Account Payable Interview Questions in Oracle Apps

What are the mandatory steps for Payable module before entering transactions?
Create application user signons and passwords.
Define your chart of accounts.
Define your accounting period types and accounting calendar periods.
Define a set of books. Specify a set of books name and assign it a calendar, functional currency,
and a chart of accounts structure.
fter choosing your set of books, use the pplication De!eloper responsibility to set the "# Set
of $ooks %D profile option to &pdateable.
fter choosing your set of books, use the System dministrator responsibility to set the "# Set of
books 'ame profile option. %f you are not using multiple organi(ations feature, set the option for
the )racle Payables application. %f you are using multiple organi(ations feature, set the option for
each uni*ue combination of organi(ation and responsibility.
Define Payables #ookups.
Define Purchasing #ookups.
+nter locations.
+nter employees. %f you ha!e )racle ,uman -esources installed, use the People window. See.
+ntering a 'ew Person (Managing People Using Oracle HRMS). %f you do not ha!e )racle
,uman -esources installed, use the +nter Person window.
%f )racle %n!entory or )racle Purchasing is installed, you must define at least one
%n!entory )rgani(ation before defining /inancials )ptions.
Define payment programs.
%nstall or upgrade Payables.
Select your primary set of books.
&se the System dministrator responsibility to assign your set of books to a responsibility.
Define /inancials options.
Define Payables options.
Define your payment terms.
%f you plan to use automatic withholding ta0, define 1a0 uthority type suppliers. 2ou must do this
before defining ta0 codes and ta0 groups.
Define bank accounts.
Define Suppliers.
)pen your Payables accounting period.
Set up Print Styles and Dri!ers for the Supplier 3ailing #abels -eport.
2.What is pay date basis? Eplain the di!!erent options available in it.
Pay "ate #asis. 1he Pay Date $asis default for each new supplier you enter. 1he Pay Date $asis
for a supplier defaults to the new supplier sites you enter for the supplier. 2ou can o!erride the
default for each supplier and supplier site.
"iscount. Payables selects in!oices for payment based on the scheduled payment discount date.
"ue. Payables selects in!oices for payment based on the scheduled payment due date, regardless
of any a!ailable discounts.
4.,ow to record a refund from a one5time supplier? +0plain accounting entries also.
$y entering the Debit 3emo we can record the reco!er from supplier, 1he one time supplier is
only for the information on suppliers not for the controlling.
1he accounting entries for the same as follows
ACCOUNTING ENTRIES FOR ENTER INVOICE AT APPROVAL:-
Charge 6c7.Dr 888
1o #iability 6c 888
ACCOUNTING ENTRIES FOR ENTER INVOICE AT PAYMENT:-
#iability 6c7.Dr 888
1o Cash Clearing 6c 888
%n this case if we want refund from the supplier to raise the Debit memo against the "oods or
Ser!ices.
ACCOUNTING ENTRIES FOR DEBIT MEMO AT APPROVAL:-
#iability 6c7.Dr 888
1o Charge 6c 888

ACCOUNTING ENTRIES FOR ENTER INVOICE AT PAYMENT:-
Cash Clearing 6c7. Dr 888
1o #iability 6c 888
$.What do you %ean by pay throu&h date and additional pay throu&h days?
Pay 'hrou&h "ate. Payables selects all appro!ed and unpaid in!oices that ha!e a due date on
or before the Pay 1hrough Date. 2ou cannot update this field after in!oice selection for a payment
batch.
Additional Pay 'hrou&h "ays. 'umber of days between your regular payment batches.
Payables uses the additional pay through days to determine the default Pay 1hrough Date when
you initiate a payment batch. /or e0ample, if you define 9 as the !alue in this field, Payables adds
9 days to the system date to calculate the default Pay through Date when you initiate a payment
batch.
9.,ow to define a payment term, if you re*uire to pay a supplier 9:; on deli!ery and 9:; on
installation?
1his can be sol!ed in so many ways, by using special calendar we can resol!e this problem.
(.)ow to identi!y the *et o! #oo+s na%e in payables?
<. Choose set of $ooks
=. Payables options ccounting 3ethods -egion
4. Profile )ptions
>.%n case of !oid and re5issue, whether the same document will be issued or new document will be
issued?
Allow ,oid and -eissue. %f you enable this option, you can reissue a ?uick
payment. 2ou may need to reissue a check for a ?uick payment if it is spoiled
during printing. When you reissue a check, Payables !oids the old check and
creates a replacement check. 1he checks are identical e0cept that the new check
as a new check number, payment date, and payment e0change rate if you are
using multiple currencies. 2ou cannot select the @oid and -eissue option for
future dated payments
..What are di!!erent calculation levels o! Auto%atic ta calculation?
/alculation 0evel. %f you enable the &se utomatic 1a0 Calculation option, select the le!el at
which you want Payables to automatically calculate sales ta0. 1his !alue defaults to new suppliers
you enter.
)eader. utomatically create ta0 distributions based on the %n!oice mount and 1a0 Code in
the %n!oices window.
'a /ode. utomatically create ta0 distributions based on the distribution mount, 1a0 Code,
and %ncludes 1a0 check bo0 in the Distributions window. When calculating ta0 amounts, group
lines with the same ta0 code and %ncludes 1a0 check bo0 setting together, calculate ta0, and then
round the ta0 amount.
0ine. utomatically create ta0 distributions based on the distribution mount, 1a0 Code, and
%ncludes 1a0 check bo0 in the Distributions window. When calculating ta0 amounts, calculate ta0
for each distribution, round the ta0 amount, then add the ta0 amounts.
1.Is it possible to un2apply a pre2pay%ent invoice i! it is already applied to a
standard invoice?
2es, we can unapply the prepayments at any status e0cept when it is cancelled. Prepayment apply
will not calculate discounts as it is already paid.
<:.what options are to be enabled if in!oice Currency and Payment Currency are different?
s the in!oice currency and payment currency should be same due to which there is no option
a!ailable with respect to this.
<<.#ist any fi!e standard reports in oracle payables.
/i!e Standard -eports
<. %n!oice ging -eport
=. %n!oice udit -eport
4. Payables account analysis -eport
A. Payment $atch Control -eport
9. Payment distribution -eport
<=.,ow to set different interest rates for different suppliers?
1here are no such options a!ailable for defining different interest rates for different suppliers.
1here are only uniform interest rates.
<4.When Bta0 codeC at in!oice header will be mandatory?
-e3uire 'a Entry at )eader. %f you enable this option, Payables re*uires you to enter a 1a0
Code and 1a0 amount in the %n!oices window when you enter an in!oice.
1he calculation should be ,eader, in this situation the ta0 code at header le!el should be
mandatory.
<A.%s B%n!oice recei!ed dateC mandatory or optional?
%n!oice recei!ed date is optional if the terms date is set to other than %n!oice -ecei!ed date.
<9.+0plain the rele!ance of BPooled ccountC.
Pooled Account. %f you use utomatic )ffsets and you want to associate multiple companies
with this bank account, then enable this option. When you enable the utomatic )ffsets Payables
option, Payables creates one offsetting liability distribution for each in!oice distribution. %f you
then pay the in!oice from a pooled bank account, then which Payables accounts for the in!oice
payment, Payables creates one corresponding cash accounting entry for each liability
distribution.
<D.What is accounting entry if we take any discount on payment?
#iability 6c 77Dr 888
1o Discount 6c 888
1o Cash Clearing 6c 888
<>. When %Cm trying to Bppro!eC in!oice, ppro!e button is grayed out. What could be the reason?
Allow Online Approval. +nable this option if you want to allow users to submit Payables
ppro!al in the %n!oices window and the %n!oice $atches window.
%f you are not enable the abo!e circled item then the abo!e case will arise.
<E.,ow to resol!e the following error. F1he payment date must be on or after the system dateG.
1he abo!e error can be resol!ed by checking the circled item
Allow Pre4"ate. %f you enable this option, Payables allows you to create payments with a
payment date before the system date for any payment e0cept a manual payment.
<H.What is the accounting entry for foreign currency payment in case of reali(ed gain or reali(ed
loss?
#iability 6c 7 Dr 888
1o -eali(ed "ain 6c 888
1o Cash Clearing 6c 888
#iability 6c 7 Dr 888
-eali(ed #oss 6c 7 Dr 888
1o Cash Clearing 6c 888
.What are different status in payment batch ?
A5* 4 *tatus IPayment $atches window onlyJ. Payables displays the status of the payment
batch. Payables displays the status in red if there is an error, for e0ample, if the concurrent
manager goes down during a process.
*u&&estion6 %f you are in the Payment batches window and you want to monitor the status of a
payment batch that is, choose -efresh Status from the 1ools menu.
<. #uildin&. Payables is determining which in!oices will be paid by each payment
document.
=. #uilt. Payables has determined which in!oices will be paid with each payment
document. 2ou can now re!iew the Preliminary Payment -egister, 3odify the Payment
$atch, or /ormat the Payment $atch.
4. /ancelled. 2ou ha!e cancelled the payment batch.
A. /ancellin&. Payables is cancelling the payment batch.
9. /on!ir%ed. 2ou ha!e confirmed the payment batch.
D. /on!ir%in&. Payables is either confirming or partially confirming the payment batch
based on the action you selected in the Confirm Payment $atch window.
>. 7or%atted. Payables has completed formatting your payments and has created the
output file that you can use to print checks or, if you are making electronic payments, you
can deli!er the output file to the e5Commerce "ateway or your bank for processing.
E. 7or%attin&. Payables has created the output file that you can use to print checks or, if
you are making +/1 payments, you can deli!er the output file to your bank for processing.
H. 8odi!ied. Payables has modified the payment batch based on the modifications you
made in the 3odify Payment $atch window.
<:. 8odi!yin&. Payables is modifying the payment batch based on the modifications
you made in the 3odify Payment $atch window.
<<.-ebuildin&. 2ou ha!e modified a payment batch, and Payables is rebuilding the
modified payment batch.
<=. -estartin&. 2ou ha!e confirmed a partial payment batch and ha!e chosen
-estart Payment $atch in the Confirm Payment $atch window. Payables is rebuilding and
reformatting the remaining portion of the payment batch.
<4. *elected. Payables has selected in!oices that match the payment batch criteria
you entered.
<A. *electin&. Payables is selecting in!oices that match the payment batch criteria
you entered.
<9. 9nstarted. 1he payment batch is unstarted.
2. Eplain 'he concept o! Auto%atic O!!set ?
%f you enter in!oices for e0penses or asset purchases for more than one balancing segment, you
might want to use utomatic )ffsets to keep your Payables transaction accounting entries
balanced.
%f you do not use utomatic )ffsets, Payables creates a single liability accounting entry for in!oice
transactions Iif you use accrual basis accountingJ and a single cash type accounting entry for
payment transactions.
When you use utomatic )ffsets, Payables automatically creates balancing accounting entries for
your transactions. 1he "# account that each of the offsetting accounting entry is charged to
depends on which method you use, $alancing or ccount.
#alancin&. Payables builds the offsetting "# account by taking the balancing
segment Iusually the cost center codeJ from the in!oice distribution and o!erlaying it
onto the appropriate default "# account, for e0ample the #iability account from the
supplier site.
Account. 1he ccount method takes the opposite approach with one segment
Ithe designated account segmentJ being retained from the default "# account and all
other segments being retained from the in!oice distribution.
lthough Payables builds the "# account to which amounts are charged differently depending on
the method you use, in either case Payables automatically allocates the amount across the
following accounting entries for an in!oice.
#iability
Withholding 1a0 Iif you apply the withheld amount at ppro!al timeJ
Payables also allocates the following entries for a payment.
Cash Iif you use a pooled bank accountJ
Cash Clearing Iif you use a pooled bank account, and if you account for payments
at clearing timeJ
Discount
+0change "ain6#oss
/uture Dated Payment
-ounding
Withholding 1a0 Iif you apply the withheld amount at Payment timeJ
$ank Charges
$ank +rrors
utomatic )ffsets affects only accounts listed abo!e. /or accounts other than these, for e0ample,
%nterest #iability, you must make manual Kournal entries in your general ledger to keep the entries
balanced at the balancing segment le!el.
Ea%ple
1he following diagram illustrates how Payables builds a "# account on a liability distribution
using the two different methods.
:.What is an E-*? )ow is it setup?
Payment on -eceipt enables you to automatically create standard, unappro!ed in!oices for
payment of goods based on receipt transactions. %n!oices are created using a combination of
receipt and purchase order information, eliminating duplicate manual data entry and ensuring
accurate and timely data processing. Payment on -eceipt is also known as +!aluated -eceipt
Settlement I+-SJ and Self $illing.
2ou can automatically create in!oices with multiple items and distribution lines, and include ta0.
2ou define which supplier sites participate in Payment on -eceipt and enforce matching rules to
ensure the proper payments are made to the suppliers.
A%ount Payment on -eceipt builds in!oices with the following information. Determined by
multiplying the ?uantity recei!ed by the Purchase )rder %tem &nit Price.
Pay%ent 'er%s 5 Defaulted from the purchase order payment terms or from the supplier site
payment terms, depending on your )racle Public Sector Payables setup.
'a 5 $ased on 1a0 Codes on each purchase order shipment, or the default ta0 hierarchy in
Payables.
%f the purchase order currency and the supplier site Payment Currency Iin the Supplier Sites
windowJ are not fi0edrate currencies Ifor e0ample, not eurorelated currenciesJ, Payment on
-eceipt builds the in!oices this way, regardless of the supplier site %n!oice Currency.
Invoice /urrency 4 Defaulted from the purchase order Currency.
Pay%ent /urrency 4 Defaulted from the purchase order Currency.
%f the purchase order currency and the supplier site Payment Currency are fi0edrate currencies
Ifor e0ample, eurorelated currenciesJ, Payment on -eceipt builds the in!oices this way,
regardless of the supplier site %n!oice Currency.
Invoice /urrency 4 Defaulted from the purchase order Currency.
Pay%ent /urrency 5 Defaulted from the supplier site Payment Currency. /or e0ample, if the
purchase order Currency is francs and the supplier site Payment Currency is the euro, the
Payment Currency on the in!oice is the euro.
Defaulted from the supplier site %n!oice Currency if no supplier site Payment Currency is defined
and the supplier site %n!oice Currency is a fi0edrate currency.
Defaulted from the purchase order Currency if the supplier site %n!oice Currency is not a fi0ed
rate currency. %f the lternate Pay Site is populated for the Supplier Site used on the Purchase
)rder, the in!oice created is for the lternate Pay Site, otherwise the Supplier Site on the
Purchase )rder is used.
1he Supplier Site used for the in!oice must be defined as a Pay Site.
A. +0plain the Withholding 1a0 ccounting.
;.What is the !or%at o! Interest Invoice nu%ber?
ns. %nterest %n!oice format no. is splited into three segments they are %n!oice 'o on which
interest is calculated, %'1 and no. of times paid the +0ample as follows
Invoice 5o. <<4 %'15 <
"escription <<4 is stands for the
in!oice 'o. )n which
interest is paid or
calculated
%'1 %s the symbol for
%nterest
< is the suffi0 attached to the interest
in!oice depends on the 'o. )f times
interest paid on a particular %n!oice
e.g. if you paid interest for second
time then the in!oice will generate
with suffi0 =
(. What are di!!erent types o! special calendar?
1here are four special calendars they are
<. -ecurring %n!oice
=. Withholding 1a0
4. Payment 1erms
A. Ley %ndicator
<.)ow the ter%s date will be calculated !or recurrin& invoices?
When Payables creates recurring in!oices, the in!oice date is the first date of the period in which
the recurring in!oice is created. 1he 1erms Date depends on the 1erms Date $asis setting at the
supplier site, but is calculated differently than for regular in!oices.
%f the 1erms Date $asis is set to System Date, then the 1erms Date is the same date that the
recurring in!oice was created.
%f the 1erms Date $asis is set to anything else, then the 1erms Date is the in!oice date, which is the
first day of the period in which the recurring in!oice is created.
..What is the de!ault invoice date !or recurrin& invoices?
+!ery month first date will be the default date for recurring in!oice.
H.,ow to define foreign currency recurring %n!oice 1emplate ? What are the additional
considerations?
)ptionally change the in!oice currency, which is your functional currency unless you ha!e a
supplier site default. %f you enter a foreign currency, enter e0change rate information when you
create in!oices based on the template.
=>. What are the prere3uisites !or auto creation o! "ebit 8e%o o! -'* transactions?
Check the check bo0 FCreate Debit memo for -1S transactionsG under purchasing 1ab page in
Supplier site. nd in purchase module in F-eturns /ormG Check the Check $o0 Create debit
memo.
==.What is the nu%ber !or%at o! invoice &enerated based on E-*? 5a%e the pro!ile
option related to this.
1he 'ame of the Profile is P). +-S in!oice 'umber Prefi0.
1he number format of in!oice generated are,
Default Profile name.
Depends upon the %n!oice summery le!el IPurchasing 1ab page in Supplier siteJ the number will
!ary either -eceipt 'o. or Packing slip 'o. )r Supplier 'o.
System generated 'o.
=2.What reports will be shown i! you run concurrent pro&ra% !or Epense report?
Payables %n!oice %mport udit -eport
Payables Invoice Import Exceptions Report
Payables %n!oice %mport Prepayments pplied -eport
=:.What is the relevance o! Withholdin& ta &roup?
&se this window to define withholding ta0 groups that include multiple Withholding 1a0 type ta0
codes. 2ou can assign the same ta0 code to more than one group. When you assign a withholding
ta0 group to an in!oice or distribution, Payables calculates in!oice withholding ta0 based on e!ery
ta0 code in the withholding ta0 group. /or e0ample, you assign a withholding ta0 group to an
in!oice or distribution if you need to withhold ta0es at both the local and country le!el, each
withheld at different rates and remitted to different ta0 authorities. 2ou define and assign to the
in!oice or distribution a Withholding 1a0 "roup that includes both ta0es.
2ou rank all of the ta0 codes in a withholding ta0 group when you define the group. When you
enter an in!oice and enter a withholding ta0 group, Payables calculates the ta0es in order of rank.
#ower ranked ta0es are applied to the amount of the in!oice or distribution amount less the
pre!ious withholding ta0 amounts.
=$. What are di!!erent rate structure !or Withholdin& 'a ?
Period 0i%it. fter you pay a certain amount for a withholding ta0 in a period, Payables does
withhold further ta0es. /or e0ample, for each special calendar period, Payables withholds no
more than M<:,:::.
%f you select this !alue you must enter !alues for the Period #imit, and Calendar fields. 2ou cannot
enter !alues for the mount $asis and Period $asis fields.
7lat -ate. 1he withholding ta0 has no amount or period limits. %f you select this !alue you
cannot enter a !alue in the mount $asis, Period $asis, and Period #imit fields.
A%ount -an&es. 1he ta0 rate depends on how much you ha!e already paid during a time
period. $ase the paid amount on either the gross amount of total paid in!oice amounts, or on the
total amount of ta0 withheld. 1he time period can be per withholding ta0 calendar period or per
in!oice. /or e0ample, define a ta0 that for each in!oice that withholds at a rate of <:; until you
ha!e paid M<::: in ta0, after which it withholds at <9;. %f you select this !alue you must enter
!alues for the mount $asis and Period $asis fields. %f you select Period as your Period $asis, you
must also select a Calendar. 2ou cannot enter a !alue for Period #imit.
<9. What is the rele!ance of BPeriod $asisC field in withholding ta0 details from and when it can be
chosen?
Period #asis. 1o enter amount ranges in the 1a0 -ates region, select mount -anges as the
-ate 1ype, and specify an mount $asis and a Period $asis.
Invoice. Select %n!oice if you want to apply an amount range to each in!oice.
Period. Select Period to apply an amount range to a Withholding 1a0 period. %f you enter a !alue
here, then specify the name of the special calendar that uses the periods you want to use.
=(. What are the Pre 4 re3uisites !or Withholdin& 'a Invoices?
1a0 authority to defined as supplier
1a0 codes N 1a0 groups to be defined
Special calendar to be defined
+nable the Check bo0 &se withholding 1a0 under Withholding 1ab page in payables options.
<>. ,ow to !iew supplier $alance?
I'J %n!oices %n*uiry %n!oices, here you can find out balance of supplier I$J FCalculate
$alance )wedG by pro!iding supplier information at ,eader.
O-
"o to the %n!oice work bench and go to the 3enu @iew /ind the screen will be opened as find
in!oice in that gi!e your supplier name and site and click on the FCalculate $alance )wedG
=..What is the !or%at o! Withholdin& 'a Invoice 5u%ber?
Withholding 1a0 System "enerated 'o. %n!oice distribution #ine 'o.
=1. What are there any payable options related to epense -eport.
Default 1emplate
Payment 1erms
Pay "roup
Payment priority
pply ad!ance
utomatically Create employee as supplier
,old unmatched +0pense -eport
.Eplain di!!erent types o! transaction in -eceivables.
Invoice %n )racle ProKects, a summari(ed list of charges, including payment terms, in!oice item
information, and other information that is sent to a customer for payment.
"ebit %e%os Debits that you assign to a customer to collect additional charges. /or e0ample,
you may want to charge a customer for unearned discounts taken, additional freight charges,
ta0es, or finance charges.
/har&e bac+s new debit item that you assign to your customer when closing an e0isting,
outstanding debit item.
/redit %e%o %n )racle -ecei!ables, a document that partially or fully re!erses an original
in!oice. 2ou can create credit memos in the -ecei!ables Credit 1ransactions window or with uto
%n!oice.
"eposit type of commitment whereby a customer agrees to deposit or prepay a sum of money
for the future purchase of goods and ser!ices
?uarantee contractual obligation to purchase a specified amount of goods or ser!ices o!er a
predefined period of time.
>2. What is Application -ule *et?
Application -ule *ets
&se the pplication -ules Sets window to re!iew e0isting and define new application rule sets.
pplication rule sets specify the default payment steps for your receipt applications and how
discounts affect the open balance for each type of associated charges. $y defining your own
application rule set, you can determine how -ecei!ables reduces the balance due for a
transactionCs line, ta0, freight, and finance charges.
-ecei!ables pro!ides the following application rules.
0ine 7irst 4 'a A!ter6 pply to the open line item amount first. pply any remaining amount
in the following order. ta0, freight, and then finance charges.
0ine 7irst 4 'a Prorate6 pply a proportionate amount to the open line item amount and the
open ta0 amount for each line. pply any remaining amount to freight and then to finance
charges.
Prorate All6 pply a proportionate amount to the line, ta0, freight, and finance charges.
'o de!ine an application rule set6
<. 'a!igate to the pplication -ule Sets window.
=. +nter a 'ame and Description for this rule set.
4. +nter the Se*uence number for this application rule. -ecei!ables apply payments in this
se*uence, beginning with the lowest se*uence number.
5ote6 2ou cannot enter a se*uence number for the )!er application rule. $y default, this rule is
last in the se*uence for each application rule set.
A. +nter an application -ule. +ach rule will correspond to a line type Ifor e0ample, lines, freight,
or chargesJ, so you should gi!e your rule a descripti!e name. +ach rule set must ha!e at least one
application rule.
Attention6 -ecei!ables automatically assigns the )!er application rule to each application rule
set. 2ou cannot delete this rule. 1he )!er application rule applies any remaining amount after the
balance due for each item has been reduced to (ero. %f the transaction type of the debit item
allows o!er application, this rule prorates the remaining amount between each line and its
associated ta0 amount, making these amounts negati!e. %f the transaction type does not allow
o!er application, either you can place the remaining amount onaccount or lea!e it C&nappliedC.
9. +nter -ule Details for this application rule. 1his section indicates the type of charges and the
ta0 handling for this rule. Choose a 1ype of #ine, /reight, or Charges. 2ou need to enter at least
one type for your rule set.
D. %f you chose a 1ype of C#ineC, choose a 1a0 1reatment. Choose one of the following.
Prorate6 Choose this option to proportionately reduce the net amount of the line and associated
ta0 amounts.
#e!ore6 Choose this option to first reduce the open ta0 amount, then apply any remaining
amount to the line.
A!ter6 Choose this option to reduce the open line amount, then apply any remaining amount to
the associated ta0.
5ote6 1he default 1a0 1reatment for your /reight and Charges types is 'one. 1his option ignores
ta0, since you cannot ta0 freight and charges in -ecei!ables. 2ou cannot choose 'one for your
#ine type.
>. 1o automatically adKust this line type to account for any rounding corrections within this rule
set, check the -ounding Correction bo0. When an amount is prorated among se!eral line types,
-ecei!ables must use one of the line types to account for the rounding adKustment. +ach
application rule set must ha!e one and only one rounding correction line type.
*u&&estion6 ssign the -ounding Correction to the line type that is usually the largest portion of
your in!oices. $y doing this, the rounding correction will ha!e the least effect on the o!erall
remaining and applied amounts for this line type.
E. -epeat the pre!ious steps for each rule you want to add to this rule set.
H. Sa!e your work.
<:. When you are satisfied with this rule set definition, check the /ree(e bo0. -ecei!ables !erify
that your application rule set is defined properly and that it does not !iolate any basic application
guidelines. %f this rule set fails !alidation, -ecei!ables displays an error message. %n this case,
modify your rule set definition, and then check the /ree(e bo0 again to re!alidate it.
Attention6 rule set must be Cfro(enC before you can assign it to a transaction type or use it as
your default rule it in the System )ptions window. dditionally, after you free(e an application
rule set, you cannot update or delete it.
>:. Eplain Auto Accountin&.
Define uto ccounting to specify how you want -ecei!ables to determine the general ledger
accounts for transactions that you enter manually or import using uto %n!oice. -ecei!ables
create default accounts for re!enue, recei!able, freight, ta0, unearned re!enue, unbilled
recei!able, finance charges, bills recei!ables accounts, and uto %n!oice clearing IsuspenseJ
accounts using this information. When you enter transactions in -ecei!ables, you can o!erride
the default general ledger accounts that uto ccounting creates. 2ou can control the !alue that
uto ccounting assigns to each segment of your ccounting /le0 field, such as Company,
Di!ision, or ccount. 2ou must define uto ccounting before you can enter transactions in
-ecei!ables.
*u&&estion6 %f you use the multiple organi(ation support feature, you can set up uto
ccounting to deri!e the Product segment of your -e!enue account based on in!entory items. 1o
do this, define the Product segment of your -e!enue account to use Standard #ines and specify a
Warehouse %D when entering transactions.
'o de!ine Auto Accountin&6
<. 'a!igate to the utomatic ccounting window.
=. +nter the 1ype of account to define. Choose from the following.
Auto Invoice /learin&6 1he clearing account for your imported transactions. -ecei!ables use
the clearing account to hold any difference between the specified re!enue amount and the selling
price times the *uantity for imported in!oice lines. -ecei!ables only use the clearing account if
you ha!e enabled this feature for the in!oice batch source of your imported transactions.
#ills -eceivable6 1he bills recei!able account for your transaction. -ecei!ables use this account
when you e0change transactions for bills recei!able.
7actored #ills -eceivable6 1he factored bills recei!able account for your bills recei!able
transactions.
7rei&ht6 1he freight account for your transaction.
-eceivable6 1he recei!able account for your transaction.
-e%itted #ills -eceivable6 1he remitted bills recei!able account for your bills recei!able
transactions.
-evenue6 1he re!enue and finance charges account for your transaction.
'a6 1he ta0 account for your transaction.
9nbilled -eceivable6 1he unbilled recei!able account for your transaction. -ecei!ables use this
account when you use the $ill %n rrears in!oicing rule. %f your accounting rule recogni(es
re!enue before your in!oicing rule bills it, -ecei!ables uses this account.
9nearned -evenue6 1he unearned re!enue account for your transaction. -ecei!ables use this
account when you use the $ill %n d!ance in!oicing rule. %f your accounting rule recogni(es
re!enue after your in!oicing rule bills it, -ecei!ables uses this account.
9npaid #ills -eceivable6 1he unpaid bills recei!able account for your bills recei!able
transactions.
4. /or each segment, enter either the table name or constant !alue that you want -ecei!ables to
use to get information. When you enter an account 1ype, -ecei!ables displays all of the segment
names in your ccounting /le0field Structure. Segments include such information as Company,
Product, Department, ccount, and Subccount. -ecei!ables lets you use different table names
for different accounts. Choose one of the following table names.
#ill 'o *ite6 &se the billto site of the transaction to determine this segment of your re!enue,
freight, recei!able, uto %n!oice clearing, ta0, unbilled recei!able, and unearned re!enue account.
"rawee *ite6 &se the drawee site table to determine this segment of your bills recei!able,
factored bills recei!able, remitted bills recei!able, and unpaid bills recei!able account.
-e%ittance #an+s6 &se the remittance banks table to determine this segment of your factored
bills recei!able and remitted bills recei!able account.
*alesperson6 &se the salespersonCs table to determine this segment of your re!enue, freight,
recei!able, uto%n!oice clearing, ta0, unbilled recei!able, and unearned re!enue account. %f you
choose this option for your uto%n!oice clearing, ta0, or unearned re!enue accounts, -ecei!ables
uses the re!enue account associated with this salesperson. %f you choose this option for your
unbilled recei!able account, -ecei!ables uses the recei!able account associated with this
salesperson. %f the transaction has a line type of G#%'+G with an in!entory item of freight IG/-1GJ,
utoccounting uses the accounting rules for the freight type account rather than the re!enue
type account.
*tandard 0ines6 &se the standard memo line or in!entory item on the transaction to determine
this segment of your re!enue, uto%n!oice clearing, freight, ta0, unbilled recei!able, and
unearned re!enue account. %f you choose this option for your uto%n!oice clearing, freight, ta0,
unbilled recei!able or unearned re!enue accounts, -ecei!ables uses the re!enue account
associated to this standard memo line item or in!entory item. %f the transaction has a line type of
G#%'+G with an in!entory item of freight IG/-1GJ, utoccounting uses the accounting rules for
the freight type account rather than the re!enue type account.
'aes6 +nter this option to use ta0 codes when determining your ta0 account.
'ransaction 'ypes6 &se the transaction types table to determine this segment of your re!enue,
freight, recei!able, uto%n!oice clearing, ta0, unbilled recei!able, and unearned re!enue account,
and of your bills recei!able, factored bills recei!able, remitted bills recei!able, and unpaid bills
recei!able account. %f the transaction has a line type of G#%'+G with an in!entory item of freight
IG/-1GJ, utoccounting uses the accounting rules for the freight type account rather than the
re!enue type account.
A. %f you did not enter a 1able 'ame, enter a Constant !alue for this segment, or select one from
the list of !alues. +nter a Constant !alue if you want utoccounting to always use the same !alue
for this ccounting /le0field segment. $e sure to enter information that is !alid for this segment.
/or e0ample, if you defined your Company fle0field segment as a twocharacter segment with
!alid !alues ranging from :: to <:, you must enter a twocharacter !alue within this range.
9. Sa!e your work.
$. What is Auto /ash -ule *et?
Define uto Cash -ule Sets to determine the se*uence of uto Cash -ules that Post ?uick Cash
uses to update your customerCs account balances. 2ou specify the se*uence and the uto Cash
-ules for each uto Cash -ule Set. 1he uto Cash -ule Sets you define display as list of !alues
choices in the Customers, Customer ddresses, Customer Profile Classes, and the System )ptions
windows. Post ?uick Cash first checks the customer site, then the customer profile class, and
finally at the system options le!el to determine the uto Cash -ule Set to use.
-ecei!ables pro!ides a default utoCash -ule Set when you assign a customer to a credit profile,
but you can modify indi!idual utoCash -ule Set assignments at both the customer and customer
site le!els. %f you do not assign an utoCash -ule Set to a customerCs credit profile, and you enter
a receipt for this customer, -ecei!ables uses the utoCash -ule Set that you entered in the System
)ptions window along with the number of Discount "race Days you specified in this customerCs
credit profile to apply the receipt. %f you assign an utoCash -ule Set to a customer, but none of
the utoCash -ules apply, -ecei!ables places the remaining amount &napplied or )nccount,
depending on how you set the -emaining -emittance mount option for the rule set.
%f you ha!e set up your system to use bank charges and a tolerance limit, Post ?uickCash will also
consider these amounts if the current utoCash rule fails Ithis is true for all rules e0cept Cpply to
the )ldest %n!oice /irstCJ. %f it finds a match, Post ?uickCash applies the receiptO otherwise, it
looks at the ne0t rule in the se*uence. 2ou can disable an e0isting utoCash -ule Set by changing
its status to %nacti!e and then sa!ing your work.
Prere3uisites
Define system options
'o de!ine an Auto/ash -ule set6
<. 'a!igate to the utoCash -ule Sets window.
=. +nter the 'ame of this utoCash rule set.
4. +nter a description for this utoCash rule set IoptionalJ.
A. +nter the type of Discount you want to automatically gi!e to your customer for this utoCash
-ule Set. Choose one of the following Discount options.
Earned Only6 2our customer can take earned discounts according to the receipt terms of sale.
2ou negotiate earned discount percentages when you define specific receipt terms. 2ou can enter
this option if llow &nearned Discounts is set to yes in the System )ptions window. %n this case,
-ecei!ables only allows earned discounts for this utoCash -ule Set.
Earned and 9nearned6 2our customer can take both earned and unearned discounts. n
unearned discount is one taken after the discount period passes. 2ou cannot choose this option if
the system option &nearned Discounts is set to 'o.
5one6 2our customer cannot take discounts Ithis is the defaultJ.
9. 1o include transactions in dispute when calculating your customerCs open balance, check the
%tems in Dispute check bo0.
D. 1o include finance charges when calculating your customerCs open balance, check the /inance
Charges check bo0.
>. Define the utomatic 3atching -ule for this utoCash -ule set.
E. %f this rule set will include the pply to the )ldest %n!oice /irst rule, choose how you want to
apply any -emaining -emittance mount. -ecei!ables uses this !alue to determine how to enter
the remaining amount of the receipt if none of the utoCash -ules within this rule set apply.
Choose C&nappliedC to mark remaining receipt amounts as &napplied. Choose C)nccountC to
place remaining receipt amounts )nccount.
H. 1o automatically apply partial receipts when using the pply to the )ldest %n!oice /irst rule,
check the pply Partial -eceipts check bo0. partial receipt is one in which the receipt minus the
applicable discount does not close the debit item to which this receipt is applied. 1he applicable
discount that -ecei!ables uses for this rule depends upon the !alue you entered in the Discounts
field for this utoCash -ule Set. %f you e0clude finance charges Iby setting /inance Charges to 'oJ
and the amount of your receipt is e*ual to the amount of the debit item to which you are applying
this receipt minus the finance charges, -ecei!ables defines this receipt as a partial receipt. %n this
case, -ecei!ables does not close the debit item because the finance charges for this debit item are
still outstanding.
%f pply Partial -eceipts is set to 'o, this utoCash -ule Set will not apply partial receipts and
will either mark the remaining receipt amount C&nappliedC or place it onaccount, depending on
the !alue you entered in the -emaining -emittance mount field.
<:. +nter a Se*uence number to specify the order of each rule in this utoCash -ule Set
IoptionalJ. -ecei!ables uses the rule assigned to se*uence <, then se*uence =, and so on when
applying receipts using this utoCash -ule Set.
<<. +nter one or more utoCash -ules for this utoCash rule set. Choose from the following
utoCash rules.
Apply to the Oldest Invoice 7irst6 1his rule matches receipts to debit and credit items
starting with the oldest item first. 1his rule uses the transaction due date when determining
which transaction to apply to first. 1his rule uses the !alues you specified for this utoCash -ule
SetCs open balance calculation to determine your customerCs oldest outstanding debit item.
Post ?uickCash uses the ne0t rule in the set if any of the following are true.
all of your debit and credit items are closed
the entire receipt amount is applied
it encounters a partial receipt application and llow Partial
-eceipts is set to 'o for this utoCash -ule Set
the ne0t oldest debit item includes finance charges and /inance Charges is set to 'o for this
utoCash -ule Set 1his rule marks any remaining receipt amount C&nappliedC or places it on
account, depending on the !alue you entered in the -emaining -emittance mount field for this
utoCash -ule set
/lear the Account6 Post ?uickCash uses this rule only if your customerCs account balance
e0actly matches the amount of the receipt. %f the receipt amount does not e0actly match this
customerCs account balance, Post ?uickCash uses the ne0t rule in the set. 1his rule calculates your
customerCs account balance by using the !alues you specified for this utoCash -ule SetCs open
balance calculation and the number of Discount "race Days in this customerCs profile class. 1his
rule also includes all of this customerCs debit and credit items when calculating their account
balance. 1his rule ignores the !alue of the pply Partial -eceipts option.
1his utoCash -ule uses t he following e*uation to calculate the open balance for each debit item.
Open #alance @ Ori&inal #alance A 7inance /har&es 4 "iscount
-ecei!ables then add the balance for each debit item to determine the customerCs total account
balance. 1he CClear the ccountC rule uses this e*uation for each in!oice, chargeback, debit memo,
credit memo, and application of an &napplied or )nccount receipt to a debit item.
5ote6 1he discount amount for each item depends upon the payment terms of the item and the
!alue of the Discounts field for this utoCash -ule Set. 1he number of Discount "race Days in
this customerCs credit profile, along with the payment terms assigned to their outstanding
in!oices, determine the actual due dates of each debit item.
/lear Past "ue Invoices6 1his rule is similar to the CClear the ccountC rule because it applies
the receipt to your customerCs debit and credit items only if the total of these items e0actly
matches the amount of this receipt. ,owe!er, this rule only applies the receipt to items that are
currently past due. debit item is considered past due if its due date is earlier than the receipt
deposit date. 1his rule considers credit items Ii.e. any pree0isting, unapplied receipt or credit
memoJ to be past due if the deposit date of the receipt is either the same as or later than the
deposit date of this pree0isting receipt or credit memo. %n this case, this rule uses a pree0isting
receipt or credit memo before the current receipt for your utoCash receipt applications. %f this
utoCash -ule SetCs open balance calculation does not include finance charges or disputed items,
and this customer has past due items that are in dispute or items with balances that include
finance charges, this rule will not close these items. 1his rule ignores the !alue of the pply
Partial -eceipts option.
/lear Past "ue Invoices ?rouped by Pay%ent 'er%6 1his rule is similar to the CClear Past
Due %n!oicesC rule, but it first groups past due in!oices by their payment term, and then uses the
oldest transaction due date within the group as the group due date.
When using this rule, -ecei!ables can only apply the receipt if the receipt amount e0actly matches
the sum of your customerCs credit memos and past due in!oices. debit item is considered past
due if the in!oice due date is earlier than the deposit date of the receipt you are applying. /or
credit memos, -ecei!ables uses the credit memo date to determine whether to include these
amounts in the customerCs account balance. /or e0ample, if you are applying a receipt with a
receipt date of <:P'H4, credit memos that ha!e a transaction date Icredit memo dateJ on or
earlier than <:P'H4 will be included. Credit memos do not ha!e payment terms, so they are
included in each group.
8atch Pay%ent with Invoice6 1his rule applies the receipt to a single in!oice, debit memo, or
chargeback that has a remaining amount due e0actly e*ual to the receipt amount. 1his rule uses
the !alues that you enter for this utoCash -ule SetCs open balance calculation to determine the
remaining amount due of this customerCs debit items. /or e0ample, if /inance Charges is 'o for
this rule set and the amount of this receipt is e*ual to the amount due for a debit item minus its
finance charges, this rule applies the receipt to that debit item. %f this rule cannot find a debit item
that matches the receipt amount, Post ?uickCash looks at the ne0t rule in the set. 1his rule
ignores the !alue of the pply Partial -eceipts
option.
<=. Sa!e your work.