A company requires advance payments for their contract projects. How would they ensure that for
specific types of work they always have an advance payment?
A.
Create a specific agreement type and use the advance receipts required extension toensure
that theseagreements require advancepayments.
B.
Set the customer profilein Accounts Receivable to require advance payments.
C.
Createa transaction control for specificagreement types to ensure thatadvance paymentsare
received.
D.
Entera negative agreement value andfunded amount.
E.
Fund the projects with a dummy agreement.
Explanation:
Note:
*You can set up an agreement to require advance payments by selecting the Advance Required
on the agreement. You can also use the Advance Required client extension to determine which
agreements require advance payments. On these agreements, you can enter funding only up to
the amount of advance payments.
The ability to change the Advance Required agreement option is controlled by function security.
*Agreements with Advance Payments
You can require advance payments on an agreement and record advance payments as they are
made. When you generate draft invoices for projects that are funded by the agreement, the
advance balance that is displayed on the funding summary is reduced. You then interface the
invoice to Receivables. The AutoInvoice process in Oracle Receivables reduces the balance on
the advance.