Oracle Payables (AP) Period End Interview Questions

Below are few of the Interview questions that can be based on AP period-end process:

Question What are the various possible period statuses in AP?

Answer Various period statuses of AP module are

- Never Opened

- Open

- Closed

Question 'Period Close Exception Report' lists some payments under the heading 'Future Dated Payments Requiring Maturity Event and Account'. What action should be taken to resolve this?

Answer To resolve this issue 'Update Matured Future Payment Status' program needs to be submitted with appropriate Maturity Date.

Question Can a period be closed if the Payment Batch in that period is in the status 'Formatted'?

Answer If a period can be closed only after the payment is accounted and transferred to GL. Since, the status of payment is not 'Confirmed'; this payment will not allow for AP period closure.

Question Will an Invoice without a Distribution Line come in the 'Period Close Exception Report'? What action will be required to resolve it?

Answer An Invoice without a distribution will not hinder period closing process. Hence, no action will be required.

However, it is recommended to enter distributions, if a valid invoice; else delete such invoices.

Question What are the most common issues encountered while AP Period Closing process?

Answer Without going to technicalility, on a broader level the most common issues are:

- Invoice (Distributions) not Validated

- Invoices on Hold

- Invoices not Accounted

- Payments not Accounted

- Invoices & Payments accounting entries not transferred to GL

- Maturity Accounting not done for Future Dated payments

 

The above issues may arise either because users forgot to run relevant programs or because of bugs (which are quite many in AP) and awaiting resolution from Oracle (after Service Request i.e SR is raised).

Question Is is mandatory to resolve the issues in All the Operating Units of a given Legal Entity? Or  the period can be closed once issues of one Operating Unit are resolved?

Answer It is mandatory to resolve all the issues of ALL the Operating of a given Legal Entity/ Set of Books (SOB).