You create a prepayment for USD 100 and validate it to consume the budget and reduce available funds under
the prepayment account. You then pay the prepayment of USD 100, create an invoice for USD 300, and
validate the invoice to consume the budget and reduce available funds for the expense accounts used in the
invoice. You then apply the prepayment fully on to the invoice and revalidate it.
What happens to the available funds when you apply a prepayment that requires budgetary control?
A.
The prepayment application was already released at the time of payment and the invoice consumes funds
of 300 USD.
B.
The prepayment application releases funds of 200 USD and the invoice consumes funds of 100 USD, with a
net decrease to available funds of 200 USD.
C.
Available funds will not change till invoice is approved.
D.
The prepayment application releases funds of 100 USD and the invoice consumes funds of 300 USD, with a
net decrease to available funds of 200 USD.
E.
The prepayment application releases funds of 300 USD and the invoice consumes funds of 300 USD, with a
net decrease to available funds of 100 USD.
F.
The budget will be released only for the USD 300 invoice amount.
A
Sorry D is correct
https://docs.oracle.com/cloud/latest/financialscs_gs/FAPPP/FAPPP1011878.htm
What happens to the available funds when I apply a prepayment that requires budgetary control?
Applying a prepayment to an invoice increases the available funds.
For example:
Create a prepayment for 100 USD.
Validate the prepayment to consume the budget and reduce available funds under the prepayment account.
Pay the prepayment.
Create an invoice for 300 USD.
Validate the invoice to consume the budget and reduce available funds from expense accounts used in the invoice.
Apply the prepayment to the invoice and revalidate, which releases funds of 100 USD from the prepayment account.
In summary, the prepayment application releases funds of 100 USD and the invoice consumes funds of 300 USD, with a net decrease to available funds of 200 USD.