Common Interview Questions in Oracle Fusion Financials

Some common interview questions

• What is your role in last implementation project?
• What are the critical issues you handled?
• Explain the process of Data Conversion
• Period Close Process for all modules
• COA Structure Vs Instance
• Revaluation vs Translation
• CVR Vs Security Rules
• Types of Ledgers(PL, SL and RL) and their conversion levels
• 4Cs
• Mass Allocations
• P2P and O2C process with Journals
• Mandatory setups in AP for Invoicing and Payments
• Ways to create invoices
• Types of AP invoices
• Invoice Match Levels
• Multi Period Accounting
• Prepayment process with journals
• What is PPP and PPR
• WHT and setups
• Auto Accounting Rules
• Transaction Types and Sources importance
• Auto Invoice Setups and common issues
• Different statuses of receipts
• Auto Lockbox setups and exceptions
• Flexfields in FA
• Setups in FA
• Mass Addition Process
• Types of Assets
• Corp Book Vs Tax Book
• Prorate Convention
• What is Amortization
• Can we reopen FA period?
• Auto Reconciliation Setups in CM
• Bank Statement import 
• External Transactions

Multi Period Accounting(MPA)

Multiperiod Accounting (MPA) in Oracle Fusion is a feature that allows users to create accounting entries for a single financial event across multiple accounting periods. It can be useful for situations where a single transaction spans multiple accounting periods, such as prepaid expenses.

There are certain expenses which are incurred once but you want to apportion those expenses over a period of time. Ex: Software licenses, if you purchase a software license which is valid for one year.

Setups Required: In case we want to use Pro-rate expenses by number of periods we don’t to need to configure anything, this is a default setting. If you want apportion the expense based on a number of days in a month, then custom SLA setups are needed.

MPA Process Steps

• Create AP Invoice
• Provide Multiperiod Account details like Start Date, End Date and Accrual Account 
• Validate and Account the invoice
• Run “Create Multiperiod Accounting” program
• View Accounting to check the Accounting Entries

Create AP Invoice

Click on Lines

Distribution Combination account should be Invoice Charge account (Software Expense).

As far as Multiperiod accounting is concerned we need to enter few more details, click at View à Columns à Show all

Go to Multipeiod Accounting tab

Save à Validate à Post to Ledger

Click View Accounting

Run “Create Multiperiod Accounting” program

Ok à

Update parameters

Submit

Once it is process it will create Multi period Accounting Execution Report we can check output to see journal entries, we can also check it at Invoice level as well.

Journal Entry

Initial Entry                       Deferred Item Expense A/C Dr                  12000                    (Accrual Account)
                                                          To Liability A/C                                            12000

Month1                             Item Expense A/C Dr                     1000
                                                          To Deferred Item Expense A/C                 1000

Month2                             Item Expense A/C Dr                     1000
                                                          To Deferred Item Expense A/C                 1000             and so on

Note: Deferred Item Expense Account is an Accrual Account provided at the time of invoice creation under Multiperiod Accounting section in invoice lines.

Item Expense Account is provided in Invoice lines under Invoice Distribution Combination.