already depreciated, you can enter the accumulated depreciation as of the last depreciation run date for this book or let Oracle Assets calculate it for you. If you enter a value other than zero, Oracle Assets uses that amount as the accumulated depreciation as of the last depreciation run date. If you have bonus reserve, the amount should be added to the accumulated depreciation and is no longer tracked as bonus reserve.

If you enter too little accumulated depreciation, Oracle Assets adjusts depreciation to the correct amount for the current fiscal year. If you enter too much accumulated depreciation, the asset becomes fully reserved before the end of its life.

If you enter zero accumulated depreciation, Oracle Assets calculates the accumulated depreciation and the bonus reserve, if any, based on the date placed in service. You can have a different accumulated depreciation for each depreciation book.

Question 13:

What is depreciation method in Oracle Fusion Financials Fixed Assets?

The depreciation method you choose determines the way in which Oracle Assets spreads the cost of the asset over the time it is in use. You specify default depreciation rules for a category and book in the Asset Categories window. You can use predefined Calculated, Table, Units of Production, Flat-Rate, or Formula type methods, or define your own in the Methods window.

 

Question 14:

What is a funding budget?

Answers:

A budget against which accounting transactions are checked for available funds when budgetary control is enable for your set of books.

Question 15:

How to Split Mass Addition lines into multiple assets lines?

You can split a mass addition line with multiple units into several single unit lines. You can split a previously merged mass addition line.

If you split a mass addition, the original line is put in the SPLIT queue as an audit trail of the split. The resulting split mass additions appear with one unit each, and with the same existing information from the source system. Each split child is now in the ON HOLD queue. You can review each line to become a separate asset.

Question 15:

Can we Delete unwanted mass addition lines in Oracle Fusion Fixed Assets?

The Delete Mass Additions program removes mass addition lines in the following queues:

Mass additions in the SPLIT queue for which you have already posted the child mass addition lines created by the split

Mass additions in the POSTED queue that have already become assets

Mass additions in the DELETE queue. Note that Oracle Assets does not create a journal entry to clear the clearing account, since the line does not become an asset

Question 16:

Difference Between the Manual Hold and the System Hold in Oracle Fusion Financials’ Payables. 

Answers :

System Hold apply to the Invoice if Something Mismatched in the Invoice as per the Standard Process Like Invoice Header Total and Line Total Should be Equal Other System Hold for Example related to Invoice Matching If Something goes about the Invoice Tolerance Limit then System Put the Hold. System hold is something related to setup Controls. But Manual Hold is something which put manually in the Invoice due to any reason like Product received from the Supplier is Damaged so need to hold the Payment for that Invoice.

Question 17:

What is Pay Alone in AP Invoice?

Answers :

Pay alone is something related to Invoice Payment. This is the Flag we set for AP Invoice, It Means this invoice will be paid alone. For example, Supplier A has 3 Invoices, but for 1 Invoice we have enabled the Pay Alone Flag Then When we will run the Payment Batch then System will create one Check for two invoices and Separate one Check for Pay Alone Invoice. This Is the Working of Pay Alone.

Question 18:

How we can Increase the Customer Liability or Debtor Outstanding in the AR ?

We have two ways to increase the Customer Liability or Debtor Outstanding in the AR.

1.We can Create the Standard Invoice to the Customer to Increase the Debtor Outstanding.

2.If we have already sent the Customer Invoice and don’t want to create the Invoice Again but to do the Adjustment for the Same Invoice then we can create the Debit Memo against this Customer to increase the Debtor Outstanding

Question 19:

What is Auto Accounting in Oracle AR?

Auto Accounting is a Feature in Oracle Receivables to derive the GL code Combination or Accounting KFF values for Receivable and Revenue accounts based on different parameters of the AR Invoice which is going to be migrate in AR through Auto Invoice or Manually.

For Example, we have entered the Revenue account (5 Segment) in Customer Site and in the Invoice Transaction Type. Then we can have written in the Auto Accounting rule that first three segments will be drive from Customer Site Revenue account and rest of the last two KFF segment values will be drive from AR invoice Transaction Type.

Question 20:

What is Auto Accounting in Oracle AR?

Auto Accounting is a Feature in Oracle Receivables to derive the GL code Combination or Accounting KFF values for Receivable and Revenue accounts based on different parameters of the AR Invoice which is going to be migrate in AR through Auto Invoice or Manually.

For Example, we have entered the Revenue account (5 Segment) in Customer Site and in the Invoice Transaction Type. Then we can have written in the Auto Accounting rule that first three segments will be drive from Customer Site Revenue account and rest of the last two KFF segment values will be drive from AR invoice Transaction Type.

Question 21:

What is On Account Receipt in Oracle Receivables?

On Account Receipt are those Customer Payment or Receipts which we have received in our System but we are not sure about the payment reason or we don’t know the Invoice information for this payment so that is the reason we have put this payment or receipt in On Account or just received it but not applied to any Invoice. This On Account Payment or Receipt status will remain ‘Open’. On Account Receipts provide credit in the Outstanding to the Customer.

Question 22:

What is Grouping Rule in Oracle AR?

Grouping rule is very important to create the AR invoices through External Sources or Modules in Oracle Application. When Auto Invoice Import program migrate the AR Invoice information from Other Module or from External Source in AR then this program considers the Grouping rule first to create the AR invoices in Oracle. Grouping Rule decide how many invoices will be create in Oracle AR. For example, We have two AR Interface Lines for Customer A in the AR interface and each AR Line has different Customer Site.

Now if my Grouping Rule is Only created on the Basis of Customer Number, Then When the Auto Invoice Import program will run then this will create only 1 AR invoice for these two lines.

But if my Grouping Rule is created on the Basis of Customer Number and then Site number (Two Levels) , Then When the Auto Invoice Import program will run then this will create only 2 AR invoice for these two lines.

31 Most Important Oracle Fusion Financials Interview Questions

Question 23:

What is Open and Closed Receipt in Oracle apps.

Answers :

Those receipts which are completely applied to the Customer Invoices that receipts will be Closed in the System.

If any amount is still left in the receipt to apply against the Customer Invoice that receipts will be shown Open in the System.

Question 24:

What is the Use of Transaction Type in Oracle AR?

Transaction type is Very important in Oracle receivable. We attach transaction types to AR Invoices. This helps to determine the system that the AR transactions will be transferred to GL or not and helps to default the Revenue, Receivables, Freight, Tax, Clearing, Unearned, Unbilled GL accounts in the invoice while creating the Ar Invoice. Transaction type also helps to Decide that the AR Transaction Amount sign(Negative & Positive) in AR.

Question 25:

Can we Delete the AR transaction in Oracle apps?

Yes ,  we can delete the AR transaction in Oracle, But the AR transaction should be in the Incomplete Status and accounting should not be happened for that Invoice. We control this Delete Option in AR setup to allow deletion in AR Transactions/Invoices.

Question 26:

What is the Use of Payables Trial Balance report ?

Answers :

Payables Trial Balance Report shows the Total Liability or the Supplier Outstanding in the System. This Report shows the Liability in the System supplier and Site Level. This Provide the Summary Information’s for all the Unpaid amount for the Supplier Invoices which are validated.

Question 28:

What we do in the AP and GL reconciliation ?

Answers :

 

In the AP and GL reconciliation, we try to Match the Total Liability from the Payables with the Liability accounts total in the GL. We have some set of Liability accounts in the Payables, which we only use in the Invoice Headers to book the Liability and we match only these Liability GL accounts in the AP and GL reconciliation report.

We took the help of Payables Trial Balance report to find the Total AP liability and then Run the GL Trial Balance report to match the Payables Trial Balance Report Total with the GL trial Liability Accounts.

Question 29:

What is Un Applied Receipt Account in Oracle Fusion Financials’ AR?

Un Applied Receipt Account are those Customer Payment or Receipts which we have received in our System but we are also sure about the payment reason or we know the Invoice information for this payment but still we have not closed this receipt to apply against the Invoices. In simpler terms, application of funds would have not taken place despite knowing the reasons as to why they were received.

Question 30:

Can we Do Cross Currency Payment in Oracle Payables Fusion Financials’?

Answers:

Cross currency is If I have received the Supplier Invoice in USD but I will pay this Invoice with my Base Currency INR. So this Is Called Cross currency in Oracle Payables. In Oracle apps r12 we have no option to use Cross currency.

Question 31:

Types of AR Transactions in Oracle Fusion ?

1.Creditmemo

2.Invoice

3.Chargeback

4.Deposits

5.Guarenty

6.Bills Receivable

Question 32:

Can we do Multi Site Payment for the Same Supplier in Oracle Payables r12 ?

Answers :

Yes, we can do the single payment for the multiple sites invoices for the Same Supplier in Payables r12. This Feature in available in the Oracle r12.