Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 65

An invoice for $200 USD and a credit memo for $225 USD are due for payment and the "Apply credits up to zero amount" option is enabled for the payment process request. Which statement is correct?

Answer options

• A. The payment process request pays only $200 USD alone.
• B. The payment process request applies $200 USD of the credit memo to the invoice, leaving a remaining credit of $25 USD, and creates a payment for $0 USD.
• C. The payment process request creates a refund for $225 USD and leaves the invoice unpaid.
• D. The payment process request doesn't select the invoice or credit memo for payment because the credit reduces the payment to - $25 USD, which is below zero.

Correct answer: B

Explanation

The correct answer is B because the payment process applies the credit memo to the invoice, fully covering the invoice amount and resulting in a $0 payment. Options A and C are incorrect as they do not accurately reflect the application of the credit memo. Option D is also incorrect because the payment process does not ignore the invoice or credit memo; it simply creates a payment of $0 after applying the credit.