Exam 1z0-962 topic 1 question 5 discussion

Actual exam question from Oracle's 1z0-962

Question #: 5
Topic #: 1

You have created a sales invoice for $900 USD with an item line of $750 USD and a tax rate of 20%. The customer has made a payment of $500 USD and you are required to process the cash application to apply the $500 USD to the item line and $0 USD to tax.
How would you achieve this?

A. Set the credit classification revenue recognition policy to look for Line First and Tax Later.
B. Create a Memo Line or receivable activity to have the check box selected for Apply Item Line First.
C. Set Application Rule Set to Line First--Tax After at the transaction type level and/or a default value at system options.
D. Set Application Rule Set to Line First--Tax After at the transaction source level and/or a default value at the receipt method.
E. Set the payment terms revenue recognition policy to look for Line First and Tax Later.

Show Suggested Answer

Suggested Answer: C 🗳️
Reference:
https://docs.oracle.com/cd/E18727_01/doc.121/e13510/T447343T355914.htm

by faltukaam at March 1, 2020, 9:06 a.m.

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YM143

2 years, 8 months ago

C is correct , Application rule set is mandatory at the system options and optional at transaction type setup

upvoted 2 times

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Jamrock

5 years, 1 month ago

Reference link from @faltukaam - Receivables uses the application rule set assigned to the transaction type to process payment applications. If no application rule set is assigned to the transaction type, then the application rule set assigned to Receivables system options is used. You can arrange the order of the line types and application rules in an application rule set according to your needs. Each line type must appear in an application rule set, and appear only once. The Overapplication rule is always last in the sequence.

upvoted 1 times

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faltukaam

5 years, 5 months ago

C is correct. https://docs.oracle.com/en/cloud/saas/financials/20a/fairp/define-customer-payments.html#FAIRP1476531

upvoted 3 times

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