Interview Questions for Oracle Apps Finance Functional Consultant

 (For Accounts Payable (AP), Accounts Receivable (AR), General Ledger (GL), Fixed Assets (FA), and Cash Management (CM))

1. General Questions

Q1: What is Oracle Financials in EBS?

A: Oracle Financials is a suite of applications in Oracle EBS that includes modules like GL, AP, AR, FA, and CM, helping organizations manage financial transactions, reporting, and compliance.

Q2: What are the key modules in Oracle Financials?

A:

  • General Ledger (GL): Manages accounting journals and financial reports.
  • Accounts Payable (AP): Manages supplier invoices and payments.
  • Accounts Receivable (AR): Handles customer invoices and receipts.
  • Fixed Assets (FA): Tracks company assets and depreciation.
  • Cash Management (CM): Manages bank reconciliations and cash flow.

Q3: How does Oracle Financials integrate with other modules?

A:

  • AP integrates with PO and GL (Invoice creation, payment processing).
  • AR integrates with OM and GL (Customer billing, receipt processing).
  • FA integrates with AP and GL (Asset acquisition and depreciation).
  • CM integrates with AP, AR, and GL (Bank reconciliation, cash forecasting).

2. General Ledger (GL)

Q4: What is the structure of Chart of Accounts (COA)?

A:
The COA consists of:

  • Company (Legal entity)
  • Department (Cost center)
  • Account (Revenue, expense, liability)
  • Product (Optional segment)
  • Future Use (Reserved for future needs)

Q5: What is Multi-Org Architecture in Oracle Financials?

A: Multi-Org allows multiple business entities (Operating Units) to function under a single installation while maintaining financial data separation.

Q6: How do you define Ledger in Oracle GL?

A:
Ledger setup includes:

  • Ledger Name
  • Chart of Accounts (COA)
  • Accounting Calendar
  • Currency
  • Subledger Accounting (SLA) Methods

Q7: What is the difference between Primary Ledger and Secondary Ledger?

A:

  • Primary Ledger: Main accounting representation.
  • Secondary Ledger: Used for statutory reporting, different accounting methods.

Q8: What are Journal Categories and Journal Sources in GL?

A:

  • Journal Categories: Groups similar types of transactions (e.g., Sales, Purchases).
  • Journal Sources: Identifies the origin of the transaction (e.g., AP, AR, FA).

3. Accounts Payable (AP)

Q9: What are the different types of invoices in AP?

A:

  • Standard Invoice – Regular supplier invoice.
  • Credit Memo – Reduces invoice amount.
  • Debit Memo – Increases liability.
  • Prepayment – Advance payments to suppliers.
  • Expense Report – Employee reimbursements.

Q10: What is the difference between 2-Way, 3-Way, and 4-Way Matching?

A:

  • 2-Way Match: Invoice vs. PO.
  • 3-Way Match: Invoice vs. PO vs. Receipt.
  • 4-Way Match: Invoice vs. PO vs. Receipt vs. Inspection.

Q11: How do you import invoices into AP?

A:
Using Payables Open Interface (AP_INVOICES_INTERFACE, AP_INVOICE_LINES_INTERFACE) and running the Payables Invoice Import Program.

4. Accounts Receivable (AR)

Q12: What are the key tables in AR?

A:

  • RA_CUSTOMERS – Stores customer details.
  • RA_CUSTOMER_TRX_ALL – Stores invoices.
  • AR_CASH_RECEIPTS_ALL – Stores receipt details.

Q13: What are the different receipt types in AR?

A:

  • Standard Receipt – Normal customer payment.
  • Automatic Receipt – System-generated receipts for recurring payments.
  • Miscellaneous Receipt – Non-invoice related receipt.
  • Chargeback Receipt – Disputed payment deducted from customer balance.

Q14: How does AutoInvoice work in AR?

A:
AutoInvoice is used to import invoices from external systems into Oracle AR. It requires:

  • RA_INTERFACE_LINES_ALL (Header and line details).
  • RA_INTERFACE_DISTRIBUTIONS_ALL (Accounting details).
  • AutoInvoice Import Program to process data.

5. Fixed Assets (FA)

Q15: What are the key asset categories in FA?

A:

  • Land & Buildings
  • Machinery & Equipment
  • Furniture & Fixtures
  • IT Assets

Q16: What are the different depreciation methods in FA?

A:

  • Straight Line – Even depreciation over asset life.
  • Declining Balance – Higher depreciation in early years.
  • Units of Production – Depreciation based on asset usage.

Q17: How does FA integrate with AP and GL?

A:

  • AP invoices for asset purchases are transferred to FA.
  • FA generates depreciation journals and posts them to GL.

6. Cash Management (CM)

Q18: How does Oracle Cash Management work?

A:
CM helps manage bank transactions, cash forecasting, and bank reconciliations. It integrates with AP (payments), AR (receipts), and GL (bank entries).

Q19: What are the different reconciliation methods in CM?

A:

  • Manual Reconciliation: User matches bank transactions manually.
  • Automatic Reconciliation: System matches transactions based on rules.

7. Reporting and SLA

Q20: What are the key reports in Oracle Financials?

A:

  • GL Trial Balance Report – Summary of all accounts.
  • AP Invoice Aging Report – Outstanding payables.
  • AR Aging Report – Customer outstanding balances.
  • FA Asset Register Report – List of fixed assets.
  • Cash Position Report – Bank account balances.

Q21: What is Subledger Accounting (SLA)?

A:
SLA is the accounting engine that generates detailed subledger journal entries before posting them to GL. It allows different accounting rules per business unit, region, or legal requirement.

8. Scenario-Based Questions

Q22: A supplier reports missing payment. How do you troubleshoot?

A:

  1. Check AP Invoice Workbench (Validated & Paid status).
  2. Verify Payment Process Request (PPR) history.
  3. Review Bank Reconciliation in Cash Management.

Q23: A journal entry is missing in GL. How do you resolve it?

A:

  1. Verify if the transaction was accounted in the subledger.
  2. Check if Create Accounting was run.
  3. Ensure Journal Import and Posting were completed.

Q24: How do you handle Multi-Currency Transactions in Oracle Financials?

A:

  1. Define Currency Rates in GL.
  2. Enable Multi-Currency Payables and Receivables.
  3. Set up Reporting Currency Ledgers for global reporting.

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