Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 49

An installment for $1,000 USD is due for payment on January 10, 2016. The installment has two discounts: the first discount date is December 5, 2015 for $150
USD and the second discount date is December 20, 2015 for $50 USD. The Pay Date Basis on the supplier site is Discount.
You submit a Payment Process Request with the following criteria:
✑ Payment Date = December 5, 2015
✑ Pay Through date = December 25, 2015
✑ Date Basis = Pay Date
✑ Always Take Discount option is enabled
What will be the resulting status of the installment and discount?

Answer options

• A. The installment is selected and a discount of $50 USD (the second discount) is applied.
• B. The installment is selected and a discount of $200 USD ($150 + $50) is applied.
• C. The installment is selected and a discount of $150 USD is applied because the Always Take Discount option was enabled.
• D. The installment is selected but no discount is applied because the payment date is after the discount dates.
• E. The installment is not selected because the first discount date is before the Pay Through Date.

Correct answer: C

Explanation

The correct answer is C because with the Always Take Discount option enabled, the system applies the first available discount of $150 USD since the payment date falls on the first discount date. Options A and B are incorrect as they do not reflect the selected discount based on the criteria provided, and D and E are wrong because the payment date is valid for the discount application.