Thursday, 26 December 2019

Top 20 oracle SCM Interview Questions



Ques: 1. 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.


Ques: 2. How many Key Flex Fields are there in inventory?

Ans: 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



Ques: 3. What is the significance of the Document Total and Account Range types on the Approval Groups form?

Ans: 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.


Ques: 4. How 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.


Ques: 5. What is the difference between Purchased and Purchasable Flag for an item?

Ans: 

  • 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.



Ques: 6. 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. How would you resolve it?

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:
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 Note 1064155.6 for more details.


Ques: 7. 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.


Ques: 8. 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.


Ques: 9. What are the difference in Lot and Serial?

Ans: 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.


Ques: 10. 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: 

i) 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.

ii)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.


Ques: 11. How Warehouse Management System (WMS) is helpful compared to Inventory?

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.


Ques: 12. 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.


Ques: 13. When the charge account field is non updateable?

Ans: 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 a 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


Ques: 14. 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


Ques: 15. What is a Sub Inventory?

Ans: Sub inventories can be defined as:

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.



Ques: 16. 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:

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.


Ques:17. 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.


Ques: 18. 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’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.



Ques: 19. How does the Payment due days calculated 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


Ques: 20.. 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.


 

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