Identify three purposes for which transaction types can be used. (Choose three.)

Question

Options

• Ato record how cash can be applied to transactions
• Bto set whether AutoInvoice validates transactions using IDs or values
• Cto set whether transactions affect the Accounts Receivable (AR) customer balances
• Dto record the accounting flexfield value that would be used for the cash account for transactions
• Eto record the accounting flexfield value that would be used for the receivable account for transactions
• Fto set transaction numbers to be either assigned automatically or entered manually for transactions

• A
  92% (23)
• D
  4% (1)
• F
  4% (1)

Explanation

Transaction types in Oracle Accounts Receivable serve three core purposes: defining how cash is applied (A), controlling whether transactions impact AR customer balances (C), and specifying the receivable account used in accounting entries (E) - these directly govern the financial behavior and posting rules of a transaction.

Why the distractors are wrong:

• B is incorrect - AutoInvoice validation using IDs or values is controlled at the transaction source level, not the transaction type.
• D is incorrect - the cash account flexfield is defined on receipt methods/payment terms, not on transaction types (transaction types hold the receivable account, not the cash account).
• F is incorrect - automatic vs. manual transaction numbering is configured on the transaction source (batch source), not the transaction type.

Memory tip: Think of a transaction type as answering three questions about a transaction: "Who owes me?" (receivable account - E), "Does it affect their balance?" (AR balance - C), and "How do I get paid?" (cash application rules - A). Everything about numbering or AutoInvoice validation belongs to the source, not the type.

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