ABC Company is Implementing Oracle Financials. The finance manager wants to set up a control point before the Receivables entries are transferred to General Ledger. Which two statements are correct…

Question

Options

• AOracle approval limit can be used to approve or reject the invoices.
• BOracle approval limit can be used to approve or reject the credit memos.
• COracle approval limit can be used to approve or reject the adjustment activities.
• DOracle Approvals Management (AME) Workflow can be used to approve or reject the Invoices.
• EOracle Approvals Management (AME) Workflow can be used to approve or reject the credit memos.
• FOracle Approvals Management (AME) Workflow can be used to approve or reject the adjustment activities.

• A
  9% (3)
• B
  3% (1)
• C
  71% (25)
• D
  14% (5)
• F
  3% (1)

Explanation

In Oracle Receivables, two distinct control mechanisms exist for different transaction types: Approval Limits are specifically designed to control adjustment activities (e.g., write-offs, line adjustments) by setting dollar-amount thresholds that determine who can approve an adjustment - making C correct. Oracle AME Workflow is the approval engine used for credit memos, routing them through a configurable workflow process for approval or rejection before GL transfer - making E correct.

The distractors fail because the mechanisms are transaction-specific: Approval Limits (options A, B) do not apply to invoices or credit memos, and AME Workflow (options D, F) is not used for invoices or adjustments in standard Receivables. Invoices (A, D) have no built-in pre-GL approval control in this context - they are simply validated, not approved.

Memory tip: Think "Adjustments → Approval Limits" and "Credit memos → AME." The dollar-based control (limits) governs the smaller discretionary adjustments, while the process-based control (AME workflow) governs the more formal credit memo reversals.

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