Oracle 1Z0-1056-26 cheat sheet

System Options control the legal entity's default remit-to address, the Receivables activity (business unit) context, and the GL accounts used when AutoAccounting cannot derive an account.

AutoAccounting builds each transaction account from ordered sources: constant values, salesreps, standard memo lines, taxes, and transaction types; the first source that returns a value wins.

Transaction types determine the transaction class (Invoice, Credit Memo, Debit Memo, On-Account Credit, Chargeback, Deposit), the natural application rule, and whether the type is open or closed for posting.

Payment terms define installment schedules; discount terms add a discount percentage and number of days, and a second number of days sets the discount grace period before the due date.

Receivables activities classify adjustments, freight, late charges, and AutoInvoice clearing; each activity carries a distribution account and a tax rate code.

The Receivables system options 'Allow adjustments to closed transactions' and 'Require salesrep' are profile-like settings that gate transaction entry behavior at the business-unit level.

Accounting rules split revenue across periods using a fixed schedule or a variable schedule based on a percentage of the total; they apply to invoices and credit memos, not to deposits.

Collector and credit-check setup belongs to the business unit: the customer profile class controls credit limits, statement cycles, and dunning, while the collector defines the follow-up strategy.

A party is the single source of truth for identity; a customer account holds the business relationship, and account sites hold addresses used for bill-to, ship-to, and remit-to purposes.

The Customer Profile Class provides defaults (credit limit, payment terms, statement cycle, dunning letters, collector) that flow to accounts unless overridden.

Credit checking on a transaction compares the exposure (open receivables plus the new transaction) against the credit limit at the account or site level, per the profile's credit-checking rule.

Manual invoices require a transaction source of type Manual; the transaction number is either entered or generated by the document sequence assigned to the source.

A credit memo can be applied on-account or against a specific invoice; applying it against an invoice reduces the invoice balance and reverses the corresponding receivable.

A chargeback moves an unpaid invoice balance to a new transaction with a new due date, typically used when a customer disputes part of an invoice but pays the rest.

A deposit (prepayment) is a transaction that creates a liability; it is later applied to an invoice via the Apply Deposit action or AutoApply.

Transaction reversal options include reversing the entire transaction or only the unapplied/unaccounted portion; reversal method determines whether the reversal is a new transaction or a negative adjustment.

AutoInvoice imports transaction data from feeder systems via the AutoInvoice interface tables: RA_INTERFACE_LINES_ALL for lines and RA_INTERFACE_DISTRIBUTIONS_ALL for distributions.

The AutoInvoice execution report lists imported, rejected, and corrected lines; rejections are caused by invalid transaction types, missing salesreps, invalid currency, or invalid accounting.

Grouping rules determine how interface lines combine into transactions: by customer, by ship-to, by bill-to, by currency, and by transaction date.

Line ordering rules assign line numbers within a transaction; they can order by a specific column such as line number, item, or amount.

AutoInvoice requires the transaction source to have the 'Allow duplicate transaction numbers' and 'Automatic numbering' settings configured consistently with the feeder system.

A memo line is a non-inventory line with a predefined account; it is used for freight, taxes, or other charges that are not tied to an inventory item.

The AutoInvoice master program runs the import, then the validation, then the creation steps; the purge program removes processed interface rows.

Sales credits distribute revenue to salespersons; AutoInvoice requires a valid salesrep on each line unless the system option allows a default.

Receipt methods include Manual, Automatic (AutoLockbox), and QuickCash; each method determines the entry path and the default remittance bank account.

A receipt can be applied to one or more invoices, left unapplied (on-account), or left unidentified; unidentified cash must be cleared before period close.

AutoApply applies on-account and unapplied receipts to open invoices using the application rule order: transaction number, due date, or a custom rule.

AutoLockbox loads bank lockbox files into the Receivables interface tables; the Lockbox program validates and creates receipts, then applies them.

The receipt application creates a receivable decrease and a cash increase; the accounting entries are driven by the receipt method's remittance bank account and the Receivables activity.

A payment (disbursement) in Payables can be applied to a Receivables credit memo through the Payables-to-Receivables netting process, which offsets the two balances.

Chargebacks and adjustments are the two ways to clear a disputed or short-paid invoice; adjustments reduce the invoice balance without creating a new transaction.

Reversing a receipt restores the invoice balance and reverses the accounting; the reversal date must fall in an open or future period.

The collections strategy is a set of collection plans assigned to a customer account; each plan defines the aging bucket and the action (letter, call, task).

Aging buckets are defined in the Collections setup and determine how overdue balances are grouped for reporting and dunning.

A dunning letter is generated from a letter template and a collection plan; the letter is tied to the customer's statement cycle and the collector assigned.

Credit checking can be set to reject, warn, or ignore at the customer profile level; the setting cascades to accounts and sites unless overridden.

A credit hold prevents new transactions from being created; releasing the hold requires the collector or credit manager to clear the exposure.

The collector is assigned at the account level and determines which collector's work queue the account appears in; collectors can be reassigned.

Dispute management tracks customer disputes against invoices; a dispute can be linked to a chargeback or adjustment and follows a resolution workflow.

The collections dashboard shows the total overdue, the number of accounts in each bucket, and the collector's follow-up tasks.

Revenue recognition under ASC 606 uses the five-step model: identify the contract, identify performance obligations, determine the transaction price, allocate the price, and recognize revenue when the obligation is satisfied.

Revenue Management (formerly Revenue Management Cloud) stores revenue contracts and performance obligations; it generates revenue recognition events that post to GL.

The revenue accounting rule determines whether revenue is recognized at a point in time or over time; the rule drives the recognition schedule.

The accounting distribution for a transaction is built from AutoAccounting; if any segment cannot be derived, the transaction is incomplete and cannot be posted.

Subledger accounting (SLA) creates the journal entries for Receivables; the Create Accounting program transfers entries to GL, and the Transfer to GL program posts them.

The revenue contingency is a hold that prevents revenue recognition until a condition is met; releasing the contingency allows the schedule to proceed.

The revenue adjustment allows reallocation of the transaction price among performance obligations; the adjustment is tracked as a separate event.

Unapplied and unidentified receipts are liabilities until applied; they are not revenue and must be cleared or applied before the period closes.

The Receivables period close sequence: complete all transactions, run AutoInvoice, apply receipts, run Create Accounting, transfer to GL, then close the period.

The AR Aging report groups open receivables by aging bucket and shows the total overdue; it is the primary collections and close report.

The Transaction Register lists all transactions for a period; the Journal Entries report shows the accounting created by SLA.

The Receivables to GL reconciliation compares the AR subledger balance to the GL balance; differences indicate unposted or unaccounted transactions.

The Open Interface and Interface exceptions reports identify failed AutoInvoice lines; these must be corrected or purged before close.

The period close checklist includes reconciling receipts, clearing unapplied cash, and confirming that no incomplete transactions remain.

Integration with GL uses the Subledger Accounting transfer; the accounting entries must be transferred and posted before the GL period can close.

The Receivables dashboard and the collections dashboard provide real-time visibility into overdue balances and cash application status.

The transaction source controls AutoInvoice behavior: whether the source is imported, whether it allows duplicate numbers, and which grouping and ordering rules apply.

The remittance bank account is defined at the receipt method level; it determines the bank account credited when a receipt is created.

The Receivables activity for AutoInvoice clearing must be defined for the clearing account used when a receipt is applied.

The document sequence assigns transaction numbers; it must be assigned to the transaction source and be active for the period.

The customer profile class controls the credit limit, statement cycle, dunning, and collector defaults; it is assigned to the account and can be overridden at the site.

The system option 'Allow payment of unposted transactions' determines whether a receipt can be applied before the invoice is posted.

The tax setup uses tax regimes, tax statuses, and tax rates; the tax rate code is assigned to the transaction line and drives the tax calculation.

The accounting calendar defines the periods; a period must be open in both Receivables and GL for transactions to post.

The customer account relationship types include Bill-To, Ship-To, and Remit-To; a single account can have multiple sites with different purposes.

The credit limit can be set at the account level and overridden at the site level; the credit check uses the most specific level configured.

The transaction date determines the accounting period; the GL date defaults from the transaction date but can be overridden if the period is open.

The payment terms on the transaction override the customer's default terms; the terms determine the due date and discount date.

The salesrep on a transaction line determines the sales credit; the salesrep must be active and assigned to the business unit.

The transaction type controls whether the transaction is open (affects the balance) or closed (does not affect the balance).

The 'Complete' action on a transaction makes it available for AutoInvoice and accounting; an incomplete transaction cannot be posted.

The 'Reverse' action creates a reversing transaction; the reversal date determines the accounting period of the reversal.

The AutoInvoice interface tables require the interface line ID, the transaction source, the transaction type, and the currency; missing values cause rejection.

The grouping rule combines lines with the same grouping attributes into one transaction; the default groups by customer, ship-to, and currency.

The line ordering rule assigns line numbers; the default orders by line number, then by item.

The AutoInvoice purge program removes processed rows from the interface tables; it should run after successful import.

The AutoInvoice execution report shows the number of lines imported, rejected, and corrected; rejected lines must be fixed in the feeder system.

The transaction source must be defined as 'Imported' for AutoInvoice to process it; manual sources are not processed by AutoInvoice.

The memo line is used for non-inventory charges; it requires a valid memo line account and a tax rate code.

The sales credit is assigned to the salesrep; if the salesrep is missing, the line is rejected unless a default salesrep is configured.

The receipt method determines the remittance bank account and the receipt class; the class controls whether the receipt is automatic, manual, or quick.

The receipt status can be Unapplied, Applied, Unidentified, or Reversed; only applied receipts reduce the invoice balance.

The AutoApply program applies on-account receipts to open invoices; the application rule determines the order of application.

The Lockbox program reads the bank file, creates receipts, and applies them; exceptions are written to the lockbox exceptions report.

The receipt reversal restores the invoice balance and reverses the accounting; the reversal must be in an open period.

The payment (disbursement) from Payables can be netted against a Receivables credit memo; the netting creates offsetting entries in both subledgers.

The chargeback creates a new transaction with a new due date; it is used when the customer disputes part of an invoice.

The adjustment reduces the invoice balance without creating a new transaction; it requires an approval if the adjustment exceeds the limit.

The collection plan defines the aging bucket and the action; it is assigned to the customer account and can be overridden.

The aging bucket is defined by the number of days past due; the bucket boundaries are set in the Collections setup.

The dunning letter is generated from a template; the template defines the letter content and the merge fields.

The credit check can be set to reject, warn, or ignore; the setting is at the profile class and can be overridden at the account.

The credit hold prevents new transactions; releasing the hold requires the collector or credit manager.

The collector is assigned at the account level; the collector's work queue shows the accounts assigned to that collector.

The dispute is tracked against an invoice; the dispute resolution can result in a chargeback or an adjustment.

The collections dashboard shows the overdue balance by bucket and the collector's tasks.

The revenue contract is the source of performance obligations; each obligation has a standalone selling price and an allocation percentage.

The revenue recognition event is generated when the obligation is satisfied; the event posts to GL via SLA.

The revenue accounting rule determines point-in-time or over-time recognition; the rule is assigned to the obligation.

The contingency hold prevents recognition until the condition is met; releasing the hold allows the schedule to proceed.

The revenue adjustment reallocates the transaction price among obligations; it is tracked as a separate event.

The SLA creates the journal entries for Receivables; the Create Accounting program transfers entries to GL.

The Transfer to GL program posts the entries; the GL period must be open for the transfer to succeed.

The unapplied and unidentified receipts are liabilities; they are not revenue and must be cleared before close.

The AR Aging report groups open receivables by aging bucket; it is used for collections and close.

The Transaction Register lists all transactions for a period; the Journal Entries report shows the SLA accounting.

The AR to GL reconciliation compares the subledger balance to the GL balance; differences indicate unposted or unaccounted transactions.

The Open Interface report identifies failed AutoInvoice lines; these must be corrected or purged before close.

The period close checklist includes reconciling receipts, clearing unapplied cash, and confirming no incomplete transactions.

The SLA transfer must be completed and posted before the GL period can close.

The Receivables dashboard shows real-time overdue balances and cash application status.

The collections dashboard shows overdue balances by bucket and collector tasks.

The system options control the default remit-to address, the Receivables activity, and the GL accounts used when AutoAccounting fails.

The AutoAccounting sources are constant, salesrep, standard memo line, tax, and transaction type; the first source with a value wins.

The transaction type determines the transaction class and whether it is open or closed.

The payment terms define the installment schedule and the discount terms.

The Receivables activity classifies adjustments and carries a distribution account.

The accounting rule splits revenue across periods; it applies to invoices and credit memos.

The customer profile class controls credit limit, statement cycle, and dunning defaults.

The collector defines the follow-up strategy for the account.

The party is the identity; the account is the business relationship; the site is the address.

The profile class provides defaults that flow to the account and can be overridden at the site.

The credit check compares exposure to the credit limit at the configured level.

The manual invoice requires a manual source; the transaction number is entered or generated.

The credit memo can be applied on-account or against an invoice.

The chargeback moves an unpaid balance to a new transaction with a new due date.

The deposit creates a liability; it is applied to an invoice later.

The reversal creates a reversing transaction; the reversal date sets the period.

AutoInvoice imports from RA_INTERFACE_LINES_ALL and RA_INTERFACE_DISTRIBUTIONS_ALL.

The execution report shows imported, rejected, and corrected lines.

The grouping rule combines lines into transactions by customer, ship-to, and currency.

The line ordering rule assigns line numbers within a transaction.

The transaction source must be imported for AutoInvoice to process it.

The memo line is a non-inventory line with a predefined account.

The AutoInvoice master program runs import, validation, and creation.

The purge program removes processed interface rows.

The receipt method determines the remittance bank account and the receipt class.

The receipt can be applied, unapplied, unidentified, or reversed.

The AutoApply program applies on-account receipts using the application rule.

The Lockbox program loads bank files and creates receipts.

The receipt application creates a receivable decrease and a cash increase.

The Payables-to-Receivables netting offsets a credit memo against a payment.

The chargeback and adjustment are the two ways to clear a disputed invoice.

The receipt reversal restores the invoice balance and reverses the accounting.

The collection plan defines the aging bucket and the action.

The aging bucket groups overdue balances by days past due.

The dunning letter is generated from a template and a collection plan.

The credit check can reject, warn, or ignore at the profile level.

The credit hold prevents new transactions until released.

The collector is assigned at the account level.

The dispute is tracked against an invoice and resolved via chargeback or adjustment.

The collections dashboard shows overdue balances and tasks.

ASC 606 uses five steps: contract, obligations, price, allocation, recognition.

The revenue contract stores performance obligations and allocation.

The revenue accounting rule determines point-in-time or over-time recognition.

The accounting distribution is built from AutoAccounting; incomplete transactions cannot post.

The SLA creates journal entries; Create Accounting transfers to GL.

The contingency hold prevents recognition until the condition is met.

The revenue adjustment reallocates the transaction price.

The unapplied receipts are liabilities, not revenue.

The close sequence: complete transactions, run AutoInvoice, apply receipts, run Create Accounting, transfer to GL, close.

The AR Aging report groups open receivables by bucket.

The Transaction Register lists transactions; the Journal Entries report shows SLA accounting.

The AR to GL reconciliation compares subledger and GL balances.

The Open Interface report identifies failed AutoInvoice lines.

The close checklist includes reconciling receipts and clearing unapplied cash.

The SLA transfer must be posted before the GL period closes.

The Receivables dashboard shows overdue balances and cash application status.