Oracle Planning 2017 Implementation Essentials — Question 16

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 applies $200 USD of the credit memo to the invoice, leaving a remaining credit of $25 USD, and creates a payment for $0 USD.
• B. The payment process request doesnt select the invoice or credit memo for payment because the credit reduces the payment to - $25 USD, which is below zero.
• C. The payment process request creates a refund for $225 USD and leaves the invoice unpaid.
• D. The payment process request pays only $200 USD alone.

Correct answer: D

Explanation

The correct answer is D because the system processes the invoice of $200 USD fully while the remaining credit of $25 USD is not applied since it would not create a negative payment. Options A and B incorrectly suggest that credits are applied or that payments are not made due to negative amounts, and option C misrepresents the transaction by indicating a refund instead of a payment.