Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 37

You are using both Procurement and Financials. You want the system to automatically accrue uninvoiced receipts. Select two true statements.

Answer options

• A. For period end accruals, accounting is created at material receipt or at delivery to a final destination.
• B. For period end accruals, the invoice accounting debits the expense account and credits the liability account.
• C. For perpetual accruals, the invoice accounting debits the accrual account and credits the liability account.
• D. For period end accruals, the invoice accounting for inventory items debits receipt inventory and credits the uninvoiced receipts.

Correct answer: B, C

Explanation

Option B is correct because it accurately describes the accounting entries for period end accruals. Option C is also correct as it outlines the accounting for perpetual accruals. Options A and D are incorrect as they do not reflect the correct accounting treatment for the specified scenarios.