Implementing and Utilizing Receipt Accounting · Configure Accrue at Period End and Receipt
A procurement specialist creates a purchase order for non-inventory operational supplies destined for an administrative expense department. The line item is flagged with 'Accrue at Receipt = No'. When the receiving clerk records the physical receipt of these goods in Oracle Receiving, which accounting impact occurs in Receipt Accounting upon running the 'Create Receipt Accounting Distributions' process?
Answer and explanation
Correct answer: C
When 'Accrue at Receipt' is set to No (typical for period-end expense purchases), physical receipt recording does not generate accounting distributions in Receipt Accounting. Instead, at the close of the financial accounting period, the 'Create Receipt Accruals - Period-End' process identifies uninvoiced receipts for these lines, calculates the accrual amount, and generates temporary accrual entries that automatically reverse on the first day of the subsequent period.
A lead cost accountant notices that several receipt accrual balances remain open in Receipt Accounting long after the corresponding purchase orders were fulfilled and paid. The investigation reveals that the invoice lines were matched to the purchase orders rather than the receipts, with minor quantity discrepancies within the tolerance limit. Which task should the implementer configure or execute to close out these lingering accrual balances without impacting inventory asset valuation?
Answer and explanation
Correct answer: D
To reconcile and close open accrual balances caused by quantity or price mismatches, Oracle Receipt Accounting provides the 'Adjust Accrual Balances' task and automated accrual clearing rules. Running this clears the residual balance from the accrual account to an accrual clearing adjustment expense account without artificially distorting inventory valuation.
Q3Question 3
IntermediateMultiple answers
Implementing and Utilizing Receipt Accounting · Configure Accrue at Period End and Receipt
An organization is configuring period-end receipt accruals for expense destination purchases. Which TWO statements accurately reflect the setup prerequisites and system processing of Accrue at Period End in Oracle Fusion Cloud Receipt Accounting? (Select TWO)
Answer and explanation
Correct answers: D, E
To use period-end accruals, the purchase order line must be configured such that 'Accrue at Receipt' is set to No, which is controlled by line type setup or default purchasing profiles.
Accounting entries generated by the 'Create Receipt Accruals - Period-End' process create an accrual at the period-end date and are automatically programmed to reverse on the first day of the next period to avoid double counting once supplier invoices arrive.
A multinational medical device manufacturer, Apex Health Corp, operates an inventory organization in Ireland. Apex frequently issues Return to Vendor (RTV) transactions when incoming precision sensors fail sterile compliance inspections.
During a month-end audit, the financial controller notices that several RTV transactions processed across multiple weeks have created anomalies in the receipt accrual accounts. Specifically, while the physical return was logged in Oracle Inventory Management Receiving, the accrual reversal entries are missing from the subledger, and the supplier has already issued a matching debit memo in Payables.
The cost accountant confirms that the 'Transfer Transactions from Receiving to Costing' and 'Create Receipt Accounting Distributions' processes are run nightly. Which sequence and condition explains why the RTV accrual entries failed to generate, and what is the required remedy?
flowchart LR
A[PO Receipt] --> B[Receipt Accrual Generated]
B --> C[Return to Vendor Logged]
C --> D{Transfer to Costing Run?}
D -- Yes --> E[Receipt Accounting Processed?]
E -- Missing Entry --> F[Investigate Root Cause]
Answer and explanation
Correct answer: C
In Oracle Receipt Accounting, an RTV transaction acts as a direct reference child event to the original PO receipt distribution. If the parent receipt distribution contains accounting errors, unposted SLA exceptions, or pending currency conversions, the receipt accounting preprocessor cannot establish the reference unit cost, holding the RTV event in an unprocessed state until the root parent exception is resolved.
Q5Question 5
Beginner
Implementing and Utilizing Receipt Accounting · Explain receipt accounting
True or False: In Oracle Fusion Cloud Receipt Accounting, landed cost estimated charges attached to an active trade operation can be accrued at the time of purchase order delivery to inventory, even if the third-party transportation invoice has not yet been received in Accounts Payable.
Answer and explanation
Correct answer: B
True. Estimated landed cost charges captured on a trade operation are allocated to purchase order receipts. When the goods receipt occurs, Receipt Accounting accrues the estimated landed cost charges into the Landed Cost Absorption account, allowing inventory valuation to reflect total acquisition costs prior to receiving the final third-party invoices.
While reviewing the Receipt Accounting work area at month-end, an analyst notices that the 'Review Journal Entries' screen displays several events in 'Error' status under the 'Trade Receipt Accrual' event class. What is the standard diagnostic action to identify the underlying problem and reprocess these entries?
Answer and explanation
Correct answer: D
Receipt Accounting distributions fail with 'Error' during Create Accounting primarily due to SLA rule configuration issues (such as unmapped account segment values or closed General Ledger periods). Cost accountants should drill into the error message via 'View Accounting' or the Subledger Accounting Exceptions report, fix the root configuration or open the period, and resubmit Create Accounting.
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