Difference between Quick payment and Manual payment?

Manual Payment

When ur making payments not through payables. Example- Through wire or typed cheque, then u update the paid invoice in payables (by selecting payment type as manual)

Note: you can record payment for invoices that are associated with any Payment Method type, except Electronic.

Quick payment

When you create a quick payment you can select an invoice regardless of the payments terms and due date. For example, you can create a Quick payment for an invoice that is not yet due OR when you are making payment through Oracle e-Commerce Gateway .

What is meant by accrual write off?

The liability for the uninvoiced receipts is kept in the AP Accrual Account (which is a suspense account) till the time you have an invoice for the receipt. This will happen as soon as you create the receipt(if you are using accrue on receipt ) or at period close. The same is accrued as soon as you enter an invoice for these receipts.

When you might want to write off this liability?

Here are some resons:

1.What PO warehouse has received may not be the one finance/accounting has invoiced. Hence you PO remains open as if it is not invoiced.

2.Sometimes finance may invoice without matching and pay vendor.Hence vendor may not question and procurement is also not questioning because they have received material.

3.Lot of times finance creates invoice for freight with accrual account with no reference to PO.this gets qualified for writeoff.

4.Invoicing for more quantity than what has been received. On the similar note invoicing in advance but never received.

What is the difference between Accrual Write Off Process in R12 and R11i?

In R11i Accrual Write Offs only affected the Accrual Reconciliation Report. One had to pass manual Journal Entries in GL to adjust the GL Inventory AP Accrual Account. In other words without Manual Journals the write off process had no impact in GL.

In R12 the adjustment in GL is automated. No Manual Journal is required. The create Accounting program and Transfer to GL program will transfer the write off journals automatically to General ledger.

Different Accounting Closing Period Status

Future: Payables allows invoice entry and accounting in a Future period. Payables does not allow payment entry or payment voiding in a Future period. Payables allows you to limit the number of Future periods based on the number you enter in the Future Periods field in the Financials Options window. After you change the status of a Future period to Open, you cannot change it back to Future.

Open: You can record transactions and account for them in an Open period. You cannot open a period if it is an adjusting period. You define adjusting periods using the Define Calendar window. Adjusting periods can have overlapping dates.

Closed: Payables does not allow transaction processing in a Closed period. You can reopen a Closed period if the corresponding general ledger and purchasing periods are also Open. You cannot close a period in which any of the following conditions exist:

• Outstanding payment batches.

• Future dated payments for which the Maturity Date is within the period but that still have a status of Issued.

• Unaccounted transactions.

• Accounted transactions that have not been transferred to general ledger.

Permanently Closed. Payables does not allow transaction processing in a Permanently Closed period. You cannot reopen a Permanently Closed period.

What is difference between debit memo and credit memo?

Credit Memo: Credit Memos are memos from a supplier representing a credit amount toward goods or services. Credit memos are always negative amounts.
Debit Memo: Debit Memos are invoices you enter to record a credit amount for a supplier who does not send you a credit memo. Always negative amount.

What is SWEEP Program?Explain Process Of Sweep Program?

This particular program is run in order to transfer un-accounted invioce to next opened period during period end closing of Accounts Payable.
In fact you can't close Payable Period if you have Un-Accounted Invoice in Payables.
In order to negotiate (Transfer) these invoice to next open period this program is run. So that the Payable period can be closed.

What is Automatic Offset ?

• It is a Accounts Payable feature & quite similar to Intercompany function in General Ledger.
• It is used to Create multiple Liability lines for the transactions between sister concerns (May be between sister companies).
• For Ex: Say two companies purchasing goods from same supplier. But When invoice is created only one supplier liability line is created whereas both the companies are liable to pay.
• Automatic Offset function helps here to create multiple liability lines to balance the journal at balancing level.
  
  You can set this option at Accounting area of Payable Option.
  There are three radio buttons 1. None 2. Accounts & 3. Balancing under Automatic Offset. On selecting.............
  
  1. None: No Automatic Offset will be done
  
  2. Accounts: The distribution line segments will be copied to the liability lines excepting Accounts segment which copied from the liability line itself.
  
  3. Balancing: Only Balancing segment from distribution line segments will be copied to the liability lines excepting Accounts segment which copied from the liability line itself.

What is Budget and Encumbrance ?

What is the difference between Normal calendar and special calendar?

In GL we can define 2 type of calendars. One is Calendar (normal Calendar)and another Fiscal calendar.

Normal calendar uses the year in which an accounting period begin for the system name .
Fiscal Year uses the year in which your fiscal year ends.

In case of special calendars they will defined in AP module as type Recurring invoice payment terms withholding tax key indicator.

Recurring invoice payment terms withholding tax type calendar used for respective transactions as name indicates. Key indicator type calendar used for key indicator report