Oracle EBS Payables Essentials – Question Bank
Oracle E-Business Suite 12.1 Payables Essentials – Sample Questions
These questions are similar to the ones asked in the actual Test.
How should I know? I know, because although I got my Payables Certification five years back, I have re-certified with the latest version of the Certification test.
Before you start here are some Key features of the Payables Essentials Certification Exam
– The exam is Computer based and you have 150 minutes to answer 80 Questions.
– The Questions are (mostly) multiple choice type and there is NO penalty for an incorrect answer.
– Some of the Questions may have more than one correct answers. You must get ALL the options correct for you to be awarded points.
– The Official Pass percentage is 60% (But this can vary). You will be told the exact passing percentage before your begin your test.
Here are a few sample questions for you;
Sample Questions
Q1. With reference to Invoice Validation and Invoice Approval, which of the following statements are FALSE?
a. Invoices may be submitted for validation in one of the following three ways; System, Online or Batch
b. Approval rules can be Line-Level or Document-Level or both
c. Invoice Approval Workflow may be based on the total Invoice value
d. If an approver rejects an invoice, then you cannot use the Force Approval option to manually approve the invoice
Answer; d
Explanation;
Process for Invoice Validation
There are three Levels of Invoice Validation;
System level validation
Manually submit the Payables Invoice Validation process or schedule it to run periodically from the Submit Request window. Submit the Payables Invoice Validation process right before you process payments to update the status on all invoices. Payables will use the Option parameter to select unvalidated invoices for validation. Enter All to ensure you release any existing holds on invoices as well as place new holds. Otherwise, Invoice Validation reviews only those invoice distributions that were not already reviewed by Invoice Validation.
Optionally, enter other criteria to submit Invoice Validation for specific groups of invoices.
Batch level validation
Submit Invoice Validation for one or more invoice batches from the Invoice Batches window. Batch level validation is only allowed if the Allow online validation Payables option is enabled also.
Invoice level (online) validation
If the Payables option to allow online validation is enabled, you can submit online validation for one or more individual invoices when an invoice must be validated and paid immediately. You can also validate related invoices for credit and debit memos by choosing Validate Related Invoices in the Actions window after you enter a credit or debit memo.
Invoice Approval Levels
The Invoice Approval Workflow process uses Oracle Approvals Management and Oracle Workflow to enable you to define business rules to determine who approves invoices and how they will be routed for approval to different approvers
Approving Invoices at the Line Level
Line-level approval is the approval of one specific line or set of lines within an invoice, rather than approving the entire document. Approvers have access to the Notification Detail and Interactive Line Details pages to review the invoice details. The pages display only the appropriate level of information for the approver to view. That is, approvers view only the information that they can approve or reject. Furthermore, no additional login or privileges are required for the approver to approve. The self-service login that an approver uses to view the notifications is sufficient to review the invoice information.
Approving Invoices at the Document (Invoice) Level
Review the invoice and approve it, as necessary. If line-level approval is enabled, review the invoice line information before you approve or reject the entire invoice.
Invoice Approval Workflow
The workflow then sequentially asks each approver in the approval list to approve invoices online. For example, you can define a rule so invoices over $100,000 require CFO approval and then CEO approval.
Notification from Approvers
Approvers can approve or reject the invoice.
- If an approver approves the invoice, then the invoice goes to the next person in the
approver list until all required people approve the invoice.
- If an approver rejects an invoice, then you can perform one of the following actions from the
Invoice Actions window:
- Use the Force Approval option to manually approve the invoice
- Use the Initiate Approval option to resubmit the invoice to the Invoice Approval Workflow after correcting any issue that caused the approver to reject the invoice
- Use the Cancel Invoice option to cancel the invoice
Q2. Which of the following types of ‘adjustment invoices’ are supported by Oracle Payables?
a. Minor Adjustment Invoice
b. Item Adjustment Invoice
c. Purchase Order Price adjustment Invoice
d. Sales Order adjustment Invoice
Answer; c
Explanation;
The two types of adjustment invoices supported are:
PO Price Adjustment Invoice
This invoice is for the difference in price between the original invoice and the new purchase order price. PO price adjustment invoices can be matched to both purchase orders and invoices.
Adjustment Invoice
This invoice effectively reverses any outstanding regular Payables price corrections and PO Price Adjustment invoices. This is so the PO Price Adjustment document can be for only the price difference between the original invoice and the new PO price.
These adjustment invoices can be positive, negative, or zero amount. When the original invoice and its related adjustment documents are paid, the net effect is as if the original invoice had always had the new price. The supplier is paid the appropriate amount, and the accounting is adjusted accordingly.
You cannot manually enter these types of invoices, nor can you adjust or cancel them. You can view, report on, validate, account for, and pay them.
Q3. Which of the following options can influence the assignment of a default GL date for an Invoice?
(Note: More than one answer may be correct)
a. Receipt/Invoice
b. System Date
c. Period closing date
d. Receipt/System
Answer; a, b, d
Explanation;
The figure above shows how the default GL date is assigned.
Payables determines the accounting period in which an invoice or payment is included by comparing the invoice or payment GL date to the ranges of dates you have defined for your accounting periods in your accounting calendar. The default invoice GL date is based on the GL Date Basis Payables option. Payables automatically defaults this GL date to new invoice distributions added to the invoice. If you specify a GL date on the invoice batch, that GL date defaults to invoices you enter into the batch. You can change the GL date for individual invoice lines. The GL date is stored at the invoice header so if you were to add additional invoice lines, the GL dates on the lines would be the same as the date on the invoice header. The GL Date Basis Payables option determines what date is used as the GL date. The GL date for each invoice defaults based on one of the following options:
- Invoice date
- System date
- Receipt/Invoice
- Receipt/System
(Payables uses the payment date as the GL date for your payments.)
Q4. In an Invoice, Distribution details include invoice accounting details, the GL date, charge accounts etc. An invoice line can have one or more invoice distributions.
Invoice distributions can be created on an invoice in a variety of different ways.
Which of the following is NOT a valid way to create Invoice distribution?
a. Manual
b. Distribution Set
c. Adjustment
d. Allocation
Answer: c
Explanation;
The following figure shows the different ways to enter distributions.
Manual Entry
Click the Distributions button to manually add the distributions to the invoice.
Distribution Set
Specify a distribution set for the invoice. A distribution set is a template for invoice distributions. When you specify a distribution set for an invoice, Payables automatically creates invoice distributions based on the distribution set.
Full Distribution Sets
Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account.
Skeleton Distribution Sets
A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month’s headcount for each group.
If you enable and use a descriptive flexfield with your distribution set lines, the data in the flexfield will be copied to the invoice distributions created by the Distribution Set.
Matching
Match the invoice to a purchase order or receipt and creates invoice distributions.
Invoice Validation
If you are using automatic withholding tax or automatic tax calculation, the Validation process can automatically create the necessary tax distributions.
Allocation
Use the Allocation window to create freight and miscellaneous distributions. Individual freight distributions can be added by specifying the distribution amounts.
Q5.Which of the following statements are FALSE regarding ‘Quick Invoices’?
a. You use ‘Quick Invoices’ functionality for rapid, high–volume entry of Standard and Credit Memo invoices that are notcomplex and do not require extensive online validation.
b. The invoice records you enter in the Quick Invoices window are stored in interface tables: AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE.
c. If you have successfully imported an invoice record and want to modify it, you can use the Quick Invoice Window for the modification.
d. Quick Invoices Batch name may be used to query the group of invoice records in the Quick Invoices window.
Answer; c
Explanation;
The picture above describes the quick invoices process.
You use the Quick Invoices window for your everyday entry of invoice records. You use this window for rapid, high–volume entry of Standard and Credit Memo invoices that are not complex and do not require extensive online validation or defaulting of values during entry.
You can use this window for purchase order matching and for applying prepayments to the invoice you are entering. The information entered in the Quick Invoices window is stored in the Payables Open Interface tables. Because the system performs limited validation and defaulting of invoice values while you are entering invoices, you can enter invoices more quickly in the Quick Invoices window than you can in the Invoice Workbench.
When you enter invoice records in the Quick Invoices window, you can submit a customized workflow program to automate your processes for managing invoices. For example, you can customize the workflow program to validate the cost center on all invoices before you import them.
The invoice records you enter in the Quick Invoices window are stored in interface tables:
AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE.
These tables store invoice header and line information.
Import invoice records by using the Create Invoices window, or by submitting the Payables Open Interface Import Program from the Submit Request window.
Payables validates the invoice records during import and creates invoices with distributions and scheduled payments.
You can use the Quick Invoices Batch name to query the group of invoice records in the Quick Invoices window, and to identify a group of invoice records that you want to import together.
Note that if you use invoice batch control and you want to maintain the grouping of invoices after import, then when you submit import for the Quick Invoices batch, you can assign an Invoice Batch name to the group of invoices that Payables creates.
You can then use the Invoice Batch name to query the same group of invoices in the Invoice Workbench.
If you have successfully imported an invoice record and want to modify it, you must use the Invoice Workbench.
If you have NOT imported an invoice record and want to modify it, you can use the Quick Invoice Window.
When correcting problems with invoice records rejected during import, you can find the rejection reason by looking at the Payables Open Interface Import Report, or you can query the record in the Quick Invoices window and choose the Rejections button to see the rejection reason in the Rejections window.
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