Oracle SCM Questions

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Top 10 Frequently Asked Oracle SCM Interview

Questions
1. How Do You Calculate the Total Annual Cost?
2. What Are Different Planning Methods in Inventory
3. What Are the Setups for Expense Items?
4. What Is the Use of Sales Order Kff?
5. What Is the Process of Cycle Count?
6. What Is the Picking Rule in Inventory
7. What Does the Account Generator Process Do?
8. What Is Pay on Receipt?
9. What Is the Significance of the Ageing Period (R11i)?
10. What Are Reminder Notifications?
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Oracle SCM Interview Questions and Answers

1. How do you calculate the Total annual cost?
I use Total Annual Cost equation:

TC = DC + (D/Q)*S + (Q/2)*H
TC = Total annual cost
D = Demand
C = Cost per unit
Q = Order quantity
S = Cost of placing an order or setup cost
H = Annual holding and storage cost per unit of inventory
2. Have you used economic order quantity [EOQ]?
Yes.
It’s a quantitative inventory model that I have used to find the most economic
quantity to order based on cost and demand factors.
If C=Carrying cost per unit per year; F=Fixed cost per order; D=Demand in units per
year; Formula for Economic Order Quantity= ((2 × F × D)/C) (1/2)
3. How will you calculate the total length of the supply chain?
Total length of the supply chain = DRM + DWIP + DFG
4. How to calculate Supply Chain Working Capital Productivity

Ratio?
SWC (Supply Chain Working Capital) = INV+ AR-AP
Where:
SWCP (SWC productivity) = NS/SWC
5. How to calculate exponential smoothing?
It’s used in forecasting procedure:
F (t) = Ft-1 + a ((At-1) – (Ft-1))

6. How to calculate flow time?
Little’s Law relates throughput, time and inventory:
Flow time = Inventory (WIP)/Throughput rate
7. What’s the use of Global Trade Item Number (GTIN)?
The Global Trade Item Number is a 14-digit item number used in the item
identification system for products.
It’s a standard number used in RFID and electronic commerce.
8. How to use a PKI system in supply chain?
I have used Public Key Infrastructure for Securing E-Business across the Supply
Chain.
Public Key Infrastructure (PKI) offers a strong linkage between business identities
and transactions throughout the supply chain.
In a PKI system, each user has two keys: a public key and a private key.
These keys can be used for encrypting and decrypting information, for electronically
signing electronic information, and for verifying the authenticity of their owner.
9. Explain your experience with the Cost analysis?
Cost analysis=Review of the potential provider’s cost elements to determine their

appropriateness and reasonableness.
I have conducted the Cost analysis as a review of:
Need for categories of personnel & reasonableness of personnel work time

proposed indirect cost, base to which rates are applied.
Compare estimated costs with prior actual costs.
10. Explain your experience with supply chain performance

indicators?
Consists of four types of indicators:

Quality, time, financial, and productivity.
Cp a measure of process capability that compares the specification width with the
process width- not adjusted for lack of process centering.
Cpk a measure of process capability that compares the specification width with the
process width- adjusted for lack of process centering.
11. How do you forecast?
I can use Market research and Historical analogy to forecast.
12. Explain your experience with the product’s life cycle?
There are five stages of a product’s life cycle:
1. Extraction
2. Production
3. Packaging and Transport
4. Usage
5. Disposal
13. When a process is considered to be of six sigma quality?
When there are no more than 3.4 non-conformities per million opportunities.
14. Have you performed marketing functions?
: Yes, I have performed these marketing functions of the supply chain:
1. Buying
2. Selling
3. Storing
4. Transporting
5. Sorting
6. Financing
7. Information Gathering
8. Risk Taking
15. Explain your experience with Material management
I have worked in the material management department, which had the authority
and responsibility of all activities, concerned with the flow of materials in the
organization.
My responsibilities were:
1. Efficient use of the working capital.
2. Responding to the market changes related to any product.
3. Ensuring the cooperation of all departments.
4. Providing best services to the customer.
5. Analyzing materials and supply to reduce cost.
6. Improve quality and ensure supplier performance.
7. Maintain minimum inventory levels
16. How the purchasing departments establish and maintain

policies and procedures for the acquisition and payment of goods
and services?
It authorizes the delegation of purchasing authority and establishes and maintains

policies and procedures for the acquisition and payment of goods and services.
17. A supplier partnership focuses on which relationship?
It focuses on cooperative rather than adversarial relationships with suppliers.
18. What are the responsibilities allocated to the production

environment?
1. Product fabrication
2. Work schedules
19. How will you ensure better decision-making capability?

By using cross-functional sourcing teams.
20. What you suggest for optimizing purchasing and production

departments?
I suggest these responsibilities can be shared by both:
1. Product fabrication
2. Lead time for delivery of material
3. Work schedules
4. Selection of sources of supply
21. What are different planning methods in Inventory
There are 5 different planning methods in oracle Inventory
1. Subinv Replenishment Planning
2. Min Max Planning
3. Re-order point planning
4. Kanban Planning
5. Periodic Automatic Replenishment
22. What are the setups for different planning method (Min-Max)
1. Setup the item in master-org and assign the item to the org for which Min-Max
planning is used
2. Attributes, Inv Planning method: Min-Max
3. Min-Max Qty should have been defined
4. Safety Stock method should be non-MRP Planned
5. Determine what should be the status of the Requisitions created for the planning
Do this with profile option INV: Minmax Reorder Approval
1. IF Use ASL has been enabled, then Requisition will populate the supplier data
from the ASL setup which is assigned to the item
Sourcing rules can be defined for this
Then need to assign a sourcing rule to the item
1. In Inventory responsibility, under Planning run the Min-Max planning report with
required parameter
23. What is the concurrent program for the planning
Min Max planning report under planning menu in Inventory responsibility
24. What are the setups for expense items?
Should not be Inventory Item
1. No Stackable
2. No Transactable
3. No Costing, Inv Asset
25. How many key flex fields are there in Inventory?
Seven KFF are there in Inventory
1. Account Alias
2. Item
3. Item Category
4. Item Catalogues
5. Stock Locators
6. Sales Order
7. Service Items
26. What is the use of sales order KFF
1. This is used during the material transaction when the source is Sales Order
2. Segments are Sales order Numbers. Sales Order Type.Sales Order Source
27. How we can have the item key flexfield with 2 segments, is it
possible, if yes then how, if no then why?
1. This can be modified using Flexfield>Key> Segments
2. Query the System Items, then you can modify the existing structure, or you can
add a new one.
28. How will you inactivate the Inventory locations
By giving Inactive date in the Location form
29. What all setups you have done in inventory organization

implementation
1. Location
2. Calendar
3. Organization
4. Parameter
5. Cost Group
6. Sub inventory
7. Stock Locator
8. Receiving Options
9. Shipping Networks
10. Intercompany Transaction flows
11. Cost Subelements
30. What are the valuation accounts used in Inventory?
1. Material: An asset account that tracks material cost. For average costing, this
account holds your inventory and in-transit values. Once you perform transactions,
you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.

2. Resource: An asset account that tracks resource cost.
3. Overhead: An asset account that tracks resource and outside processing

overheads.
Outside processing An asset account that tracks outside processing cost.
4. Expense: The expense account used when tracking a non-asset item
Other Accounts
1. Sales: The profit and loss (income statement) account that tracks the default
revenue account.
2. Cost of Goods Sold The profit and loss (income statement) account that tracks the
default cost of goods sold account.
3. Purchase Price Variance: The variance account used to record differences

between the purchase order price and standard cost. This account is not used with
the average cost method.
4. Inventory A/P Accrual: The liability account that represents all inventory purchase
order receipts not matched in Accounts Payable, such as the uninvoiced receipts
account.
5. Invoice Price Variance: The variance account used to record differences between
the purchase order price and invoice price. This account is used by Accounts
Payable to record invoice price variance.
6. Encumbrance: An expense account used to recognize the reservation of funds

when a purchase order is approved.
7. Average Cost Variance: Under average costing with negative quantity balances,
this account represents the inventory valuation error caused by issuing your
inventory before your receipts.
31. What is ABC Analysis and why it is being used
1. ABC Analysis is an Inventory categorization method to categorize items into 3

different classes A being the most valuable and C being the least valuable ones.
2. Using this Analysis, it will be easy to monitor and keep on track of the valuable
items like frequently doing cycle counts on A class items, etc.
32. What is the process of cycle count

1. Create a cycle count header with required data
2. Assign the items to be counted
3. Then run the required cycle count report
4. Using the report do the cycle counts
5. Then go and Approve the cycle count
33. What is the difference between MO Issue and MO Transfer
1. MO Issue will move out the stock from inventory against an account
2. MO transfer will move the stock from one subinventory to other
34. What is the Picking rule in Inventory
1. Picking Rule is used to determine the list of items for sales order/ shipping based
on the revision, Lot, Subinventory, and Locator.
2. Assign the required Picking Rule to the item in the Order Management tab.
35. What are the criteria in Cycle count
1. Depending on the requirement, we can trigger a cycle count.
2. We can define a regular cycle count of high values items.
3. If back-ordered or pick denied, we can trigger cycle count for those items.
36. What is the diff in Lot and Serial
Lot control is to control a whole batch of items. for example, in the drug industry,
we have batch numbers that can be controlled using a lot where we can track the
complete batch using specific data.
Serial control is to monitor and track every single qty of an item like electronic
devices where we track by serial number.
37. What is the move order in OM
Move orders generated as part of Pick Wave are the ones from the Sales order
38. How a MO is diff from Subinv transfer

MO generally is the request of movement of items in one organization. It may be of
from 3 sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue
that will issue the item from the location and MO transfer which ll transfer the item
to another location.
39. What is nettable in Subinventory setup
This will determine whether to consider the hands of the sub inventory as available
for planning tasks.
40. What are the status attributes in Item and how many of them
We can define a different status for an item combination these attributes as per the
business need
Following are the attributes
1. BOM Enabled
2. Build in WIP
3. Customer order enabled
4. Internal Order enabled
5. Invoice
6. Purchasable
7. Stackable
8. Transactable
41. What is the use of the status attribute
We can define a different status for an item combination of these attributes as per
the business need
42. Why master-org is required
So that we can have an item maintained at the master level with common attributes
and then we can use the same item across multiple organizations instead of
defining it again and again.
43. Inventory Master org is mandatory?

Yes. If you will not create any specific master-org, then the system will consider the
same inv org as its master org.
44. What are the Lot control setups
Lot control can be set up at item attributes at the organization level.
Either No Control or Full Control
45. How lot number generates
You can generate new Lot numbers during transactions
46. What is serial controlled and what are the setups
Serial control can be set up at item attributes at the organization level.
47. How serial numbers are generated
Serial control can be set up at item attributes at the organization level.
No Control, At Receipt, At Sales Order issue, Predefined
48. What is the predefined locator in Subinventory and how it works

in business
We can setup locator control in 4 diff ways for each subinventory
Note: There will not be any locator information required during any transaction
Prespecified: System will ask you to select locator combinations which already been
defined in the sub inventory during the transaction
Dynamic Entry: Either you can select any locator during a transaction or you can
create a new combination
Item Level: This will take the locator which has been defined at the item attribute
level
49. What are the transaction managers
The transaction manager is the interface managers which carry out all transaction
once submitted by the users
50. Can we change the item name after it created?

Yes, we can change the name to the master level.
51. How WMS is helpful compared to Inventory
Warehouse Management (WMS) enables companies to maximize their utilization of

labor, space, and equipment investments by coordinating and optimizing resource
usage and material flows. Specifically designed to support the needs of distribution,
manufacturing, asset-intensive, and service businesses, Oracle WMS provides a
single platform across your entire global supply chain.
52. What is the use of WMS Rules Workbench
The Rules workbench enables you to assign strategies, rules, and cost group
values directly to any number of objects in an assignment matrix
53. Why strategy used
After you define your rules, you must set up a strategy and then associate the
applicable rules. After you assign rules to a strategy, the rules engine can execute
the strategies on any objects to which the strategy applies. The rules engine
executes each subsequent rule in your strategy until an allocation is completely
filled.
54. How many types of bar codes are there?
Mainly 2 types Linear (1 dimensional) and Matrix (2D)
55. What is the difference between ‘Accrue On Receipt’ and ‘Accrue

at Period End’?
Accrue On Receipt means that when a receipt is saved, accrual transactions are
immediately recorded and sent to the general ledger interface. This is also known as
“online” accruals. Accrue at Period End means that when a receipt is saved, the
accrual transactions are not immediately recorded and sent to the general ledger;
instead, the accounting entries are generated and sent at the end of the month by
running the Receipt Accruals – Period-End Process.
All items with a destination type of either Inventory and Outside Processing are
accrued on receipt. For items with a destination type of Expense, you have the
option of accruing on receipt or at period end.
56. Why are expense items typically accrued at period-end, and

why are inventory items always accrued on the receipt?
One should accrue on receipt if perpetual inventory is adopted to facilitate
reconciliation between inventory valuation reports and accounting entries. Expense
items typically are not accounted for on a daily basis, and most companies find it
easier to account for and reconcile these expenses at month-end rather than at the
time each individual expense is incurred.
When both inventory and expense items are accrued on receipt, the following
problems may be encountered:
A) Receiving inspection balances will include both inventory assets and expenses, so
at the end of the month, they will need to be manually reclassified.
B) The number of entries needed to research and reconcile the perpetual A/P
Accrual Account(s) becomes significantly increased. Since the expense receipts could
double the number of accrual accounting entries to process, the Accrual
Reconciliation Report could take twice as long to run. The amount of time required
by your staff to research any discrepancies would also increase.
57. What is the significance of the Document Total and Account

Range types on the Approval Groups form?
The Document Total type sets the maximum limit for any approval actions taken by
the user to whom the approval group applies to. If multiple Document Totals are
specified, the restriction will be to the Document Total, which is the lowest. The
Account Range also allows for a document total which is then tied to a specific range
of accounts listed on the same line. It is possible to have different account ranges
with different amount Limits. This allows the same user to have a different
dollar/account limit. It is mandatory to have an account range specified in each
approval group defined. By default, if there is not an account range defined, all
accounts will then be excluded from the document approval process, which means
that the documents will not have the ability to become approved.
58. How is it possible to approve a blanket release when the

blanket purchase agreement is showing that the full amount has
already been released?
The validation of a release dollar amount is not against the amount agreed on the
header of the blanket purchase agreement; instead, it validates against the Amount
Limit specified in the Terms and Conditions window of the Purchase Orders form. If
this field is left blank, then the release can be for any amount.
Therefore, it is imperative that the Amount Limit field be populated with the same
dollar amount as the Amount Agreed field in the header region of the Purchase
Orders form, depending on the business needs. It should also be noted that Release
11i also has introduced an Amount Limit field that can be defined at the line level of
the blanket agreement.
59. I am delegating the approval of a PO to someone who doesn’t

have access to open this PO. Would he be able to approve it?
Since he has been ‘delegated’ the approval authority from you, his approval actions
would be adjudged as if you were taking those actions on this document. However,
the document would remain inaccessible to him. This is because by ‘Delegating’, you
are only allowing him to act on approval decisions on your behalf, rather than also
delegating him the access authority.
60. Does autocratic add to an existing PO shipment that has been

encumbered?
Ans: Purchasing does not add to an existing purchase order shipment if that
shipment has been encumbered even though all the grouping columns necessary to
combine shipping information are there.
61. a requisition line with the item number and without item
number [one-time item] be combined to a single document line in
autocreate?
If you want to combine two requisition lines for the same item, one with an item
number and one without, you have to manually auto-create the document and use
Modify on the Tools menu to add the predefined item to the requisition line for the
one-time item.
62. The Encumbrance Detail Report does not pick up expected

purchase orders.
Review the parameters passed to the report to verify that the selection criteria did
not exclude the purchase order. The selection of purchase orders on this report is
based on the following information in the database:
1. the setting of the encumbered_flag in po_distributions, needs to be set to Y, and

the cancel_flag in po_line_locations must be set to N and
2. the gl_encumbered_date in po_distributions must be between the dates passed

to the report for the encumbered dates and
3. the vendor used on the purchase order must be included by the Vendor
parameter and
4. the po_distributions.prevent_encumbrance_flag must be set to N
63. I am using encumbrance accounting and when I forward a

Purchase Order for approval, I am encountering the following
error: APP-14166: Please enter a forward to employee or funds are
not reserved.
You must check the Reserve Funds check box when forwarding and/or approving a
Purchase Order if you are using encumbrance. You can check to see if you are using
encumbrance in Purchasing by doing the following:
1. Setup/Organizations/Financial Options
2. Change the Alternate Region to Encumbrance and see if the Use PO Encumbrance
check box is checked.
3. Refer to Note 1064155.6 for more details.
64. What are Reminder notifications?
Once an approver doesn't respond to approval notification for quite some time,
then a reminder notification can be sent out to the approver. You can send up to
two reminders to an approver using the Timeout feature. You can also specify that
after a certain period of time, the document be forwarded automatically to the next
approver in the hierarchy. This feature has to be set up by you by changing the PO
and/or Requisition approval workflow in Oracle Workflow Builder.
65. How do you set up the timeout feature?
In Oracle Workflow Builder, open the? PO Approval? workflow (for purchase orders)
or the?PO Requisition Approval? workflow for requisitions. To enable the Timeout
feature in the PO Approval workflow, modify the following activities in the Notify
Approver subprocess by entering a Timeout period in their Properties windows:
Approve PO Notification, PO Approval Reminder 1, and PO Approval Reminder

2.entering a Timeout period in their Properties windows: Approve Requisition
Notification, Requisition Approval Reminder1, and Requisition Approval Reminder2.
66. How do you generate the notifications for the documents that
need to be started up in approval yet?
To enable the Timeout feature in the PO Requisition Approval workflow, modify the
following activities in the Notify Approver sub-process by approval and send
notifications to the appropriate people informing them about the document's
status.
You can run? Send Notifications For Purchasing Documents? program to search the
documents that are incomplete, rejected, or in need of re-ap
67. Why does the create releases process not create a Release
when we have run the CREATE RELEASES program against a
Blanket Purchase Order whose EFFECTIVE DATES are in the future
with a valid Sourcing Rule?
The CREATE RELEASE program must be run within the EFFECTIVE DATES of the
Blanket Purchase Order. This is because the program verifies whether the SYSTEM
DATE falls within the EFFECTIVE DATES, when looking for the Releases to be created.
This is standard functionality.
68. When we try to run Requisition import after running a Min-Max

planning request why is it that requisitions are created from
Requisition import but no releases are created against blanket
POs.
For Releases to get created automatically in the Requisition Import process:
1. Check for the profile option PO: Release During Requisition Import which should
be set to ‘Yes to create releases during requisition import.
2. ‘Sourcing Rule’ must have a current date between ‘effective date’ and ‘to date.
3. Check that the requisition is sourced with the blanket, and the requisitions are
approved as part of the Requisition Import process.
4. If the Encumbrance is ON, then the requisition will not get approved and will be in
pre-approved status, and hence release will not get created.
5. Check the profile option MRP: Purchasing By Revision (If requisitions are coming
from MRP) and INV: Purchasing By Revision (If requisitions are coming from INV).
This must be set according to and should not be null. This profile option must be set
to ‘Yes’ or ‘No’ according to the customer's requirement.
6. Verify the table PO_REQUISITIONS_INTERFACE, column AUTOSOURCE_FLAG is Y.
7. Verify if this item has a blanket purchase agreement approved and it is not closed
or canceled.
69. Can we save and approve blanket PO releases without entering
promised and need-by date?
If the item is either MRP/DRP, MPS/DRP, or DRP planned item the promised date or
need by date is mandatory and the user has to enter the date. If the item is not
planned, then it is not mandatory.
70. What is the significance of the “PO: Convert Requisition UOM to

Source Document UOM” profile option?
Earlier in Autocreate if the requisition UOM is different from the BPA UOM the user
would not be allowed to create a release. But in Create releases program this was
possible. To make the behavior consistent we have introduced this profile option. If
this profile is set to yes we allow the auto-creation of the release with the quantity
and UOM converted to that of the BPA. If the profile is set to yes we do not allow the
creation of the req both in autocreate as well as the create releases program.
You can firm orders at the document header or shipment level. If your firm at the
header level, Purchasing applies this control to every shipment on the document.
71. How does the Create Document Workflow decide which buyer
to use for the automatically created documents?
Workflow tries to retrieve buyer information in the following order:
1. Buyer specified on the Requisition Line
2. Default buyer from Master Item
3. Category
4. Buyer of the source document
When creating a release, workflow retrieves the buyer's name from the blanket
agreement. If workflow cannot find a buyer, it doesn't create a document
72. What is the difference between the agreed amount and the
amount limit fields while entering a contract purchase agreement
and issues related to these fields?
1. The agreed amount field at the header level is copied to the amount limit in the
terms and conditions block. This is also the amount that is printed on the blanket
agreement and represents the contract amount between you and the vendor.
2. The amount limit field will restrict the cumulative releases applied to this
purchase agreement from exceeding the specified dollar amount entered here. The
value of this field must be equal to or greater than the agreed amount field. This
column is used for release approval amount validation. If the total cumulative
releases exceed this amount approval will fail. The purpose of this field is to allow
users to set a higher approval amount limit than the amount agreed.
73. What is the use of list price and market price on Purchase
orders?
If you have entered an item, Purchasing displays the list price for the item. You can
accept the default list price or change it. You can use this field to help evaluate your
buyers. Purchasing uses the list price you enter here in the savings analysis reports.
Savings Analysis Report (By Buyer) and Savings Analysis Report (By Category). If you
enter an item, Purchasing displays the market price for the item. Use this field to
help evaluate your buyers. Purchasing uses the price you enter here in the savings
analysis reports if you do not provide a value in the List Price field.
74. What is the significance of the fields ‘Allow Price override’ and
‘Price limit’?
For planned purchase orders and blanket purchase agreements only, check Allow
Price Override to indicate that the release price can be greater than the price on the
purchase agreement line. If you allow a price override, the release price cannot
exceed the Price Limit specified on the line.
If you do not allow a price override, the release price cannot exceed the Unit Price.
You cannot enter this field if the line type is amount-based. If you allow price
override, enter the Price Limit. This is the maximum price per item you allow for the
item on this agreement line.
75. Can I set up a different Purchase Order type default for the PO
form?
The Purchase Orders form always defaults a PO type of ‘Standard Purchase Order’,
and there is no setup, which can change this. Although the default value cannot be
changed, the user can overwrite the defaulted type once the Enter PO form is
opened.
76. Can the original Purchase Order can be viewed in any way, for
a revised Purchase Order?
The original version of a revised PO cannot be viewed from the PO form or PO

summary form. Information on the original PO is stored in the
PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables, and can be obtained through
SQL, using the PO_HEADER_ID column as a common reference.
77. Create a Purchase Order. Input the Header and Line

information and find that the Shipments button at the bottom of
the form is grayed out.
Setup the Receiving Options to enable the Shipment Button in the Purchase Order
form. Navigation: Setup –> Organizations –> Receiving Options. Once set up these
options for your Organization you will have the Shipments button enabled. Ensure
that the Purchasing Options and Financial Options are defined for your
organization.
78. Why is there no category displayed or list of values for the

category field in the purchase order you are creating?
You must also create category codes for your items. Then create a Category set for
Purchasing controlled at the master level. Assign your items to a category code and
the Purchasing category set you have created. Confirm that in Default Category Sets
the Purchasing application points to the Purchasing Category set. This will populate
the category and description when the item number is selected at the PO line level.
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79. What does the Account Generator process do?
The Account Generator process builds charge, budget, accrual, and variance
accounts for each purchase order, release, and requisition distribution based on the
distribution’s destination type. It is a synchronous Workflow process.
80. What are the Prerequisites to use an Account Generator?
Before using the Account Generator you must:
1. Define your Accounting flexfield structure for each set of books.
2. Define flexfield segment values and validation rules.
3. Set up Oracle Workflow.
4. Decide whether you want to use the Account Generator processes as seeded in
Oracle Purchasing, or you need to customize them to meet your accounting needs.
81. Will the account generator build the charge account based on
project information?
No. By default, the Account Generator process as seeded in Oracle Purchasing

would not consider the project information to build the account. To achieve this
functionality, you should customize the Account Generator to consider the project
details. There is a dummy sub process ‘Build Project Related Account’ seeded in the
Account Generator workflow, available for customization. You would also have to
modify the function PO_WF_PO_CHARGE_ACC.IS_PO_PROJECT_RELATED to return a
value of “True”.
82. When the charge account field is non updateable?
In the following cases the charge account field is not updateable:
1. If the destination type code is INVENTORY or SHOP FLOOR.
2. If the distribution is already encumbered.
3. If the PO is created from an encumbered Requisition
4. If the destination type code is Expense and
If the project is entered and the profile option PA_ALLOW_FLEXBUILDER_OVERRIDES

is set to NO
If the expense accrual code= RECEIPT
83. What should I do if the Purchase Document Open Interface

(PDOI) process fails?
The first thing is to check for the error message and examine the description from
the po_interface_errors table for the given interface_header_id. The description
would be self-explanatory. Accordingly check for the data in the
po_headers_interface, po_lines_interface tables and correct them and run the PDOI
again with the corrected data.
84. What can Receiving Routing be used for and how does it
default?
Direct Delivery – Perform Receive and Delivery on Receipts Screen at the same time.
3-way matching.
Standard Receipt – Perform Receive on Receipts screen.
Perform Delivery on Receiving Transactions screen.
3-way matching.
Inspection Required – The inspection is required after Receiving and before

Delivery.
4-way matching.
You can override the Receiving Routing on the Receipts screen only if the Profile
RCV: Allow Routing Override is set to ‘Yes’.
The Receiving Routing on the receipts screen has defaulted as follows:
1. Purchase Order shipment
2. if 1 is null, then Item Attribute
3. if 2 is null, then Vendor Attribute
4. if 3 is null, then Receiving Option
85. How many Transaction Types exist?
Receive – Receive the items into Receiving Dock.
Deliver – Deliver the items into expense or inventory destination.
Return to Vendor – Return the received items directly to vendors.
Return to Receiving – Return the delivered items to Receiving Dock or inspection.
Accept – Accept items following an inspection.
Reject – Reject items following an inspection.
Transfer – Transfer items between locations.
Correct – Enter a positive or negative adjustment to a receiving or delivery

transaction.
Match – Match unordered receipts to purchase orders.
Unordered – Receive items without purchase orders

86. What are the major receiving tables involved?
RCV_SHIPMENT_HEADERS
RCV_SHIPMENT_LINES
RCV_TRANSACTIONS
RCV_RECEIVING_SUB_LEDGER
87. What are the minimum setups required for Items that we use
for Internal Sales orders?
The items which we use for Internal Sales Order must be Inventory enabled,
internally orderable and stackable, shippable, and Order Management transactable
for the source organizations. Under Inventory, you need to select the Inventory
Item, Transactable, and Stackable options. Under Order Management, you need to
select the Internal Ordered, Internal Orders Enabled, OE Transactable, and
Shippable options.
88. What are the steps to perform Inter-Organization Transfer?
Follow these 3 simple steps:
1. Setup Shipping Network: This information describes the relationships and

accounting information that exists between a from (shipping) organization and a to
(distribution) organization.
Navigation path:
a. Choose the Inventory Manager's responsibility.
b. Setup/Organizations – Make sure that there is an entry for from/to organization

(between the organizations you intend to perform the transfer). When you click on
this form, you will get a LOV with orgs.
Choose the From Org.
Transfer Type can be either Intransit or Direct (Direct would ship directly to
Inventory, so it would be a Direct Delivery).
FOB can be either Receipt or Shipment if the transfer type is entered as Intransit.
If Receipt the source inventory quantities get updated at the time of receipt.
If it be Shipping, then the quantities get updated as soon as the shipment is done.
2. Inventory/Transactions/Inter organization Transfer: When you click on this form,

you will get a LOV with orgs. Choose the from org. Specify the to-org, transfer type
as in transit, and input a value for shipment-number.
Click on the transaction lines button. Input the item, the quantity, and the sub
inventories between which you want to do the transfer. (Sometimes there might not
be enough quantity in the from-org to do this. For this: Go to:
Inventory/Transactions/Miscellaneous Transactions. Specify the Type as
Miscellaneous Receipt. Click on the transaction lines button and specify
item/quantity).
3. Receive against an Inter-org Transfer: Choose Purchasing Super User

responsibility.
Under Purchasing/Receiving/Receipts – Query up against Shipment Number in the

find window. In the RCV Transactions block, specify the quantity you want to receive
and commit the transaction.
89. How are Lot and Serial Numbers handled in Inter-Organization

Transfers?
When you perform an inter? organization transfer, the source and destination
organization may have different lot/serial controls. Purchasing handles this situation
as follows:
1. When the source organization uses controls and the destination organization
does not, the control numbers are recorded as being issued from the source
organization. Lot/serial transactions are recorded for the destination organization.
2. When the source organization does not use controls and the destination
organization does, the transaction is processed normally.
3. When both source and destination organizations use controls, the control
numbers are recorded as being issued from the source organization. These control
numbers are tracked to insure that the same control numbers that were shipped
are the ones that are received. When items are returned from inventory to receiving
or to the supplier, only the control numbers originally recorded for the delivery
transaction can be used.
90. What are the main tables involved in Inter-Organization

Transfer?
A check is carried out to see if the transaction date is in an open period as specified
in the profile option (INV: Transaction Date Validation). The column is acct_period,
the table is ORG_ACCT_PERIODS.
The organizations set, cost information, etc, are derived from:
ORG_ORGANIZATION_DEFINITIONS, MTL_PARAMETERS, MFG_LOOKUPS,

MTL_INTERORG_PARAMETERS
[HR_ORGANIZATION_INFORMATION – for rel 11I].
The transaction information is derived from MTL_TRX_TYPES_VIEW for inter-org

transactions where transaction_source_type_id=13.
The item information is derived from MTL_SYSTEM_ITEMS [MTL_SYSTEM_ITEMS_B –

for rel 11I].
A check is carried out to verify the available item quantity on MTL_DEMAND and
MTL_ONHAND_QUANTITIES [MTL_RESERVATIONS included in rel 11I].
MTL_SUBINVENTORIES_TRK_VAL_V keeps track of the values of the sub inventories.
MTL_ITEM_LOCATIONS is searched for the locators specified (if used).
GL_CODE_COMBINATIONS is searched for a valid locator combination (if used).
The cost of the item is gotten from CST_CG_ITEM_COSTS_VIEW.
The transaction is inserted into MTL_MATERIAL_TRANSACTIONS_TEMP table.
If the item is under lot control, lot information is deleted from

MTL_TRANSACTION_LOTS_TEMP, likewise the serial number's information if the
item is serialized is deleted from MTL_SERIAL_NUMBERS_TEMP,
MTL_SERIAL_NUMBERS.
The new lot information is inserted into MTL_TRANSACTION_LOTS_TEMP.
91. What is a Debit Memo Invoice?
Negative amount invoice which is created and sent to a supplier to notify the
Supplier of a credit you are recording.
92. What is Pay On Receipt?

Pay on Receipt (also known as ERS (Evaluated Receipt Settlement) or Self-Billing) is
an Oracle Purchasing’s concurrent program, which automatically creates invoices in
Oracle Payables and matches them with PO’s automatically for the received
amount. The short name for the program is POXPOIV.
93. What is the significance of the Ageing Period (R11i)?
The parameter Aging period determines the transactions on the receipt that can be
considered for invoice creation. Forex if aging period is given as 1, then all the
transactions that have a transaction date less than or equal to the (sysdate-1) are
considered for invoice creation. The aging period can be set thru the profile option
PO: ERS Aging period.
94. What are some of the supported and non-supported features of

the Receiving Open Interface?
The non-supported features include:
1. Lot number transactions
2. Serial number transactions
3. Dynamic locator control
4. Replace transactions
5. Separate RECEIVE and DELIVER transaction
1.Question 1. What Are Different Planning Methods In Inventory?

Answer :
There are 5 different planning methods in oracle Inventory:
1. Subinv Replenishment Planning
2. Min Max Planning
4. Kanban Planning
5. Periodic Automatic Replenishment
o Question 2. What Are The Setups For Different Planning Method
(min-max?)
Answer :
Setup the item in master org and assign the item to the org for which Min-
Max planning is used
1. Attributes, Inv Planning method: Min-Max
2. Min-Max Qty should have been defined
3. Safety Stock method should be non MRP Planned
4. Determine what should be the status of the Requisitions
created for the planning
5. Do this with profile option INV: Minmax Reorder Approval
6. IF Use ASL has been enabled, then Requisition will populate the
supplier data from the ASL setup which is assigned to the item
7. Sourcing rules can be defined for this
8. Then need to assign sourcing rule to the item
9. In Inventory responsibility, under Planning run the Min Max
planning report with required parameter
Oracle 10g Interview Questions
o Question 3. What Is The Concurrent Program For The Planning?

Answer :
o Question 4. What Are The Setups For Expense Item?

Answer :
1. Should not be Inventory Item
2. No Stackable
3. No Transactable
4. No Costing, Inv Asset
Oracle 10g Tutorial
o Question 5. How Many Key Flex Fields Are There In Inventory?

Answer :
Seven KFF are there in Inventory:
1. Account Alias
2. Item
3. Item Category
4. Item Catalogues
5. Stock Locators
6. Sales Order
7. Service Items
Oracle Interview Questions
o Question 6. What Is The Use Of Sales Order Kff?

Answer :
1. This is used during material transaction when source is Sales
Order.
2. Segments are Sales order Number. Sales Order Type. Sales
Order Source.
o Question 7. How We Can Have The Item Key Flex Field With 2
Segments, Is It Possible, If Yes Then How, If No Then Why?
Answer :
1. This can be modified using Flexfield>Key> Segments.
2. Query the System Items, then you can modify the existing
structure, or you can add a new one.
Oracle 11g Tutorial Oracle 11g Interview Questions
o Question 8. What All Setups You Have Done In Inventory

Organization Implementation?
Answer :
1. Location
2. Calendar
3. Organization
4. Parameter
5. Cost Group
6. Sub inventory
7. Stock Locator
8. Receiving Options
9. Shipping Networks
10. Intercompany Transaction flows
11. Cost Sub elements
o Question 9. What Is The Difference Between Purchased And
Purchasable Flag For An Item?
Answer :
1. Purchasable is a status attribute flag, so based on this flag,
certain transactions can be controlled for an item.
2. Purchased flag decides whether to purchase and receive this
item.
3. Purchasable flag decides whether to order this item in a
purchase order.
4. If purchasable is enabled, item can be ordered in a purchase
order, if not, new purchase orders can’t be created and
approved for the items.
5. If purchased is enabled, item can be received if already present
in an approved purchase order.
Oracle SOA Interview Questions
o Question 10. What Is The Valuation Accounts Used In Inventory?

Answer :
1. Material: An asset account that tracks material cost. For
average costing, this account holds your inventory and in
transit values. Once you perform transactions, you cannot
change this account.
2. Material Overhead: An asset account that tracks material
overhead cost.
3. Resource: An asset account that tracks resource cost.
4. Overhead: An asset account that tracks resource and outside
processing overheads.
5. Outside processing: An asset account that tracks outside
processing cost.
6. Expense: The expense account used when tracking a non-
asset item.
Other Accounts:
7. Sales: The profit and loss (income statement) account that
tracks the default revenue account.
8. Cost of Goods Sold: The profit and loss (income statement)
account that tracks the default cost of goods sold account.
9. Purchase Price Variance: The variance account used to record
differences between purchase order price and standard cost.
This account is not used with the average cost method.
10. Inventory A/P Accrual: The liability account that represents all
inventory purchase order receipts not matched in Accounts
Payable, such as the uninvoiced receipts account.
11. Invoice Price Variance: The variance account used to record
differences between purchase order price and invoice price.
This account is used by Accounts Payable to record invoice
price variance.
12. Encumbrance: An expense account used to recognize the
reservation of funds when a purchase order is approved.
13. Average Cost Variance: Under average costing with negative
quantity balances, this account represents the inventory
valuation error caused by issuing your inventory before your
receipts.
o Question 11. What Is Abc Analysis And Why It Is Being Used?
Answer :
1. BC Analysis is an Inventory categorization method to
categorize items into 3 different classes A being the most
valuable and C being the least valuable ones.
2. Using this Analysis, it will be easy to monitor and keep on track
of the valuable items like frequently doing cycle counts on A
class items, etc.
Oracle ADF Interview Questions
o Question 12. What Are The Processes Of Cycle Count?

Answer :
1. Create a cycle count header with required data
2. Assign the items to be counted
3. Then run the required cycle count report
4. Using the report do the cycle counts
5. Then go and Approve the cycle count
o Question 13. What Is The Different In Mo Issue And Mo Transfer?

Answer :
1. MO Issue will move out the stock from inventory against an
account.
2. MO transfer will move the stock from one sub inventory to
other.
o Question 14. What Is The Picking Rule In Inventory?
Answer :
1. Picking Rule is used to determine the list of items for sales
order/ shipping based on the revision, Lot, Sub inventory and
Locator.
2. Assign the required Picking Rule to the item in Order
Management tab.
o Question 15. What Are The Criteria In Cycle Count?
Answer :
1. Depending on the requirement, we can trigger cycle count.
2. We can define regular cycle count of high values items.
3. If back ordered or pick denied, we can trigger cycle count for
those items.
Oracle BI Publisher Interview Questions
o Question 16. What Are The Diff In Lot And Serial?

Answer :
1. Lot control is to control a whole batch of items. for example in
drug industry we have batch number which can be controlled
using lot where we can track the complete batch using specific
data.
2. Serial control is to monitor and track every single qty of an item
like electronic devices where we track by serial number.
o Question 17. What Is Move Order In Om?
Answer :
Move orders generated as part of Pick Wave are the ones from Sales order.
Oracle Demantra Interview Questions
o Question 18. How A Mo Is Diff From Subinv Transfer?

Answer :
MO generally is the request of movement of items in one organization. It
may be of from 3 sources, MO requisition, Replenish MO, Pick Wave MO.
MO can be MO Issue which will issue the item from the location and MO
transfer which ll transfer the item to another location.
Oracle Interview Questions
o Question 19. What Is Net Table In Sub Inventory Setup?

Answer :
This wills determine whether to consider the onhand of the sub inventory
as available for planning tasks.
o Question 20. What Are The Status Attributes In Item And How Many
Of Them?
Answer :
We can define different status for an item combination these attributes as
per the business need.
Following are the attributes:

1. BOM Enabled
2. Build in WIP
3. Customer order enabled
4. Internal Order enabled
5. Inviolable
6. Purchasable
7. Stackable
8. Transactable
Oracle Access Manager Interview Questions
o Question 21. What Is The Use Of Status Attribute?

Answer :
We can define different status for an item combination these attributes as
per the business need.
o Question 22. Why Master Org Is Required?

Answer :
So that we can have an item maintained at master level with common
attributes and then we can use the same item across multiple
organizations instead of defining it again and again.
o Question 23. Inventory Master Org Is Mandatory?

Answer :
Yes. If you will not create any specific master org, then system will
consider the same inv org as its master org.
Oracle Application Framework Interview Questions
o Question 24. What Are The Lot Control Setups?

Answer :
Lot control can be setup at item attributes at organization level.
Either No Control or Full Control.
o Question 25. How Lot Number Generates?

Answer :
You can generate new Lot numbers during transactions.
o Question 26. What Is Serial Controlled And What Are The Setups?
Answer :
Serial control can be setup at item attributes at organization level.
Oracle Apps DBA Interview Questions
o Question 27. How Serial Numbers Are Generated?

Answer :
No Control, At Receipt, At Sales Order issue, Predefined.
Oracle SOA Interview Questions
o Question 28. What Is The Predefined Locator In Sub Inventory And

How It Works In Business?
Answer :
We can setup locator control in 4 diff ways for each sub inventory:
None: There will not be any locator information required during any
transaction.
Prespecified: System will ask you to select locator combinations which
already been defined in the sub inventory during the transaction.
Dynamic Entry: Either you can select any locator during transaction or you
can create a new combination.
Item Level: This will take the locator which has been defined at item
attribute level.
o Question 29. What Are The Transaction Managers?
Answer :
Transaction manager is the interface managers which carry out all
transaction once submitted by the users.
o Question 30. Can We Change The Item Name After It Created?

Answer :
Yes we can change the name in master level.
o Question 31. How Wms Is Helpful Compared To Inventory?

Answer :
Warehouse Management (WMS) enables companies to maximize their
utilization of labor, space and equipment investments by coordinating and
optimizing resource usage and material flows. Specifically designed to
support the needs of distribution, manufacturing, asset-intensive, and
service businesses, Oracle WMS provides a single-platform across your
entire global supply chain.
o Question 32. What Is The Use Of Wms Rules Workbench?

Answer :
The Rules workbench enables you to assign strategies, rules and cost
group values directly to any number of objects in an assignment matrix.
o Question 33. Why Strategy Used?

Answer :
After you define your rules, you must set up a strategy and then associate
the applicable rules. After you assign rules to a strategy, the rules engine
can execute the strategies on any objects to which the strategy applies.
The rules engine executes each subsequent rule in your strategy until an
allocation is completely filled.
Oracle ADF Interview Questions
o Question 34. How Many Types Of Bar Codes Are There?

Answer :
Mainly 2 types Linear (1 dimensional) and Matrix (2D).
o Question 35. What Is An Item?

Answer :
1. An item is a part or services where you can Purchase, Sell,
Plan, Manufacture, Stock, Distribute and Prototype.
2. Items can also be containers for items as well as components
you build into other items.
o Question 36. Explain Item Master Organization?
Answer :
An item master organization is a logical entity where you define the item.
After you define an item in the item master, you can assign it to any
number of other organizations.
Oracle BI Publisher Interview Questions
o Question 37. Define Inventory Organization?

Answer :
It is a facility which will enable you to store and transact the items. It can
be a manufacturing unit, ware house, distribution center etc.
o Question 38. What Is A Sub Inventory?

Answer :
1. Subinventiries are unique physical or logical separations of
material inventory. These can be raw material, finished goods
or defective material sub inventory. You must define at least
one sub inventory. Sub inventories are of two types: storage
and receiving.
2. Storage sub inventories are intermediate or final put away
locations for material. Material that resides in a storage sub
inventory appears in on hand quantity, and is tracked by the
system. The system can book orders against, and use
manufacturing processes on material that resides in a storage
sub inventory. You must define at least one storage sub
inventory for your implementation.
3. Receiving type sub inventory is only used for receiving items.
Items in this sub inventories cannot be on-hand or reserved.
o Question 39. In Which Table Does The Sub Inventory Related
Information For An Item Is Stored?
Answer :
MTL_SECONDARY_INVENTORIES
MTL_ITEM_SUB_INVENTORIES
o Question 40. What Is A Stock Locator?

Answer :
Locators are structures within sub inventories. Locators are the third level
in the enterprise structuring scheme of Oracle Inventory. Locators may
represent rows, racks, or bins in warehouses. You can transact items into
and out of locators. You can restrict the life of locators, establish capacity
of a specific locator in weight or units, as well as specify dimensions which
define a locator’s capacity by volume.
Oracle Demantra Interview Questions
o Question 41. What Are The Key Flex Fields In Oracle Inventory?
Answer :
Oracle Inventory provides the following flex fields:
1. System Items
2. Item Catalogs
3. Item Categories
4. Stock Locators
5. Account Alias
6. Sales Order
o Question 42. What Are The Basic Steps Involved In Defining An
Item?
Answer :
1. Create an item in the item master form.
2. Copy the template from the tools menu to assign specific
attributes to the item and save it.
3. Assign the item to a category from tools menu and save your
work.
4. Select organization assignment from tools menu and assign
the item to different inventory organizations by ticking the
checkbox next to the inventory organizations.
Oracle Access Manager Interview Questions
o Question 43. What Are Item Attributes?

Answer :
Item attributes are the collection of information about an item. These are
used to store specific characteristics of an item, such as item status, unit
of measure, revision control, etc. these can be controlled at either the
master or the organization level. These attributes are stored in a table
named MTL_ITEM_ATTRIBUTES.
o Question 44. What Is The Use Of Item Template?

Answer :
An Item template is a set of attributes that enable the user to quickly create
an Item. You can use the existing templates are you can create your
custom template.
o Question 45. What Is An Item Category And Category Set?

Answer :
A category is a logical classification of items that have similar
characteristics.
A category set is a distinct grouping scheme and consists of multiple

categories. An item can belong to any number of category sets. We can
assign item to one category within each category set. The categories can
be retrieved from the table ‘MTL_CATEGORIES_B‘ and item category set
from ‘MTL_CATEGORY_SETS_B’.
o Question 46. Explain Unit Of Measure (uom) And Uom Class?

Answer :
The unit of measure (UOM) helps us count the number of items involved in
a transaction or the number of items that are stored in a sub inventory or a
locator.
UOM classes let you group different UMO’s into one category. Eg, quantity
could be UOM classes under which each, dozen, lot etc are separate
UOM’s.
o Question 47. Explain Shipping Method?

Answer :
Shipping methods are the way you ship material. When you create a
shipping method, you must enable it before you can use it in a shipping
network. If you disable a shipping method, it cannot be used in a shipping
network.
o Question 48. Describe Inter Organization Shipping Networks?

Answer :
An inter-organization shipping network describes the relationships and
accounting information between a shipping organization and a destination
organization. You must define a shipping network between two
organizations before you can transfer material between organizations.
When you set up a shipping network you must select a transfer type:
Intransit or Direct.
In transit: Oracle Inventory moves material to an intermediary state before

it reaches the destination organization. After the material arrives at the
destination organization, you will need a receipt transaction to retrieve it. If
in transit is selected, you can define.
Shipping Methods, GL Accounts to use in transit, Material ownership during
transfer, Planning lead times and Transfer Charges.
Direct: Oracle Inventory moves the material directly to the destination

organization. However, for both transfer types, you can determine default
receipt routing and whether internal orders are required to transfer
material.
o Question 49. In Which Tables Are The Transactional Details Are
Stored?
Answer :
MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
MTL_MATERIAL_TRANSACTIONS_TEMP
MTL_TRANSACTION_ACCOUNTS
o Question 50. What Is Revision Control In Oracle Inventory?

Answer :
A revision is a particular version of an item, bill of material, or routing.
Revision control is normally enabled for identifying a modified item. Item
can be placed under revision control by checking the box `Revision control`
in Inventory tab while defining new item or for existing item. Base table for
Item Revision is MTL_ITEM_REVISIONS.
o Question 51. What Is Picking Order Of Sub Inventory Or Locator?

Where Will You Define The Order?
Answer :
The value indicates the priority with which we pick items from sub
inventory or Locator, relative to another sub inventory or locator, where a
given item resides. A picking order of 1 means that order entry functions
pick items from the sub inventory or locator before others with a higher
number (such as 2,3 and so on).
The sub inventory order is defined in the sub inventory definition and the
locator order is defined in the locator definition. The default order for both
the sub inventory and the locator are defined in the organization.
o Question 52. What Are The Different Inventory Transactions?

Answer :
A transaction is an item movement within, into or out of inventory. A
transaction changes the quantity and location of an item.
The following are the different inventory transactions:

1. Receive an item into an organization from GL account number.
2. Issue an item from an organization into a GL account number.
3. Transfer items from one sub inventory to other in the same
organization.
4. Transfer of items between various inventory organizations.
5. Reservation of items.
o Question 53. Describe Various Inventory Transaction Types?
Answer :
Miscellaneous transaction: This transaction is used to do adjustments in
stock due to damage, obsolescence, issuing items for R & D or issuing
track able expense items.
Sub inventory transfer: This transaction is used to transfer goods from one
sub inventory to another within the same inventory organization.
InterORG transfer: This transaction is used to transfer goods from one
inventory organization to another.
Receiving transaction: This transaction is used to move goods from
receiving dock to specified sub inventory and locator.
Sales issue: This transaction is used to move goods from pick sub
inventory to staged sub inventory.
WIP issue: This transaction is used to issue materials against production
orders.
o Question 54. What Is The Difference Between A Sub Inventory
Transfer And A Move Order?
Answer :
Both these transactions are used for the movement of items from one sub
inventory to the other. The difference is that move order generates a pick
slip and a sub inventory transfer doesn’t.
Move order requires ‘approval’. Also, move orders create allocations. So

you can place hold on the material with the intention of picking it up a little
later. In sub inventory transfer, there is no reservation / allocation.
o Question 55. What Are The Components Used In Customizing A

Transaction?
Answer :
The following are the three components used in a transaction
1. Transaction Source Type
2. Transaction Action
3. Transaction Type
A Transaction Source Type and a Transaction Action come together to
form a Transaction Type.
o Question 56. What Is A Transaction Source Type?

Answer :
A Transaction Source Type is defined as an entity against which Oracle
Inventory charges a transaction.
The following transaction source types come seeded with Oracle

Inventory:
1. Purchase Order
2. Account Alias
3. Move Order
4. Internal Order
5. Standard Cost Update
6. Internal Requisition
7. Sales Order
8. Cycle Count
9. Periodic Cost Update
10. Physical Inventory
11. Account
12. RMA (Return Material Authorization)
13. Inventory
14. Job or Schedule
o Question 57. What Is A Transaction Type?
Answer :
A transaction type is a combination of a transaction source type and a
transaction action. It is used to classify a particular transaction for
reporting and querying purposes.
Ex: Sales order issue (txn type) + issue from stores (txn action) = sales
order (txn source type).
Move order transfer (txn type) + sub inventory transfer (txn action) = move
order (txn source type).
o Question 58. Name Any Four Purposes Where Miscellaneous

Transaction Can Be Used?
Answer :
Cycle count adjustment, Physical inventory adjustment, adjusting inventory
quantity within an inventory organization and decrementing on-hand
balances from a subinvemtory.
o Question 59. Explain Inventory Control?

Answer :
Inventory Control is the process by which inventory is measured and
regulated according to predetermined norms such as economic lot size for
order or production, safety stock, minimum level, maximum level, order
level etc.
o Question 60. What Are The Objectives Of Inventory Control?

Answer :
1. To meet unforeseen future demand due to variation in forecast
figures and actual figures.
2. To average out demand fluctuations due to seasonal or cyclic
variations.
3. To meet the customer requirement timely, effectively,
efficiently, smoothly and satisfactorily.
4. To smoothen the production process.
5. To facilitate intermittent production of several products on the
same facility.
6. To gain economy of production or purchase in lots.
7. To reduce loss due to changes in prices of inventory items.
8. To meet the time lag for transportation of goods.
9. To meet the technological constraints of production/process.
o Question 61. What Are The Factors That Affect Inventory Control?
Answer :
1. Type of product
2. Type of manufacture
3. Volume of production
o Question 62. Define Abc Analysis?
Answer :
ABC analysis determines the relative value of a group of inventory items
based on a user specified valuation criterion.
This technique divides inventory into three categories A, B & C based on

their annual consumption value.
It is also known as Selective Inventory Control Method (SIM).
o Question 63. What Is Consignment Inventory?

Answer :
Consignment Inventory is inventory that is in the possession of the
customer, but is still owned by the supplier. In other words, the supplier
places some of his inventory in his customer’s possession (in their store or
warehouse) and allows them to sell or consume directly from his stock.
The customer purchases the inventory only after he has resold or
consumed it. The key benefit to the customer should be obvious; he does
not have to tie up his capital in inventory. This does not mean that there are
no inventory carrying costs for the customer; he does still incur costs
related to storing and managing the inventory.
o Question 64. What Are The Different Planning Methods Available In

Oracle?
Answer :
2. Min-Max planning
3. Kanban cards
4. Sub inventory replenishment planning
o Question 65. When Should The Material Be Ordered?
Answer :
When on-hand quantity + supply – demand is less than safety stock (safety
stock is nothing but minimum inventory level)
[On-hand quantity] + [supply] – [demand] < [min inventory level]
o Question 66. Explain Re-order Point Planning?

Answer :
Reorder point planning uses demand forecasts to decide when to order a
new quantity to replenish inventory. Reorder point planning suggests a new
order for an item when the available quantity (on-hand quantity plus
planned receipts) drops below the item’s safety stock level plus forecast
demand for the item during its replenishment lead-time. The suggested
order quantity is an economic order quantity that minimizes the total cost
of ordering and carrying inventory. Oracle Inventory can automatically
generate requisitions to inform your purchasing department that a
replenishment order is required to supply your organization.
If the forecast is correct and the order arrives on time, the inventory level
should be right at the safety stock level at the time of receipt. In cases
where the desired safety stock level changes during the order lead time,
Oracle Inventory uses the largest safety stock quantity during the lead-
time.
When an order is triggered, the EOQ is the size of the triggered order.
EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost
percent X Unit cost)]
Oracle Inventory calculates annual demand as the current demand rate

annualized by multiplying the current period demand forecast by the
number of periods per year (12 or 13).
Reorder point planning can be performed at the organization level only.
o Question 67. Explain Min-max Planning Technique?

Answer :
Min-Max planning is a tool for planning inventory that looks at user-defined
minimum and maximum inventory levels. It does not consider lead times.
We can perform this technique at org level or sub inventory level.
o Question 68. Define Cycle Counting And Explain Its Use In Oracle
Inventory?
Answer :
Cycle Counting is a process of periodic counting of individual item / all the
items throughout the course of the year to ensure the accuracy of inventory
quantities and values.
We can do the cycle counting at Organization / Sub Inventory Level.
Cycle count is used to:

To reconcile system on-hand balances with actual counts in inventory.
Maintain control over the items that have higher value.
o Question 69. When Do You Perform Physical Inventory And Explain

The Steps Involved In It?
Answer :
Physical inventory can be performed, whenever there is a need to verify the
accuracy of system on-hand quantities. This can be done for entire
organization or can be confined to a specific sub inventory.
Steps to perform physical inventory:

1. Define physical inventory
2. Take a snapshot of system on-hand quantities
3. Generate physical inventory tags
4. Enter counts
5. Do physical inventory adjustments by approving or rejecting
6. Post adjustments
7. Purge physical inventory information
o Question 70. When Can You See Such Scenario, Item Available To
Qty Is 0 But Available To Transact More Than 0?
Answer :
1. If item is not resolvable
2. If Sub inventory Allow reservation is not allowed
3. If Item is lot controlled and lot is expired
o Question 71. From Where I Can See The List Of Time Zones In
Oracle.
Answer :
The list of time zones and their other details can be found from below 2
tables.
fnd_timezones_b, fnd_timezones_tl.
o Question 72. Can One Asset Sub Inventory Be Made Non Asset Sub
Inventory Once Transactions Created On That?
Answer :
Yes Asset Sub inventory flag can be unchecked for that sub inventory
provided.
1. There is no onhand present in that sub inventory. If present you

need to issue out and change the flag and receive those back.
2. There is no accounting details’ pending in inventory like
transaction happened but costing is not yet done.
Oracle SCM Functional Interview Questions: Inventory

Inventory
Part-1

· Subinv Replenishment Planning
· Min Max Planning
· Re-order point planning
· Kanban Planning
· Periodic Automatic Replenishment
· Setup the item in master org and assign the item to the org for which Min-Max planning is
used
· Attributes, Inv Planning method: Min-Max
· Min-Max Qty should have been defined
· Safety Stock method should be non MRP Planned
· Determine what should be the status of the Requisitions created for the planning
Do this with profile option INV: Minmax Reorder Approval
· IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL
setup which is assigned to the item
Sourcing rules can be defined for this
Then need to assign sourcing rule to the item
· In Inventory responsibility, under Planning run the Min Max planning report with required
parameter
· Min Max planning report under planning menu in Inventory responsibility
4. What are the setups for expense item?
· Should not be Inventory Item
· No Stockable
· No Transactable
· No Costing, Inv Asset
5. How many key flexfields are there in Inventory?
· Account Alias
· Item
· Item Category
· Item Catalogues
· Stock Locators
· Sales Order
· Service Items
6. What is the use of sales order KFF?
· This is used during material transaction when source is Sales Order
· Segments are Sales order Number.Sales Order Type.Sales Order Source
7. How we can have the item key flexfield with 2 segments, is it possible, if yes then
how, if no then why?
· This can be modified using Flexfield>Key> Segments
· Query the System Items, then you can modify the existing structure, or you can add a new
one.
· By giving Inactive date in the Location form
9. What all setups you have done in inventory organization implementation
· Location
· Calendar
· Organization
· Parameter
· Cost Group
· Subinventory
· Stock Locator
· Receiving Options
· Shipping Networks
· Intercompany Transaction flows
· Cost Subelements
Part - 2
1. What are the valuation accounts used in Inventory

 Material An asset account that tracks material cost. For average costing, this
account holds your inventory and intransit values. Once you perform transactions,
 Material Overhead An asset account that tracks material overhead cost.
 Resource An asset account that tracks resource cost.
 Overhead An asset account that tracks resource and outside processing
overheads.
 Outside processing An asset account that tracks outside processing cost.
 Expense The expense account used when tracking a non-asset item
Other Accounts
 Sales The profit and loss (income statement) account that tracks the
default revenue account.
 Cost of Goods Sold The profit and loss (income statement) account that tracks
the default cost of goods sold account.
 Purchase Price Variance The variance account used to record differences
between purchase order price and standard cost. This account is not used with the
average cost method.
 Inventory A/P Accrual The liability account that represents all inventory
purchase order receipts not matched in Accounts Payable, such as the uninvoiced
receipts account.
 Invoice Price Variance The variance account used to record differences
between purchase order price and invoice price. This account is used by Accounts
 Encumbrance An expense account used to recognize the reservation of
funds when a purchase order is approved.
 Average Cost Variance Under average costing with negative quantity
balances, this account represents the inventory valuation error caused by issuing
your inventory before your receipts.

 ABC Analysis is an Inventory categorization method to categorize items into 3
 Using this Analysis, it will be easy to monitor and keep on track of the valuable
3. What are the process of cycle count
 Create a cycle count header with required data
 Assign the items to be counted
 Then run the required cycle count report
 Using the report do the cycle counts
 Then go and Approve the cycle count
4. What is the different in MO Issue and MO Transfer
 MO Issue will move out the stock from inventory against an account
 MO transfer will move the stock from one subinventory to other
 Picking Rule is used to determine the list of items for sales order/ shipping based
on the revision, Lot, Subinventory and Locator.
 Assign the required Picking Rule to the item in Order Management tab.
Depending on the requirement, we can trigger cycle count.
We can define regular cycle count of high values items.
If back ordered or pick denied, we can trigger cycle count for those items.
6. What are the diff in Lot and Serial
Lot control is to control a whole batch of items. for example in drug industry we have batch
number which can be controlled using lot where we can track the complete batch using
specific data.
Serial control is to monitor and track every single qty of an item like electronic devices
where we track by serial number.
6. What are the material status in a subinventory
7. What is Physical Inventory
Part - 3
1. What is move order in OM

Move orders generated as part of Pick Wave are the ones from Sales order
Ans: MO generally are the request of movement of items in one organization. It may be of from 3
sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue which will issue
the item from the location and MO transfer which ll transfer the item to another location.
This will detrrmine whether to consider the onhands of the subinventory as available for planning
tasks.
We can define different status for an item combination these attributes as per the business need
BOM Enabled
Build in WIP
Customer order enabled
Internal Order enabled
Invoicable
Purchasable
Stockable
Transactable
5. What is the use of status attribute
6. Why master org is required
So that we can have an item maintained at master level with common attributes and then we can
use the same item across multiple organization instead of defining it again and again.
Yes. If you will not create any specific master org, then system will consider the same inv org as
its master org.
12. What is the predefined locator in Subinventory and how it works in business
None: There will not be any locator information required during any transaction
Prespecified: System will ask you to select locator combinations which already been defined in
the subinventory during the transaction
Dynamic Entry: Either you can select any locator during transaction or you can create a new
combination
Item Level: This will take the locator which has been defined at item attribute level
Transaction manager is the inetrface managers which carry out all transaction once submitted by
the users
Ans: Yes we can change the name in master level.
Part -4

Ans: Warehouse Management (WMS) enables companies to maximize their utilization of labor,
space and equipment investments by coordinating and optimizing resource usage and material
flows. Specifically designed to support the needs of distribution, manufacturing, asset-intensive,
and service businesses, Oracle WMS provides a single-platform across your entire global supply
chain.
2. What functionality in inventory uses the calendar
3. What is the diff in inv and wms from accounting perspective
Ans: The Rules workbench enables you to assign strategies, rules and cost group values directly
to any number of objects in an assignment matrix
Ans: After you define your rules, you must set up a strategy and then associate the applicable
rules. After you assign rules to a strategy, the rules engine can execute the strategies on any
objects to which the strategy applies. The rules engine executes each subsequent rule in your
strategy until an allocation is completely filled.
6. How many types of bar codes are there
Ans: Mainly 2 types Linear (1 dimensional) and Matrix (2D)
Part - 5
1. What is an item?
An item is a part or services where you can Purchase, Sell, Plan, Manufacture, Stock, Distribute and Prototype.
Items can also be containers for items as well as components you build into other items.
2. Explain Item Master Organization?

An item master organization is a logical entity where you define the item. After you define an item in the item
master, you can assign it to any number of other organizations.
3. Define Inventory Organization?

It is a facility which will enable you to store and transact the items. It can be a manufacturing unit, ware house,
distribution center etc.
4. What is a subinventory?
Subinventiries are unique physical or logical separations of material inventory. These can be raw material,
finished goods or defective material subinventory. You must define at least one subinventory. Subinventories
are of two types: storage and receiving
Storage subinventories are intermediate or final put away locations for material. Material that resides in a
storage subinventory appears in on hand quantity, and is tracked by the system. The system can book orders
against, and use manufacturing processes on material that resides in a storage subinventory. You must define at
least one storage subinventory for your implementation.
Receiving type subinventory is only used for receiving items. Items in this subinventories cannot be on-hand or
reserved
5. In which table does the subinventory related information for an item is stored?
6. What is a stock locator?

Locators are structures within subinventories. Locators are the third level in the enterprise structuring scheme of
Oracle Inventory. Locators may represent rows, racks, or bins in warehouses. You can transact items into and
out of locators. You can restrict the life of locators, establish capacity of a specific locator in weight or units, as
well as specify dimensions which define a locator’s capacity by volume.
7. What are the Key flex fields in oracle Inventory?

Oracle Inventory provides the following flexfields:
System Items, Item Catalogs, Item Categories, Stock Locators, Account Alias and Sales Order
8. What are the basic steps involved in defining an item?

Create an item in the item master form
Copy the template from the tools menu to assign specific attributes to the item and save it.
Assign the item to a category from tools menu and save your work
Select organization assignment from tools menu and assign the item to different inventory organizations by
ticking the checkbox next to the inventory organizations.
9. What are item attributes?

Item attributes are the collection of information about an item. These are used to store specific characteristics of
an item, such as item status, unit of measure, revision control, etc. these can be controlled at either the master or
the organization level. These attributes are stored in a table named MTL_ITEM_ATTRIBUTES
10. What is the use of item template?
An Item template is a set of attributes that enable the user to quickly create an Item. You can use the existing
templates are you can create your custom template.
11. What is an item category and category set?

A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of multiple categories. An item can belong to any
number of category sets. We can assign item to one category within each category set. The categories can be
retrieved from the table ‘MTL_CATEGORIES_B‘ and item category set from ‘MTL_CATEGORY_SETS_B’.
12. Explain unit of measure (UOM) and UOM class?

The unit of measure (UOM) helps us count the number of items involved in a transaction or the number of items
that are stored in a subinventory or a locator.
UOM classes let you group different UMO’s into one category. Eg, quantitycould be a UOM class under which
each, dozen, lot etc are separate UOM’s.
13. Explain shipping method?

Shipping methods are the way you ship material. When you create a shipping method, you must enable it before
you can use it in a shipping network. If you disable a shipping method, it cannot be used in a shipping network.
14. Describe Interorganization Shipping Networks

An inter-organization shipping network describes the relationships and accounting information between a
shipping organization and a destination organization. You must define a shipping network between two
organizations before you can transfer material between organizations. When you set up a shipping network you
must select a transfer type:Intransit or Direct.
Intransit: Oracle Inventory moves material to an intermediary state before it reaches the destination
organization. After the material arrives at the destination organization, you will need a receipt transaction to
retrieve it. If intransit is selected, you can define:
Shipping Methods, GL Accounts to use in transit, Material ownership during transfer, Planning lead times and
Transfer Charges
Direct: Oracle Inventory moves the material directly to the destination organization. However, for both transfer
types, you can determine default receipt routing and whether internal orders are required to transfer material
15. In which tables are the transactional details are stored?

16. What is revision control in Oracle Inventory?

A revision is a particular version of an item, bill of material, or routing. Revision control is normally enabled for
identifying a modified item. Item can be placed under revision control by checking the box `Revision control` in
Inventory tab while defining new item or for existing item. Base table for Item Revision is
MTL_ITEM_REVISIONS.
17. What is Picking Order of Subinventory or Locator? Where will you define the order?
The value indicates the priority with which we pick items from subinventory or Locator, relative to another
subinventory or locator, where a given item resides. A picking order of 1 means that order entry functions pick
items from the subinventory or locator before others with a higher number (such as 2,3 and so on).
The subinventory order is defined in the subinventory definition and the locator order is defined in the locator
definition. The default order for both the subinventory and the locator are defined in the organization.
18. What are the different inventory transactions?

A transaction is an item movement within, into or out of inventory. A transaction changes the quantity and
location of an item
Receive an item into an organization from GL account number
Issue an item from an organization into a GL account number
Transfer items from one subinventory to other in the same organization.
Transfer of items between various inventory organizations
Reservation of items
19. Describe various inventory transaction types?

Miscellaneous transaction: This transaction is used to do adjustments in stock due to damage, obsolescence,
issuing items for R & D or issuing track able expense items.
Subinventory transfer: This transaction is used to transfer goods from one subinventory to another within the
same inventory organization.
InterORG transfer: This transaction is used to transfer goods from one inventory organization to another.
Receiving transaction: This transaction is used to move goods from receiving dock to specified subinventory
and locator.
Sales issue: This transaction is used to move goods from pick subinventory to staged subinventory.
WIP issue: This transaction is used to issue materials against production orders
20. What is the difference between a subinventory transfer and a move order?
Both these transactions are used for the movement of items from one subinventory to the other. The difference is
that move order generates a pick slip and a subinventory transfer doesn’t.
Move order requires ‘approval’. Also, move orders create allocations. So you can place hold on the material
with the intention of picking it up a little later. In subinventory transfer, there is no reservation / allocation.
21. What are the Components used in Customizing a Transaction?

Transaction Source Type
Transaction Action
Transaction Type
A Transaction Source Type and a Transaction Action come together to form a Transaction Type.
22. What is a Transaction source type?

A Transaction Source Type is defined as an entity against which Oracle Inventory charges a transaction. The
following transaction source types come seeded with Oracle Inventory:
Purchase Order
Account Alias
Move Order
Internal Order
Standard Cost Update
Internal Requisition
Sales Order
Cycle Count
Periodic Cost Update
Physical Inventory
Account
RMA (Return Material Authorization)
Inventory
Job or Schedule
23. What is a transaction type?

A transaction type is a combination of a transaction source type and a transaction action. It is used to classify a
particular transaction for reporting and querying purposes. Ex:
Sales order issue (txn type) + issue from stores (txn action) = sales order (txn source type)
Move order transfer (txn type) + subinventory transfer (txn action) = move order (txn source type)
24. Name any four purposes where miscellaneous transaction can be used?
Cycle count adjustment, Physical inventory adjustment, adjusting inventory quantity within an inventory
organization and decrementing on-hand balances from a subinvemtory
25. Explain inventory control?

Inventory Control is the process by which inventory is measured and regulated according to predetermined
norms such as economic lot size for order or production, safety stock, minimum level, maximum level, order
level etc.
26. What are the objectives of inventory control?

To meet unforeseen future demand due to variation in forecast figures and actual figures.
To average out demand fluctuations due to seasonal or cyclic variations.
To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily.
To smoothen the production process.
To facilitate intermittent production of several products on the same facility.
To gain economy of production or purchase in lots.
To reduce loss due to changes in prices of inventory items.
To meet the time lag for transportation of goods.
To meet the technological constraints of production/process.
27. What are the factors that affect inventory control?

Type of product
Type of manufacture
Volume of production
28. Define ABC analysis?

ABC analysis determines the relative value of a group of inventory items based on a user specified valuation
criterion.
This technique divides inventory into three categories A, B & C based on their annual consumption value.
It is also known as Selective Inventory Control Method (SIM)
29. What is consignment inventory?

Consignment Inventory is inventory that is in the possession of the customer, but is still owned by the supplier.
In other words, the supplier places some of his inventory in his customer’s possession (in their store or
warehouse) and allows them to sell or consume directly from his stock. The customer purchases the inventory
only after he has resold or consumed it. The key benefit to the customer should be obvious; he does not have to
tie up his capital in inventory. This does not mean that there are no inventory carrying costs for the customer; he
does still incur costs related to storing and managing the inventory
30. What are the different planning methods available in Oracle?

Re-order point planning
Min-Max planning
Kanban cards
Subinventory replenishment planning
31. When should the material be ordered?

When on-hand quantity + supply – demand is less than safety stock (safety stock is nothing but minimum
inventory level)
32. Explain re-order point planning?

Reorder point planning uses demand forecasts to decide when to order a new quantity to replenish inventory.
Reorder point planning suggests a new order for an item when the available quantity (on-hand quantity plus
planned receipts) drops below the item’s safety stock level plus forecast demand for the item during its
replenishment lead-time. The suggested order quantity is an economic order quantity that minimizes the total
cost of ordering and carrying inventory. Oracle Inventory can automatically generate requisitions to inform your
purchasing department that a replenishment order is required to supply your organization.
If the forecast is correct and the order arrives on time, the inventory level should be right at the safety stock
level at the time of receipt. In cases where the desired safety stock level changes during the order lead time,
Oracle Inventory uses the largest safety stock quantity during the lead-time.
EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost percent X Unit cost)]
Oracle Inventory calculates annual demand as the current demand rate annualized by multiplying the current
period demand forecast by the number of periods per year (12 or 13).
33. Explain min-max planning technique?

Min-Max planning is a tool for planning inventory that looks at user-defined minimum and maximum inventory
levels. It does not consider lead times.
We can perform this technique at org level or subinventory level
34. Define cycle counting and explain its use in oracle inventory?
Cycle Counting is a process of periodic counting of individual item / all the items throughout the course of the
year to ensure the accuracy of inventory quantities and values.
To reconcile system on-hand balances with actual counts in inventory
Maintain control over the items that have higher value
35. When do you perform physical inventory and explain the steps involved in it?
Physical inventory can be performed, whenever there is a need to verify the accuracy of system on-hand
quantities. This can be done for entire organization or can be confined to a specific subinventory.
Define physical inventory
Take a snapshot of system on-hand quantities
Generate physical inventory tags
Enter counts
Do physical inventory adjustments by approving or rejecting
Post adjustments
Purge physical inventory information
References:
http://www.learnoracle.in/2014/05/oracle-scm-functional-interview_18.html
Oracle SCM Functional Interview
Questions: Inventory
bishnupc / 1:57 AM / 9
Inventory
Part-1

 Subinv Replenishment Planning
 Min Max Planning
 Re-order point planning
 Kanban Planning
 Periodic Automatic Replenishment
Setup the item in master org and assign the item to the org for which Min-Max planning is used
Attributes, Inv Planning method: Min-Max

Min-Max Qty should have been defined
Safety Stock method should be non MRP Planned
Determine what should be the status of the Requisitions created for the planning
Do this with profile option INV: Minmax Reorder Approval
IF Use ASL has been enabled, then Requisition will populate the supplier data from the
ASL setup which is assigned to the item
Sourcing rules can be defined for this
Then need to assign sourcing rule to the item
In Inventory responsibility, under Planning run the Min Max planning report with required
parameter
4. What are the setups for expense item?
Should not be Inventory Item

No Stockable
No Transactable
No Costing, Inv Asset
5. How many key flexfields are there in Inventory?
Account Alias
Item
Item Category
Item Catalogues
Stock Locators
Sales Order
Service Items
6. What is the use of sales order KFF?
This is used during material transaction when source is Sales Order

Segments are Sales order Number.Sales Order Type.Sales Order Source
7. How we can have the item key flexfield with 2 segments, is it possible, if yes then
how, if no then why?
This can be modified using Flexfield>Key> Segments

Query the System Items, then you can modify the existing structure, or you can add a
new one.
By giving Inactive date in the Location form
9. What all setups you have done in inventory organization implementation
Location
Calendar
Organization
Parameter
Cost Group
Subinventory
Stock Locator
Receiving Options
Shipping Networks
Intercompany Transaction flows
Cost Subelements
10. What is the difference between purchased and purchasable flag for an item?
Purchasable is a status attribute flag, so based on this flag, certain transactions can be
controlled for an item.
Purchased flag decides whether to purchase and receive this item.
Purchasable flag decides, whether to order this item in a purchase order.
If purchasable is enabled, item can be ordered in a purchase order, if not, new purchase
orders cant be created and approved for the items.
If purchased is enabled, item can be received if already present in an approved purchase
order.
Part - 2
1. What are the valuation accounts used in Inventory

 Material An asset account that tracks material cost. For average costing, this
account holds your inventory and intransit values. Once you perform transactions,
 Material Overhead An asset account that tracks material overhead cost.
 Resource An asset account that tracks resource cost.
 Overhead An asset account that tracks resource and outside processing
overheads.
 Outside processing An asset account that tracks outside processing cost.
 Expense The expense account used when tracking a non-asset item
Other Accounts
 Sales The profit and loss (income statement) account that tracks the
default revenue account.
 Cost of Goods Sold The profit and loss (income statement) account that tracks
the default cost of goods sold account.
 Purchase Price Variance The variance account used to record differences
between purchase order price and standard cost. This account is not used with the
average cost method.
 Inventory A/P Accrual The liability account that represents all inventory
purchase order receipts not matched in Accounts Payable, such as the uninvoiced
receipts account.
 Invoice Price Variance The variance account used to record differences
between purchase order price and invoice price. This account is used by Accounts
 Encumbrance An expense account used to recognize the reservation of
funds when a purchase order is approved.
 Average Cost Variance Under average costing with negative quantity
balances, this account represents the inventory valuation error caused by issuing
your inventory before your receipts.

 ABC Analysis is an Inventory categorization method to categorize items into 3
 Using this Analysis, it will be easy to monitor and keep on track of the valuable
3. What are the process of cycle count
 Create a cycle count header with required data
 Assign the items to be counted
 Then run the required cycle count report
 Using the report do the cycle counts
 Then go and Approve the cycle count
4. What is the different in MO Issue and MO Transfer
 MO Issue will move out the stock from inventory against an account
 MO transfer will move the stock from one subinventory to other
 Picking Rule is used to determine the list of items for sales order/ shipping based
on the revision, Lot, Subinventory and Locator.
 Assign the required Picking Rule to the item in Order Management tab.
Depending on the requirement, we can trigger cycle count.
We can define regular cycle count of high values items.
If back ordered or pick denied, we can trigger cycle count for those items.
6. What are the diff in Lot and Serial

Lot control is to control a whole batch of items. for example in drug industry we have batch
number which can be controlled using lot where we can track the complete batch using
specific data.
Serial control is to monitor and track every single qty of an item like electronic devices
where we track by serial number.
6. What are the material status in a subinventory

7. What is Physical Inventory
Part - 3
1. What is move order in OM
Move orders generated as part of Pick Wave are the ones from Sales order
Ans: MO generally are the request of movement of items in one organization. It may be of from 3
sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue which will issue
the item from the location and MO transfer which ll transfer the item to another location.
This will detrrmine whether to consider the onhands of the subinventory as available for planning
tasks.
BOM Enabled
Build in WIP
Customer order enabled
Internal Order enabled

Invoicable
Purchasable
Stockable
Transactable
5. What is the use of status attribute
6. Why master org is required
So that we can have an item maintained at master level with common attributes and then we can
use the same item across multiple organization instead of defining it again and again.
Yes. If you will not create any specific master org, then system will consider the same inv org as
its master org.
12. What is the predefined locator in Subinventory and how it works in business
None: There will not be any locator information required during any transaction
Prespecified: System will ask you to select locator combinations which already been defined in
the subinventory during the transaction
Dynamic Entry: Either you can select any locator during transaction or you can create a new
combination
Item Level: This will take the locator which has been defined at item attribute level
Transaction manager is the inetrface managers which carry out all transaction once submitted by
the users
Ans: Yes we can change the name in master level.
Part -4
Ans: Warehouse Management (WMS) enables companies to maximize their utilization of labor,

space and equipment investments by coordinating and optimizing resource usage and material
flows. Specifically designed to support the needs of distribution, manufacturing, asset-intensive,
and service businesses, Oracle WMS provides a single-platform across your entire global supply
chain.
2. What functionality in inventory uses the calendar
3. What is the diff in inv and wms from accounting perspective
Ans: The Rules workbench enables you to assign strategies, rules and cost group values directly
to any number of objects in an assignment matrix
Ans: After you define your rules, you must set up a strategy and then associate the applicable
rules. After you assign rules to a strategy, the rules engine can execute the strategies on any
objects to which the strategy applies. The rules engine executes each subsequent rule in your
strategy until an allocation is completely filled.
6. How many types of bar codes are there
Ans: Mainly 2 types Linear (1 dimensional) and Matrix (2D)
Part - 5
1. What is an item?
An item is a part or services where you can Purchase, Sell, Plan, Manufacture, Stock, Distribute and
Prototype.
Items can also be containers for items as well as components you build into other items.
2. Explain Item Master Organization?

An item master organization is a logical entity where you define the item. After you define an item in
the item master, you can assign it to any number of other organizations.
3. Define Inventory Organization?

It is a facility which will enable you to store and transact the items. It can be a manufacturing unit,
ware house, distribution center etc.
4. What is a subinventory?
Subinventiries are unique physical or logical separations of material inventory. These can be raw
material, finished goods or defective material subinventory. You must define at least one
subinventory. Subinventories are of two types: storage and receiving
Storage subinventories are intermediate or final put away locations for material. Material that
resides in a storage subinventory appears in on hand quantity, and is tracked by the system. The
system can book orders against, and use manufacturing processes on material that resides in a
storage subinventory. You must define at least one storage subinventory for your implementation.
Receiving type subinventory is only used for receiving items. Items in this subinventories cannot be
on-hand or reserved
5. In which table does the subinventory related information for an item is stored?
6. What is a stock locator?

Locators are structures within subinventories. Locators are the third level in the enterprise
structuring scheme of Oracle Inventory. Locators may represent rows, racks, or bins in warehouses.
You can transact items into and out of locators. You can restrict the life of locators, establish
capacity of a specific locator in weight or units, as well as specify dimensions which define a locator’s
capacity by volume.
7. What are the Key flex fields in oracle Inventory?
Oracle Inventory provides the following flexfields:
System Items, Item Catalogs, Item Categories, Stock Locators, Account Alias and Sales Order
8. What are the basic steps involved in defining an item?

Create an item in the item master form
Copy the template from the tools menu to assign specific attributes to the item and save it.
Assign the item to a category from tools menu and save your work
Select organization assignment from tools menu and assign the item to different inventory
organizations by ticking the checkbox next to the inventory organizations.
9. What are item attributes?

Item attributes are the collection of information about an item. These are used to store specific
characteristics of an item, such as item status, unit of measure, revision control, etc. these can be
controlled at either the master or the organization level. These attributes are stored in a table
named MTL_ITEM_ATTRIBUTES
10. What is the use of item template?

An Item template is a set of attributes that enable the user to quickly create an Item. You can use
the existing templates are you can create your custom template.
11. What is an item category and category set?

A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of multiple categories. An item can belong
to any number of category sets. We can assign item to one category within each category set. The
categories can be retrieved from the table ‘MTL_CATEGORIES_B‘ and item category set from
‘MTL_CATEGORY_SETS_B’.
12. Explain unit of measure (UOM) and UOM class?

The unit of measure (UOM) helps us count the number of items involved in a transaction or the
number of items that are stored in a subinventory or a locator.
UOM classes let you group different UMO’s into one category. Eg, quantitycould be a UOM class
under which each, dozen, lot etc are separate UOM’s.
13. Explain shipping method?

Shipping methods are the way you ship material. When you create a shipping method, you must
enable it before you can use it in a shipping network. If you disable a shipping method, it cannot be
used in a shipping network.
14. Describe Interorganization Shipping Networks

An inter-organization shipping network describes the relationships and accounting information
between a shipping organization and a destination organization. You must define a shipping network
between two organizations before you can transfer material between organizations. When you set
up a shipping network you must select a transfer type:Intransit or Direct.
Intransit: Oracle Inventory moves material to an intermediary state before it reaches the destination
organization. After the material arrives at the destination organization, you will need a receipt
transaction to retrieve it. If intransit is selected, you can define:
Shipping Methods, GL Accounts to use in transit, Material ownership during transfer, Planning lead
times and Transfer Charges
Direct: Oracle Inventory moves the material directly to the destination organization. However, for
both transfer types, you can determine default receipt routing and whether internal orders are
required to transfer material
15. In which tables are the transactional details are stored?
16. What is revision control in Oracle Inventory?

A revision is a particular version of an item, bill of material, or routing. Revision control is normally
enabled for identifying a modified item. Item can be placed under revision control by checking the
box `Revision control` in Inventory tab while defining new item or for existing item. Base table for
Item Revision is MTL_ITEM_REVISIONS.
17. What is Picking Order of Subinventory or Locator? Where will you define the order?
The value indicates the priority with which we pick items from subinventory or Locator, relative to
another subinventory or locator, where a given item resides. A picking order of 1 means that order
entry functions pick items from the subinventory or locator before others with a higher number
(such as 2,3 and so on).
The subinventory order is defined in the subinventory definition and the locator order is defined in
the locator definition. The default order for both the subinventory and the locator are defined in the
organization.
18. What are the different inventory transactions?

A transaction is an item movement within, into or out of inventory. A transaction changes the
quantity and location of an item
Receive an item into an organization from GL account number
Issue an item from an organization into a GL account number
Transfer items from one subinventory to other in the same organization.
Transfer of items between various inventory organizations
Reservation of items
19. Describe various inventory transaction types?

Miscellaneous transaction: This transaction is used to do adjustments in stock due to damage,
obsolescence, issuing items for R & D or issuing track able expense items.
Subinventory transfer: This transaction is used to transfer goods from one subinventory to another
within the same inventory organization.
InterORG transfer: This transaction is used to transfer goods from one inventory organization to
another.
Receiving transaction: This transaction is used to move goods from receiving dock to specified
subinventory and locator.
Sales issue: This transaction is used to move goods from pick subinventory to staged subinventory.
WIP issue: This transaction is used to issue materials against production orders
20. What is the difference between a subinventory transfer and a move order?
Both these transactions are used for the movement of items from one subinventory to the other.
The difference is that move order generates a pick slip and a subinventory transfer doesn’t.
Move order requires ‘approval’. Also, move orders create allocations. So you can place hold on the
material with the intention of picking it up a little later. In subinventory transfer, there is no
reservation / allocation.
21. What are the Components used in Customizing a Transaction?

Transaction Source Type
Transaction Action
Transaction Type
A Transaction Source Type and a Transaction Action come together to form a Transaction Type.
22. What is a Transaction source type?

A Transaction Source Type is defined as an entity against which Oracle Inventory charges a
transaction. The following transaction source types come seeded with Oracle Inventory:
Purchase Order
Account Alias
Move Order
Internal Order
Standard Cost Update
Internal Requisition
Sales Order
Cycle Count
Periodic Cost Update
Physical Inventory
Account
RMA (Return Material Authorization)
Inventory
Job or Schedule
23. What is a transaction type?

A transaction type is a combination of a transaction source type and a transaction action. It is used
to classify a particular transaction for reporting and querying purposes. Ex:
Sales order issue (txn type) + issue from stores (txn action) = sales order (txn source type)
Move order transfer (txn type) + subinventory transfer (txn action) = move order (txn source type)
24. Name any four purposes where miscellaneous transaction can be used?
Cycle count adjustment, Physical inventory adjustment, adjusting inventory quantity within an
inventory organization and decrementing on-hand balances from a subinvemtory
25. Explain inventory control?

Inventory Control is the process by which inventory is measured and regulated according to
predetermined norms such as economic lot size for order or production, safety stock, minimum
level, maximum level, order level etc.
26. What are the objectives of inventory control?

To meet unforeseen future demand due to variation in forecast figures and actual figures.
To average out demand fluctuations due to seasonal or cyclic variations.
To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily.
To smoothen the production process.
To facilitate intermittent production of several products on the same facility.
To gain economy of production or purchase in lots.
To reduce loss due to changes in prices of inventory items.
To meet the time lag for transportation of goods.
To meet the technological constraints of production/process.
27. What are the factors that affect inventory control?

Type of product
Type of manufacture
Volume of production
28. Define ABC analysis?

ABC analysis determines the relative value of a group of inventory items based on a user specified
valuation criterion.
This technique divides inventory into three categories A, B & C based on their annual consumption
value.
It is also known as Selective Inventory Control Method (SIM)
29. What is consignment inventory?

Consignment Inventory is inventory that is in the possession of the customer, but is still owned by
the supplier. In other words, the supplier places some of his inventory in his customer’s possession
(in their store or warehouse) and allows them to sell or consume directly from his stock. The
customer purchases the inventory only after he has resold or consumed it. The key benefit to the
customer should be obvious; he does not have to tie up his capital in inventory. This does not mean
that there are no inventory carrying costs for the customer; he does still incur costs related to
storing and managing the inventory
30. What are the different planning methods available in Oracle?

Re-order point planning
Min-Max planning
Kanban cards
Subinventory replenishment planning
31. When should the material be ordered?

When on-hand quantity + supply – demand is less than safety stock (safety stock is nothing but
minimum inventory level)
32. Explain re-order point planning?

Reorder point planning uses demand forecasts to decide when to order a new
quantity to replenish inventory. Reorder point planning suggests a new order for an
item when the available quantity (on-hand quantity plus planned receipts) drops
below the item’s safety stock level plus forecast demand for the item during its
replenishment lead-time. The suggested order quantity is an economic order
quantity that minimizes the total cost of ordering and carrying inventory. Oracle
Inventory can automatically generate requisitions to inform your purchasing
department that a replenishment order is required to supply your organization.
If the forecast is correct and the order arrives on time, the inventory level should be
right at the safety stock level at the time of receipt. In cases where the desired
safety stock level changes during the order lead time, Oracle Inventory uses the
largest safety stock quantity during the lead-time.
EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost percent
X Unit cost)]
Oracle Inventory calculates annual demand as the current demand rate annualized
by multiplying the current period demand forecast by the number of periods per
year (12 or 13).

33. Explain min-max planning technique?
Min-Max planning is a tool for planning inventory that looks at user-defined
minimum and maximum inventory levels. It does not consider lead times.
We can perform this technique at org level or subinventory level
34. Define cycle counting and explain its use in oracle inventory?
Cycle Counting is a process of periodic counting of individual item / all the items
throughout the course of the year to ensure the accuracy of inventory quantities and
values.
To reconcile system on-hand balances with actual counts in inventory
Maintain control over the items that have higher value
35. When do you perform physical inventory and explain the steps involved in
it?
Physical inventory can be performed, whenever there is a need to verify the
accuracy of system on-hand quantities. This can be done for entire organization or
can be confined to a specific subinventory.
Define physical inventory
Take a snapshot of system on-hand quantities
Generate physical inventory tags
Enter counts
Do physical inventory adjustments by approving or rejecting
Post adjustments
Purge physical inventory information
36. When can you see such scenario, item available to qty is 0 but available to
transact more than 0
If item is not reservable
If Subinventory Allow reservation is not allowed
If Item is lot controlled and lot is expired
37. From where I can see the list of time zones in oracle.
A. The list of time zones and their other details can be found from below 2 tables
fnd_timezones_b, fnd_timezones_tl
38. Can one Asset subinventory be made Non Asset subinventory once
transactions created on that?
A. Yes Asset Subinventory flag can be unchecked for that subinventory provided
 There is no onhand present in that subinventory. If present you need to issue

out and change the flag and receive those back.
 There is no accounting details pending in inventory like transaction
happened but costing is not yet done.
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Q1. Control Options in Inventory
Ans: Lot Control , Locator control, serial control, revision control, locator & sub
inventory restrictions.
Q2. Trip ?
Ans: Trip is a carrier specific and contains atleast two stop such as stop to pick up
goods and deliver goods.
Q3. What is the difference between 'Accrue On Receipt' and 'Accrue at Period
End'?
Ans: Accrue On Receipt means that when a receipt is saved, accrual transactions
are immediately recorded and sent to the general ledger interface. This is also
known as "online" accruals. Accrue at Period End means that when a receipt is
saved, the accrual transactions are not immediately recorded and sent to the general
ledger; instead, the accounting entries are generated and sent at the end of the
month by running the Receipt Accruals - Period-End Process.
All items with a destination type of either Inventory and Outside Processing are
accrued on receipt. For items with a destination type of Expense, you have the
option of accruing on receipt or at period end.
Q4. Why are expense items typically accrued at period-end, and why are inventory
Items always accrued on receipt?
Ans: One should accrue on receipt if perpetual inventory is adopted to facilitate
reconciliation between inventory valuation reports and accounting entries. Expense
items typically are not accounted for on a daily basis, and most companies find it
easier to account for and reconcile these expenses at month-end rather than at the
time each individual expense is incurred.
When both inventory and expense items are accrued on receipt, the following
problems may be encountered:
A) Receiving inspection balances will include both inventory assets and expenses,
so at the end of the month, they will need to be manually reclassified.
B) The number of entries needed to research and reconcile the perpetual A/P
Accrual Account(s) becomes significantly increased. Since the expense receipts
could double the number of accrual accounting entries to process, the Accrual
Reconciliation Report could take twice as long to run. The amount of time required
by your staff to research any discrepancies would also increase.
5.What is the significance of the Document Total and Account Range types on the
Approval Groups form?
The Document Total type sets the maximum limit for any approval actions taken by
the user whom the approval group applies to. If multiple Document Totals are
specified, the restriction will be to the Document Total, which is the lowest. The
Account Range also allows for a document total which is then tied to a specific range
of accounts listed on the same line. It is possible to have different account ranges
with different amount Limits. This allows the same user to have a different
dollar/account limit. It is mandatory to have an account range specified in each
approval group defined. By default, if there is not an account range defined, all
accounts will then be excluded from the document approval process, which means
that the documents will not have an ability to become approved.
Q6. How is it possible to approve a blanket release when the blanket purchase
agreement is showing that the full amount has already been released?
Ans: The validation of a release dollar amount is not against the amount agreed on
the header of the blanket purchase agreement; instead, it validates against the
Amount Limit specified in the Terms and Conditions window of the Purchase Orders
form. If this field is left blank, then the release can be for any amount. Therefore, it is
imperative that the Amount Limit field be populated with the same dollar amount as
the Amount Agreed field in the header region of the Purchase Orders form,
depending on the business needs. It should also be noted that Release 11i also has
introduced an Amount Limit field that can be defined at the line level of the blanket
agreement.
Q7. I am delegating the approval of a PO to someone who doesn't have access to

open this PO. Would he be able to approve it?
Ans: Since he has been 'delegated' the approval authority from you, his approval
actions would be adjudged as if you were taking those actions on this document.
However, the document would remain inaccessible to him. This is because by
'Delegating', you are only allowing him to act on approval decisions on your behalf,
rather than also delegating him the access authority.
Q8. Does autocreate add to an existing PO shipment that has been encumbered?
Ans: Purchasing does not add to an existing purchase order shipment if that
shipment has been encumbered even though all the grouping columns necessary to
combine shipping information are there.
Q9. an requisition line with item number and without item number [one time item]
be combined to single document line in autocreate?
Ans: If you want to combine two requisition lines for the same item, one with an item
number and one without, you have to manually autocreate the document and use
Modify on the Tools menu to add the predefined item to the requisition line for the
one time item.
Q10. What are the setups required for Encumbrance Accounting?

Ans:
In General Ledger
a) Enable budgetary control in your Set of Books:

Navigation: Setup->Financials->Books
Alternative Region : Budgetary Control Options Flag Enable Budgetary Control.
b) Create budgetary control groups:

Navigation: Budgets->Define->Controls
Create name, description and enter Budgetary control rules. e.g.. Add Purchasing as
Source with category Purchases.
This control group has to be attached at the Site level or User level Profile Option
(Budgetary Control Group) and this will control the behavior regarding the tolerance
of budgetary control.
c) Define Budget:
Navigation->Budget->Define->Budget
In Budget, basically you set period boundary for your budget i.e. time frame.
Remember to open the periods for the budget by pressing the Open next year
button.
NOTE:A prerequisite to the above step is that Encumbrance year should be open at
Set of Books level.
Navigation: Setup->Open/Close
d) Define Budget Organization:

Navigation: Budget->Define->Organization
In this step you choose the accounts for which you want to have control and link it to
your Budget defined in step 'c'. Complete Header of form and Navigate to Ranges
and define your ranges for your organization.
e) Encumbrance types:
Navigation: Setup->Journals->Encumbrances.
Encumbrance types are defined so as to bifurcate the reservation of funds done at
different levels i.e. Requisition, PO or Invoice level, it helps management people in
having better financial control.
In Purchasing
a) Enable encumbrance: Encumbrance has to be enabled in Financial Options form
in Purchasing modules.
In Purchasing: Setup->Organization->Financial Options (Alternative region
Encumbrance)
Select different encumbrance types for different levels i.e. Requisition, PO and
Invoice. Here you attach the types that you defined in step 1.e of GL setup.

Q11. What steps do I take when the approval of the purchase order fails due to
insufficient funds?
Ans:
1.Identify the distribution that is failing, the error message will usually indicate which
distribution is in error. Obtain the ccid of this distribution account.
2.Check the budget organization for which this code combination id is assigned. This
is accomplished in General Ledger (Budgets - Define - Organization).
a) First find the budget_entity_id (budget that this account is tied to)
select set_of_books_id , budget_entity_id ,
range_id, AUTOMATIC_ENCUMBRANCE_FLAG ,FUNDS_CHECK_LEVEL_CODE
from
GL_BUDGET_ASSIGNMENTS where CODE_COMBINATION_ID = '&#####' ;
b) Using the budget_entity_id query the Budget Organization name.

select name, set_of_books_id , status_code from GL_BUDGET_ENTITIES
where budget_entity_id = '&####';
Specifically verify the Amount Type, the Boundary and the Funding Budget values.
The funding budget should be active and ensure that your encumbrance amount has
not exceeded the funds available for the funds checking interval (boundary). For
example, if the budget total is $100,000.00, the amount budgeted per quarter is
$25,000.00, the Amount type is YTD and the boundary is QTD, then check that the
purchase order encumbrance would not exceed the boundary amount of $25,000.00.
Q12. The Encumbrance Detail Report does not pick up expected purchase orders.
Ans: Review the parameters passed to the report to verify that the selection criteria
did not exclude the purchase order. The selection of purchase orders on this report
is based on the following information in the database:
- the setting of the encumbered_flag in po_distributions, needs to be set to Y, and
the cancel_flag in po_line_locations must be set to N and
- the gl_encumbered_date in po_distributions must be between the dates passed to
the report for the encumbered dates and
- the vendor used on the purchase order must be included by the Vendor parameter
and
- the po_distributions.prevent_encumbrance_flag must be set to N

Q13. I am using encumbrance accounting and when I forward a Purchase Order
for approval, I am encountering the following error: APP-14166: Please enter a
forward to employee or funds are not reserved.
Ans: You must check the Reserve Funds check box when forwarding and/or
approving a Purchase Order if you are using encumbrance. You can check to see if
you are using encumbrance in Purchasing by doing the following:
 Setup/Organizations/Financial Options
 Change the Alternate Region to Encumbrance and see if the Use PO
Encumbrance check box is checked.
 Refer Note 1064155.6 for more details.
14. What are Reminder notifications?

Ans: Once an approver doesn?t respond to approval notification for quite sometime,
then a reminder notification can be sent out to the approver. You can send up to two
reminders to an approver using the Timeout feature. You can also specify that after a
certain period of time, the document be forwarded automatically to the next approver
in the hierarchy. This feature has to be setup by you by changing the PO and/or
Requisition approval workflow in Oracle Workflow Builder.
Q15. How do you setup the timeout feature?
Ans: In Oracle Workflow Builder, open the ?PO Approval? workflow (for purchase
orders) or the ?PO Requisition Approval? workflow for requisitions. To enable the
Timeout feature in the PO Approval workflow, modify the following activities in the
Notify Approver sub process by entering a Timeout period in their Properties
windows:
Approve PO Notification, PO Approval Reminder 1, and PO Approval Reminder 2.
To enable the Timeout feature in the PO Requisition Approval workflow, modify the
following activities in the Notify Approver sub process by entering a Timeout period
in their Properties windows: Approve Requisition Notification, Requisition Approval
Reminder1, and Requisition Approval Reminder2.
Q16. How do you generate the notifications for the documents that need to be
started up in approval yet?
Ans: You can run ?Send Notifications For Purchasing Documents? program to
search the documents that are incomplete, rejected, or in need of re-approval and
send notifications to the appropriate people informing them about the document?s
status.
Q17. Why does the create releases process not create a Release when we have run
the CREATE RELEASES program against a Blanket Purchase Order whose
EFFECTIVE DATES are in the future with a valid Sourcing Rule?
Ans: The CREATE RELEASE program must be run within the EFFECTIVE DATES
of the Blanket Purchase Order. This is because the program verifies whether the
SYSTEM DATE falls within the EFFECTIVE DATES, when looking for the Releases
to be created. This is a standard functionality.
Q18.When we try to run Requisition import after running a Min-Max planning

request why is it that requisitions are created from Requisition import but no
releases are created against blanket POs.
Ans: For Releases to get created automatically in the Requisition Import process:
- Check for the profile option PO: Release During Requisition Import which should be
set to 'Yes to create releases during requisition import.
- 'Sourcing Rule' must have current date between 'effective date' and 'to date'.
- Check that the requisition is sourced with the blanket, and the requisitions are
approved as part of the Requisition Import process.
- If the Encumbrance is ON, then the requisition will not get approved and will be in
pre approved status and hence release will not get created.
- Check the profile option MRP: Purchasing By Revision (If requisitions are coming
from MRP) and INV: Purchasing By Revision (If requisitions are coming from INV).
This must be set according and should not be null. This profile option must be set to
'Yes' or 'No' according to the customers requirement.
- Verify the table PO_REQUISITIONS_INTERFACE, column AUTOSOURCE_FLAG
is Y.
- Verify if this item has a blanket purchase agreement approved and it is not closed
or cancelled.
Q21. Can we save and approve blanket PO releases without entering promised and
need-by date?
Ans: If the item is either MRP/DRP, MPS/DRP or DRP planned item the promised
date or need by date is mandatory and the user has to enter the date. If the item is
not planned, then it is not mandatory.
Q20. What is the significance of "PO: Convert Requisition UOM to Source

Document UOM" profile option?
Ans: Earlier in Autocreate if the requisition UOM is different from the BPA UOM the
user would not be allowed to create a release. But in Create releases program this
was possible. To make the behavior consistent we have introduced this profile
option. If this profile is set to yes we allow the autocreation of the release with the
quantity and UOM converted to that of the BPA. If the profile is set to yes we do not
allow the creation of the req both in autocreate as well as the create releases
program.
Q21. Firm
Ans: When you firm an order, Master Scheduling/MRP uses the firm date to create a
time fence within which it will not suggest new planned purchase orders,
cancellations, or reschedule in actions. It continues to suggest reschedule out
actions for orders within the time fence. If several shipments with different promised
or need by dates reference the same item, Master Scheduling/MRP sets the time
fence at the latest of all scheduled dates.
You can firm orders at the document header or shipment level. If you firm at the
header level, Purchasing applies this control to every shipment on the document.
Q22. What is the setup needed for using Create Documents workflow?
Ans: If you want document creation to be launched online upon requisition approval,
then item Send PO Autocreation to Background in requisition approval process
should be set to N. Otherwise if this attribute is set to Y (default) then the requisition
approval process launches the create document workflow when workflow
background process is run. In this case, workflow background process must be run
with parameters: item type PO Requisition Approval and deferred Yes.
- Sourcing should be set up, so that the requisition gets sourced while creating it.
- If you want Create Document workflow to create the documents, then the Release
Method in ASL attributes should be defined as Release Using AutoCreate.
- In workflow definition for workflow PO Create Documents, the item attribute Is
Automatic Creation Allowed? should be set to Y (Default). Also if attribute Should
Workflow Create the Release? is set to Y (default), then workflow tries to create the
releases.
Q23. How does the Create Document Workflow decide which buyer to use for the
automatically created documents?
Ans: Workflow tries to retrieve buyer information in following order:
 Buyer specified on the Requisition Line

 Default buyer from Master Item
 Category
 Buyer of the source document
When creating a release, workflow retrieves the buyers name from the blanket
agreement. If workflow cannot find a buyer, it doesn’t create a document
Q24. What is the difference between the agreed amount and the amount limit fields
while entering a contract purchase agreement and issues related to these fields?
Ans:
 The agreed amount field at the header level is copied to the amount limit in
the terms and conditions block. This is also the amount that is printed on the
blanket agreement and represents the contract amount between you and the
vendor.
 The amount limit field will restrict the cumulative releases applied to this
purchase agreement from exceeding the specified dollar amount entered
here. The value of this field must be equal to or greater than the agreed
amount field. This column is used for release approval amount validation. If
the total cumulative releases exceed this amount approval will fail. The
purpose of this field is to allow user to set a higher approval amount limit than
the amount agreed.
Q25. What is the use of list price and market price on Purchase Order?
Ans: If you have entered an item, Purchasing displays the list price for the item. You
can accept the default list price or change it. You can use this field to help evaluate
your buyers. Purchasing uses the list price you enter here in the savings analysis
reports. Savings Analysis Report (By Buyer) and Savings Analysis Report (By
Category). If you enter an item, Purchasing displays the market price for the item.
Use this field to help evaluate your buyers. Purchasing uses the price you enter here
in the savings analysis reports if you do not provide a value in the List Price field.
Q26. What is the significance of the fields 'Allow Price override' and 'Price limit'?
Ans: For planned purchase orders and blanket purchase agreements only, check
Allow Price Override to indicate that the release price can be greater than the price
on the purchase agreement line. If you allow a price override, the release price
cannot exceed the Price Limit specified on the line. If you do not allow a price
override, the release price cannot exceed the Unit Price. You cannot enter this field if
the line type is amount based. If you allow price override, enter the Price Limit. This
is the maximum price per item you allow for the item on this agreement line.
Q27. Can I setup a different Purchase Order type default for the PO form?
Ans: The Purchase Orders form always defaults a PO type of 'Standard Purchase
Order', and there is no setup, which can change this. Although the default value
cannot be changed, the user can overwrite the defaulted type once the Enter PO
form is opened.
Q28. Can the original Purchase Order can be viewed in any way, for a revised
Purchase Order?
Ans: The original version of a revised PO cannot be viewed from the PO form or PO
summary form. Information on the original PO is stored in the
PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables, and can be obtained
through SQL, using the PO_HEADER_ID column as a common reference.
Q29. Create a Purchase Order. Input the Header and Line information and find
that the Shipments button at the bottom of the form is grayed out.
Ans: Setup the Receiving Options to enable the Shipment Button in the Purchase
Order form. Navigation: Setup --> Organizations --> Receiving Options. Once set-up
these options for your Organization you will have the Shipments button enabled.
Ensure that the Purchasing Options and Financial Options are defined for your
Organization.
Q30. Why is there no category displayed or list of values for the category field in
the purchase order you are creating?
Ans: You must also create category codes for your items. Then create a Category
set for Purchasing controlled at the master level. Assign your items to a category
code and the Purchasing category set you have created. Confirm that in Default
Category Sets the Purchasing application points to the Purchasing Category set.
This will populate the category and description when the item number is selected at
the PO line level.
Q31. What does the Account Generator process do?

Ans: The Account Generator process builds charge, budget, accrual, and variance
accounts for each purchase order, release, and requisition distribution based on the
distribution’s destination type. It is a synchronous Workflow process.
Q32. What are the Pre-requisites to use Account Generator?

Ans: Before using the Account Generator you must:
 Define your Accounting flexfield structure for each set of books.

 Define flexfield segment values and validation rules.
 Set up Oracle Workflow.
 Decide whether you want to use the Account Generator processes as seeded
in Oracle Purchasing, or you need to customize them to meet your accounting
needs.
Q33. Will the account generator build the charge account based on project
information?
Ans: No. By default, the Account Generator process as seeded in Oracle
Purchasing would not consider the project information to build the account. To
achieve this functionality, you should customize the Account Generator to consider
the project details. There is a dummy sub process 'Build Project Related Account'
seeded in the Account Generator workflow, available for customization. You would
also have to modify function
PO_WF_PO_CHARGE_ACC.IS_PO_PROJECT_RELATED to return a value of
"True".
For more information on how to customize the Account Generator, please refer to
the manual Oracle Purchasing Account Generator Workflow Customization Example.
Q34. When the charge account field is non updateable?

Ans: In the following cases the charge account field is not updateable:
 If the destination type code is INVENTORY or SHOP FLOOR.

 If the distribution is already encumbered.
 If the PO is created from a encumbered Requisition
 If the destination type code is Expense and
 If the project is entered and the profile option
PA_ALLOW_FLEXBUILDER_OVERRIDES is set to NO
 If the expense accrual code= RECEIPT
Q35. What should I do if the Purchase Document Open Interface (PDOI) process
fails?
Ans: The first thing is to check for the error message and examine description from
the po_interface_errors table for the given interface_header_id. The description
would be self explanatory. Accordingly check for the data in the
po_headers_interface, po_lines_interface tables and correct them and run the PDOI
again with the corrected data.
Q36.What can Receiving Routing be used for and how does it default?
Ans:
Direct Delivery - Perform Receive and Delivery on Receipts Screen at the same
time.
3-way matching.
Standard Receipt - Perform Receive on Receipts screen.
Perform Delivery on Receiving Transactions screen.
3-way matching.
Inspection Required - The inspection is required after Receiving and before Delivery.
4-way matching.
You can override the Receiving Routing on the Receipts screen only if the Profile
RCV: Allow Routing Override is set to 'Yes'.
The Receiving Routing on the receipts screen is defaulted as follows:

1. Purchase Order shipment
2. if 1 is null, then Item Attribute
3. if 2 is null, then Vendor Attribute
4. if 3 is null, then Receiving Option
Q37. How many Transaction Types exist?

Ans:
 Receive - Receive the items into Receiving Dock.

 Deliver - Deliver the items into expense or inventory destination.
 Return to Vendor - Return the received items directly to vendors.
 Return to Receiving - Return the delivered items to Receiving Dock or
inspection.
 Accept - Accept items following an inspection.
 Reject - Reject items following an inspection.
 Transfer - Transfer items between locations.
 Correct - Enter a positive or negative adjustment to a receiving or delivery
transaction.
 Match - Match unordered receipts to purchase orders.
 Unordered - Receive items without purchase orders
Q38. What are the major receiving tables involved?

Ans:
 RCV_SHIPMENT_HEADERS
 RCV_SHIPMENT_LINES
 RCV_TRANSACTIONS
 RCV_RECEIVING_SUB_LEDGER
Q39. What are the minimum setups required for Items which we use for Internal
Sales Order?
Ans: The items which we use for Internal Sales Order must be Inventory enabled,
internally orderable and stockable, shippable, and Order Management transactable
for the source organizations. Under Inventory, you need to select the Inventory Item,
Transactable, and Stockable options. Under Order Management, you need to select
the Internal Ordered, Internal Orders Enabled, OE Transactable, and Shippable
options.
Q40.What are the steps to perform Inter-Organization Transfer?

Ans: Follow these 3 simple steps:
1. Setup Shipping Network: This information describes the relationships and

accounting information that exists between a from (shipping) organization and a to
(distribution) organization.
Navigation path:
A. Choose the Inventory Manager responsibility.
B. Setup/Organizations - Make sure that there is an entry for from/to organization
(between the organizations you intend to perform the transfer). When you click on
this form, you will get a LOV with orgs.
-Choose the From Org.
-Transfer Type can be either Intransit or Direct (Direct would ship directly to
Inventory, so it would be a Direct Delivery).
-FOB can be either Receipt or Shipment, if the transfer type is entered as Intransit.
If Receipt the source inventory quantities get updated at time of receipt.
If it be Shipping, then the quantities get updated as soon as the shipment is done.
2. Inventory/Transactions/Interorganization Transfer: When you click on this form,

you will get a LOV with orgs. Choose the from org. Specify the to-org, transfer type
as intransit, and input a value for shipment-number.
Click on the transaction lines button. Input the item, the quantity and the
subinventories between which you want to do the transfer. (Sometimes there might
not be enough quantity in the from-org to do this. For this : Go to:
Inventory/Transactions/Miscellaneous Transactions. Specify the Type as
Miscellaneous Receipt. Click on transaction lines button and specify item/quantity).
3. Receive against an Inter-org Transfer: Choose Purchasing Super User

responsibility.
Under Purchasing/Receiving/Receipts - Query up against Shipment Number in the
find window. In RCV Transactions block, specify the quantity you want to receive and
commit the transaction.
Q41. How are Lot and Serial Numbers handled in Inter-Organization Transfers?
Ans: When you perform an inter?organization transfer, the source and destination
organization may have different lot/serial controls. Purchasing handles this situation
as follows:
 When the source organization uses controls and the destination organization
does not, the control numbers are recorded as being issued from the source
organization. Lot/serial transactions are recorded for the destination
organization.
 When the source organization does not use controls and the destination
organization does, the transaction is processed normally.
 When both source and destination organizations use controls, the control
numbers are recorded as being issued from the source organization. These
control numbers are tracked to insure that the same control numbers that
were shipped are the ones that are received.
 When items are returned from inventory to receiving or to the supplier, only
the control numbers originally recorded for the delivery transaction can be
used.
Q42. What are the main tables involved in Inter-Organization Transfer?

Ans: A check is carried out to see if the transaction date is in an open period as
specified in the profile option (INV: Transaction Date Validation). The column is
acct_period, the table is ORG_ACCT_PERIODS.
The organizations setting, cost information, etc, are derived from:
ORG_ORGANIZATION_DEFINITIONS, MTL_PARAMETERS, MFG_LOOKUPS,
MTL_INTERORG_PARAMETERS
[HR_ORGANIZATION_INFORMATION - for rel 11I].
The transaction information is derived from MTL_TRX_TYPES_VIEW for inter-org
transactions where transaction_source_type_id=13.
The item information is derived from MTL_SYSTEM_ITEMS
[MTL_SYSTEM_ITEMS_B - for rel 11I].
A check is carried out to verify the available item quantity on MTL_DEMAND and
MTL_ONHAND_QUANTITIES [MTL_RESERVATIONS included in rel 11I].
MTL_SUBINVENTORIES_TRK_VAL_V keeps track of the values of the
subinventories.
MTL_ITEM_LOCATIONS is searched for the locators specified (if used).
GL_CODE_COMBINATIONS is searched for a valid locator combination (if used).
The cost of the item is gotten from CST_CG_ITEM_COSTS_VIEW.
The transaction is inserted into MTL_MATERIAL_TRANSACTIONS_TEMP table.
If the item is under lot control, lot information is deleted from
MTL_TRANSACTION_LOTS_TEMP, likewise the serial numbers information if the
item is serialized is deleted from MTL_SERIAL_NUMBERS_TEMP,
MTL_SERIAL_NUMBERS.
The new lot information is inserted into MTL_TRANSACTION_LOTS_TEMP.
Q43. What is a Debit Memo Invoice?

Ans: Negative amount invoice which is created and sent to a supplier to notify the
Supplier of a credit you are recording.
Q44. What is Pay On Receipt?

Ans: Pay on Receipt (also known as ERS (Evaluated Receipt Settlement) or Self-
Billing) is an Oracle Purchasing's concurrent program, which automatically creates
invoices in Oracle Payables and matches them with PO's automatically for the
received amount. The short name for the program is POXPOIV.
Q45. What is the significance of Ageing Period (R11i)?

Ans: The parameter Aging period determines the transactions on the receipt that
can be considered for the invoice creation. For ex if aging period is given as 1, then
all the transactions that have a transaction date less than or equal to the (sysdate-1)
are considered for invoice creation. The aging period can be set thru the profile
option PO: ERS Aging period.
Q46. What are some of the supported and non-supported features of the Receiving
Open Interface?
Ans: The non-supported features include:
 Lot number transactions

 Serial number transactions
 Dynamic locator control
 Replace transactions
 Separate RECEIVE and DELIVER transactions
 This means that if there is a RECEIVE transaction processed using the open
interface, then the DELIVER transaction for that RECEIVE transaction needs
to be manually created using the Receiving Transactions form.
 DELIVER transactions as a single transaction
 May not handle Inter-Org Transfers or Internal Sales Order transaction types
 May not be used for creating unordered receipts
Q47. The supported features are the ones that exist in the Oracle Purchasing
application, excluding the above. The receipt information from Advance Shipment
Notice, Advance Shipment Notice with billing information, and other sources can
be used to create in transit shipments, receipts and delivery transactions as output
in the database.
Ans: The supported transaction types are:
 - SHIP for a standard shipment

 - RECEIVE for standard receipt
 - DELIVER for standard receipt and delivery transactions.
Q48. If you make changes to a sales order after the Purchase Order (PO) has been
generated, will the order changes automatically be updated on the PO?
Ans: Order changes will not be automatically updated on the PO. Pulling up the
Discrepancy report will allow you to view the differences between the Sales Order
and PO. However, you will have to manually update the POs in the Purchasing
application.
Q49. Can we return or correct an RMA?

Ans: We can correct/return a RMA that is received. Once the RMA is delivered, it
cannot be corrected or returned.
Q50. How can you have specific Requestor defaulted on Requisition form?
Ans: In order to have a specific requestor default onto the requisitions form, the user
will have to set the following in the user will have to set the following in the user's
requisition preferences. Navigation: /Purchasing -> Requisitions -> Requisitions Go
to special ->preferences Click in the requestor field Choose a requestor from the list
of values Click the 'apply' button, a message ' new preferences now in effect.' Close
the requisitions form Re-open the requisitions form Click in the lines region, the
requestor from requisition preferences should appear in the requestor field. The
requisition preferences are only valid while working on it , user needs to re enter
requisition preferences each time he starts the applications.
Q51. Unable to enter Project information on the Distribution line of a Requisition.
Ans: You cannot enter project information for inventory destinations (unless you
have Project Mfg installed). Setting Destination Type = Expense will resolve the
problem. You will then be able to enter information in the remaining Project related
fields.
Q52. The requisition can be saved without the need-by date field being populated.
Ans: Line items that are put on requisitions must be planned. It is necessary that the
items are planned in order for the need-by date to be enforced.
Step-by-step solution:
GUI - Query the item in the Item Master
- Choose the General Planning sub-region
- Make the item planned
Char - Navigate - Items - Update
- Query item
- In Item Details region choose select
- Make the item planned
Q53. Is it possible to have all requisitions created from Inventory - Min-Max

Planning to be imported with a status of INCOMPLETE?
Ans: Yes, it is possible to have all requisitions created from Min-Max Planning with a
status of INCOMPLETE. If the desired outcome is Min-Max requisitions showing a
status of INCOMPLETE, it is necessary to set the profile option: INV: MinMax
Reorder Approval to Incomplete. Conversely, if this profile option is set to Approved,
all requisitions imported from Min-Max Planning will be imported with an approval
status based on the approval authority of the user initiating the Requisition Import
process.
Q54. Payment due days if 30 days means will it be from invoice date or material
receiving date.
Ans: Due days calculation is based on what you set up in the PAYMENT tab window
of Supplier Master form.
It has Four options:
1. Goods Received
2. Invoice
3. Invoice received
4. System
Q.What is inventory control?Ans: Inventory control is the process of reducing

inventory costs while remaining responsive to customer demands. By this definition a
store would want to lower its acquisition, carrying ordering and stock-out costs to
their lowest possible levels. However a store would need to have enough inventories
to meet any needs of its customers.Q.What does inventory affect in a store?Ans:
Inventory levels and their values can affect the income of the store, the amount of
taxes paid, and the total stocking cost.Q.How can the value of inventory be
determined?Ans: The value can be found using four methods in inventory
control. Standard Cost: The specific cost in which each item's cost is added together
for the inventory's value. Average Cost: The weighted average of the costs for a
period to determine value. FIFO Cost: First In First Out. In this method value is
measured using the latest costs of goods while working towards the beginning of the
period until all goods in inventory are valued. LIFO Cost: Last In First Out. In this
method the costs of gods at the beginning of the period are used to determine the
inventory's value much like FIFO.Q.What are the important considerations in
inventory control?Ans: For inventory control to work at its best a store must
consider the costs of acquisition, carrying, ordering, and stock-out. The store must
also look at its reordering system, its budgeting for inventory, insurance and
forecasted demand.Q.Will the changes made in a Workday calendar comes into
effect after saving?Ans: No. The changes made into a Workday calendar will come
into effect only after Building the Calendar.Q.How different weekly offs can be
assigned to different shifts without doing it manually?Ans: Suppose Monday is
the Calendar Start day and we want Thursday as weekly off for 1st shift and Friday for
2nd shift, enter the ‘Workday Pattern’ for 1st as 3 On 1 Off and 3 On 0 Off. This
means that Monday, Tuesday and Wednesday are working days, Thursday is off and
Friday, Saturday and Sunday are again working days, for any week for 1st shift. And
for 2nd shift enter the Workday Pattern as 4 on 1 off and 2 on 0 off.Q.What is an
Organization?Ans: An Organization is an inventory location with its own Set of
Books, Costing Method, Workday Calendar and List of items.Q.What is a Sub
inventory?Ans: A Sub inventory is used when two physical inventory locations share
the same Set of Books, Costing Method, Workday Calendar, but different list of
items.Q.How will you that a location is available for transaction in all
Organizations?Ans: While defining the Location, don’t attach an Organization to it
so that the location can be used for any organizationQ.What is the difference
between Internal and External Organizations?Ans: The difference between
Internal and External Organization is that we cannot assign people to an External
Organization. Examples of External Organizations: Workers Compensation Insurance
Carriers. Organizations that are recipients of third party payments from Employee’s
benefits.Q.What is an Item Master Organization?Ans: The organization in which
the items are defined is called the Item Master Organization. Child Organizations
(other organizations) refer to the Item Master for the item definition. There is no
functional or technical difference between the Item Master Organization and other
Organizations. However, for simplicity, it is recommended to limit the item master to
just for an item defining organization.Q.Is it possible to have different costing
methods for different organizations under the same Item Master Organization?
Ans: Yes. Even we can have dummy organizations for using different costing method
for different costing method for different items within an organization.Q.Can we use
Average Costing in an organization where WIP is also installed?Ans: No. We
can’t use Average Costing if WIP is installed.Q.What shall be the Costing
Organization of an Org?Ans: If individual organization wants to have control over
its own cost, we will assign the current organization itself as the Costing organization.
If that is not the case, we can assign the Item Master Organization or any other
organization as the costing organization.Q.What are the Inventory material
transactions interface tables.Ans: Material Transactions Interface Tables are:
mtl_transactions_interface, mtl_transactions_lots_interface,
mtl_serial_numbers_interface, mtl_interface_errorsQ.In which table the inventory
material transactions history data is maintained after running the interface
program.Ans: Material transactions data are maintained in
“mtl_material_transactions” table. Q.In which table the onhand quantities of the
items exist? Ans: On-Hand quantities of the items are stored in
“mtl_onhand_quantities” table.Q.In which table the subinventories are stored?
Ans: Sub inventories are stored in “mtl_secondary_inventories” table.Q.In which
table the locators are stored?Ans: Location information is stored in
“mtl_item_locations” table.Q.What is the use of specifying alternate items in
Order Management? Ans: System facilitates order entry user to choose between
items which are set as Alternates based on attributes such as ATP etc. Hence
alternate items can be booked if original item is not available as per customer
timelines.Q.What are Back-to-Back orders and what are the setups involved?
Ans: Back to Back orders are orders for which items booked in Sale order is not
available in Inventory and system creates a purchase requisition and tracks the item
through creation of Purchase order from the requisition and finally when PO receipt
is made for the item, the receipt quantity is reserved against the sale order. Setups
include definition of item with attributes such as ‘Built in WIP’ and ‘Assemble to
order’ set to Yes. Sourcing rule needs to be defined for the item and sourcing rule
should be mapped to MRP: Assignment set.Q.What are ATO and PTO items?ATO
and PTO are types of Item which are used in OM and Configurator
mainly. Ans: ATO or Assemble to Order items are typically items that are built as per
the customer’s requirement. Hence ATO model is entered in Sales order and end
items are chosen from the configurator window. The workflow of the item creates a
Discrete job and chosen item is built in WIP. Once the Discrete job is complete, the
item is available in OM for picking and shipping. PTO or Pick to order items are items
which are picked from inventory based on customer requirements and then picked
and shipped. Q.What are the typical reasons for a line to get backordered during
Pick Release? Ans: Primary reasons for line to be backordered are
1. Item is not available in inventory

2. Inventory period is closed
3. Holds are placed against the order or order line.
Q.What is the purpose of Trips and Stops? Ans: A trip is an instance of a specific

freight carrier departing from a particular location containing deliveries. A trip is
carrier specific and contains at least two stops such as a stop to pick up goods and
another stop to drop off goods, and may include intermediate stops. Q.How to
setup Drop shipment cycle in OM? Ans: Oracle Order Management and Oracle
Purchasing integrate to provide Drop Shipments. Drop Shipments are orders for
items that your supplier ships directly to the customer either because you don't stock
or currently don't have the items in inventory, or because it's more cost effective for
the supplier to ship the item to the customer directly. In the sale order, specify the
Source type as External. Purchase Release program should be run and post this
program, requisition import program should be run. Q.What is the purpose of
Interface Trip Stop? Ans: Interface Trip Stop creates the sales order issue
transaction and thereby depletes the inventory to the sale order shipped quantity. As
part of ITS, COGS account gets generated. Q.What is RMA and what are the
scenarios when RMA cycle would be used? Ans: If I have shipped an order via
Order Management to a wrong customer or the wrong item/quantity has been
shipped, then I will do an RMA transaction in Inventory to bring the item back. This
will generate a credit memo in AR. If the customer finds that item is faulty or
defective, then he returns the shipment to us In this case too, we will create an RMA
in Inventory and receive the item back. This again creates a credit memo. Q.How to
setup credit hold in Order Management? Credit hold setups include setting
up Ans: Customer site level – Credit check must be enabled, Amount and currency
must be specified Payment term – Credit check must be enabled Credit check rule
– Credit check rule must be defined. Order type – Credit check Rule must be
mapped as requiredQ.How to setup quantity discounts in Price lists?
Ans: Quantity discounts are handled by specifying Price breaks by giving quantity
and corresponding price applicable. Q.What is the purpose of scheduling a sale
order? Ans: Scheduling a sales order ensures that line is available for Picking and
further transactions applicable. Also, Scheduling looks at sourcing rules to determine
the source of the item specified in order line. Scheduling honors Promise date and
Latest Acceptable date whichever is applicable as per setups. Q.What are processing
constraints in OM? Ans: Processing constraints ensure that user doesn’t violate any
business process or system defined process by putting checks on various actions
performed by user. Typically actions such as cancelling orders are governed by
processing constraints. contact for more on Oracle SCM Online Training

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If you're looking for Oracle SCM Interview Questions & Answers for Experienced or

Top 10 Frequently Asked Oracle SCM Interview

2. What Are Different Planning Methods in Inventory

3. What Are the Setups for Expense Items?

4. What Is the Use of Sales Order Kff?

5. What Is the Process of Cycle Count?

6. What Is the Picking Rule in Inventory

7. What Does the Account Generator Process Do?

8. What Is Pay on Receipt?

9. What Is the Significance of the Ageing Period (R11i)?

10. What Are Reminder Notifications?

Oracle SCM Interview Questions and Answers

I use Total Annual Cost equation:

TC = Total annual cost

C = Cost per unit

S = Cost of placing an order or setup cost

H = Annual holding and storage cost per unit of inventory

2. Have you used economic order quantity [EOQ]?

Total length of the supply chain = DRM + DWIP + DFG

4. How to calculate Supply Chain Working Capital Productivity

SWC (Supply Chain Working Capital) = INV+ AR-AP

SWCP (SWC productivity) = NS/SWC

5. How to calculate exponential smoothing?

It’s used in forecasting procedure:

F (t) = Ft-1 + a ((At-1) – (Ft-1))

Little’s Law relates throughput, time and inventory:

Flow time = Inventory (WIP)/Throughput rate

7. What’s the use of Global Trade Item Number (GTIN)?

It’s a standard number used in RFID and electronic commerce.

8. How to use a PKI system in supply chain?

9. Explain your experience with the Cost analysis?

Cost analysis=Review of the potential provider’s cost elements to determine their

I have conducted the Cost analysis as a review of:

Need for categories of personnel & reasonableness of personnel work time

Compare estimated costs with prior actual costs.

10. Explain your experience with supply chain performance

Consists of four types of indicators:

11. How do you forecast?

I can use Market research and Historical analogy to forecast.

12. Explain your experience with the product’s life cycle?

There are five stages of a product’s life cycle:

3. Packaging and Transport

13. When a process is considered to be of six sigma quality?

14. Have you performed marketing functions?

: Yes, I have performed these marketing functions of the supply chain:

15. Explain your experience with Material management

1. Efficient use of the working capital.

2. Responding to the market changes related to any product.

3. Ensuring the cooperation of all departments.

4. Providing best services to the customer.

5. Analyzing materials and supply to reduce cost.

6. Improve quality and ensure supplier performance.

7. Maintain minimum inventory levels

16. How the purchasing departments establish and maintain

It authorizes the delegation of purchasing authority and establishes and maintains

17. A supplier partnership focuses on which relationship?

It focuses on cooperative rather than adversarial relationships with suppliers.

18. What are the responsibilities allocated to the production

19. How will you ensure better decision-making capability?

20. What you suggest for optimizing purchasing and production

I suggest these responsibilities can be shared by both:

2. Lead time for delivery of material

4. Selection of sources of supply