1z0-506 Oracle Fusion Accounts Receivables

Must Study
AR to GL Reconciliation concept & reports
Reporting and Analysis
Collection Setups
Collection Dashboard
Roles and the respective access to business objects
Common Configuration
Adjustment & Write-of
Dispute

Topic

Learner

Reading
list

Practitioner

General
Setup

Describe the FSM

Day I-Fin II

Create an implementation project

Describe
the
configuration
packages
How to use reports to validate
setup data
How to design & use various
reporting tools

Day I-Fin II

Create users and roles

Day I-FR

Overview
of
Receivabl
es

Explain the process for managing

customers with AR

Day II-Fin II
Day III-Fin
II

Explain Oracle transactional business

intelligence
Use Business intelligence publisher
reports (BIP)
Use the payables to ledger reconciliation
report
Manage Reference Data Sets

Overview
of Billing
&
Revenue
Managem
ent
Collection
s

Describe bill presentment

Reporting

Readi
ng
list
Day IFin II
Day IFin II

Explain the key functionality of

the Collection work area

Day IV-Fin
II

Deploy delinquency process

Define the collection preferences

Day IV-Fin
II

Explain the process

correspondence

Define funds capture

Day IV-Fin
II

Explain key uses for receivables

balances work area
Other
Topics

AR

Explain when late charges are

used

Day IIFin II

Troubleshoot FBDI (File Based Data

Import)
Process billing transactions
Manage revenue
Analyze receivables info. using the billing
work area

for

customer

Manage dispute handling

Receipt
Managem
ent

Day IFR
Day IFR

Deploy receipt processing

Manage customer refunds

Day IV-Fin
II

Create write
chargebacks

ofs,

adjustments

Setup the period close process

Configure sub-ledger accounting

and

Day
IV-Fin
II
Day
IV-Fin
II
Day
IV-Fin
II
Day
IV-Fin
II
Day
IV-Fin
II
Day
IV-Fin
II

To read:
1. Validation to complete Credit Memo:
- The credit memo line should have revenue account assignment specified.

3Questions 1. Collection preferences

Which two preference definitions determine the default values during the collection process?
A.
B.
C.
D.
E.

Default aging method

Default exchange rate
Preference set
Default contact for unknown dunning recipients
Display of open transactions

Answer: A and B
Explanation:
The Collections Customer Work Area displays open tasks and delinquent customer
information for the collector assigned to a given customer. The information is displayed in
summary but the collector can drill into details through hyperlinks.
Global Preferences
Selections made in the Global Preference region impact the view the collectors see from the
Collections Customer Work Area and Collections Dashboard. Global Preferences define the
following:
Default transaction class that appears
Display of open transactions
Display of closed transactions
Number of days for prior and future transactions to be displayed
Default aging method
Delimiter used to separate data and the number of characters required to do a
search
Preferences
Selections made in the Preference region impact the defaults the collector encounters when
going through the collection process. Preferences define the following
Preference set
Collections business level
Summarize or age credits
Default exchange rate
Send method of dunning
Default contact for unknown dunning recipients

Questions 2.
Select three features that the Shared Service model provides to satisfy business needs.
A. Secures user access to business units data
B. Supports access of asset Information across multiple asset books
C. Diferent business units can take orders; however, orders can be managed by a
shared service desk having multiple business unit access.
D. Ability to view consolidated requisitions across business units
E. Ability to submit and view data across diferent ledgers
Answer: A, C, and D
Explanation:
In Oracle Fusion applications, the business functions your business unit performs are evident
in the user interface for setting up business units. To accommodate shared services, use
business unit security to expand the relationship between functions and data. A user can
have access to many business units. This is the core of your shared service architecture.
For example, you take orders in many business units each representing diferent registered
legal entities. Your orders are segregated by business unit. However, all of these orders are
managed from a shared service order desk in an outsourcing environment by your users who
have access to multiple business units.
Business Units: Explained
A business unit is a unit of an enterprise that performs one or many business functions that
can be rolled up in a management hierarchy. A business unit can process transactions on
behalf of many legal entities. Normally, it will have a manager, strategic objectives, a level
of autonomy, and responsibility for its profit and loss. Roll business units up into divisions if
you structure your chart of accounts with this type of hierarchy. In Oracle Fusion
Applications, you assign your business units to one primary ledger. For example, if a
business unit is processing payables invoices they will need to post to a particular ledger.
This assignment is mandatory for your business units with business functions that produce
financial transactions.

Questions 3.
Select a scenario that is NOT eligible for receipt reversal.
A. Reversing a miscellaneous receipt
B. Reversing a receipt applied to a transaction with a chargeback that has been posted
to UK-General Ledger
C. Reversing credit card refund receipts
D. Reversing receipts that were applied to open receipts and both receipts have positive
balance post reversal
Answer: B
Explanation:

When to reverse receipts?

If customer stops payment on a receipt

If receipt comes from an account with insufficient funds (void by bank)

Eligibility

Invoice-related receipts
Miscellaneous receipts
Credit card refund (negative miscellaneous) receipts
Receipts that are part of a batch
Receipts that were applied to open receipts, provided that neither receipt is drawn
negative by the reversal

Processing Receipt Reversals

When you reverse a receipt, Oracle Fusion Receivables automatically creates reversal
journal entries in the general ledger and reopens all of the debit and credit items that
were closed by the receipt.
You can reverse a receipt that was applied to transactions with adjustments or
chargebacks, provided the adjustments and chargebacks have not posted to general
ledger.

Note: If a chargeback posted to general ledger, then you must create a debit memo
reversal.
P.S.
a. Open receipts include receipts that have either unapplied cash or on-account
cash.

Questions 4.
The rules applicable to issue refunds are ________. Select two.
A. You can NOT refund more than either the original receipt amount or the remaining
unapplied amount.
B. You can refund receipts that were either remitted or cleared.
C. You can issue a credit card refund to a customer who has made a cash payment.
D. You can refund receipts that are factored.
Answer: A and B
Explanation:

Process Refunds
Issuing Manual Refunds: Explained
You can issue manual refunds for both credit card and non-credit card transactions.
Depending on your implementation, you can also issue refunds for overpayments on
transactions.
Note: Credit card services are currently not available in Oracle Financials Cloud
implementations.
Considerations for manual refunds include:
Rules for Issuing Refunds
Issuing Non-Credit Card Refunds
Issuing Credit Card Refunds
Issuing Refunds for Overpayments

Rules for Issuing Refunds

Before you can issue a refund you must unapply the receipt amount. You can either unapply
the amount of the refund from one or more application lines on the receipt, or you can apply
an on-account credit memo in the amount of the refund to the original receipt.
These rules apply to issuing refunds:
You cannot refund more than either the original receipt amount or the remaining
unapplied amount.
You can only refund original receipts that were either remitted or cleared.

You cannot issue a credit card refund unless the customer payment was made by
credit card.

Issuing Non-Credit Card Refunds

You can issue refunds for receipts or on-account credit memos.
To issue a non-credit card refund:
1. Unapply the amount to refund from the receipt or credit memo.
2. Issue the manual refund, and enter the values required by Oracle Fusion Payables.
You can refund the amount to the original receipt customer or to any related
customer, as defined by your setup.
If the refund is by bank account transfer, you must enter the customer bank account.
3. Save the refund and receipt.
Oracle Fusion Receivables sends a refund request to Payables, which in turn validates the
refund information and sends a payment request to Oracle Fusion Payments.

Issuing Credit Card Refunds

You can issue credit card refunds for receipts only. Credit card refunds update credit card
transactions that did not complete, for example, the customer returned the product that was
originally charged to the credit card number; or in cases where charges were mistakenly
applied to an incorrect credit card number.
To issue a credit card refund:
1. Unapply the credit card amount to refund from the receipt.
2. Issue a manual credit card refund to create a negative miscellaneous receipt for the
amount.
3. Run the Create Automatic Remittances program to remit the negative miscellaneous
receipt and initiate the refund.
Receivables submits a refund request directly to Payments to create the disbursement.
Payments applies the refund to the same credit card used on the original transaction.
If you are correcting a payment to an incorrect credit card number, then after you issue the
credit card refund, assign the correct credit card number to the transaction as the payment
instrument and run the Create Automatic Receipts program to create a payment for the
transaction.

Issuing Refunds for Overpayments

During lockbox processing, Receivables identifies overpayments after receipts are applied to
transactions. Depending on the details of your setup, Receivables can suggest for your
review overpayment amounts as refunds to your customers.
If you decide after review to refund an overpayment, you can manually issue a refund up to
the total amount assigned to your refund approval limits.

Questions 5.
An Invoice with an original balance of $100 has a receipt application for $75. The Collector
enters a dispute for $50 for this invoice and submits it for approval. Select the valid
statement.
A. A Credit Memo for $50 will be created.
B. A Credit Memo for $25 will be created.
C. A Credit Memo will NOT be created, because the disputed amount is greater than the
invoice balance.
D. A Credit Memo for $50 and a Debit Memo for $25 will be generated.
Answer: D. My opinion is A
Explanation:

When do I create a chargeback?

Use chargebacks to create a new debit item for your customers when closing an
existing debit item. You can also create a chargeback against a credit memo or on-account
credit with a positive balance.
For example, a customer sends a payment of $75 for a $100 invoice. You apply the
receipt to the invoice, and create a chargeback for the balance due. If the transaction types
assigned to the transaction and to the chargeback allow over-application, you can enter a
chargeback amount greater than the original balance due.
You can edit a chargeback transaction like any other transaction on the Edit
Transaction page.

How does the dispute apply to the customer outstanding balance?

The dispute must go through an approval process in Oracle Fusion Receivables and if
approved, a credit memo is created. Once the credit memo is created it is available to be
applied to the customer's transaction that was disputed before updating their outstanding
balance.

Debit Memo Reversal

Creating the Debit Memo Reversal

To create a debit memo reversal, you enter a debit memo transaction type. The debit memo
transaction type provides the default receivable account distribution for the new debit item.
If the receipt that you are reversing uses a receipt method with the Debit Memos
Inherit Receipt Number option enabled, you can control whether the debit memo has the
same transaction number as the original receipt. If the Debit Memos Inherit Receipt
Number option is not enabled, Receivables uses the predefined Debit Memo Reversal
transaction source to determine the numbering for the debit memo reversal.
If you are using manual document numbering, enter a unique document number for
this reversal. If you are using automatic numbering, Receivables assigns a unique document
number to the new debit memo.
When you create a debit memo reversal, Receivables generates the line item from the
predefined memo line.
Receivables creates this line on the debit memo:
Debit
memo
for
reversal
of
payment
{PAYMENT_NUMBER}
{PAYMENT_NUMBER} represents the original receipt number.

where

Accounting for Debit Memo Reversals

When you create a debit memo reversal, Receivables creates the accounting entries on the
new debit memo transaction rather than on the original receipt. This ensures that you do not
make duplicate entries, and eliminates the need for a clearing account.
With regular debit memos, AutoAccounting creates both the receivable and revenue
account distributions. With debit memo reversals, the debit memo transaction type provides
the receivable account distribution, and the cash account on the receipt is used as the
revenue account distribution.
The cash account used depends on the status of the receipt at the time of the
creation of the debit memo reversal. For example, if the receipt was remitted, then the cash
account is the same as the remitted account assigned to the receipt method of the receipt.
When you create a debit memo reversal, Receivables creates these two entries:
1. The first entry decreases the cash account.
Receivables already recognized revenue on the original transaction. To
avoid overstating the cash and revenue accounts, Receivables does not create
an additional entry to revenue. Instead, Receivables assigns the cash account
to the revenue line on the debit memo.
2. The second entry creates the new receivable.
When the original receipt was applied, Receivables closed the
transactions and their associated receivables. You must therefore establish a
new receivable to track the new debit item.

Questions 6.
The Billing Specialist created and completed an invoice for $100 for Customer A. She prints
the invoice and realizes that the invoice should have been created for Customer B, not
Customer A. The accounting for the transaction for Customer A is posted to the General
ledger. How can this be corrected?
A. Create an adjustment for the entire amount and create a negative adjustment for
Customer B.
B. Create an on account credit memo for $100 for the invoice and enter a new invoice
for Customer B.
C. Change the status of invoice to incomplete, and enter a new invoice for Customer B.
D. Navigate to credit transaction link in the billing work area, credit the entire amount,
and enter a new invoice for Customer B.
Answer: D
Explanation:

Questions 7.
What is the action you perform on a transaction once you drill down to the edit transaction
window from the Billing Work Area page?
A.
B.
C.
D.

Incomplete Transaction
Complete and Review
Reverse the Transaction
Create a New Transaction

Answer: C
Explanation:

Questions 8.
You have created payment terms and associated them with the reference data set. Business
unit X has a set assignment of Enterprise set for payment terms.
Payment Term = Net 30, Reference Data Set = Enterprise Set
Payment Term = Net 45, Reference Data Set = Enterprise Set
Payment Term = 1%/10 Net 30, Reference Data Set = USA Set
Payment Term = Net 45, Reference Data Set = USA Set
If an Invoice is raised under business unit X. Which payment terms are applicable to the
transaction?
A.
B.
C.
D.

Net 30 (Enterprise Set). Net 45 (USA Set)

Net 30 (Enterprise Set), Net 45 (Enterprise Set)
1%/10 Net 30 (USA Set), Net 45 (USA Set)
Net 45 (Enterprise Set), Net 45 (USA Set)

Answer: B
Explanation:

Questions 9.
What information does the Collector see in the Activities List area of the Collections
Dashboard?
A.
B.
C.
D.

Information about customers who have overdue bills

Tasks assigned to the Collector, such as follow up calls
Customer search as per the parameters specified
Status of processing activities from the Process Monitor

Answer: B
Explanation:

Questions 10.
When reversing a receipt, if an adjustment or chargeback exists, how are the of- setting
adjustments created?
A.
B.
C.
D.

Manually using the Adjustment Reversal

Manually using Chargeback Reversal activities
Automatically using the Adjustment Reversal and Chargeback Reversal activities
Automatically, but WITHOUT using the Adjustment Reversal and Chargeback Reversal
activities
E. Manually, but WITHOUT using Adjustment Reversal and Chargeback Reversal
activities
Answer: C
Explanation:
Receivables Activity Types
Adjustment
You use activities of this type when creating adjustments. You must create at least one
activity of this type.
There are also three related activities that are reserved for internal use only:

Chargeback Adjustment
Adjustment Reversal
Chargeback Reversal

You must define general ledger accounts for the Chargeback Adjustment activity before
creating chargebacks.
When you reverse a receipt, if an adjustment or chargeback exists, Receivables
automatically generates of-setting adjustments using the Adjustment Reversal and
Chargeback Reversal activities.

Questions 11.
You have created an Autocash Ruleset where the first rule to be applied to receipts is Match
Payments with Invoice.
* Discount = Earned Only
* Late charges = NO
* Receipt = $900
* Receipt date = 14-Feb-2010
* Discount Grace Days = 5
Which Transaction will be applied to the receipt?
A. Invoice Amount: $800, Payment terms: 10% 10/Net 30, Invoice Date: 01 Feb
Due Date 28- Feb-2010
B. Invoice Amount: $800, Payment Terms: 10% 10/Net 30, Invoice Date: 01 Feb
Due Date: 20- Feb-2010
C. Invoice Amount: $1000, Payment Terms: 10% 10/Net 30, Invoice Date: 01-FebDue Date: 28-Feb 2010
D. Invoice Amount: $800, Payment Terms: 10% 10/Net 30, Invoice Date: 01-FobDue Date 24- Feb-2010
Answer: C
Explanation:

2010.
2010,
2010,
2010,

Questions 12.
Identify two late charge interest calculation methods.
A.
B.
C.
D.

Average Daily Balance

Overdue Transactions
Adjusted Balance
Previous Balance

Answer: A and B
Explanation:

Late Charges Interest calculation methods

1. Average Daily Balance: Calculate late charges based on the average daily balance of
overdue invoices. This method is for balance forward bills only.
2. Late Payments Only: Calculate late charges based on the number of days between the
payment due date and the actual payment date. This method uses the paid amount as
the overdue invoice amount when calculating the late charge.
3. Overdue Transactions Only: Calculate late charges for transactions based on the number
of days a payment is late when you submit the Create Late Charges program.
4. Overdue Transactions and Late Payments: Calculate late charges on both overdue
transactions and late payments.
This option levies the largest late charge amount on a customer.
For example, your enterprise calculates late charges on the 15th and 30th of each
month. Your customer has an overdue invoice of $100 that falls due on November 16:

On November 30, you run the Create Late Charges program. Oracle Fusion
Receivables calculates late charges for this overdue invoice.
On December 10, your customer pays the invoice.
On December 15, you run the Create Late Charges program again. Receivables
assesses further charges for the additional 10 days that the payment was overdue.

Questions 13
The Receipts Pending Application region in the Receivables Dashboard provides Information
about which two Items?
A.
B.
C.
D.
E.

Receipt Status
Batch type
Control Amount
Receipt Date
Amount

Answer: D and E
Explanation:

Questions 14.
Which are the two interface tables that transaction data will be imported to when using the
AutoInvoice Feature?
A.
B.
C.
D.
E.

AR_INTERFACE_CONTS_ALL
AR_INTERFACE_CONT_ALL
RA_INTERFACE_SALES_ALL
RA_INTERFACE_DISTRIBUTIONS_ALL
RA_INTERFACE_DIST_ALL

Answer: A, and D
Explanation:
The transaction data you import is temporarily stored in these AutoInvoice interface tables:

AR_INTERFACE_CONTS_ALL : Contingencies that impact revenue recognition for

imported transactions
RA_INTERFACE_LINES_ALL : Transaction header and line information
RA_INTERFACE_SALESCREDITS_ALL : Sales credit information for transactions
RA_INTERFACE_DISTRIBUTIONS_ALL : Distributions linked to the appropriate
transaction lines in the RA_INTERFACE_LINES_ALL table via the transaction flexfield
RA_INTERFACE_ERRORS_ALL : All interface lines that failed validation and were not
imported into Receivables tables

Questions 15.
The Receivables Dashboard provides Information on Incomplete transactions. What are the
parameters the dashboard uses to provide this information?
A.
B.
C.
D.

Period,
Period,
Period,
Period,

Answer: B
Explanation:

Business
Business
Business
Business

Unit,
Unit,
Unit,
Unit,

Transaction Type, Amount

Transaction Source, Amount
Status, Batch Type
Type, Amount

Questions 16.
When a customer receipt does not provide sufficient information to identify the customer or
invoice, which is the correct method of entering the receipt?
A.
B.
C.
D.

Enter
Enter
Enter
Enter

the
the
the
the

receipt
receipt
receipt
receipt

as
as
as
as

an UNAPPLIED receipt.
an UNIDENTIFIED receipt.
an on-account receipt.
a miscellaneous receipt.

Answer: B
Explanation:
When you enter an unidentified receipt, Receivables creates the following journal entry:
Debit Cash
Credit Unidentified

Questions 17.
A Billing Specialist runs the Create Automatic Billing Adjustments program to automatically
adjust the remaining balance on open Invoices, but some of the amounts have exceeded his
approval limits, what will be the result?
A. The program creates adjustments only for the amounts within his approval limit
B. The program creates the adjustments with a status of Rejected for the amount that
exceeds his approval limits.
C. The program creates the adjustments with a status of Pending Approval for the
amount that exceeds his approval limits.
D. The program can only be run if the amount is within his approval limits.
Answer: C
Explanation:

Use the Create Automatic Billing Adjustments program to automatically adjust the
remaining balances of all open invoices, debit memos, credit memos, and
chargebacks.
When you run Create Automatic Billing Adjustments, the program automatically
creates pending and approved adjustments based on your adjustment approval limits
and closes the appropriate items. You can run the program in preview mode to review
the proposed adjustments before updating your open items.
If you enter a remaining amount or percentage range that exceeds your adjustment
approval limits, the program creates these adjustments with a status of Pending
Approval. If the remaining amount or percentage range is within your adjustment
Approval limits, the program automatically approves these adjustments.

Questions 18.
Which two Collection Preferences can be selected as the default transaction class for the
transaction tab?
A.
B.
C.
D.

Guarantee
Credit Memo
Deposit
Debit Memo

Answer: A and D. My opinion is B and D

Explanation:

Configuring Collections Preferences

Defining Global Preferences
Field

Value

Select the default Transaction Type for the

Transactions tab

Select Invoice, other transaction choices are

all, credit, or debit memos.

Automatically display closed transactions

on Transaction tab

Yes is select to view closed transactions as

part of the customers history.

Automatically display current transactions

on Transaction tab

Yes is selected to view current or open

transaction the customer has pending.

Enter the number of days before the

current date the transaction date range
should start

In this example, 90 days gives the collector 3

months of history. 1 to 9999 is the range that
can be used.

Enter the number of days after the

current date the transaction date range
should end

30 days of current or open transactions are

displayed. 1-9999 is the range that can be
used.

Enter the maximum number of days work

can be rescheduled on the dashboard

Two days is the allowable change in schedule

for work. 1-9999 is the range that can be
used.

Enter the number of days after submitting

an adjustment or dispute that an activity
is generated

One day generates the disputes and

adjustments. 1-9999 is the range that can be
used.

Select the default Aging Method

5 Bucket Aging, several aging buckets can be

defined and may be available.

Enter the delimiter used to separate

customer, account and site on the
Collections Dashboard

The pipe symbol, other available choices are

the greater than, dash, and colon symbols.

Enter the minimum number of characters

required to perform a search

Three characters is the Oracle recommended

number for a search. 1-9999 is the range that
can be used.

Enter the sender or return E-mail for

dunning correspondence

The default return E-mail for customers to

respond

Questions 19.
Select two values that are set up in Correspondence Configuration.
A.
B.
C.
D.

Dunning letter options

Dunning configuration set
Exclude from dunning
Rerun the dunning process

Answer: A and B
Explanation:

Questions 20.
Which three actions are facilitated through The Reconciliation Summary Report?
A. Drill down from any of the summarized Receivables and Accounting amounts to see
the detailed activity.
B. Drill down on the difference amounts to see specific reconciling items and the
potential cause of the out of balance condition.
C. Drill down to see details of what still needs to be transferred and posted to the
General Ledger.
D. Drill down to see reconciliation details and make reconciling for corrections.
E. Drill down to view the data and use standard Excel functionalities like sum, find, sort,
and filtering WITHOUT downloading to Excel.

Answer: A, B, and D
Explanation:

Questions 21.
ABC, Inc. has business units A and B. ABC, Inc. acquires XYZ Corporation and adds business
unit C. The Receivable Manager can see only transactions for business units A and B, but
NOT C. Why is business unit C NOT visible to the Receivables Manager?
A. Business units A and B represent diferent legal entities as compared to business unit
C.
B. The Receivable Manager is NOT assigned with a data role relevant to business unit C.
C. Business units A and B belong lo diferent ledgers than business unit C.
D. Business units A and C belong to diferent sub ledgers than business unit C.
Answer: B
Explanation:

Questions 22.
Select three values that default from Customer Profile Classes.
A.
B.
C.
D.
E.

Currency
Legal Entity
Payment Terms
Statement Cycle
Business Purpose

Answer: A, C, and D
Explanation:
* The customer profile class shares these default settings with other parts of Oracle Fusion
Receivables: Match Receipts By; AutoMatch rule set; AutoCash rule set; AutoInvoice
Grouping rule; payment terms (C); and tax printing options.
* Use Customer Profiles to group customers with similar credit worthiness, business volume,
and payment cycles. For each profile class you can define information such as credit limits,
payment terms, statement cycles, invoicing, and discount information. You can also define
amount limits for your finance charges, dunning, and statements for each currency in which
you do business. Define your standard customer profiles in the Customer Profile Classes
window.
These profiles contain generic options you can use to group your customers into broad
categories. For example, you might define three categories: one for prompt paying
customers with favorable credit limits; one for late paying customers with high finance
charge rates; and a third for customers who mostly pay on time, with discount incentives for
early payment. You can also use the profile class 'DEFAULT,' which the system provides.
Assign a profile class to each of your customers and addresses in the Customers window.
The customer profile class you assign provides the default values, then you can optionally
customize these values to meet your specific requirements for each customer or address. If

a profile is assigned to both a customer and one of that customer's addresses, the options
set for the address take precedence over those set at the customer level.

Questions 23.
What is the grouping order used to group transaction lines during the Autoinvoice Import
process?
A.
B.
C.
D.

transaction Source, Customer Site Profile, Customer Account Profile, system options
System options. Customer Site Profile, Transaction Source, Customer Account Profile
Transaction Source, Customer Account Profile, Customer Site Profile, system options
Transaction Source, Customer Account Profile, system options. Customer Site Profile

Answer: A
Explanation:

Questions 24.
You have created an Invoice with an incorrect unit price. You need to perform the Rebill task
from the Manage Transactions user interface to enter the correct transaction. Which two
actions does the Manage Transactions user interface allow you to perform for the Rebill task?
A.
B.
C.
D.
E.

Duplicate the original transaction.

Create a credit memo.
Incomplete the transaction.
Reverse the Transaction.
Correct the unit price.

Answer: A and B
Explanation:

FAQs for Process Billing Adjustments

When do I credit and rebill a transaction?
Sometimes the simplest way to manage a credit transaction is to credit and rebill. You credit
the entire balance of an invoice, duplicate the original invoice and update the duplicate with
the correct information, then resubmit to the customer.

Common scenarios for credit and rebill include:

A customer indicates that an invoice does not reflect the correct price of a product or
service. The customer requests a new invoice with the correct information.
A customer wants to correct their accounting directly in the subledger, instead of
making a manual journal entry in general ledger. With credit and rebill, the credit
memo reverses the accounting of the original invoice, and the updated
duplicate invoice creates new accounting for posting to general ledger.
The customer wants to change the bill-to information on a posted transaction.

Questions 25.
The Billing Specialist receives information that the invoice was billed with the incorrect
freight amount. What action is required?
A. Perform Credit Memos when the original invoice has billing error (such as incorrect
freight amounts, line item pricing, tax amounts, and finance charges) or the entire
invoice should be corrected.
B. Perform adjustments when the original invoice has hilling errors (such as incorrect
freight amounts, line item pricing, tax amounts, or finance charges) or the entire
invoice should be corrected.
C. The freight amount must be correct; the Billing Specialist must review it again.
D. A Dispute Request can be submitted by the Billing Specialist through the Billing Work
Area.
E. Perform Debit memos when the original invoice has hilling errors (such as incorrect
freight amounts, line item pricing, tax amounts, or finance charges) or the entire
invoice should be created.
Answer: A
Explanation:

Questions 26.
A grouping rule you created in the system specifies that the Items should match all
mandatory and optional attributes. What logic is used to create the invoices from the
transaction file through Autoinvoicing?
Item A: USD (Currency), ACME (Bill-to). 5001 (Order Number), Domestic (Order Type), 1
(Transaction Number)
Item B: USD (Currency), ACME (Bill to), 5002(Order Number), Domestic (Order Type), 1
(Transaction Number)
Item C: USD (Currency), ACME (Bill to), 112 (Order Number), No Ship (Order Type), 2
Transaction Number)
Item D: USD (Currency), BONN (Bill to), 501 (Order Number), International (Order Type), 3
(Transaction Number)
A.
B.
C.
D.

Items A and B from Invoice 1, Items C and D from Invoice 2

Item A from Invoice 1, Item B from Invoice 2, Items C and D from Invoice 3
Items A and B from Invoice 1, Item C from Invoice 2, Hem D from Invoice 3
Item A from Invoice 1, Item B from Invoice 2, Item C from Invoice 3, Item D from
Invoice 4

Answer: C
Explanation:

Questions 27.
The collections Manager runs the Determine Delinquency Using Scoring program to identify
delinquent transactions. She wants to know the status of a particular transaction. On which
tab she will find the status.
A.
B.
C.
D.

Customer Aging tab

Transaction Details tab
Transactions tab
Transaction aging tab

Answer: C
Explanation:
Note: Transactions do not become delinquent until the delinquency identification process is
run and the dashboard summary table is refreshed.

Questions 28.
Which feature allows Collectors to comment on interactions with customers?
A.
B.
C.
D.
E.

Client Application Components

Customer Application Comments
Common Application Components
Consumer Application Comments
Complex Application Components

Answer: C
Explanation:

Questions 29.
Collections Dashboard is an Interactive Work Status tool that helps to prioritize and find
items that need attention. Which is a valid Work Status as defined in the Collections
Dashboard?
A.
B.
C.
D.

New
Under Process
Open
Closed

Answer: C
Explanation: The various work statuses available are Open, Hold, Follow-up, Ignore, etc.

Increase Collections Effectiveness

The Collections Dashboard automatically assigns collections work with summary
information to help you prioritize and update related activities for each delinquent
customer you need to manage. As work progresses, you can update the status so
you are always working with the most up-to-date information, ensuring nothing slips
through the cracks.

Activities that require attention, such as follow-up calls on dunning letters or

collections exceptions for rejected disputes, are displayed on the Collections
Dashboard. Advanced search capabilities help you quickly find specific customers or
create your own work lists for special projects. Having summary information in one
place makes it easy to manage and organize each collections action.

Questions 30.
A company has implemented a flat interest calculation late charges. Determine the late
charge based on:
* Amount Overdue = $1,500
* Interest Rate = 20%
* Days Overdue = 10
* Days in period = 30
* Outstanding Charges = $80
A.
B.
C.
D.

$300
$100
$105.33
$1,580

Answer: B

Explanation:

Questions 31.
In what scenario would you delete the receipt?
A.
B.
C.
D.

No payment is received from the customer for the receipt amount.

The payment needs to be returned to the customer.
The receipt has been applied to the wrong transaction.
The receipt has been created but NOT yet applied to the transaction.

Answer: C. My opinion is D
Explanation:
What's the difference between reversing a receipt, unapplying a receipt, and
deleting a receipt?
You reverse a receipt when no payment was received from the customer for the
receipt amount. Reversing the receipt creates reversal journal entries in the general ledger
and reopens all of the debit and credit items that were closed by the original receipt.
You unapply a paid receipt either to return payment to the customer or to reapply a receipt
applied in error to the correct transaction. If you unapply a receipt to return payment to the

customer, either with a refund or an on-account credit, you must create a credit memo
against the original transaction that was closed by the receipt application.
You can delete manual receipts that were created but not yet applied to transactions. You
can delete automatic receipts belonging to an automatic receipt batch that has not yet been
approved. When you delete a receipt from a batch, the transactions closed by the receipt
become available for automatic receipt selection.

Questions 32.
What are the three steps required to implement the Lockbox feature?
A.
B.
C.
D.
E.

Set
Set
Set
Set
Set

up
up
up
up
up

Receipt Sources.
Receipt Classes and Receipt Methods.
Lockbox and Lockbox Transmission Formats.
late charges.
credit card refunds.

Answer: A, C, E.
Explanation:

Questions 33.
Your company operates in an environment of a highly inflationary economy and fluctuating
exchange rates. Which data conversion level should you use?
A.
B.
C.
D.
E.

Balance Level
Only Journal Level
Only Subledger Level
Adjustment Only
Subledger Level or Journal Level

Answer: C. My opinion is E.
Explanation:
Primary Ledgers
A primary ledger is the main record-keeping ledger. Like any other ledger, a primary ledger
records transactional balances by using a chart of accounts with a consistent calendar and
currency, and accounting rules implemented in an accounting method. The primary ledger is
closely associated with the subledger transactions and provides context and accounting for
them.
To determine the number of primary ledgers, your enterprise structure analysis must begin
with your financial, legal, and management reporting requirements. For example, if your
company has separate subsidiaries in several countries worldwide, enable reporting for each
country's legal authorities by creating multiple primary ledgers that represent each country

with the local currency, chart of accounts, calendar, and accounting method. Use reporting
currencies linked to your country specific primary ledgers to report to your parent company
from your foreign subsidiaries. Other considerations, such as corporate year end, ownership
percentages, and local government regulations and taxation, also afect the number of
primary ledgers required.
Secondary Ledgers
A secondary ledger is an optional ledger linked to a primary ledger for the purpose of
tracking alternative accounting. A secondary ledger can difer from its primary ledger by
using a diferent accounting method, chart of accounts, accounting calendar, currency, or
processing options. All or some of the journal entries processed in the primary ledger are
transferred to the secondary ledger, based on your configuration options. The transfers are
completed based on the conversion level selected. There are four conversion levels:

Balance: Only Oracle Fusion General Ledger balances are transferred to the
secondary ledger.
Journal: General Ledger journal posting process transfers the journal entries to the
secondary ledger.
Subledger: Oracle Fusion Subledger Accounting creates subledger journals to
subledger level secondary ledgers as well as reporting currencies.
Adjustments Only: Incomplete accounting representation that only holds
adjustments. The adjustments can be manual or detailed adjustments from
Subledger Accounting. This type of ledger must share the same chart of accounts,
accounting calendar, and period type combination, and currency as the associated
primary ledger.

Note
A full accounting representation of your primary ledger is maintained in any subledger level
secondary ledger.
Secondary ledgers provide functional benefits, but produce large volumes of additional
journal entry and balance data, resulting in additional performance and memory costs. When
adding a secondary ledger, consider your needs for secondary ledgers or reporting
currencies, and select the least costly data conversion level that meets your requirements.
For secondary ledgers, the least costly level is the adjustment data conversion level because
it produces the smallest amount of additional data. The balance data conversion level is also
relatively inexpensive, depending upon how often the balances are transferred from the
primary to the secondary ledger. The journal and subledger data conversion levels are much
more expensive, requiring duplication of most general ledger and subledger journal entries,
as well as general ledger balances.
For example, you maintain a secondary ledger for your International Financial Reporting
Standards (IFRS) accounting requirements, while your primary ledger uses US Generally
Accepted Accounting Principles (GAAP). You decided to select the subledger level for your
IFRS secondary ledger. However, since most of the accounting is identical between US GAAP
and IFRS, a better solution is to use the adjustment only level for your secondary ledger. The
subledger level secondary ledger requires duplication of most subledger journal entries,
general ledger journal entries, and general ledger balances. With the adjustment only level,
your secondary ledger contains only the adjustment journal entries and balances necessary
to convert your US GAAP accounting to the IFRS accounting, which uses a fraction of the
resources that are required by full subledger level secondary ledger.

Combinations of Primary and Secondary Ledgers

Following are scenarios that may require diferent combinations of primary and secondary
ledgers:
The primary and secondary ledgers use diferent charts of accounts to meet varying
accounting standards or methods. A chart of accounts mapping is required to instruct the
application how to propagate balances from the source (primary) chart of accounts to the
target (secondary) chart of accounts.
The primary and secondary ledgers use diferent accounting calendars to comply with
separate industry and corporate standards.
Note
Use the same currency for primary and secondary ledgers to avoid difficult reconciliations, if
you have the resources to support the extra posting time and data storage. Use reporting
currencies or translations to generate the diferent currency views needed to comply with
internal reporting needs and consolidations.

Reporting Currencies
Reporting currencies maintain and report accounting transactions in additional currencies.
Each primary and secondary ledger is defined with a ledger currency that is used to record
your business transactions and accounting data for that ledger. It is advisable to maintain
the ledger in the currency in which the majority of its transactions are denominated. For
example, create, record, and close a transaction in the same currency to save processing
and reconciliation time. Compliance, such as paying local transaction taxes, is also easier
using a local currency. Many countries require that your accounting records be kept in their
national currency.
If you need to maintain and report accounting records in diferent currencies, you do this by
defining one or more reporting currencies for the ledger. There are three conversion levels
for reporting currencies:

Balance: Only General Ledger balances are converted into the reporting currency
using translation.
Journal: General Ledger journal entries are converted to the reporting currency during
posting.
Subledger: Subledger Accounting creates subledger reporting currency journals along
with primary ledger journals.

Note: A full accounting representation of your primary ledger is maintained in any

subledger level reporting currency. Secondary ledgers cannot use subledger level reporting
currencies.
Of the three data conversion levels available, the balance data conversion level is typically
the least expensive, requiring duplication of only the balance level information. The journal
and subledger data conversion levels are more expensive, requiring duplication of most
general ledger and subledger journal entries, as well as general ledger balances.
Do not use journal or subledger level reporting currencies if your organization has only an
infrequent need to translate your financial statements to your parent company's currency for
consolidation purposes. Standard translation functionality meets this need.

Consider using journal or subledger level reporting currencies when any of the following
conditions exist.
You operate in a country whose unstable currency makes it unsuitable for managing your
business. As a consequence, you need to manage your business in a more stable
currency while retaining the ability to report in the unstable local currency.
You operate in a country that is part of the European Economic and Monetary Union
(EMU), and you choose to account and report in both the European Union currency and
your National Currency Unit (NCU).
Note
The second option is rare since most companies have moved beyond the initial conversion
to the EMU currency. However, future decisions could add other countries to the EMU, and
then, this option would again be used during the conversion stage.

Questions 34.
In a scenario receipts are factored receipt class that requires confirmation, remittance, and
clearance. Select the valid accounting entry that would be generated when receipts are
cleared.
A. The Cash and Bank charges accounts are debited and the Short term debt account is
credited

B. The Cash and Bank charges accounts are debited and the Factoring account is
credited
C. The Short term debt account is debited and the Factoring account is credited.
D. The Factoring account is debited and the Short term debt account is credited.
Answer: C. My opinion is A
Explanation:
This table shows the accounting entries that Receivables creates when you factor receipts
with a receipt class that requires confirmation, remittance, and clearance:
Action Accounting Entries
Confirm Receipts
DR Confirmation

CR Accounts Receivable

Factor Remittances
DR Factoring

CR Confirmation

Clear Receipts
DR CashDR Bank Charges

CR Short Term Debt

Eliminate Risk
DR Short Term Debt CR Factoring

Questions 35.
The client has implemented automatic revenue recognition using Revenue Policy Definitions.
The payment term threshold of 150 days has been entered in the revenue policy. An invoice
of $5,000 is imported with payment term that has four equal installment terms.
* Net 60
* Net 90

* Not 120
* Net 180
Select the amount of revenue that would be deferred in this case.
A.
B.
C.
D.
E.

$1, 250
$2,500
$1.750
$5,000
$4, 750

Answer: D

Explanation:

Evaluating Revenue Policy: Points to Consider

Use the Manage Revenue Policies page to specify revenue policies for each applicable
business unit. Oracle Fusion Receivables uses the revenue policy definition to make
automatic revenue recognition decisions for manually entered and imported transactions.
Receivables compares each transaction against the revenue policy, and assigns
revenue contingencies to the transaction or transaction lines that deviate from the policy
definitions.
There

are three points to consider for each revenue policy definition:

Credit Classification
Refund Policy Threshold
Payment Terms Threshold

Credit Classification
Use Credit Classifications to identify your high risk, noncredit worthy customers. You can
assign up to three levels of risk. Receivables compares these risk levels to the credit
classification assigned to the customer profile.
When you enter or import a transaction for a customer with a credit classification that
matches one of the credit classifications in the revenue policy, Receivables:
Assigns the Customer Creditworthiness contingency to the transaction.
Defers revenue on the entire transaction.
Recognizes revenue on the transaction only to the extent of payments
received.

Refund Policy Threshold

Use the Refund Policy Threshold column to enter the standard refund period in days that you
typically ofer to your customers.
When you enter or import a transaction with a line that is associated with a contract,
Receivables analyzes the contract details. If the contract ofers a refund period that exceeds
the refund policy, Receivables:
Assigns the Refund contingency to the transaction line.
Defers revenue on the transaction line.
Recognizes revenue on the transaction line only after the refund period on
the transaction line expires.

Payment Terms Threshold

Use the Payment Terms Threshold column to enter the maximum time period in days before
payment terms become extended.
When you enter or import a transaction with payment terms or an installment
schedule that exceeds the payment terms policy, Receivables:
Assigns the Extended Payment Term contingency to the transaction.
Defers revenue on the entire transaction.
Recognizes revenue on the transaction only to the extent of payments
received.
For example, you enter a payment terms threshold of 180 days on your revenue policy, and
you later enter or import an invoice with payment terms that have four installments:
Net 60
Net 90
Net 120
Net 200
Receivables defers the entire revenue amount on the invoice because the last installment
exceeds the 180-day threshold by 20 days.

Questions 36.
Select three valid statements related to the Shared Service Model.
A. Shared Service Personnel can view Invoices across various business units.
B. Shared Service Personnel can do cross-business unit cash application.

C. Shared Service Personnel can process invoices for various business units.
D. Shared Service Personnel can see customer account details across business units.
E. Shared Service Personnel can report data across all business units but can enter
transactions ONLY against one business unit.
Answer: A, C, and E
Explanation:

Questions 37.
AutoCash rules apply to _________.
A.
B.
C.
D.

manual receipts
automatic receipts
QuickCash
credit card

Answer: B
Explanation:

Questions 38.
Identify the diferent dunning letter versions provided to the customer.
A.
B.
C.
D.

Final Demand, Soft, Medium

Regular, Medium, Hard
Regular, Final Demand, Medium
Soft, Regular, Hard

Answer: D. My opinion is A
Explanation:
Dunning Templates : Soft, Medium , Hard, and Final Demand

Questions 39.
The interactive Receivables to General ledger Reconciliation Report allows reconciliation.
A.
B.
C.
D.

only by ledger
only by specific organization
only by account balancing segment
by ledger, specific organization, OR account balancing segment

Answer: A

Explanation:

How are accounts reconciled to general ledger?

The Receivables to General Ledger Reconciliation report only reconciles accounts receivable
for accrual basis accounting, and only reconciles accounting in the primary ledgers.
The Receivables to General Ledger Reconciliation report reconciles the transaction types
that impact the accounts receivable in general ledger. These include:
Invoice
Debit memo
Credit memo
On-account credit memo
Chargeback
Adjustment
Applied receipt
On-account receipt
Unapplied receipt

Questions 40.
You have confirmed an automatic receipt in error. What is the correct method to rectify the
error?
A.
B.
C.
D.

Unconfirm the automatic receipt.

Remove the receipt from the batch.
Reverse and recreate the receipt.
Delete the automatic receipt batch.

Answer: C
Explanation:

Questions 41.
What are the three validation steps required for implementing dispute processing?
A.
B.
C.
D.
E.

Transaction types are set up with appropriate Credit Memo types.

Periods for which the transaction can be disputed are Open.
The Document Sequencing required is set up.
BPM Work List for approval configuration is validated.
The Recognize Revenue program is scheduled.

Answer: A,B,D
Explanation:

Questions 42.
The Accounts Receivables Specialist reviews receipt with a status of Pending from the
Review Customer Account Details UI in the Receivables work area. She has to reverse a
particular receipt. What action does she take?
A.
B.
C.
D.

Navigate
Navigate
Navigate
Navigate

to
to
to
to

the
the
the
the

Create Automatic Receipts UI the receipt, and create a debit memo.

Create Receipts UI and create a new receipt for the customer.
Manage Receipts UI, reverse the receipt, and create a credit memo.
Manage Receipts UI, reverse the receipt, and create a debit memo.

Answer: C
Explanation:

Questions 43.
When adding a customer and using profile classes to organize the customer accounts, which
three options are true?
A. Fusion Receivables assigns the profile class DEFAUIT when creating a customer
account.
B. Fusion Receivables assigns a DEFAULT profile class when creating an account site.
C. Profile class updates and assignments are managed using efective date ranges.
D. Updates applied to a particular account or site efect the profile class record.
E. Receivables allows customized details of the profile class once the profile class has
been assign to an account or site.
F. Receivable does NOT allow customization to the account profile information after it is
assigned to an account or site.
Answer: A,C,E
Explanation:

Questions 44.
An interactive report is based on real-time data and is always user interactive. What is true
about Interactive reports?
A.
B.
C.
D.

The user can NOT drill down from the Interactive reports user interface
The report is always ad hoc.
The user can enter parameters to limit the information to be included.
Interactive reports ALWAYS require an ESS program to be run.

Answer: C
Explanation:

Questions 45.
Dunning can be configured using _____________ .
A.
B.
C.
D.

only one business unit

only multiple business units
both by single business unit or multiple business units
can NOT be configured by business units

Answer: C
Explanation:

Questions 46.
What three Work Areas are used to review and manage actionable items before the closing
period?
A. The Billing Work Area for invoicing and adjustment approval related activities
B. The Receivables Balances Work Area for customer payment and credit application
processing
C. The Revenue Adjustments Work Area for contingencies afecting revenue recognition
D. The Receivables Balances Work Area for invoicing and adjustment approval related
activities.
E. The Revenue Adjustments Work Area for customer payment and credit application
processing.
Answer: A, B, and C
Explanation:

Questions 47.
The collections Manager wants to see a summary of delinquency data for a specific
customer. Which tab will display the summary delinquency data?
A.
B.
C.
D.

Customer Aging tab

Profile lab
Contacts tab
Transactions lab

Answer: D
Explanation:

Questions 48.
The common subledger period close management UI allows the user to __________.
A.
B.
C.
D.
E.

Manage the accounting period status.

Balance the entries after they are transferred to the general ledger.
Access all subledgers.
Bill and automate customer payments for adjustment approval processing
Transfer unbalanced entries to the general ledger.

Answer: B
Explanation:

Questions 49.
Select three values that the dunning letter generation program includes.
A.
B.
C.
D.
E.

Invoice
Unapplied
Credit memo
Debit memo
Prepayments

Answer: A, B, and D
Explanation:

Dunning Transactions
Select the transactions and charges to include in the dunning letters.

The Dunning Letter Generate program can include invoices, debit memos,
chargebacks, unapplied, and on-account receipts that are overdue.
The dunning letters can include current transactions.
Finance charges can be included as a line item.
Transactions in full dispute can either be not included or tagged with an asterisk and
a note indicating it is not included in the total.

Questions 50.
Users can choose to EXCLUDE specific transactions in a Balance Forward Bill. Which
statement is true about transaction exclusion?
A.
B.
C.
D.

Transaction exclusion can be done during creation of the transaction.

Transaction exclusion for a statement can be done at each transaction level.
Transaction exclusion can NOT be done during the creation of a transaction.
Transaction exclusion for a statement can be done at the individual transaction as
well as the transaction group level.

Answer: B
Explanation:

Updating a Balance Forward Bill

If the Override Terms option on the customer profile is set to Yes, then you
can remove transactions from the bill by assigning these transactions non-balance forward
billing payment terms. These transactions are excluded from the next run of the balance
forward bill. Instead an individual document is printed for each of these transactions.
If you want to include additional transactions on the bill, you can update the customer
accounts and sites that are enabled for balance forward billing. You must assign the same
balance forward billing payments terms to these additional accounts and sites.
After completing your updates, run the Create Balance Forward Bill program.

Questions 51.
The drilldown option available in the task pane for receipts does NOT include ___________.
A.
B.
C.
D.

Create Remittance via Spreadsheet

Correct Funds Transfer Errors
Lockbox Transmission History
Create Receipt via Spreadsheet

Answer: C
Explanation:

Questions 52.
You have run the delinquency process for a customer and have navigated to the transactions
tab to view the status. Why is the status for the transactions blank?
A. The status of the past due transactions appear as blank.
B. There was an error when updating the status during the delinquency process. Fix it
and rerun the process.
C. The status of the current or paid in full transactions appear as blank.
D. The transaction status is NOT automatically updated when the process runs.
Answer: B
Explanation:

Questions 53.
What option is available for the Collection manager for viewing customer data in the
Delinquent Customer Region on the collections Work Area pages?
A.
B.
C.
D.

PDF view
Query by Example
Export to Excel
Export to HTML

Answer: B
Explanation:

Questions 54.
What two items are required for customer invoicing?
A.
B.
C.
D.

Lockbox
Customers
Remit-to address
Customer Profile Classes

Answer: B and C
Explanation:
Date, Source, Class (Invoice, Credit Memo, Debit Memo, Guarantee, Deposit, Chargeback),
Type, GL Date, Bill To, Terms, Remit-to Address are required for customer invoicing.

B: A customer is a party, either an organization or a person, with whom you have a selling
relationship. This selling relationship can result, for example, from the purchase of products
and services or from the negotiation of terms and conditions that provide the basis for future
purchases. You create customers to properly record and account for sales transactions, as
well as to identify other attributes of the selling relationship. Recording a sales transaction
requires that a customer, stored as a party in Oracle Fusion Trading Community Model, has
both an account and an account site with a bill-to purpose.
C: The remit-to address lets your customers know where to send payment for their open
debit items. After you create a remit-to address, you can assign it to the bill-to addresses of
the customers and customer sites that you designate by country and, if applicable, by region
and postal code range. During the import process, AutoInvoice rejects all invoices for which
it cannot determine a remit-to address. In order for AutoInvoice to import an invoice, you
must either define a remit-to address for the geographical location of each applicable bill-to
site or define a remit-to address to use as default for one or more locations.
Incorrect answers:
A: Use lockbox to create receipts in Oracle Fusion Receivables from data supplied by your
remittance bank and apply receipts to customer transactions.
D: Use profile classes to organize your customer accounts into categories that reflect the
needs of your enterprise. The profile class record contains generic options that you can set
in diferent ways to group your customers into broad categories, such as by industry,
location, size, creditworthiness, business volume, or payment cycles.

Questions 55.
What are the three ways a Dispute Request can be submitted?

A. By a Collections Agent through the Advanced Collections application in the Customer

Work Area
B. By a Billing Specialist through the Billing Work Area
C. By an Account Receivables Specialist through the Receivables Balances Work Area
D. By a Billing Manager through the Transaction UI in the Adjustment Work Area
E. By a Receivable Manager through the Reconciliation Work Area
Answer: A, B, and E
Explanation:

Questions 56.
Tables for the Customer Master are owned by ___________.
A.
B.
C.
D.

Oracle
Oracle
Oracle
Oracle

Fusion
Fusion
Fusion
Fusion

Receivables
Distributed Order Orchestration
Trading Community Architecture
Customer Relationship Management

Answer: B
Explanation:

Questions 57.
The default dunning contact name can be specified in the _____________.
A.
B.
C.
D.

Global Preferences in the Manage Collection Preferences

Preferences in the Manage Collection Preferences
Create Dunning Configuration in the Manage Dunning Configuration
Dunning Configuration Details in the Manage Dunning Configuration

Answer: B
Explanation:

Questions 58.
What are the two parameters on which Collectors can create and save customer lists?
A.
B.
C.
D.

Work Status
Aging Bucket
Currency
Priority

Answer: A and C
Explanation:

Questions 59.
The Collections Dashboard is comprised of the ___________.

A. Delinquent
table
B. Delinquent
C. Delinquent
D. Delinquent

Customer list, Activities list, Customer Search feature. Process Monitor

Customer list, Activities list, Customer Search feature
Customer list, Activities list
Customer list, Activities list, Process Monitor table

Answer: B
Explanation:

Questions 60.
You can click the Manage Invoice Lines from the Billing Work Area to find AutoInvoice
Exceptions. What parameters are used to summarize the exceptions for review?
A.
B.
C.
D.

Business
Business
Business
Business

Unit,
Unit,
Unit,
Unit,

Transaction Type, Invoice Date, Currency

Customer Name, Transaction Source, Total Amount
Transaction Source, Creation Date, Currency
Transaction Source, Transaction Type, Creation Date

Answer: D
Explanation:
Fusion Applications Help, AutoInvoice Interface Table
RA_INTERFACE_LINES_ALL
Note 1: AutoInvoice Exception Handling
Records that fail validation are called Exceptions
Exceptions stay in Interface Tables which is RA_INTERFACE_ERRORS_ALL. Errors can be
corrected in the Exception Handling window. Once corrections are made, Auto invoice must
be resubmitted Records that pass validation get transferred to Receivables tables
Note 2: Auto Invoice is a tool that can be used to import and validate transaction data from
other financial systems from which one can create invoices, debit memos, credit memos,
and on-account credits. It rejects transactions with invalid information to insure the integrity
of the data

Questions 61.
A Collections Agent wants to verify that the delinquency status are accurately assigned and
all the dependent processes have occurred. Which three options are true in this scenario?
A. Go to the Collector's Work Queue and see whether the delinquent accounts are listed
under the Delinquent Accounts node.
B. Navigate to the Collections tab to find all delinquencies In the Collection Header.
C. Navigate to the Transactions tab to verify that the open work items are listed.
D. If strategies are used, go to the Collector's Work Queue and verify that the
strategy work items are listed.
E. Select the Collections window to see the dunning events that have occurred.

Answer: B, D, and E
Explanation:

Questions 62.
You have completed the period-end activities and have set the receivables period to Close
Pending. Now you need to make further adjustments. What is the correct approach?
A. The receivables accounting period can be re-opened when the period status is Close
Pending, and last minute adjustments can be made.
B. Once the receivables accounting period is set to Close Pending, it can NOT be reopened, and NO further adjustments can be made.
C. Adjustments can be made even if the receivables accounting period is set to Close
Pending.
D. Adjustments can be made anytime regardless of the receivables accounting period
value.
Answer: A
Explanation:

Questions 63.
Where is the summary delinquency data displayed on the Collections Dashboard?
A. Customer Aging tab
B. Profiles tab
C. Correspondence tab
D. Transactions tab
Answer: D
Explanation:

Questions 64.
What three Items must be set up in the Application Setup Manager to facilitate refunds?
A.
B.
C.
D.
E.

Credit card refunds

Non credit card refunds
Automatic Receipt Handling
Credit Card Chargeback
Late charges

Answer: A, C, and D
Explanation:

Questions 65.
A dunning letter issued at the customer business operational-level includes which
transactions?
A. Only account level transactions.

B. Only customer-level transactions

C. Only bill-to-location-level transactions
D. Customer-, account-, AND bill-to-location level transactions
Answer: D
Explanation:

Questions 66.
The AutoCash Rule Set defines the order in which the system will apply the receipt to an
open debit Item. Which AutoCash Rule is NOT defined in the receivables setup?
A.
B.
C.
D.

Clear past due invoices grouped by Payment Terms

Clear past due invoices
Apply to the oldest invoice first
Apply to the latest invoice first

Answer: D
Explanation:

Questions 67.
Which three scenarios require a debit memo reversal?
A.
B.
C.
D.

To reverse a miscellaneous receipt

To reverse a receipt that has a chargeback with an adjustment against it
To reverse a receipt with remitted credit card refund application
To reverse Receipt A that was applied to Receipt B and where the reversal draws
balance of Receipt B positive
E. To reverse Receipt A that was applied to Receipt B and reversal would draw balance
of Receipt B negative
Answer: B, C, and E
Explanation:

Questions 68.
Which three transaction types are used to generate late charges?
A. Invoice Interest
B. Debit Memo
C. Credit Memo
D. Adjustments against the original transaction
E. Cash Receipts
Answer: A, B, and D
Explanation:

Questions 69.
A Receivables Manager wants to override the receipt remittance bank account with the
remittance batch bank account. Select three valid setups that will enable an override of the
receipt remittance bank account.
A. Enable the Allow Override option on the receipt.
B. Both the receipt and remittance batch bank account should have diferent General
Ledger at accounts defined.
C. Enable the Ignore the Override option on the remittance batch.
D. Enable the Override Bank option on the receipt remittance bank.
E. Disable the Ignore Override option on the remittance batch.
Answer: A, D, and E
Explanation:

Questions 70.
The Billing manager has navigated to the Billing Work Area to complete a transaction. The
Incomplete transactions Overview Region on the Billing Work Area page have a drilldown
option through which column to complete the transaction?
A.
B.
C.
D.

Transaction Number
transaction Source
Transaction Date
Transaction Class

Answer: A
Explanation:

Questions 71.
Your company has three sites defined in the system site 1, site 2, and site 3. All sites have
their own billing strategy defined and Balance Forward Billing is enabled for site 1 and site 2
at the account level. How will bills be generated?
A.
B.
C.
D.

Sites
Sites
Sites
Sites

l and 3 activities will be included in a single bill.

1 and 2 activities will be included in a single bill.
2 and 3 activities will be included in a single bill.
1, 2, and 3 activities will be included in a single bill.

Answer: B
Explanation:

Questions 72.
Which functionality is NOT provided by the Receivables to Ledger Reconciliation Report?
A. Limiting the display using the ad hoc parameter
B. Drilldown to see reconciling details

C. Drilldown to see what needs to transfer and post to the general ledger
D. Graphical and visualization components for viewing the reconciliation details
E. The reasons for the reconciling diferences
Answer: C
Explanation:

Questions 73.
There are concurrent programs that run related to data in the Overview Region of the review
Customer Accounts Details user interface. Which program is run to synchronize the updated
receivables data?
A.
B.
C.
D.

Refresh
Process
Refresh
Process

Receivables transactional Events for Summary Tables Program.

Receivables transactional Events for Summary Tables Program.
Receivables Past Due Transactions for summary Tables Program
Receivables Past Due Transactions for summary Tables Program

Answer: C
Explanation:

Questions 74.
A debit memo reversal must be used to reverse the receipt if the receipt ___________.
A.
B.
C.
D.

is non-invoice related
has an open claim associated with it
has been reconciled in Cash Management
has a remitted credit card refund application

Answer: D
Explanation:

Questions 75.
In the customer hierarchy of ABC Corporation, ABC Worldwide is the parent company of ABC
USA and ABC Japan. ABC West is a subsidiary of ABC USA. Select three valid statements if
the ABC corporation hierarchy is assigned to a Pay Below Paying relationship.
A.
B.
C.
D.
E.

ABC
ABC
ABC
ABC
ABC

Worldwide can pay for ABC USA, ABC Japan, ABC West, and its own transactions.
Japan can pay for ABC West, ABC USA, and its own transactions.
USA can pay for ABC West and its own transactions.
Japan can pay its own transactions.
USA can pay for ABC Worldwide, ABC West, and its own transactions.

Answer: A, C, and D
Explanation:

Pay Below Paying Relationships

If you assign one phrase of a relationship type to the Pay Below relationship group, then
relationships that you create using that relationship type are Pay Below paying relationships.
A Pay Below paying relationship is a parent-child relationship where each party can pay for
its own transactions, as well as the transactions of all parties that are lower in the hierarchy
(children, grandchildren, and so on).
If the parties in the diagram shown in the Pay Within paying relationship section are in a Pay
Below paying relationship, then all accounts of each child party in the relationship will be
available to each parent party in the relationship for receipt application, commitment
application, and so on.
In other words:
Acme Worldwide can pay for Acme USA, Acme Japan, Acme West, and its own transactions.
Acme USA can pay for Acme West and its own transactions.
Acme Japan can pay for its own transactions.

Pay Within Paying Relationships

If you assign one phrase of a relationship type to the Pay Within relationship group, then
relationships that you create using that relationship type are Pay Within paying relationships.
This means that any party within the relationship can pay for the accounts of any other
party within the relationship.
The above diagram illustrates several parties within a Pay Within paying relationship. In this
scenario, all accounts of each party in the relationship are available to all other parties in the
relationship for receipt application, commitment application, and so on.

Questions 76.
You have entered invoices using the AutoInvoice feature. How can you review the records
that are in error?
A. Click the View AutoInvoice Lines link to open a workbook with the specific error
record.
B. Click the Manage AutoInvoice Lines link to open a workbook with the specific error
record.
C. Click the Number of Errors link in the AutoInvoice error region to open a workbook
with the specific error record.
D. Click the View Error Details link in the AutoInvoice error region to open a workbook
with the specific error record.
Answer: B. In my opinion the answer is B and C

Explanation:
Correcting AutoInvoice Errors: Explained
Records that pass validation are transferred to the Receivables tables. Records that fail
validation remain in the AutoInvoice interface tables. Before AutoInvoice can validate these
records and create transactions, you must correct invalid data and run AutoInvoice again.
Each time that you run AutoInvoice, the process generates a list of records that fail
validation. You can display AutoInvoice errors as an Excel workbook in either of two ways:

Click the Manage AutoInvoice Lines link to open a workbook with all error records.
Click a Number of Errors link in the AutoInvoice Errors region to open a workbook for
these specific error records.

Questions 77.
What are the three drilldown options available in the task pane for Receipt Remittance?
A.
B.
C.
D.
E.

Create receipt remittance batch

Manage fund transfers
Manage receipt remittance batches
Apply credit memo
Lockbox transmission history

Answer: A, C, and D
Explanation:

Questions 78.
An invoice for $100 has revenue deferred due to unmet payment based contingencies and
the Invoice Accounting Used for Credit Memos profile option is set to Yes. A credit memo of
$50 has been issued against this Invoice. Explain how revenue accounting will occur.
A.
B.
C.
D.

Unearned revenue will be debited for $50.

Earned revenue will be credited for $50.
Unearned revenue will be credited for $100.
Earned revenue will be debited for $50.

Answer: A
Explanation:
Crediting Invoices
If you issue a credit memo against an invoice that had revenue automatically deferred upon
import, then the impact of the credit memo difers depending on the original reason for the
revenue deferral. This applies only if you set the Invoice Accounting Used for Credit Memos
profile option to Yes.
For example, you apply a credit memo against an invoice that had revenue deferred due to
one or more contingencies, but some of the revenue was partially recognized. A portion of

the invoice revenue, therefore, is still in an unearned revenue account. Diferent procedures
apply depending on whether the contingencies are payment-based or time-based.
a. Payment-based contingencies: If revenue on this invoice was deferred due to
unmet payment-based contingencies, then Receivables always debits the unearned
revenue account for the full amount of the credit memo, according to the initially
assigned revenue scheduling rules.
Note: This is a departure from standard functionality. When you credit an invoice
that is not under evaluation for event- based revenue management, Receivables
prorates the amount of the credit memo between the earned and unearned revenue
invoice amounts.
If the amount of the credit memo exceeds the amount of the unearned revenue on
the invoice, and the credit memo transaction type allows overapplication, then
Receivables records the excess amount as a debit to the unearned revenue account.
You can optionally clear the negative unearned revenue on this invoice.
b. Time-based contingencies: If revenue on this invoice was deferred due to
unexpired time-based contingencies, then Receivables always prorates the credit
memo amount between the earned and unearned revenue amounts on the invoice. If
a multi-period revenue scheduling rule exists on an invoice, then Receivables further
prorates the credit memo amount across future periods.
If you apply a credit memo against an invoice with revenue that was already
manually adjusted, then Receivables follows standard credit memo functionality.
Receivables prorates the credit memo amount between the earned and unearned
revenue amounts on the invoice, even if the invoice was initially analyzed for
collectibility and acceptance. In this case, you must confirm that the earned and
unearned revenue on the invoice is stated appropriately for each period. If necessary,
use the Manage Revenue Adjustments pages to make any further adjustments.

Questions 79.
The Adjust Customer Balances activity allows you to __________.
A. Write-of uncollectable invoices but does NOT allow you to write-of small balance
receipts
B. Write of small balance receipts but does NOT allow you to write-of uncollectable
Invoices
C. Write-of uncollectable invoices and write-of small balance receipts
D. Provide approval processing of credit requests and automated receipts
Answer: A
Explanation:

Questions 80.
An invoice was created with unit price error on one invoice item. What is the next step you
perform form the Billing Work Area to correct this error?
A. Click the Create Transaction link on the task pane and create a new transaction with
the right unit price.
B. Click the Credit Transaction link on the task pane and create a credit memo for the
transaction.
C. Click the Manage Transaction link on the task pane and create a credit memo for the
transaction.
D. Click the Manage Adjustments link on the task pane and create an adjustment
against the transaction.
Answer: B
Explanation:

How can I credit only part of the balance due on a transaction?

Use the Transaction Amounts region of the Credit Transaction page to enter a partial credit
amount or percentage on line, tax or freight. The amount or percentage entered is prorated
across all respective lines of the credit memo.
Percentages are based on the original balance of the transaction being credited. Oracle
Fusion Receivables updates the balance due for each line that you credit and creates all of
the accounting reversal entries. Receivables also reverses this percentage of the sales
revenue and non-revenue credit assigned to salespersons.
You can also credit individual transaction, tax or freight lines. When you return to the Credit
Transaction page, the table displays the result of all line-level updates. If you then update
line, tax or freight in the Transaction Amounts region, you must let Receivables re-derive the
line-level calculations.

Questions 81.
Identify two credit memo options.
A. Tax only
B. Advance
C. Paid freight
D. Invoice lines
E. Paid amount only
Answer: A and C
Explanation:

Questions 82.
A customer calls into the Accounts Receivables Department asking for the balance of all
invoices due in the next 30 days and has a question about a specific invoice line. As a Billing
Specialist what action will you perform?
A.
B.
C.
D.

Review the invoice in the Review Customer Account Details user interface.
Apply, reverse, or process the receipt.
Create an open debit memo.
Review receipt, in pending status

Answer: A
Explanation:
The contextual area of the Review Customer Account Details page displays information
about the most recent transaction and the most recent receipt belonging to the selected
customer account. If there were multiple transactions or receipts on the same date, Oracle
Fusion Receivables displays the transaction and receipt with the largest amount.

This display is by date and, if applicable, by amount only. The transaction and receipt
displayed do not necessarily reference the same business unit or share the same entered
currency.

Questions 83.
What is the impact on transactions if you change the billing cycle for a customer or group of
customers?
A.
B.
C.
D.

New transaction after this change inherit the new billing cycle.
Existing transactions with activity adapt the; new billing cycle.
Existing transactions with NO activity retain the old billing cycle.
The billing cycle does NOT have any impact on new transactions.

Answer: A
Explanation:

Transactions for Balance Forward Billing: How They Are Selected

Use the Create Balance Forward Bill program to generate balance forward bills. The steps
below illustrate how the Create Balance Forward Bill program selects transactions for
inclusion on a balance forward bill.

Settings That Afect the Inclusion of Transactions on Balance Forward Bills

You must select a billing cycle and a currency for a balance forward bill.
If you change the billing cycle for a customer or group of customers, transactions entered
after the change inherit the payment terms attached to the new billing cycle, but existing
transactions retain the old payment terms.
During the next submission of the Create Balance Forward Bill program, existing transactions
with no activity against them inherit the new payment terms, billing date, and due date.
Transactions with activity retain their existing payment terms, billing date, and due date.
If the balance forward bill contains transactions that retain the old payment terms, this may
cause an aging discrepancy. This is because the transactions that do not inherit the new
payment terms may have due dates diferent from the other transactions on the bill. If
necessary, you can run the program for one set of payment terms only within the selected
billing cycle.
If the billing cycle of the balance forward bill is External (derived from imported
transactions), then you must enter a billing date. The program includes on the bill only those
transactions with a billing date on or before the date you enter.

Questions 84.
What are the three Multiple Receipt Creation Methods available?
A.
B.
C.
D.
E.

Manual receipt creation

Standard remittance
Lock box
Automatic
Factor remittance

Answer: B, D, and E. My opinion: A, C, and D

Explanation:
(http://apps2fusion.com/oracle-fusion-online-training/fusion-applications/oracle-fusionfinancials/fusion-financials-training/704-oracle-fusion-receivables-quick-bits-part2)
Fusion Receivables supports a variety of receipt creation methods to meet the needs of your
organization.

Receipts via Spreadsheet

Lockbox
SmartReceipts application
Manual standard receipt
Automatic Receipts

Standard remittance and Factor remittance are the Remittance methods.

Questions 85.
For refund requests, AutoInvoice automatically places the on-account amount of a refund
request if __________ and____________.
A. the receipt to be refunded has NOT yet been remitted
B. receipts with diferent payment types were used to pay the same transaction to be
credited
C. installments that existed on the transaction were fully paid
D. the receipt does NOT have on account credit memo against it
Answer: C and D
Explanation:

Questions 86.
You are an Accounts Receivables Manager and you have the Receivables Inquiry Duty role
attached to your Job Role. What tasks are you allowed to perform under this duty role?
A.
B.
C.
D.
E.

Review Customer Account Activities

View Receivables Receipts
Dispute Receivable transactions
View Receivables Invoices
View Receivables Credit Memos

Answer: A
Explanation:

Questions 87.
When a customer opts to make a payment by a credit card, this receipt is identified as a (n)
____________.
A.
B.
C.
D.
E.

manual receipt
automatic receipt
QuickCash receipt
Autolockbox receipt
miscellaneous receipt

Answer: B
Explanation:

Processing Automatic Receipts: How It Works

Use the automatic receipt process to create a batch of receipts from selected transactions
for payment by credit card or bank account transfer.
Note

Credit card services are currently not available in Oracle Financials Cloud implementations.
You use automatic receipts for customers with whom you have predefined agreements.
These agreements let you collect payments on time for open debit items by transferring
funds from the customer bank account or credit card to your bank account on the receipt
maturity date. If necessary, the customer can confirm the automatic receipt batch before
transferring funds.
Once created, you can reapply and reverse automatic receipts in the same way as manual
receipts. To reverse an automatic receipt, it must be approved.

Questions 88.
Which task does NOT belong to the task list Define Business Units?
A. Verify Service Clients.
B. Manage Service Provider Relationships.

C. Manage Set Assignments for Set Determinants.

D. Verify Data Role Generation for the Business Unit Business Function
Answer: D
Explanation:

Questions 89.
What are the three valid statements related to third-party control accounts that have the
type Customer?
A. The subledger journal entry lines that use this account MUST have customer
information.
B. When the third party control account is assigned to a journal line, information such as
name and site MUST be provided.
C. The subledger Journal entry lines that use this account need not have customer
information
D. The customer subledger third-party balances will be updated when Journal is
completed to Final Status.
E. The customer subledger third party balances will be updated when Journal is
completed to Draft Status.
Answer: A, B, and D
Explanation:

Validating a Third Party Control Account: Examples

If third party control accounts are enabled for the application, and the account entered is a
third party control account, you must enter third party information in the journal entry.

Scenario
For example, if an account is defined as a third party control account with a type of Supplier,
then the subledger journal entry lines which use that account must include supplier
information. When a valid third party control account is assigned to a journal line, you are
required to provide third party information, such as name and site.
Submit the Third Party Balances Report to display subledger balance and account activity
information for suppliers and customers. The Customer or Supplier subledger third party
balances will be updated when the journal is completed to a Final status.

Questions 90.
Which statement is TRUE regarding Time Zone Derivation Rules for Transactions?
A. Time zone conversion applies to the transaction date and adjustment date and NOT
the accounting date on transactions.
B. Time zone is derived from the legal entity associated ONLY lo the default, business
unit of the transaction.

C. If there is a legal entity associated with the business unit used on the transaction,
then the system date is used.
D. Time zone rules apply to invoices, credit memos, on account credit memos, debit
memos, chargebacks, and adjustments.
Answer: C
Explanation:

Questions 91.
The Receipt Remittances Region on the Receivable Balances Work Area has tabs containing
Information on receipts. What are two tabs in the Receipt Remittance Region?
A.
B.
C.
D.
E.

Unapplied Receipts
Pending Approval
Pending Clearance
Pending Confirmation
On Account Receipts

Answer: A and E. My opinion: B and C

Explanation:
Pending Approval, Pending Remittance, Pending Clearance, Funds Transfer Errors tabs for
Receipt Remittance Region

Receivables Balances Work area

Use the Receivables Balances work area to perform tasks related to customer payment
activities and the management of accounts receivable balances.
Review actionable items, including open receipts and receipt batches, unapplied and onaccount receipts (A, E) and credit memos, receipt remittance batches, and funds transfer
errors.
Create receipts manually, import receipts via lockbox or spreadsheet, or create automatic
receipts.
Perform related activities to manage your receipts: apply, unapply, reverse, delete receipts;
create invoice adjustments or chargebacks during receipt application; and remit, clear or risk
eliminate factored receipts.
You can manage receipt remittances: create, modify, and approve receipt remittance
batches. You can also perform tasks related to managing accounts receivables balances,
including reconciling receivables and managing Receivables accounting period statuses.

Questions 92.
The communication information region in the customer account record is used to maintain
what customer information?
A.
B.
C.
D.

Payment Instruments
Job Responsibilities
Account Relationships
Account Profiles

Answer: B
Explanation:

Communication Information
Use the Communication region to maintain customer contact persons for a customer
account. Information that you can maintain for each contact includes:

Name and job title.

Contact points, such as phone and fax numbers, email and instant message
addresses, and URLs.
Job responsibilities.
Addresses. You can either enter new addresses specific to the contact, or you can
enter addresses of account sites belonging to the customer account.

You can create a new contact person or add an existing contact person for a customer
account or account site. If you are adding an existing contact person, you must define a
party relationship at the customer level for each party and assign the party the Contact role
type.

Questions 93.
Select the true statement about Balance Forward Billing.
A.
B.
C.
D.

Balance Forward Bills tan be created for a future date.

Transactions included on a Balance Forward Bill can be updated.
Balance Forward Bill must be enabled at each bill-to site level.
Balance Forward Bill of a previous cycle need NOT be generated as Final to generate
the balance Forward Bill of the current cycle.

Answer: C
Explanation:
(1) You cannot update transactions that are included on a balance forward bill, regardless of
the setting of the Allow Change to Printed Transactions system option. Oracle Fusion

Receivables considers inclusion on a balance forward bill as a transaction activity, and

therefore you cannot update a transaction once it has activity against it.
(2) Bill Consolidation at Account or Site Level
You can generate bills consolidated at either the customer account or site level:

Account-level balance forward billing lets you generate one bill for each business unit
of the customer account, addressed to the primary bill-to site of the account.
Site-level balance forward billing lets you generate a balance forward bill for each
bill-to site of a customer with multiple bill-to sites.

You can exclude a site from a balance forward bill by disabling balance forward billing on the
customer profile of the site.

Questions 94.
Select the valid reason for a Collector being UNABLE to enter a dispute against a particular
transaction.
A.
B.
C.
D.

The
The
The
The

transaction
transaction
transaction
transaction

date falls in a closed period.

balance is zero.
type is NOT associated to a credit memo type.
is partially paid.

Answer: C
Explanation:
Use transaction types to set up specific transaction details for each transaction class:

Credit memo
Invoice

Debit memo
Chargeback, and
On-account credit

Defining Credit Memo transaction types first lets you assign a credit memo to the invoice
transaction type. When you create a credit memo for the invoice, the credit memo
transaction type is used by default.

When do I enter a credit memo manually?

Once a disputed transaction or transaction amount receives all of the required approvals,
the Credit Memo Creation subprocess creates the credit memo in Oracle Fusion Receivables.
If the subprocess fails to create the credit memo, then you must enter the credit memo
manually. Reasons why the process might fail include missing setup steps, or the
disputed transaction does not have enough balance due remaining.
Use the information on the credit memo request to create the credit memo. After you create
the credit memo, enter the credit memo number into the notification and submit.

Questions 95.
The billing Specialist creates an adjustment for an INCORRECT invoice and sends it for
approval through the review and Manage Transaction link in the Billing Work Area. Since the
adjustment amount is above approval limit, it is routed to the Billing Manager. What is the
status of the Adjustment when the approver sees the adjustment in his Work Queue?
A.
B.
C.
D.

Pending Research
Pending Approval
Approval Required
Waiting Approval

Answer: D
Explanation:

Questions 96.
What are the steps in running the AutoLockbox Concurrent Process?
A.
B.
C.
D.

Enter receipts, validate data, and apply QuickCash.

Import bank file, validate data, and post QuickCash.
Import bank file, enter receipts, and validate QuickCash.
Enter receipts, import bank file, validate data, and post QuickCash.

Answer: B
Explanation:
To run AutoLockbox:
1. Navigate to the Submit Lockbox Processing window.
2. If you are importing a new bank file, check the New Transmission check box, then
enter a new Transmission Name. If you are resubmitting an existing lockbox
transmission, you can select a name from the list of values.

3. To import a new bank file into Receivables, check the Submit Import check box, then
enter your bank file's Data File, Control File, and Transmission Format information. If
you are re-importing data, the default is the transmission format you specified in the
initial import step. You can either accept this value or override it.
c. When you run the import step, Receivables automatically generates the import
section of the Lockbox Execution Report.
4. To validate or revalidate imported data and create QuickCash receipt batches
5. To apply receipts in this transmission and update your customer's receivable balance,
check the Submit Post QuickCash check box.
Note: You can also submit Post QuickCash from the Receipt Batches window Etc.
Reference:
Running AutoLockbox

Questions 97.
Your Subledger Accountants are attempting to import their journals to the general ledger at
the end of the period. The Journal import processes have completed with a warning and no
Journals were generated. Which three steps would you take to troubleshoot this?
A.
B.
C.
D.
E.

Resend the transactions from the subledgers.

Delete the related data on the GL interface table.
Confirm that data was sent from the subledger.
Verify the output of the Journal Import Request
Run the Journal Import for all the group IDs.

Answer: B, D, and E
Explanation:
Note 1:
* If you have only a few Journal Import errors, correct the errors from the Correct Journal
Import Data widow, then rerun Journal Import on the corrected data.

* If the number of Journal Import errors is high, delete all of the import data for your journal
entry source and group ID. Correct the errors then repopulate the GL_INTERFACE table
before rerunning Journal Import.
Note 2:
To import journal entries to General Ledger:
1. Navigate to the Import Journals window.
2. Enter the Source from which you want Journal Import to create journal entries.
3. You can import data for the same or diferent sources in parallel by specifying a
unique Group ID for each request. General Ledger imports data with the journal entry
source and group ID combination you specify.
If you do not specify a group ID, General Ledger imports data from the specified
journal entry source with no corresponding group ID.
4. Define the Journal Import Run Options.
5. Choose whether to Import Descriptive Flexfields, and whether to import them with
validation.
If you choose not to create summary journals, you can Import Descriptive Flexfields
along with your journal information. You can import descriptive flexfields With
Validation and generate journals only when validation succeeds. Or, you can import
descriptive flexfields Without Validation and generate all journals.
Warning: Importing descriptive flexfields without validation may cause problems
when modifying journal lines. If you import descriptive flexfields with errors, you may
corrupt the journal lines to which they refer.
6. Enter a Date Range to have General Ledger import only journals with accounting
dates in that range. If you do not specify a date range, General Ledger imports all
journals data.
7. Choose Import to submit a concurrent process to import journals. General Ledger
names the resulting batch as follows: <REFERENCE1> <Source> <Request ID>:
<Actual Flag> <Group ID>; for example, 587-C Payables 18944: A 347.
8. Review the Journal Import Execution Report to determine the number of errors in the
import data, and how to correct any Journal Import errors.

Questions 98.
Which two options are features of the Create Automatic Receipts Write-Of program?
A.
B.
C.
D.

Schedule periodic write ofs as receipt adjustments for small remaining balances.
Create write-ofs for overpayment amount.
It is NOT mandatory to set up a write-of account in your receivables activity.
Create write-ofs for overpayment and underpayment amounts.

Answer: A and B
Explanation:

Automatic Write-ofs
Use the Create Automatic Receipt Write-ofs program to automatically write of receipts. You
can only use this program to write of overpayment amounts.

The Create Automatic Receipt Write-offs program writes of selected receipts for the
designated unapplied amount or percentage, and closes the receipts. The program checks
that the unapplied amount or percentage is within your approval limits.
You can use the Create Automatic Receipt Write-ofs program to:
Schedule periodic write-ofs as receipt adjustments for small remaining balances.
Limit write-ofs by a percentage of the original receipt amount and by the policy of
your enterprise.
Create write-ofs for specific currencies and customers.
You can also print and review write-ofs generated by the program before applying them.
The account assigned to the Receivables activity that you select for the program run is the
account credited for all write-of amounts.
You set up a Write-Of account when defining your receivables activity.

Questions 99.
The Customer Search feature in the Collections Dashboard allows collectors to find a
customer by _____________.
A.
B.
C.
D.

Customer name
Account
Bill-to
Customer name, account, or bill-to

Answer: D
Explanation:

How can changing customer information impact the collections process?

Changing customer information can be done on the Contact and Profile tabs.

Adding a contact can include the individual in the dunning process or just an additional
contact person for a customer. You can identify the contact as dunning to add to dunning
notification that are sent.
Changing information in the Profile tab determines who is the collector, the level collections
are done (customer, account, or bill-to site) for a customer and how the customer is notified
(fax, E-Mail or letter) for dunning.

Questions 100.
Select the valid setup that creates the revenue account distribution in the case of a debit
memo reversal.
A.
B.
C.
D.

Auto Accounting Rule for revenue line type

Revenue Account Specified in Debit Memo transaction type
Cash account on the receipt
Revenue account of the original transaction to which the receipt is applied

Answer: B. My opinion is C
Explanation:

Debit Memo Reversal

Creating the Debit Memo Reversal
To create a debit memo reversal, you enter a debit memo transaction type. The debit memo
transaction type provides the default receivable account distribution for the new debit item.
If the receipt that you are reversing uses a receipt method with the Debit Memos
Inherit Receipt Number option enabled, you can control whether the debit memo has the
same transaction number as the original receipt. If the Debit Memos Inherit Receipt
Number option is not enabled, Receivables uses the predefined Debit Memo Reversal
transaction source to determine the numbering for the debit memo reversal.
If you are using manual document numbering, enter a unique document number for
this reversal. If you are using automatic numbering, Receivables assigns a unique document
number to the new debit memo.
When you create a debit memo reversal, Receivables generates the line item from the
predefined memo line.
Receivables creates this line on the debit memo:
Debit
memo
for
reversal
of
payment
{PAYMENT_NUMBER}
{PAYMENT_NUMBER} represents the original receipt number.

where

Accounting for Debit Memo Reversals

When you create a debit memo reversal, Receivables creates the accounting entries on the
new debit memo transaction rather than on the original receipt. This ensures that you do not
make duplicate entries, and eliminates the need for a clearing account.
With regular debit memos, AutoAccounting creates both the receivable and revenue
account distributions. With debit memo reversals, the debit memo transaction type provides
the receivable account distribution, and the cash account on the receipt is used as the
revenue account distribution.
The cash account used depends on the status of the receipt at the time of the
creation of the debit memo reversal. For example, if the receipt was remitted, then the cash
account is the same as the remitted account assigned to the receipt method of the receipt.
When you create a debit memo reversal, Receivables creates these two entries:
1. The first entry decreases the cash account.
Receivables already recognized revenue on the original transaction. To
avoid overstating the cash and revenue accounts, Receivables does not create
an additional entry to revenue. Instead, Receivables assigns the cash account
to the revenue line on the debit memo.
2. The second entry creates the new receivable.
When the original receipt was applied, Receivables closed the
transactions and their associated receivables. You must therefore establish a
new receivable to track the new debit item.

Questions 101.
The Accounts Receivables Specialist, while reviewing a customer account, saw a customer
complaint about a percentage that was NOT applied to an invoice. The Accounts Receivables
Specialist decides to initiate a dispute process for this transaction. What is the action he has
to perform to invoke the dispute?
A. Navigate to the Collections Workbench page and invoke the dispute.
B. Navigate to the Review and Manage Transaction Page-and invoke the dispute.
C. Navigate to the Review Customer Accounts Details user interface and invoke the
dispute.
D. Navigate to the Manage Revenue Adjustments Page and invoke the dispute.
Answer: B.

Explanation:
Billing Work Area
Use the Billing work area to perform tasks related to customer billing activities. Monitor and
review incomplete transactions, and approve and research pending adjustments. Use
AutoInvoice to import transactions from other systems and generate invoices and credit
memos automatically according to your requirements. You can easily review and correct
AutoInvoice import errors and resubmit AutoInvoice. Create new invoices, debit memos,
credit memos, and on-account credit memos. Perform related activities to manage your
transactions: update, duplicate, credit, adjust, dispute, and preview a transaction. You can
also create a new customer record and manage existing customers from the Billing work
area.
Revenue Management Work Area
Use the Revenue Management work area to perform tasks related to revenue recognition
and revenue adjustments. Run the revenue recognition program to generate revenue
distribution records for invoices and credit memos that use invoicing and revenue scheduling
rules. Perform revenue adjustments on one or more transactions, including scheduling and
unscheduling revenue Reviewing, adding and expiring revenue contingencies And
transferring sales credits. You can also manage revenue policies, revenue contingencies, and
rules that assign contingencies to transactions automatically. From either the Billing or
Receivables Balances work area, you have access to manage customer information and to
customer account activities in summary and in detail. You can review customer account
information by a single business unit, bill-to site, or across all business units and bill-to sites.
For each customer account, you can review transactions and receipts, dispute and adjust
transactions, and drill down to current or historical customer account activity. All three work
areas provide access to general ledger account activities, including creating accounting,
creating manual journal entries, and reviewing journal entries.

Questions 102.
The client has implemented revenue policy with time-based contingencies. An invoice for a
creditworthy customer is imported and one of the invoice lines is associated with both a
nonstandard refund policy (60 days) and acceptance clause (100 days). Explain when
revenue will be recognized.
A. Recognized Immediately

B. Recognized after 60 days

C. Recognized after 100 days
D. Recognized only after manual intervention
Answer: C
Explanation:
Reference:
Oracle Fusion Applications Order Fulfillment, Receivables, Payments, Cash, and Collections
Guide. Two time-based contingencies on the same invoice line

Settings That Afect Invoices with Multiple Contingencies

A single invoice or invoice line can contain both payment-based contingencies and timebased contingencies:

Payment-based contingencies: Receivables recognizes revenue on the invoice line or

portion of the invoice line when payment is received.
Time-based contingencies: Receivables recognizes revenue only when the
contingency expires.

If no unexpired contingencies remain on the invoice line, Receivables initiates revenue

recognition according to the initially assigned revenue scheduling rule. If other unexpired
contingencies remain on the invoice line, Receivables does not initiate revenue recognition
for the invoice line.
How Multiple Contingencies Are Calculated
Multiple contingencies are calculated diferently for each of these circumstances:

Two time-based contingencies on the same invoice.

Two time-based contingencies on the same invoice line.
Payment-based and time-based contingencies on the same invoice.

Two time-based contingencies on the same invoice

You enter a customer invoice with 6 lines. Lines 2 and 3 are associated with a fiscal funding
clause (60 days) and Line 5 is associated with a cancellation provision (90 days). Revenue
for Lines 1, 4, and 6 are fully recognized, either immediately or according to the existing
revenue scheduling rules. After 60 days, the fiscal funding clause on Lines 2 and 3 expires.
Receivables initiates revenue recognition in full for Lines 2 and 3. After another 30 days, the
cancellation provision on Line 5 expires. Receivables initiates revenue recognition in full for
Line 5.
Two time-based contingencies on the same invoice line
You enter or import an invoice for a creditworthy customer, and one of the invoice lines is
associated with both a nonstandard refund policy (50 days) and an acceptance clause (120
days).
Receivables does not recognize revenue on this invoice line until the acceptance clause
expires after 120 days. If, for example, you obtain written acceptance from the customer
after 80 days, you can record early acceptance to allow revenue recognition.

Questions 103.
Which transaction will be included when selecting transactions of specified customers in the
Create Balance Forward Billing Program?
A.
B.
C.
D.

Transactions
Transactions
Transactions
Transactions

that
that
that
that

have
were
have
have

a Bill Type of Imported

included on a previous Balance Forward Bill
the selected payment terms
the Print Option set to Do Not Print

Answer: C
Explanation:

How Transactions Are Selected

The Create Balance Forward Bill program selects transactions for inclusion on a balance
forward bill using this sequence:
1. Determine the payment terms:
a. Use the balance forward billing payment terms selected, if applicable.
b. If no payment terms were selected, use all balance forward billing payment terms
that match the selected billing cycle.
2. Determine the customers:
a. Use the customer or customers selected, if applicable.
b. If no customers were selected, select all applicable customers. This includes:
Customers that have balance forward billing enabled.
Customers that have the selected payment terms at the account or site level.
Customers with a scheduled billing date that is earlier than or equal to the
submission date.
The program checks payment terms belonging to the account profile for customers enabled
for account-level balance forward billing, and belonging to the site profile (or account profile
if no payment terms are specified at a site) for customers enabled for site-level balance
forward billing.
Important
The Create Balance Forward Bill program does not select transactions from customers who
are related either by customer or account relationships.
3. Select transactions of the specified customers:
Include all transactions that have the selected payment terms.
Include all transactions that were not included on a previous balance forward bill.
Exclude all transactions that have the Print Option set to Do Not Print.
Exclude all transactions with a bill type of Imported.
4. Validate transactions:
Verify the balance forward payment terms on the transaction.
Verify that the transaction billing date is equal to or earlier than the balance forward
bill billing date.
If the transaction has a billing date that is earlier than that of the balance forward bill, the
program includes the transaction if it has no activity.
5. Determine the opening balance of the balance forward bill:
Use the ending balance of the previous billing period as the opening balance of the
new bill.
If this is the first time balance forward billing runs, the opening balance is zero.

6. Calculate the ending balance of the balance forward bill. The calculation accounts for the
previous balance, new transactions, and any activity that occurred during the billing
cycle.
Note: The Create Balance Forward Bill program generates a bill even if there is no activity in
a billing cycle. Such a balance forward bill displays the previous balance, zero current
activity, and ending balance.

Questions 104.
Which three duties are associated with the Payment Management Specialist role?
A.
B.
C.
D.
E.

Create receivables refund.

Create receivables credit card refund.
Create receivables credit card charge back.
Billing inquiry duty.
Receipt creation duty.

Answer: A, C, and E
Explanation:

Questions 105.
Which three steps of the Fund Capture Process are controlled by rules in the Fund Capture
Process Profile?

A.
B.
C.
D.
E.

Formatting messages
Creation of Settlement grouping rules
Building Settlements into a settlement batch
Creation of routing rules
Transmitting messages to the payment system

Answer: A, C, and E
Explanation:

Questions 106.
The Billing Specialist has entered an invoice in a foreign currency. After completing the
invoice she realized that she has to adjust the conversion rate on the transaction. The
invoice is already paid and has a receipt applied to it. Which is the setup that is NOT
relevant to the Billing Specialist?

A.
B.
C.
D.

Adjust the conversion rate.

Incomplete the transaction.
Reverse the transaction.
Recreate the transaction at a new rate.

Answer: D
Explanation:

Questions 107.
You are the Billing Manager and you are in charge of reviewing transactions and approving
them. Which two tabs are available for your role in the Adjustments Overview Region on the
Billing Work Area page?
A. Pending My Approval
B. Pending Approval
C. Pending Approval from Others

D. Approved
E. Pending Research
Answer: B and C
Explanation:

Questions 108.
The method used to capture receipts data in mass while offline and upload the receipts at a
later data is called ___________.
A.
B.
C.
D.

Manual receipt entry

Receipts via spread sheet.
Lockbox receipts
Automatic receipts

Answer: B
Explanation:

Questions 109.
A company operates in a country with strict legislative requirements that requires the legal
entity to maintain its accounting data separate from other legal entities within the company.
How will you assign legal entitles during the accounting configuration?
A.
B.
C.
D.

One legal entity for ALL ledgers

One legal entity per primary ledger
One legal entity per ledger
Multiple legal entities sharing the same ledger

Answer: D
Explanation:

Questions 110.
Oracle has seeded out of the box printing templates defined for each transaction class. How
many pre-seeded templates are available?
A.
B.
C.
D.

4
6
5
8

Answer: C
Explanation:

Questions 111.
The Billing Manager has to Bill Adjustment Duty role associated with him. Which task he
cannot perform?

A.
B.
C.
D.

Update Receivables Invoice

Update Receivables Credit memo
Review Customer Account Activities
Dispute Receivables Transaction

Answer: C
Explanation:

Questions 112.
What is true about the aged dunning method?
A. Aged dunning sends dunning letters based on the age of the oldest translation and
the number of days since the last letter was sent.
B. Aged dunning sends dunning letters based on the age of the oldest transaction.
C. The content of the dunning letter will NOT change as the oldest aged transaction
moves into next aging bucket.
D. Multiple aged dunning letters are sent to the same customer who has more than one
delinquent transaction.
Answer: B
Explanation:

Questions 113.
Which two display columns that impact the Collections Dashboard are defined in the Global
Setup Preference Region?
A.
B.
C.
D.
E.

Display of open transactions

Display of customer profile
Default exchange rate
Default transaction class
Display of closed receipts

Answer: A and D
Explanation:
Global Preferences
Selections made in the Global Preference region impact the view the collectors see from the
Collections Customer Work Area and Collections Dashboard. Global Preferences define the
following:

Default transaction class that appears

Display of open transactions
Display of closed transactions
Number of days for prior and future transactions to be displayed

Default aging method

Delimiter used to separate data and the number of characters required to do a
search

Questions 114.
Where are the alerts and approvals displayed in the Collection Work Area?
A.
B.
C.
D.

Delinquent Customer List Region

Activities List
Watch list
Notification Pop-up

Answer: B
Explanation:

Questions 115.
Which option must be set up in order to adjust an invoice and enter an amount greater than
the balance due?
A.
B.
C.
D.

Set the Allow Overapplication on receivables activity to Yes.

Set the Allow Overapplication on transaction type to Yes.
You can NOT enter on amount, greater than the balance due.
Set the Allow Overapplication on the profile options to Yes.

Answer: B
Explanation:

Questions 116.
When running the delinquency process for a customer, the business unit for which you want
to run the process is NOT appearing in the drop down menu. Identify the action you need to
take.
A. Click on the Settings button to apply the appropriate settings so that the business
unit appears in the chop down menu.
B. Click the check box to enter the default business unit if it is NOT appearing in the
drop down menu.
C. Only the business units the user has access to will appear in the list of values. Modify
the security options to provide access to the user.
D. The business unit is NOT a required option In the Parameters tab to run the
delinquency process.
Answer: C
Explanation:

Questions 117.
Select the two key system options related to customers.
A.
B.
C.
D.
E.
F.

Default country
Receipt Method
Automatic Site Numbering
Customer Credit Classification
Transaction Source
Reciprocal Customer

Answer: B and D
Explanation:

Questions 118.
After reviewing an incomplete invoice, the Billing Manager clicked the Complete Button In
the Transactions Window. What changes will this action create? Select three.
A.
B.
C.
D.
E.

The invoice can now be printed.

The invoice gets send for a dunning follow-up.
The invoice is eligible for transfer to the General Ledger.
Payment schedules get created using the payment terms specified.
The invoice is included in the standard aging and collection process if the transaction
type has the Open Receivables option set to No.

Answer: A, C, and D
Explanation:

Questions 119.
You want the flexibility to void a debit memo or credit memo if there is no activity on the
transaction. What setup is needed on the Void transaction type definition to achieve this
objective?
A.
B.
C.
D.

Set
Set
Set
Set

the
the
the
the

Answer: D
Explanation:

Open
Open
Open
Open

Receivables
Receivables
Receivables
Receivables

option
option
option
option

to
to
to
to

Yes and the Post to GL option to Yes.

No and the Post to GL option to Yes.
Yes and Post to GL Option to No.
No and the Post to GL option to No.

Questions 120.
Which three ways will changing the customer information impart the collection process?
A. Making changes In the Profile tab Impacts the collection process.
B. Business unit level changes will NOT Impact the display of delinquent customers on
the dashboard.
C. Adding or modifying the customer contact name in the Contacts tab impacts where
the correspondence is sent.
D. Changing the Collector impacts the individual working with the delinquent customer.
E. Changing Information in the Profile Tab does NOT have an impact on the level in
which the collections are done.
Answer: A, B, and C. My opinion is A, C, and D.
Explanation:

How can changing the customer information impact the collections process?
1. Making changes in the Profile tab impacts the collections process.
2. Business level changes impact the display of delinquent customers on the Collections
Dashboard. To change the Business Level under the Profile tab, you must have Customer
selected in the Customer hierarchy.
3. Dunning is impacted by indicating if letters are sent and how they are sent, using the
preferred method feature.
4. Changing the collector impacts the individual working with the delinquent customer.
5. Under the Contact tab, adding or modifying the customer contact name or address
impacts who and where the correspondence is sent.

Questions 121.
An Invoice was billed incorrectly and the Billing Specialist has created an adjustment for the
Invoice. The Billing Specialist submitted it for approval but it was rejected by the Billing
Manager. What is true in this scenario?
A. The adjustment is closed and the process is ended without any invoice or accounting
impact.
B. The adjustment is routed back to the Billing Specialist for further action and is in the
More Research status.
C. The adjustment is closed and the invoice balance is reduced by the adjustment
amount.
D. The adjustment is routed back to the Billing Specialist with the Rejected status.
Answer: D
Explanation:

Questions 122.
The Accounts Receivable Specialist associated duty include which three duties?

A.
B.
C.
D.
E.

Trading Community Hierarchy Management Duty

Receipt Creation Duty
Payment Settlement Management Duty
Receivables Accounting Duty
Import Payables invoices Duty

Answer: B, C, and D
Explanation:

Questions 123.
The Collections Manager is identifying delinquent transactions, while submitting the
Determine Delinquency lining Scoring program, in which business unit will the collections
Manager be able to view the parameters list?
A.
B.
C.
D.

Only those business units for which there are delinquent customers
Only those business units for which the user has access
Only the business unit to which the user belongs
All business units in the organization

Answer: B
Explanation: