1Z0-518 practice question 6 of 25

Identify three purposes for which transaction types can be used. (Choose three.)

Answer options

A: to record how cash can be applied to transactions

B: to set whether Auto Invoice validates transactions using IDs or values

C: to set whether transactions affect the Accounts Receivable (AR) customer balances Correct answer

D: to record the accounting flex field value that would be used for the cash account for transactions

E: to record the accounting flex field value that would be used for the receivable account for transactions Correct answer

F: to set transaction numbers to be either assigned automatically or entered manually for transactions Correct answer

Correct Answer:

C. to set whether transactions affect the Accounts Receivable (AR) customer balances; E. to record the accounting flex field value that would be used for the receivable account for transactions; F. to set transaction numbers to be either assigned automatically or entered manually for transactions

Explanation

In Receivables, a Transaction Type definition 1) decides whether the transaction is “Open Receivable,” thereby updating the customer’s AR balance (C); 2) holds the default receivable GL account flexfield for the transaction (E); and 3) determines whether transaction numbers are assigned automatically or entered manually through the Automatic Transaction Numbering flag (F). These are the only functions among the choices that the Transaction Type form controls.

Why Incorrect

A. Cash‐application rules are governed by receipt application rule sets, not Transaction Types.
B. AutoInvoice ID/value validation is set on the AutoInvoice import, not in Transaction Types.
D. Cash (bank) account is supplied by receipt classes/methods, not by Transaction Types.

References

1. Oracle E-Business Suite Receivables User Guide R12.1 (Part No. E13648-02) “Defining Transaction Types”, pp. 3-45 – 3-47: Open Receivable flag; Automatic Transaction Numbering; Receivable Account.

2. Oracle Financials Implementation Guide R12.1, “Receivables Accounting”, p. 2-18: default accounts sourced from Transaction Type.

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