Oracle Exam 1Z0-511 Topic 1 Question 57 Discussion

Actual exam question for Oracle's 1Z0-511 exam

Question #: 57
Topic #: 1

A company requires advance payments for their contract projects. How would they ensure that for specific types of work they always have an advance payment?

ACreate a specific agreement type and use the advance receipts required extension to ensure that these agreements require advance payments.

BSet the customer profile in Accounts Receivable to require advance payments.

CCreate a transaction control for specific agreement types to ensure that advance payments are received.

DEnter a negative agreement value and funded amount.

EFund the projects with a dummy agreement.

Show Suggested Answer

Suggested Answer: A

Note:

* You can set up an agreement to require advance payments by selecting the Advance required on the agreement. You can also use the Advance Required client extension to determine which agreements require advance payments. On these agreements, you can enter funding only up to the amount of advance payments.

The ability to change the Advance Required agreement option is controlled by function security.

* Agreements with Advance Payments

You can require advance payments on an agreement and record advance payments as they are made. When you generate draft invoices for projects that are funded by the agreement, the advance balance that is displayed on the funding summary is reduced. You then interface the invoice to Receivables. The AutoInvoice process in Oracle Receivables reduces the balance on the advance.

by Skye at Mar 21, 2024, 09:58 PM

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7 months ago

I think the best way is to create a specific agreement type and use the advance receipts required extension.

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