Interview Questions for AP in ORACLE APPS

 

1. Basic Questions

Q1: What is Oracle Accounts Payable?

A: Oracle Accounts Payable (AP) is a subledger module in Oracle EBS that manages supplier invoices, payments, and liabilities. It integrates with General Ledger (GL), Purchasing (PO), and Cash Management (CE).

Q2: What are the different types of invoices in Oracle Payables?

A:

  • Standard Invoice – Normal supplier invoice
  • Credit Memo – Reduces the invoice amount
  • Debit Memo – Increases liability to the supplier
  • Prepayment – Advance payments to suppliers
  • Expense Report – Employee reimbursements
  • Mixed Invoice – Combination of debit and credit

Q3: What is a Payables Open Interface?

A: The Payables Open Interface (AP Interface) allows users to import invoices from external sources into Oracle Payables using the AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE tables.

2. Intermediate Questions

Q4: What is the difference between Hold and Prepayment in AP?

A:

  • Hold: Prevents invoice payment due to validation failures (e.g., missing PO match).
  • Prepayment: An advance payment made to a supplier before receiving goods or services.

Q5: What are the key tables in Oracle Payables?

A:

  • AP_INVOICES_ALL – Stores invoice header details
  • AP_INVOICE_LINES_ALL – Stores invoice line details
  • AP_SUPPLIERS – Stores supplier information
  • AP_CHECKS_ALL – Stores payment details
  • AP_HOLDS_ALL – Stores invoice hold details

Q6: What are the main reports in Oracle Payables?

A:

  • Invoice Aging Report – Shows outstanding invoices
  • Trial Balance Report – Shows payables liability
  • AP Payment Register – Shows payment history
  • Supplier Balance Report – Shows total liabilities per supplier

3. Advanced Questions

Q7: How does the 2-way, 3-way, and 4-way invoice matching work in AP?

A:

  • 2-Way Match: Invoice is matched with the Purchase Order (PO).
  • 3-Way Match: Invoice is matched with PO and Goods Receipt (Receipt required).
  • 4-Way Match: Invoice is matched with PO, Receipt, and Inspection (Quality Check required).

Q8: What happens when an invoice is validated in AP?

A: Validation checks for:

  • Invoice amount matching PO
  • Supplier details verification
  • Tax and distribution account correctness
  • Holds and approvals processing

Q9: How does Oracle Payables integrate with General Ledger (GL)?

A:

  • Invoices create accounting entries in AP Subledger
  • These entries are transferred to the General Ledger via the Create Accounting Program
  • Journal entries are posted in GL for financial reporting

Q10: What are Payment Terms in Oracle Payables?

A: Payment terms define the due date and discount terms for invoices. Examples:

  • Net 30 – Payment due in 30 days
  • 2/10 Net 30 – 2% discount if paid within 10 days, else full amount due in 30 days

4. Scenario-Based Questions

Q11: What would you do if an invoice has a Hold status?

A:

  • Check the Invoice Hold Reason in the AP Invoice Workbench
  • If it’s a matching hold, verify the PO and receipt details
  • Resolve any validation issues and revalidate the invoice

Q12: How do you handle duplicate invoices in Oracle Payables?

A:

  • Enable Duplicate Invoice Check in Payables Options
  • Use Invoice Matching Rules to prevent duplicates
  • Run Duplicate Invoice Report to identify errors

Q13: How do you configure Withholding Tax in Oracle AP?

A:

  • Define Tax Codes and Tax Categories in Tax Manager
  • Assign tax rates to Supplier Sites
  • When an invoice is created, tax is automatically calculated and deducted

Q14: A supplier complains about a missing payment. How do you troubleshoot?

A:

  • Check the Payment Status in AP Payment Inquiry
  • Verify if the payment is cleared in Cash Management
  • Check the Bank Reconciliation Status

5. Technical Questions

Q15: What is the process of importing invoices using Payables Open Interface?

A:

  1. Load invoice data into AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE
  2. Run the Payables Open Interface Import Program
  3. Validate and approve imported invoices

Q16: What are the key concurrent programs in Oracle Payables?

A:

  • Payables Invoice Import – Imports invoices from external sources
  • Create Accounting – Transfers AP transactions to GL
  • Payment Process Request – Processes payments for approved invoices
  • AP Trial Balance Report – Displays the current payables balance

Q17: How do you troubleshoot an invoice not appearing for payment?

A:

  • Check if the invoice is validated and approved
  • Verify if there are any holds preventing payment
  • Ensure payment terms and due dates are correct

Q18: Explain the AP Payment Process Flow.

A:

  1. Invoice Creation – Enter and validate invoice
  2. Invoice Approval – Get necessary approvals
  3. Payment Process Request (PPR) – Select invoices for payment
  4. Payment Processing – Generate check, EFT, or wire transfer
  5. Bank Reconciliation – Match payments with bank statements

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