What are the steps involved in implementing order transaction types in order

management?
Create a line transaction types for order lines
create order transaction type
Assign line flows to order transacction types
Create document sequence for orders
Assign order transaction types to the document sequence.

When a line is at fulfilled step and the workflow is at applying per-payment, how
can we progress the line to close?
Go the order lines showing fulfilled > Right Click > Select process Order
This will interface the order to Accounts Receivable for Invoice Interface.

Question 3. What Are The Steps To Define An Order Type And What Are The Mandatory
Requirements?

Answer :

In the Order Management ->Setup -> Transaction Types

Transaction type Window Opens.

Mandatory requirements:

Operating Unit / Organization must already been defined.

Defaulting Rules
Price Rules
Freight Carriers
Most important is already we must have defined OM Line Transaction Type so that we
can assign this Line Transaction Type to OM Order Transaction Type.
Credit Check Rules.
Invoicing Rules & Accounting Rules.
Currency
Question 4. When Scheduling, The Line Got Error "atp Error Scheduling Failed". How
Will You Resolve?

Answer :

This error may be due to Item setup in Inventory & Order Transaction Type Setup
Order management.

Ensure the Below Setups

Inventory -> Items -> Organization Items -> Order Management ->Check ATP should be
none.
Order Management -> Setup -> Transaction Types ->Define. In 'Shipping' sub-tab
uncheck 'Auto Schedule' check box.
Profile Option 'OM: Auto Schedule' should be 'No'.
Question 5. What Are The Possible Reasons For Interface Trip Stop To Complete With
Error?

Answer :

Few reasons may be

Order is on Hold
Tax is not applied properly
On-Hand qty is not available in the Inventory
Inventory Period is not open
Make sure Schedule Ship Date or Requested Date is within the range of order Date

Question 6. Explain The Setup Involved In Drop Shipment Process?

Answer :

Drop Shipment is a process where the customer places a purchase order on a company
and the company instructs its supplier to directly ship the items to the customer.
Drop Shipment Process Steps
Create a Sales Order with line where the line source is External
Book and Schedule the Sales Order
Run workflow background Process
Now the line status will be in Awaiting Receipt
Login to the Receiving Organization (Purchasing) who has been setup as an Approver
Run Requisition Import Process
Auto create to Create Purchase Order
Approve the PO
Receive against the purchase Order
Run Auto Invoice
Verify Invoice in Sales Order
Oracle Order Management uses purchase orders to outside suppliers that are
automatically generated from sales orders for goods supplied directly from the
supplier. The external supplier ships the goods directly to the 3rd Party customer
and confirms the shipment through the use of an Advanced Shipment Notice (ASN).
Question 7. What Are The Different Statuses For A Drop Ship Order?

Answer :

Entered
Booked Awaiting Receipt
Closed
Question 8. Explain Internal Sales Order?

Answer :

Internal Sales Orders are used to transfer material from one inventory organization
to other inventory or warehouse organization with the same company.

Flow of Internal Sales Order

Internal requisition in PO/INV ->Requisition Approval -> Run Create Internal Sales
Order Concurrent Program ->Run Order Import Concurrent Program in OM -> Pick Item
in INV thru OM -> Ship Confirm ->Receive Internal Order in INV / PO
Select Order Source as Internal while importing Orders.
Shipping Network (Intransit or Direct) to be defined between two organizations
(Source and Destination)
Destination (requesting) Organization should be defined as Internal Customer with a
Ship to address in Order Management.
An Internal Sales Order does not generate Accounts Receivable Invoice
Question 9. Explain Back To Back Order Or Procure To Order Processing?

Answer :

Customer order products from you company, you place the order with third party
supplier. The supplier ships the product to you and you ship the product to
Customer.

Question 10. What Are The Inventory Set Ups Required For Back To Back Order
Processing?
Answer :

Order Management Tab: Customer Orderable, Assemble to Order (ATO)

Purchasing Tab: Purchasable

WIP Tab: Build in WIP

General Planning Tab: Buy

Question 11. What Is The Difference Between A Credit Memo And An Invoice?

Answer :

Credit Memo � A document that partially or fully reverses an original invoice

amount.

Invoice � A document you create in Oracle Receivables that lists amounts owed for
the purchases of goods or services. This document may list any tax and freight
charges.

Question 12. What Is A Standard Item?

Answer :

A standard item is a finished good that is not an assembled or configured item, a

service or a component.

Question 13. What Happens When You Enter An Order?

Answer :

After you enter an order, the items on the order are validated in Oracle Inventory;
a price is calculated for the items using the pricing engine; the availability of
the items are checked and may be reserved; the items are then pick released and
shipped to the customer.

Question 14. Explain About Processing Constraints?

Answer :

Processing Constraints are a security framework where you can define rules in
Oracle Order Management that validate back-end operations such as Create, Update,
Delete and Cancel.

Examples:

You cannot change the Order Type in the order header once the order is Booked.

You cannot delete the line in an order once the Order Status is Closed (if the
order is ship confirmed or invoice interfaced).

Question 15. What Are Defaulting Rules?

Answer :

Defaulting Rules enable you to speed up data entry by passing values in the window
based on some key values you have entered.
Examples:

In the order header, Ship-To Address and Bill-To Address values default in the
window once you enter the customer name or number.

If you enter an item number, the Unit of Measure and Item Description automatically
default on the order line.

Question 16. How Drop Ship Order Is Created?

Answer :

Drop shipments are created as sales orders in Order Management, indicated as drop
shipments when their Source Type is entered as External.

Question 17. When Will You Create A Drop Ship Order?

Answer :

Drop shipments are used due to the following reasons:

Customer requires an item that is not normally stocked

Customer requires a large quantity of the item which is not available with you
It is more economical when the supplier ships directly to the customer.
Question 18. What Are The Types Of Drop Ship Order?

Answer :

There are three types of drop shipments:

Full Drop Shipment:

The seller sends the purchase order to the supplier for the full quantity that the
customer had ordered

Normal Shipments and Full Drop Shipment:

The seller ships some goods from inventory to the customer, and the other goods are
always shipped from an external source (supplier)

Normal Shipments and Partial Drop Shipment:

If the seller has only part of the quantity available for shipping to the customer,
then that quantity is shipped.

The user looks at the availability for the order qty by using the ATP check and if
the whole qty is not available the balance qty is fulfilled using the drop ship
process.

A purchase order is created for the remaining quantity which the seller was not
able to fulfill.

Question 19. What Is A Sales Agreement?

Answer :

A Sales Agreement is a supplier�s representation of an agreement with a customer

for the supplier to sell and the customer to buy goods or services.
Question 20. What Is Asn?

Answer :

ASN stands for Advanced Shipment Notice. ASN is transmitted via Electronic Data
Interchange (EDI) from a supplier to let the receiving organization know that a
shipment is coming. The ASN contains details including shipment date, time, and
identification number, packing slip data, freight information, and item detail
including cumulative received quantities, purchase order number, and returnable
container information.

Question 21. What Are Modifiers And Qualifiers?

Answer :

Modifiers are discount, surcharge or special charge that may be applied to the base
price and may alter the value of the item. It can be applied either at order level
or at the line level.

A qualifier helps you define who is eligible for a price list or modifier. A
qualifier can be a customer name, a customer class, an order type, or an order
amount that can span orders.

Question 22. Explain One Step Pick Release Process?

Answer :

The one-step process consists of selecting the Auto Allocate box on the Inventory
tab and the Auto Pick Confirm box on the Inventory tab when you run Pick Release,
which means that the Pick Recommendation is automatically created and Pick
Confirmed without any manual intervention.

Question 23. Explain Two Step Pick Release Process

Answer :

The two-step process consists of selecting Auto Allocate (not Auto Pick Confirm),
which creates a move order that is automatically detailed. It enables you to view
the Pick Recommendation and provides the opportunity to change quantity, location,
and subinventory. You can report a missing quantity at the Pick Confirmation step
in the Transact Move Orders window. Once you have made your changes, you can
transact the move order to Pick Confirm the inventory.

Question 24. Explain Three Step Pick Release Process?

Answer :

The three-step process consists of selecting neither the Auto Allocate or Auto Pick
Confirm check boxes. This creates a move order whose details you can enter manually
or automatically in the Transact Move Orders window. After the details are entered,
you can transact the move order to pick confirm the transaction.

Question 25. What Are Various Ways You Can Run Pick Release?

Answer :

Release Sales Orders Window

Using a Concurrent Program

SRS � Pick Selection List Generation � SRS.

Release Rule Name need to be specified to proceed with the pick release when using
the concurrent program or SRS.

Question 26. At Which Stage The Item Is Moved From Ware House To Staging Inventory?

Answer :

During Pick Confirm

Question 27. What Happens During Ship Confirm?

Answer :

Ship Confirm indicate that the items are loaded onto the carrier from staging
location.

Question 28. At Which Stage The Oracle Inventory Is Decremented And Sales Order
Line Status Is Updated?

Answer :

During Ship Confirm

Question 29. What Is Autoinvoice?

Answer :

AutoInvoice is a concurrent program in Oracle Receivables that performs invoice

processing at both the order and line levels. Once an order or line or set of lines
is eligible for invoicing, the Invoice Interface workflow activity interfaces the
data to Receivables.

Oracle Order Management inserts records into the following interface tables:

RA_INTERFACE_LINES and RA_INTERFACE_SALES_CREDITS.

Question 30. If The Order Or Lines Are On Hold, What Happens During Invoice
Interface?

Answer :

The Invoice Interface workflow activity will complete with a status of On Hold and
the order details will not be interfaced to Receivables.

Question 31. What Is Credit Check?

Answer :

Credit Checking feature is the process by which orders are validated and released
against your credit checking business rules.

Question 32. What Are The Two Invoicing Rules?

Answer :

Advance Invoice and Arrears Invoice

Question 1. What Are Different Planning Methods In Inventory?

Answer :

There are 5 different planning methods in oracle Inventory:

Subinv Replenishment Planning

Min Max Planning
Re-order point planning
Kanban Planning
Periodic Automatic Replenishment
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

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
Question 3. What Is The Concurrent Program For The Planning?

Answer :

Min Max planning report under planning menu in Inventory responsibility

Question 4. What Are The Setups For Expense Item?

Answer :

Should not be Inventory Item

No Stackable
No Transactable
No Costing, Inv Asset
Question 5. How Many Key Flex Fields Are There In Inventory?

Answer :

Seven KFF are there in Inventory:

Account Alias
Item
Item Category
Item Catalogues
Stock Locators
Sales Order
Service Items

Question 6. What Is The Use Of Sales Order Kff?

Answer :

This is used during material transaction when source is Sales Order.

Segments are Sales order Number. Sales Order Type. Sales Order Source.
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 :

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.
Question 8. What All Setups You Have Done In Inventory Organization Implementation?

Answer :

Location
Calendar
Organization
Parameter
Cost Group
Sub inventory
Stock Locator
Receiving Options
Shipping Networks
Intercompany Transaction flows
Cost Sub elements
Question 9. What Is The Difference Between Purchased And Purchasable Flag For An
Item?

Answer :

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 can�t be created and approved for the items.
If purchased is enabled, item can be received if already present in an approved
purchase order.
Question 10. What Is The Valuation Accounts Used In Inventory?

Answer :

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.
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 Payable to
record invoice price variance.
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.

Question 11. What Is Abc Analysis And Why It Is Being Used?

Answer :

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.
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.
Question 12. What Are The Processes Of Cycle Count?

Answer :

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
Question 13. What Is The Different In Mo Issue And Mo Transfer?

Answer :

MO Issue will move out the stock from inventory against an account.
MO transfer will move the stock from one sub inventory to other.
Question 14. What Is The Picking Rule In Inventory?

Answer :

Picking Rule is used to determine the list of items for sales order/ shipping based
on the revision, Lot, Sub inventory and Locator.
Assign the required Picking Rule to the item in Order Management tab.
Question 15. What Are The Criteria In Cycle Count?

Answer :

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.
Question 16. What Are The Diff In Lot And Serial?

Answer :

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.
Question 17. What Is Move Order In Om?

Answer :

Move orders generated as part of Pick Wave are the ones from Sales order.

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.

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.

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:

BOM Enabled
Build in WIP
Customer order enabled
Internal Order enabled
Inviolable
Purchasable
Stackable
Transactable
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.

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.

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.

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.

Question 25. How Lot Number Generates?

Answer :

You can generate new Lot numbers during transactions.

Question 26. What Is Serial Controlled And What Are The Setups?

Answer :

Serial control can be setup at item attributes at organization level.

Question 27. How Serial Numbers Are Generated?

Answer :

Serial control can be setup at item attributes at organization level.

No Control, At Receipt, At Sales Order issue, Predefined.

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.

Question 29. What Are The Transaction Managers?

Answer :

Transaction manager is the interface managers which carry out all transaction once
submitted by the users.

Question 30. Can We Change The Item Name After It Created?

Answer :

Yes we can change the name in master level.

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.

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.

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.

Question 34. How Many Types Of Bar Codes Are There?

Answer :

Mainly 2 types Linear (1 dimensional) and Matrix (2D).

Question 35. What Is An Item?

Answer :

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.
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.

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.
Question 38. What Is A Sub Inventory?

Answer :

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.
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.
Receiving type sub inventory is only used for receiving items. Items in this sub
inventories cannot be on-hand or reserved.
Question 39. In Which Table Does The Sub Inventory Related Information For An Item
Is Stored?

Answer :

MTL_SECONDARY_INVENTORIES

MTL_ITEM_SUB_INVENTORIES

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.

Question 41. What Are The Key Flex Fields In Oracle Inventory?

Answer :

Oracle Inventory provides the following flex fields:

System Items
Item Catalogs
Item Categories
Stock Locators
Account Alias
Sales Order
Question 42. What Are The Basic Steps Involved In Defining An Item?

Answer :

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.
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.

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.

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�.

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.

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.

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.

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

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.

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.

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:

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 sub inventory to other in the same organization.
Transfer of items between various inventory organizations.
Reservation of items.
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.

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.

Question 55. What Are The Components Used In Customizing A Transaction?

Answer :

The following are the three components used in a transaction

Transaction Source Type

Transaction Action
Transaction Type
A Transaction Source Type and a Transaction Action come together to form a
Transaction Type.

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:

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
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).

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.

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.

Question 60. What Are The Objectives Of Inventory Control?

Answer :

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.
Question 61. What Are The Factors That Affect Inventory Control?

Answer :
Type of product
Type of manufacture
Volume of production
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).

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.

Question 64. What Are The Different Planning Methods Available In Oracle?

Answer :

Re-order point planning

Min-Max planning
Kanban cards
Sub inventory replenishment planning
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]

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.

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.

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.

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:

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
Question 70. When Can You See Such Scenario, Item Available To Qty Is 0 But
Available To Transact More Than 0?

Answer :

If item is not resolvable

If Sub inventory Allow reservation is not allowed
If Item is lot controlled and lot is expired
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.

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.

There is no onhand present in that sub inventory. 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.

Question 1. What Is A Purchase Requisition And Define Various Requisitions?

Answer :

It is a formal request intended to procure/buy something that is needed by the

organization. It is created and approved by the department requiring the goods and
services.

A purchase requisition typically contains the description and quantity of the goods
or services to be purchased, a required delivery date, account number and the
amount of money that the purchasing department is authorized to spend for the goods
or services. Often, the names of suggested supply sources are also included.

Basically, requisitions are of two types:

Internal requisition and purchase requisition

Internal Requisitions are created if the Items are to be obtained from one
Inventory location to another location within the same organization. Here the
source of the requisition would be INVENTORY. There is no approval process for
internal requisition.
Purchase Requisitions are created if the goods are obtained from external
suppliers. Here the source of the requisition would be SUPPLIERS. The purchase
requisitions are sent for approvals.
Question 2. What Are The Base Tables For A Purchase Requisition?

Answer :

PO_REQUISITION_HEADERS_ALL (SEGMENT1 column in this table represents the

requisition number):
This table stores Header information of a Purchase Requisition.

Important columns of this table:

REQUISITION_HEADER_ID:It is a unique system generated Requisition identifier

PREPARER_ID:It is a unique identifier of the employee who prepared the requisition

SEGMENT1:It is the Requisition number

AUTHORIZATION_STATUS:Authorization status type

TYPE_LOOKUP_CODE:Requisition type

ORG_ID:Unique Operating unit unique identifier

PO_REQUISITION_LINES_ALL:

This table stores information about Requisition lines in a Purchase Requisition.

This table stores information related to the line number, item number, item
category, item description, item quantities, units, prices, need-by date, deliver-
to location, requestor, notes, and suggested supplier information for the
requisition line.

Important columns of this table:

REQUISITION_HEADER_ID:It is a unique system generated Requisition identifier

REQUISITION_LINE_ID:Link between PO_REQUISITION_LINES_ALL And

PO_REQ_DISTRIBUTIONS_ALL

LINE_NUM:Indicates the Line number

LINE_TYPE_ID:Indicates the Line type

CATEGORY_ID:Unique Item category identifier

ITEM_DESCRIPTION:Description of the Item

QUANTITY NUMBER:Quantity ordered

PO_REQ_DISTRIBUTIONS_ALL:

This table stores information about the accounting distributions of a requisition

line. Each requisition line must have at least one accounting distribution. Each
row includes the Accounting Flexfield ID and Requisition line quantity.

Important columns of this table:

DISTRIBUTION_ID:Unique Requisition distribution identifier

REQUISITION_LINE_ID:Unique Requisition line identifier

CODE_COMBINATION_ID:Unique General Ledger charge account identifier

DISTRIBUTION_NUM:Distribution number

Question 3. What Is A Requisition Import Program?

Answer :

It is a concurrent program, which is used to import requisition from Oracle or Non-

Oracle system.

Data is first loaded in PO_REQUISITION_ALL table. The RIP can then be run, to
import the records from the interface table as requisition in Oracle Processing.

RIP creates a requisition line and one or more requisition distribution for each
row it finds in the interface table. It then groups these lines on Requisitions
according to parameters defined

Question 4. What Tables Are Affected When You Run Requisition Import Program?

Answer :

PO_REQUISITION_INTERFACE_ALL
PO_REQ_DIST_INTERFACE_ALL
PO_INTERFACE_ERRORS
Question 5. What Are The Reports Associated With Requisition Import Process?

Answer :

Requisition Import Run Report: We can view the number of requisitions created and
the number of records that showed an error

Requisition Import Exceptions Report: In this report we can see all the rows that
fail validation.

Question 6. When Will You Use A Requisition Template?

Answer :

Requisition templates can be used to help you quickly create requisitions. A

requisition template contains much of the information needed to create a
requisition, thus reducing the amount of data entry required to create a new
requisition. If you find yourself repeatedly creating similar requisitions for your
group or department, you should consider creating and saving requisition templates
as a time-saver.

If the data of requisition remain the same for repeated purchase of an item, the
information can be copied to a template and the same can be copied to the
Requisition as many number of times as required.

Question 7. What Is The Purpose Of Choosing A Category When Creating A Requisition?

Answer :

The Category box is a required field and is used to define goods and services at a
summary or detailed level.

Question 8. What Does The Status Pre-approved Mean?

Answer :

Pre-Approved is the status of a requisition when an authorized approver has

approved the requisition and has forwarded the requisition to another individual to
review.

Question 9. What Is The Difference Between A Rejected And A Returned Requisition?

Answer :

Only an approver or a reviewer can reject requisition. Only a buyer can return a
requisition. A buyer will return a requisition to the preparer for incomplete or
inaccurate information.

Question 10. What Is Rfq And Differentiate The Types Of Rfq’s?

Answer :

A Request for Quotation (RFQ) is a formal request sent to the suppliers to find the
pricing and other information for an item or items. Based on the information
supplied, the supplier quotes a quotation against the RFQ form.
In general, RFQ�s are created before purchasing any item to actually know the price
quotes from one or more suppliers.
In Oracle EBS, RFQ�s can be auto created from an existing Purchase Requisition or
can be a fresh RFQ.

There are three types of quotations and RFQs that come with Purchasing by default:

Catalog: Used for high-volume items or items for which your supplier sends you
information regularly. A Catalog quotation or RFQ also includes price breaks at
different quantity levels.

Standard: Used for items you�ll need only once or not very often, but not
necessarily for a specific, fixed quantity, location, and date. For example, you
could use a Catalog quotation or RFQ for office supplies, but use a Standard
quotation or RFQ for a special type of pen you don�t order very often. A Standard
quotation or RFQ also includes price breaks at different quantity levels.

Bid: Used for a specific, fixed quantity, location, and date. For example, a Bid
would be used for a large or expensive piece of equipment that you�ve never ordered
before, or for an item that incurs transportation or other special costs. You
cannot specify price breaks for a Bid quotation or RFQ.

Question 11. What Is A Quotation, What Are The Different Types Of Quotations
Available And Describe The Quote Analysis?

Answer :

A quotation is a supplier�s response to RFQ.

Quote analysis is the process of reviewing the quotations given by the suppliers.
The best quotation will be selected by analyzing certain factors like price,
quality, delivery time etc.

Question 12. What Is A Purchase Order And Explain The Different Types Of Po’s
Available?

Answer :

A Purchase order is a commercial document and first official order issued by the
buyer to the supplier, indicating types, quantities, and agreed prices for products
or services the supplier will provide to the buyer.
Basically, there are four types of Purchase Orders

Standard Purchase Order:

Used for One-time purchases for goods and services. Here you know the item, price,
payment terms an delivery schedule

Planned Purchase Order:

Created when you have long-term agreement with the supplier. You must specify the
details of goods and services, payment terms and the tentative delivery schedule

Blanket Purchase Agreement:

Created when the details of items and services, payment terms are known but not
specific about the delivery schedule

Contract Purchase Agreement:

Created when the terms and conditions of a purchase are known but specific goods
and services are not.

Question 13. What Are The Base Tables That Are Affected When You Create A P.o?

Answer :

PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)

This table stores header information of a Purchasing Document. You need one row for
each document you create.

PO_LINES_ALL:

This table stores the line information of a Purchasing Document

PO_LINE_LOCATIONS_ALL:

This table contains the information related to purchase order shipment schedules
and blanket agreement price breaks. You need one row for each schedule or price
break you attach to a document line.

PO_DISTRIBUTIONS_ALL:

This table contains the information related to accounting distribution of a

purchase order shipment line. You need one row for each distribution line you
attach to a purchase order shipment

VENDORS_ALL:

This table stores the general information about the suppliers

PO_VENDOR_SITES_ALL:

This table stores information about the supplier sites. Each row includes the site
address, supplier reference, purchasing, payment, bank, and general information.

PO_RELEASES_ALL:
This table stores information related to planned and blanket Purchase Order
releases. Each row includes the buyer, date, release status, and release number.
Each release must have at least one purchase order shipment.

PO_VENDOR_CONTACTS:

This table stores information about contacts related to Supplier site. Each row
includes contact name and site.

PO_ACTION_HISTORY:

This table stores information about the approval and control history of a
Purchasing Document. This table stores one record for each approval or control
action an employee takes on a purchase order, purchase agreement, release or
requisition.

Question 14. What Is 2-way, 3-way, 4-way Matching?

Answer :

Oracle Payables shares purchase order information from your purchasing system to
enable online matching with invoices. Invoiced or billed items are matched to the
original purchase orders to ensure that you pay only for the goods or services you
ordered and/or received.

Two�Way: Purchase order and invoice quantities must match within tolerance before
the corresponding invoice can be paid.

Three�Way: Purchase order, receipt, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.

Four�Way: Purchase order, receipt, accepted, and invoice quantities must match
within tolerance before the corresponding invoice can be paid.

Question 15. Explain The P2p Process Flow?

Answer :

Procure to pay (p2p) is a process of requesting, purchasing, receiving, paying for

and accounting for goods and services. Procure to Pay Lifecycle is one of the
important business Process in Oracle Applications. It�s the flow that gets the
goods required to do business. It involves the transactional flow of data that is
sent to a supplier as well as the data that surrounds the fulfillment of the actual
order and payment for the product or service.

Create a requisition>> create RFQ>> create a quotation from quote analysis>>

generate a PO>>receipt of material>> create Invoice in payables>> transfer to GL

Question 16. What Is An Approval Hierarchy?

Answer :

Approval hierarchies let you automatically route documents for approval.

There are two kinds of approval hierarchies in Purchasing:

position hierarchy
employee/supervisor relationships.
Question 17. What Are The Documents That Use Po_headers_all?
Answer :

The following are the documents that use PO_HEADERS_ALL RFQ�s, Quotations, Standard
Purchase Order, Planned Purchase Order, Blanket Purchase Order and Contracts.

Question 18. Can The Original Purchase Order Be Viewed In Any Way Without Resorting
To Sql, For A Revised Purchase Order?

Answer :

The original version of a revised PO cannot be viewed from the PO form or PO

summary form. Information on the original PO can be obtained from the
PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables using the PO_HEADER_ID column as a
common reference using SQL only.

Question 19. Can We Automatically ‘close’ The Purchase Order Without Receiving The
Full Quantity?

Answer :

The Receipt Close Tolerance lets you specify a quantity percentage within which
Purchasing closes a partially received shipment. For example, if your Receipt Close
Tolerance is 5% and you receive 96% of an expected shipment, Purchasing
automatically closes this shipment for receiving.

Question 20. When Does A Purchase Order Line Get The Status ‘closed For Receiving’?

Answer :

Goods have been received on the system against this line but an invoice has not
been matched to the order.

Question 21. Can We Match An Invoice Against A Line Even When It Is ‘closed For
Invoicing’?

Answer :

The Close for invoicing status does not prevent you from matching an invoice to a
purchase order or to a receipt.

Question 22. What Does Create Internal Order Conc Request Do?

Answer :

Create internal order request will transfer the IR info to OM interface tables.

Question 23. Explain The Receipt Routing?

Answer :

Receipt Routing is of three types: Direct, Standard and Inspection

In Direct once the goods arrive at the destination, we directly move them to a
specific Sub-Inv
In Standard once the goods are at the destination, we receive it at the receiving
point first and then move them to the Sub-Inv.
In Inspection once the goods are at the destination, we receive it at the receiving
point and then we perform inspection and accordingly we either accept it or reject
them.
Question 24. What Are The Different Purchasing Modes In Receiving?

Answer :

There are three modes:

Online: Receipts are processed online. If there are any errors, they are shown on
the FORM itself, and don�t let you IGNORE and PROCEED.

Immediate: Receipts are processed immediately, but no errors are shown. Errors are
recorded in REC_TRANSACTION_INTERFACE table.

Batch: Receipts are processed in batch, but no errors are shown. Errors are
recorded in REC_TRANSACTION_INTERFACE table.

Note: In all the above two cases, it requires Receiving Transaction Processor to be
run periodically.

Question 25. Which Tables Are Updated When You Save A Received Data In A Form?

Answer :

RCV_SHIPMENT_HEADERS:It contains supplier shipment header data like Shipment date,

supplier Name

RCV_TRANSACTIONS_INTERFACE:It contains received data like Item name, quantity, and

receiving location

RCV_SHIPMENT_LINES
MTL_MATERIAL_TRANSACTIONS_TEMP
PO_LINE_LOCATIONS_ALL
PO_DISTRIBUTIONS_ALL
Question 26. What Are The Major Transactions In Receiving?

Answer :

Purchase Order Receipts

Internal Requisition Receipts
Inventory Inter-Org Transfer Receipts
Customer Return Receipts
Question 27. What Is Pay On Receipt Autoinvoice Program?

Answer :

By running this program, we can automatically create an invoice for a PO when we

enter a receipt for the respective PO.

Question 28. What Is Invoice Validation Process?

Answer :

Before you can pay or create accounting entries for any invoice, the Invoice
Validation process must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and
distribution information for invoices you enter and automatically applies holds to
exception invoices. If an invoice has a hold, you can release the hold by
correcting the exception that caused Invoice Validation to apply the hold by
updating the invoice or the purchase order, or changing the invoice tolerances.
Question 1. Which Are Required Steps In Inventory Module Set Up?

Answer :

All the 6 key flex fields i.e. Items, Item Catalog, Account Alias, Sales Order,
Locator and Item Category
Organizations
Change Organizations
Intercompany Relations
Unit of Measure Classes
Sub inventories
Item Attribute Controls, Categories
Default Category set
Item Statuses
Cost types
Profile Options
Inventory Accounting Periods
Question 2. What Is Item Master Organization?

Answer :

An item master organization is a logical entity that you use to define items. After
you define an item in the item master, you can assign it to any number of other
organizations. You should also define one item master organization per
implementation. When you define an item, Oracle automatically changes your current
organization to the master organization.

Question 3. What Is An Inventory Organization?

Answer :

Inventory Organization is a facility where you store and transact items. It can be
a manufacturing unit, warehouse, distribution centre, item master organization
(logical entity), etc.

Question 4. Can You Change Customer Item Name Or Item After You Save It?

Answer :

Yes, you can change it if you have set the profile option INV: Updatable Customer
Item to Yes and INV: Updatable item to Yes respectively.

Question 5. What Is Item Status? Name The Related Table?

Answer :

INVENTORY_ITEM_STATUS_CODE is the Colum in table MTL_ITEM_STATUS will tell you the

different status for item while you defining the item in item master form
(INVIDITM). You can have different status as shown in below, also u can define your
own custom status in status code form in item setups (INV DOIS)like �easyapps�.

Active, Inactive, Engineer, Obsolete, Phase-Out, Prototype, OPM, Lease, Production,

Concept, Design, DEM_Status, Pending.

Question 6. Define The Difference Between Cycle Counting And Physical Inventory?

Answer :
Cycle counting is the periodic counting of individual items throughout the course
of the year to ensure the accuracy of item. Physical Inv. counts the entire
inventory once a year Physical Inv. takes a snapshot of inv.'s on-hand quantity at
the beginning of the process. All adjustments are made against snapshot quantity.
In cycle counting fewer items are counted each day so less disruption to normal
production or distribution In PI all items are counted once a year so a lot of
disruption.
Question 7. Different Type Of Inventory Planning?

Answer :

There are 4 inventory Planning methods as mentioned below:

Min-max planning
Re-order point planning
Kanban planning
Periodic Automatic Replenishment(PAR)
Question 8. What Are The Flex Fields In Inventory?

Answer :

System Item
Item Catalog
Item Categories
Stock Locator
Account Aliases
Question 9. What Is The Use Of Item Templates?

Answer :

There are two types of templates:

Predefined and Custom Template.

Predefined templates are planning item, purchased, outside processing item, lease
item. So that once you assign any template, to new item then all default characters
are assign to new item.

Question 10. In Which Table Sub Inventory Related Information For Item Is Stored?

Answer :

MTL_ITEM_SUB_INVENTORIES.

Question 11. What Are The Prerequisite Set Ups For Inter Organization Transaction?

Answer :

Prerequisites:

Define an inventory item that is common to both organizations. Define at least two
organizations, one of which is valid to receive material from the other. Set up
inter�organization relationships and their corresponding accounts. Like Shipping
Network. For direct transfers, if the item to transfer is under serial number
control, the item must have the same unit of measure in each organization.

Question 12. What Is The Difference Between Category And Category Set?

Answer :
Categories and Category Sets can be used to group the items for various reports and
programs.

A category is a logical classification of items that have similar characteristics.

A category set is a distinct grouping scheme and consists of categories.

Question 13. Which Is The Table For Storing Organization Information?

Answer :

mtl_parameters

Question 14. Where To Define Inter Organization Transaction Charges And What Are
The Different Options?

Answer :

Depending on the inter�organization transfer charge that applies between the

organizations, a percentage of the transaction value or a discrete amount that
Oracle Inventory uses to compute transfer charges.

Question 15. What Is The Difference Between Organization_id And Org_id?

Answer :

Org Id is a unique ID for the Operating Unit. Organization Id: The Organization Id
is an ID for the Inventory Organization which is under an Operating Unit.

Question 16. Can You Apply Material Overheads To Average Costing Organization?

Answer :

No, you can not apply it to Average Costing Organization. However you can apply it
to Standard Costing Organization.

Question 17. What Is A Transaction Action?

Answer :

A transaction action is a predefined method of changing the quantity and/or

location and/or cost of an item. It is used in Transaction Type form.

Question 18. Can You Do Inventory Transactions In Prior Periods?

Answer :

Yes, you can do by setting the profile option INV: Transaction Date validation to
Provide warning when date in past period or Allow date in any open period. It
allows entry of a past date.

Question 19. What Does Inventory Interface Do?

Answer :

Inventory Interface Program populates the interface tables with transactions

submitted through Confirm shipment forms. It updates order lines with shipped
quantities and updates inventory.
Question 20. Explain Uom And Uom Class?

Answer :

Unit of measure classes represent groups of units of measure with similar

characteristics. For example, quantity is a unit of measure class and each, dozen,
and gross are examples of units of measure within the class.