Top 33 Oracle Apps implementation Interview Questions
Hi friends, we are going to discuss about the Oracle Apps implementation Interview Questions. We will share some of the most important oracle apps implementation questions which usually asked in the Interviews. In this post, We will shared these implementation Interview Questions from all Oracle apps modules. We will share the Financials as well the Procurement module Implementation question too. You should refer this Oracle Apps implementation Interview Questions sets for your interview preparation.
Question 1:-
What are the Ledger Components in GL?
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).
Question2:- Define Organization Structure in Oracle Apps Implementation ?
Answer:
In Oracle apps, Multi Org Structure Structure start with 'Enterprise'. After Enterprise, there is a place of Legal Entity in Multi Org Structure in Oracle apps.
After Legal Entity, there is a place of Ledgers in Multi Org Structure. It comes in the Third place from Top. Now in Multi org structure in Oracle Fusion, there is difference in the Ledger Assignment. In Fusion, Two Legal entity can assign to the sample Ledger.
After Legal Entity, there is place of Business Unit in Multi org structure in Oracle apps. It comes in the fourth Place from top. In Oracle apps, we do call Operating Unit but In Oracle Fusion, we do call the Business Unit.
After Business Unit, there is a Place of Inventory Org
In Multi org structure in Oracle apps. It comes in the Fifth place.
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| Top 31 Oracle Apps implementation Interview Questions |
What is Chart of Account in Oracle apps Implementation ?
Answer:
Chart of Account is the Accounting Terminology. In Oracle Fusion, The Chart of Accounts (COA) is the account structure the organization uses to record transactions and maintain financial account balances. So, whatever, we do financial things in Oracle Fusion Application like Supplier Invoices, Customer Invoices it records with the Help of chart of Account and to maintain financial Balances.
Once the Chart of Account Structure has been Implemented in application, it cannot be changed so we should be completely sure on this, what we are going to implement.
This Involves lot of Discussion with the Organization Management for deciding the final Organization Structure and the Chart of Account Designed.
Question 4:-
What is Balancing segment in the Chart of accounts?
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 5
What is Primary and Secondary Ledger in Oracle Payables ?
Answers :
Primary Ledger is the Main Ledger and Secondary Ledger is the Replica of the Primary Ledger. We Do transactions in the Primary Ledger. The main reason of using Primary and Secondary Ledger is the difference in the Organization Requirment and the Statuary Requirment. For example, One US based company office is in India and as per US Company, their Calendar works from Oct to Sep but the in India their calendar works from Apr to Mar SO in this Kind of Requirment, Primary and Secondary Ledger concept comes. Where we can design the Primary calendar as per the US based but can design the Secondary calendar as per India Statuary Requirment.
Question 6
What is Trial Balance in Oracle apps?
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 7:-
Define Natural Account in Chart of Account and its Purpose in Oracle apps Accounting.
Answers :
Natural Account is one of the Important segment of the accounting Flexfield. No char of Account or Accounting KFF can design without using the Natural Account Type. We have to enable one of the Chart of accounts(KFF) segments to Natural Account”.
Natural Account Segment Type represent the Type of accounts Values in the Natural Account Segments (Like Asset, Expense, Liability, Revenue, Ownership). Only one natural account segment can be defined in a chart of accounts.
Question 8
How many Business Units we can create under one Ledger in Oracle apps Implementation ?
Answers :
We can create any number of BU’s under one Ledger. The Count is not restricted. Each Business Unit under single Ledger will share the share Same Chart of Accounts, currency and the Calendar but If your Business unit have different financial Period or Base Currency then you must create the New Ledger for this BU.
Question 9
What id Cross Currency Payment in Oracle Payables r12 and can we do this ?
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 10:
What is Auto Accounting in Oracle apps Implementation?
Answers:
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 11
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 12:
What is Un Applied Receipt Account in Oracle 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 13:
Multi Site Payment Feature. 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.
Question 14:
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 15
How to Pay supplier specific Invoice Alone without adding any other invoice in Oracle apps?.
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 16
Can we Delete the AR transaction in Oracle apps?
Answer:
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 17:
Where is the Place of an Legal Entity in an Organization structure in Oracle General Ledger?
Answers :
A legally recognized entity can own and trade assets and employ people; while an entity without legal recognition cannot.
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| Top 33 Oracle Apps implementation Interview Questions |
Question 18
Define AP Invoice Payment Due Date Calculation method in Oracle apps payables ?
Answers :
Invoice Payment Due date depends on the Two Factors.
1.Payment Terms attached to the Invoice
2. Invoice Date.
For Example, if Payment Terms is 30 Days and the Invoice Date is 12-Dec-2018
Then Payment Due Date Will be : 12-Jan-2019
Question 19
Difference between Translation and Revaluation in General Ledger?
Answers :
Revaluation is used to find the unrealized gain/loss amount which occurred due to foreign exchange rate fluctuations. This only happens for the Foreign Currency transactions but on the Other Hand Translation is totally different, this is used to convert the Prepared the GL balances in to Other Currency. The helps to prepare the Financials GL reporting’s in other currency from your functional Leger currency. Revaluation happen during the month end but translation happed after Period end activities. Both Revaluation and Translation happens for GL accounts.
Question 20:
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 21:
How to Add Assets with Future Date Placed in Service in Fixed Assets?
Answer:
Adding assets in the future FA periods is not possible in the Asset Workbench.
WORKAROUND
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.
Question 22
What is mass additions process in Oracle apps ?
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 23
What is Encumbrance Accounting in Oracle ?
Answers :
Encumbrance Accounting is uses in the general Ledger to put the Budgetary control in System. This helps to implement the Budget in the System and to stop the system to cross the budget Limits. Encumbrance Accounting checks for the Fund to be available in the Budget for the given GL account combination. We can record the pre-expenditures using this feature in oracle.
Question 24
How to setup the secondary ledger for corporate FA book journals.
Answer:
a. Go to Accounting Setup Manager form from FA responsibility:
(N) Setup > Financials > General Ledger > Accounting Setup Manager > Accounting
Setups
b. Query for your ledger.
c. Press Update button for your Secondary Ledger.
d. In the ledgers form, press Update button for Subledger Accounting Options of your secondary ledger.
e. For Assets application press Update Accounting Options button.
f. Ensure that Subledger Accounting Enabled and Use Primary Ledger Amounts options are set to Yes. If they are not set to Yes then please set them and press Apply button.
g).Go to the Assets application and submit again Create Accounting request for the corporate book as Draft and with
Detail level. You should be able to see now in the Create Accounting output the secondary ledger journals associated with the corporate book.
Question 26
What are the types of Key Flexfields available in Oracle apps FA module?
Answer:
In Fixed Assets, we do create three types of Key Flexfield
Asset Key Flexfield
Asset Category Flexfield
Asset Location Flexfield
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