Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 50

An installment for $2,000 USD is due for payment on July 31, 2016. The installment has two discounts: the first discount date is June 15, 2016 for $150 USD and the second discount date is June 30, 2016 for $50 USD.
You submit a Payment Process Request with the following criteria:
✑ Payment Date = June 20, 2016
✑ Pay Through Date = July 30, 2016
✑ Date Basis = Due Date
What will be the resulting status of the installment and discount?

Answer options

• A. The installment is not selected because the discount dates are before the Pay Through Date.
• B. The installment is selected and no discount is applied.
• C. The installment is not selected because the due date is after the Pay Through Date.
• D. The installment is selected and a discount of $50 USD is applied.
• E. The installment is selected and a discount of $150 USD is applied.

Correct answer: C

Explanation

The correct answer is C because the due date of July 31, 2016 is after the Pay Through Date of July 30, 2016, which means the installment cannot be selected. Options A and B are incorrect because they misinterpret the relationship between the due date and pay-through date. Options D and E incorrectly assume the installment can be selected despite the due date being too late.