General Ledger & AP/AR Setup Flashcards
7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 General Ledger & AP/AR Setup flashcards as text
In multi-currency ERP setups, 'foreign currency revaluation' of AR balances is performed to:
Answer: Adjust open receivable balances to reflect current exchange rates at period-end
Revaluation updates the functional currency value of open foreign-currency receivables to the period-end spot rate, recording unrealized gains or losses.
An ERP 'recurring journal entry' is best used for:
Answer: Automatically posting fixed, repeating transactions such as monthly rent accruals
Recurring journal entries automate predictable, fixed-amount transactions that occur on a regular schedule.
Which AP control helps prevent duplicate invoice payments in ERP?
Answer: Duplicate invoice check using vendor number, invoice number, and amount
ERP systems flag or block invoices when the combination of vendor, invoice number, and amount already exists in the system.
In GL setup, what is the purpose of 'statistical accounts'?
Answer: To record non-monetary data such as headcount or square footage for allocation purposes
Statistical accounts store non-financial metrics used as allocation bases without affecting the monetary trial balance.
What does 'open item management' in AR mean?
Answer: Each invoice and payment is tracked individually and matched until fully settled
Open item management keeps each document visible until it is fully matched or cleared, giving precise visibility into outstanding items.
In ERP AP, 'payment blocking' an invoice means:
Answer: The invoice is flagged so it will not be selected in the next payment run
A payment block indicator prevents a specific invoice from being paid until the block is manually removed after resolution.
Which GL setup element defines how the trial balance is mapped into income statement and balance sheet line items for external financial reporting?
Answer: Financial statement row and column structure or report definition
Financial statement report definitions map GL accounts to specific lines on the income statement or balance sheet for regulatory and management reporting.