Which two statements are true about invoicing rules and accounting rules? (Choose two.)

Question

Options

• AIf a transaction has an invoicing rule, an accounting rule is optional.
• BIf a transaction has an invoicing rule, an accounting rule is not allowed.
• CIf a transaction has an invoicing rule, an accounting rule is also required.
• DInvoicing rules and accounting rules have no effect until Invoices are paid.
• EInvoicing rules and accounting rules have no effect unless you choose the accrual method of accounting.
• FInvoicing rules determine when invoices are due. Accounting rules affect how invoices me accounted for.

• A
  2% (1)
• B
  14% (8)
• C
  77% (43)
• D
  2% (1)
• F
  5% (3)

Explanation

In Oracle Receivables, invoicing rules and accounting rules work as a mandatory pair: whenever a transaction uses an invoicing rule (to determine when revenue is billed - in advance or in arrears), an accounting rule is also required to define how that revenue is spread across accounting periods, making C correct. Both rules are meaningful only under the accrual method of accounting, since cash-basis accounting recognizes revenue at payment time rather than over scheduled periods, making E correct.

Why the distractors are wrong:

• A is wrong because the accounting rule is required, not optional, when an invoicing rule is present.
• B is the opposite of the truth - accounting rules are not just allowed but mandatory alongside invoicing rules.
• D is wrong because these rules affect revenue recognition timing, not payment - they take effect when invoices are generated and posted, regardless of whether payment has been received.
• F is wrong on both counts: invoicing rules control when revenue is billed/recognized (not when invoices are due), and accounting rules control how revenue is distributed across periods (not how invoices are "accounted for" in a vague sense).

Memory tip: Think of them as a matched set - invoicing rule = when to bill, accounting rule = how to spread it - and remember the acronym "Accrual Only": these rules only matter if you're using accrual accounting, so if you see "cash basis," these rules are irrelevant.

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