Oracle Finance Functional Interview Questions

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Oracle Finance Functional Interview Questions

Preparing for an Oracle Finance Functional interview requires a strong understanding of accounting principles and practical experience with Oracle Financials modules. Here are some common question types and areas you should focus on:

General Accounting Knowledge

Explain the accounting cycle. (Demonstrates foundational understanding; be prepared to elaborate on each step: journal entries, ledgers, trial balance, financial statements).
What are the key financial statements and how are they related? (Focus on the Income Statement, Balance Sheet, and Cash Flow Statement, explaining how they connect and the information they provide).
Differentiate between accrual and cash basis accounting. (Explain the core difference: accrual recognizes revenue and expenses when earned/incurred, while cash recognizes when cash is received/paid. Mention the pros and cons of each).

Oracle Financials Modules

You will be questioned specifically on the modules relevant to the role. These often include:

General Ledger (GL):
- Explain the chart of accounts structure and its importance. (Discuss segment types, hierarchies, and how it’s used for reporting).
- What is a journal entry, and how do you create one in Oracle GL? (Describe the process, required fields, and balancing principles).
- Explain the period close process. (Detail the steps involved, including reconciliation, validation, and closing tasks).
- What is suspense account? When and why is it used? (Describe its purpose for balancing entries and handling incomplete information).
Accounts Payable (AP):
- Describe the procure-to-pay process. (Outline the steps from requisition to payment).
- How do you handle invoice matching in Oracle AP? (Explain the different matching options (2-way, 3-way, 4-way) and their purpose).
- Explain the payment process in Oracle AP. (Describe how payments are created, approved, and processed).
- How do you handle credit memos and debit memos in AP? (Explain their usage and impact on supplier balances).
Accounts Receivable (AR):
- Describe the order-to-cash process. (Outline the steps from order placement to cash receipt).
- How do you create invoices in Oracle AR? (Describe the process, required fields, and how to link to sales orders).
- Explain the cash application process. (Describe how cash receipts are matched to invoices).
- How do you handle credit memos and debit memos in AR? (Explain their usage and impact on customer balances).
Fixed Assets:
- Explain the lifecycle of a fixed asset. (Outline the stages from acquisition to disposal).
- How do you record asset acquisitions in Oracle Fixed Assets? (Describe the process, required information, and integration with AP).
- Explain different depreciation methods. (Describe straight-line, declining balance, and sum-of-the-years’ digits).
- How do you handle asset disposals? (Describe the process and the accounting entries involved).

Scenario-Based Questions

Expect questions that require you to apply your knowledge to practical situations:

“How would you troubleshoot a situation where a journal entry won’t post?”
“How would you handle a discrepancy between a purchase order and an invoice?”
“How would you reconcile the bank statement with the general ledger?”