Oracle R12 Finance Interview Questions

Here’s a breakdown of common Oracle R12 Finance interview questions, categorized for easier preparation:

General Oracle R12 Finance Knowledge

* **What are the core modules within Oracle R12 Finance?** Expect to list and briefly describe modules like General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), Fixed Assets (FA), Cash Management (CM), and Projects. Be ready to discuss their interdependencies. * **Explain the purpose of the Multi-Org Access Control (MOAC) feature.** MOAC allows users to access and process data across multiple operating units from a single responsibility. Explain how it improves efficiency. * **What is a Legal Entity in Oracle R12? How does it relate to Operating Units?** Legal Entities are legally registered companies. Operating Units perform specific business functions and report to a Legal Entity. They are key for statutory reporting. * **Describe the key accounting flexfields and their importance.** Mention the Chart of Accounts structure, including segments like Company, Account, Cost Center, and Product. Explain how they are used for reporting and analysis. * **What is Subledger Accounting (SLA)? How does it work?** SLA provides a standardized framework for creating accounting entries from subledgers (like AP and AR). It allows for detailed accounting rules and reconciliation.

General Ledger (GL) Questions

* **Explain the difference between a Journal Entry and a Journal Batch.** A Journal Entry is a single accounting transaction, while a Journal Batch is a group of related Journal Entries. * **What is the purpose of the GL Interface table?** The GL Interface table is a staging area for importing journal entries from other systems into Oracle GL. * **How do you perform period-end closing activities in GL?** Discuss steps like reviewing journal entries, running reconciliation reports, translating balances, and closing the period. * **What is a recurring journal entry? How do you set it up?** Recurring journal entries are journal entries that are automatically created each period. Explain the different types (e.g., standard, skeleton) and setup process. * **Explain the purpose of Financial Statement Generator (FSG).** FSG is a tool for creating customized financial reports based on GL data.

Accounts Payable (AP) Questions

* **Explain the invoice approval workflow in AP.** Describe the stages involved, from invoice creation to approval, and the different approval methods (e.g., AME). * **What is a payment term? How does it affect the payment process?** Payment terms define the due date and any discounts offered for early payment. * **How do you handle credit memos in AP?** Explain the process of creating and applying credit memos to invoices. * **What is a withholding tax? How is it configured in AP?** Withholding tax is a tax deducted from payments to suppliers. Explain the setup steps and how it is applied during payment. * **Describe the process of reconciling AP subledger to GL.** Mention the reports used and the key areas to investigate for discrepancies.

Accounts Receivable (AR) Questions

* **Explain the different types of receipts in AR.** Discuss types like cash, check, credit card, and wire transfer. * **What is a lockbox? How does it work in AR?** A lockbox is a service provided by a bank to collect payments from customers. Explain how it automates receipt application. * **How do you handle disputes and adjustments in AR?** Explain the process of creating debit memos, credit memos, and write-offs. * **What is dunning? How is it configured in AR?** Dunning is the process of sending payment reminders to customers with overdue invoices. Explain the setup and dunning levels. * **Describe the process of reconciling AR subledger to GL.** Mention reports and reconciliation points similar to AP. Remember to provide specific examples from your experience and explain *why* things are done a certain way, not just *how*. Demonstrate your understanding of the business processes supported by Oracle R12 Finance.