General Ledger Interview Questions Part 2

1.Why my cross validation rules not working?

• The desired combination may be already used.
• The combination entered manually in account combination.
• If you un check the cross validate segments in key flex field segment form.
• If we un check enable check box at define cross validation rule.

 

2.List any six-validation reports of calendar.

• The following periods have a date gap.
• The following periods overlap.
• The following periods number are greater then the maximum period number for this period.
• The following periods number are missing.
• The following periods number are not in sequential order by date.
• The following quarters are missing.
• The following quarters are not in sequential order by period.
• The following periods start or end rates are more than one year before or after its fiscal year.

 

3.Briefly explain the steps for Mass Allocation.

Allocation of account balance to the range of segment values for specific period.

Steps for mass allocation.

• Define parent Segment and assign child ranges.

(Navigate): Setup/Financial/Flex fields/Validation

• Enter stat journals.
• Define mass allocation Formula. (N): Journal/Define/Allocation
• Validate the formula.
• Generate Mass Allocation.
• Post the entry.

 

Q4. Difference between Translation & Revaluation

 

Translation	Revaluation
Translation is done from functional currency to Reporting currency.	Revaluation is done to know the actual balance on specific date with respect the prevailing foreign exchange rate of a particular account.
In translation Period end rate & Average rates are used.	In Revaluation Only Period end rate is used.
Translation is Optional.	Revaluation is mandatory.
Difference in Translation will be transferred to “Translation adjustment account”.	Difference in Revaluation will be transferred to “Unrealized Gain/loss account”.
Translation should satisfy the conditions, namely, 1. Prior & following period should be opened; 2. It cannot perform for the first period	No Condition is required for revaluation.

 

 

5.How do I enable Cross Validation?

Check the Cross validate Segments and Check the Freeze flexfield defination and compile in Key Flexfield segments.

 

6.Can you define cross validation rules for a set of books?

No, Cross validation rules are specific to chart of account.

 

7.Can you run revaluation again in a previous period?

Yes, we can run revaluation again in a previous period. But the revaluation will effect the transaction, which are entered after the First revaluation.

 

8.On what basis auto post criteria set will be created?

On the basis of Priority, Source, Category, Balance type & Period the auto post criteria set will be created.

 

9. Briefly explain the purpose of Revaluation.

Revaluation is done to know the actual balance on specific date with respect the prevailing foreign exchange rate of a particular account.

 

10.Is it possible to do Translation for more than one segment at a time?

Yes, In translation you having the option “All” under balancing segment TAB by selecting it we can do the translation for more than one segment.

 

11.Can you generate Recurring journal more than once in one period?

Yes, recurring journal means Journal, which are repetitive in nature. In a particular period a journal may be expected for more than once .So we can generate Recurring Journal more than once in one period.

 

12.What are the steps for revaluation?

• Define the daily rate using the conversion rate and type.
• Define the period end rate.
• Define unrealized gain /loss account
• Perform Revaluation for the particular account.

13.Can you allocate part of your cost pool account by using Mass Allocation? If yes, how will you define formula?

Yes, by entering desired amount in the amount column of cost pool A/c. or by entering base number in the amount column of sum of usage factor.

14. What are the available segment types in mass allocation?

Three segment types are available in mass allocation.

• Constant (C)
• Looping   (L)
• Summing (S)

 

15.Explain the concept of recurring journals.

Recurring journals means journals, which are repetitive nature in a year. On the basis of amount recurring journals are three types.

• Skeleton journal
• Standard journal
• Formula journal

Skeleton journal means journals have same account but have different posting amounts.

Standard journals means journal entries use the same accounts and amounts in each period.

Formula journal means journal entries use formulas to create journal amounts that vary from period to period.

16.Do you think Translation and Revaluation are mutually exclusive?

Yes, The translation and revaluation independent with each other, there is no relation between translation and Revaluation. We can have both in a single set of book.

 

17.Can I use stat journal of previous period for mass allocation.

Yes, you can use stat journal of previous period by Using amount type as PTD and period type as previous period in mass allocation or by using amount type as YTD and period type is current period you can use the stat journal for the entire year.

 

18.What is the difference between full and incremental allocation.

 

Full Allocation	Incremental Allocation
Full allocation method to generate journals that reverse previous allocations or to post new allocation amounts.	Incremental allocation method when you want to update allocated balances without reversing the previous allocation batches.
Recommend that you use this method only if you are allocating amounts for the first time, or only once.	Recommend that you do not use the incremental method the first time you generate a Misallocation entry.

 

 

19.Is there any difference between definition of period rates and historical rates?

 

Period rate	Historical rate
The daily exchange rate on the last day of an accounting period	A weighted-average rate for transactions that occur at different times
In translation period end rate is used to translate the assets and liability account balances.	Historical rates to translate owner’s equity accounts