ECONOMICS

Previous
Next

COST ACCOUNTING

COST MANAGEMENT SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
You have configured the application as follows:● Expense items are set to accrue at receipt.● Receipt Close tolerance is set to 75 percent.● Purchasing Line types are set to 2-way match.When you create a purchase order, the Accrue on Receipt check box is automatically selected when a line is added. Which two configurations changes will ensure the Accrue on Receipt check box is not selected by default?
A
Change expense items to accrue at period end.
B
Change the Purchasing Line types to 4-way match.
C
Change inventory items to accrue at period end.
D
Change the Purchasing Line types to 3-way match.
E
Change the Receipt Close tolerance so it is 100 percent.
Explanation: 

Detailed explanation-1: -Over Receipt Tolerance The value entered represents the percentage of the quantity ordered in addition to the quantity ordered that will invoke an action.

Detailed explanation-2: -Invoice Close and Receipt Close Tolerances This tolerance has been set at 2% variance on the quantity and amount of the line item ordered. Purchasing automatically closes a shipment (line item in Oracle) when payables matches the invoice to the purchase order.

Detailed explanation-3: -Accrue On Receipt means that when a receipt is saved, accrual transactions are immediately recorded and sent to the general ledger interface. This is also known as “online” accruals.

Detailed explanation-4: -What is Receipt Close Tolerance Percent? It is the allowable difference (expressed as a percentage) between the quantity stated on the order schedule and the actual quantity received. Quantities can vary up to this difference without preventing an automatic closed for receipt status.

There is 1 question to complete.
Previous
Next