1Z0-520 practice question 16 of 30

While implementing Oracle Payables, Oracle Purchasing, and Oracle General Ledger at GLO Ltd., you are informed by the accountant that the AP Clearing Account balance Is Increasing daily. To solve this issue, what would you check in the accounting process?

Full set: 245 questions

Answer options

A: whether journals are posted regularly

B: whether suppliers are sequentially numbered

C: whether the month-end accrual process is run

D: whether invoices are matched to purchase orders and receipts Correct answer

E: whether Oracle Payables transactions are reconciled with Oracle General Ledger

Correct Answer:

D. whether invoices are matched to purchase orders and receipts

Explanation

To address an increasing AP Clearing Account balance, it is essential to check whether invoices are matched to purchase orders and receipts. This matching ensures that the financials reflect actual obligations accurately.

Why Incorrect

A. Posting journals regularly does not directly solve discrepancies in AP Clearing.
B. Sequential numbering of suppliers has no impact on account balances.
C. The month-end accrual process might not address ongoing clearing issues.
E. Reconciliation with the General Ledger is important but secondary to the matching process.

References

1. Oracle Payables User Guide, Managing the AP Clearing Account, https://docs.oracle.com/en/cloud/saas/payables/20d/fapap/ledger-management.html

2. Oracle Purchasing Implementation Guide, Invoice Matching Processes, https://docs.oracle.com/en/cloud/saas/purchasing/20d/fappr/matching-invoices.html

3. Oracle Accounting Policy Guide, Accounts Analysis, https://docs.oracle.com/en/cloud/saas/payables/20d/fapap/guidelines.html

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