Oracle SCM functional interview FAQ:

1) Difference between physical and Cycle Count?

2) Why cant we do physical Count as Cycle count?
3) How to achieve Cross Dock for partial quantity or Cross docking for 1 Sales Order and not for other
Sales order?
4) How to print label for different supplier during receiving differently?
5) Difference between Planned PO and BPA?
6) Can we auto create standard PO from GBPA same as release created from BPA?
7) How we can assign the tasks to employees automatically?
8) How to query in Warehouse Control Board?
9) Can we copy RFQ on quotations?
10) How mails sent to supplier after approving PO?
11) Types of routing in Receiving?
12) Can we use 2 way on inventory items?
13) In Receiving options, what are the major fields?
14) Approval hierarchy/routing based on similar position/names?
15) How to Auto Print WMS label for one item and not for other?
16) Use of PO Forward documents in Management?
17) Can we create standard PO by create release functionality?
18) How XML label data sent to printer? I.e. its not printing as shown in XML therefore so how printer print
labels?
19) I want to display all 3 thing say item, LPN and Sub inventory in same line. How to achieve that?
20) How to use Advance pricing in Purchasing?
21) Item attribute in MRP and General planning tabs in item setups?
22) is it possible to send notification to all your supervisors in employee supervisor hierarchy?
23) What are basic setups to use MSCA or WMS?
24) Why there is a need of two blanket PO in ASL attributes?
25) How machines assigned to a particular task? is machine is also a resource or only person is a
resource? if machine is not a resource how we assign it to a person or task?
26) Type of Label in WMS?
27) Type of label formats in WMS?
28) Reason to select employee supervisor or position hierarchy? advantages and disadvantages of both?
29) If we don't want to use PO functionality? just say create requisition and receive material. is it
possible?
30) Is it possible to send notification to all your supervisors in employee supervisor hierarchy ?
31) Difference between min max and reorder point?

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Thursday, July 3, 2014

Order Management Interview Questions

Part 2
1. What are the various order management processes supported by oracle OM

Standard orders: This method supports Make to Stock business model where the products are
made and kept in stock. The products are then shipped to the customer based on his order.

Configure to orders: this method supports Assemble to Order business model. The product
configuration is chosen at the time of sales order entry. WIP job is created based on the
requirement of the sales order

Drop ship orders: In this method, your supplier will ship the goods to your customer on your
behalf

Internal sales orders: Internal sales orders are created across two different organizations of
the same business group. Internal requisition is raised first and is converted to an internal sales
order where the items are shipped based on the quantity specified in the internal sales order.

2. Describe the order flow in Order to Cash life cycle

Enter the sales order

Book the sales order

Pick release

Ship confirm

Auto Invoice generation

Creating receipt

Transfer to GL
3. Describe the processes involved after entering sales order?

The items specified on the order are validated in Oracle Inventory

The price of the items are calculated 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.
4. What are the different types of sales orders available?

Standard

Mixed

Return
5. When is an item eligible for customer order?

When the attributes Customer Ordered and Customer order enabledare checked in the order
management tab of Master Items.
6. Describe the Header status during the sales order process?
Entering the sales order

Entered

Booking the sales order

Booked

Pick release the order

Booked

Ship confirm the order

Booked

Running interface trip stop

Booked

7. Describe the line status during the sales order process?

Entering the sales order

Entered

Booking the sales order

Awaiting shipping (when sufficient quantity is available)

Supply eligible (when sufficient quantity is not available)

Pick release the order

Picked

Ship confirm the order

Shipped

Running interface trip stop

Closed

8. Differentiate available quantity and on-hand quantity?

Available quantity + Reserved quantity = On-hand quantity
9. Differentiate Supply Eligible Status and Supply Partial Status?
Supply Eligible
When there is no sufficient quantity available.
Example: When user tries to book a sales order for Item TestItem for a quantity of 10 but the item
contains zero quantity. Then the Sales Order Line Status change to Supply Eligible.
Supply Partial
when the quantity is partially available.
Example: When user tries to book a sales order for Item TestItem for a quantity of 10 but the item
contains only 4 quantities. Then the Sales Order Line Status changes to Supply Partial.
10. Describe scheduling in sales order?
It is a process of communicating the balance between customer demand and a companys ability to fulfill
an order from current inventory and supply sources
11. What are the various ways of scheduling the sales order?

Setting Profile option OM:AutoSchedule to yes

From Tools Menu->Check Autoschedule Checkbox in Sales Order Screen.

Right Click on Sales Order Line ->Scheduling->Schedule.

Schedule Order Concurrent Program.

12. Differentiate ship set and arrival set?

In the ship set process, the user would like to ship group of order lines from same warehouse to same
location. If Order Lines are grouped under ship set, then until all lines in the ship set satisfy the demand,
you cannot ship the goods to customer.
In the Arrival Set process, the customer requests specific order lines to arrive together
13. What are the Process Constraints?
Processing Constraints allow Order Management users the ability to control changes to sales orders, at
all stages of its order or line workflows to avoid data inconsistencies and audit problems.
14. At what stage an order cannot be cancelled?
An order cannot be cancelled when it is Pick confirmed.
15. What are picking rules?
A user-defined set of criteria to define the priorities Order Management uses when picking items out of
finished goods inventory to ship to a customer. Picking rules are defined in Oracle Inventory.
16. What are Defaulting Rules?
While creating the order, you can define defaulting rules so that the default values of the fields pop up
automatically instead of typing all information.
17. What are validation templates?
A validation template names a condition and defines the semantics of how to validate that condition.
Validation templates can be used in the processing constraints framework to specify the constraining
conditions for a given constraint.
18. What is pick slip?
Pick slip is a shipping document that the pickers use to locate items in the warehouse/ inventory to ship
for an order.
19. What is packing slip?
It is a shipping document that is sent along with the shipment which details the contents that are sent in
that shipment.
20. What is shipping exceptions report?
Shipping exceptions report prints the exceptions messages during ship confirmation.
21 Explain Bill of Lading?
It is a legal document between the shipper of a particular item and the carrier detailing the type, quantity
and destination of the good being carried
The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined
destination. This document must accompany the shipped goods, no matter the form of transportation, and
must be signed by an authorized representative from the carrier, shipper and receiver.
22. What is Interface trip stop?
ITS is triggered at the time of shipping if the option defer interface is not checked. When this report is
run, it performs two main things:

Update the order management (OE_ORDER_LINES_ALL)

Trigger the inventory interface (TO UPDATE Inventory tables)
23. When is drop ship order created?

Customer requires an item that is not stocked normally

Customer requires large quantities of the item that is not available with you

It is more economical when the supplier sends the item directly to the customer
24. What is ASN?
It is an advanced Shipment Notice which is transmitted via Electronic Data Interchange (EDI) from a
supplier to let the receiving organization know that the shipment is arriving.
The ASN contains the shipment date, time, identification number, packing slip data, freight information etc
25. What is Autoinvoice?
It is a concurrent program which is used to perform the invoice processing. Once the order or lines are
eligible for invoicing, the invoice interface workflow activity interfaces the data to reeivables
26. Explain the difference between a credit memo and an invoice?
Credit memo is raised to partially or fully reverse an original invoice amount
An invoice is generated in receivables which show the amount owed by the customers for the purchase of
goods or services. It may also contain tax and freight charges
27. What is FOB?
The term FOB means Freight (or free) on Board is commonly used when shipping goods to indicate who
pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers
from shipper to buyer.
FOB shipping point or FOB origin indicates the buyer pays shipping cost and takes responsibility for
the goods when the goods leave the sellers premises. FOB destination designates the seller will pay
shipping costs and remain responsible for the goods until the buyer takes possession.
28. What are the different RMA Order Types?
RMA with Credit is used when the customer returns the physical product and also receives credit as a
result of the return.
RMA no Credit is used when the customer will return the product but will not be receiving a credit as a
result of the return.
RMA Credit only is used when the customer will receive a credit, but the physical return of the product is
not required.
29. What are the necessary setups to perform Internal Sales Order?

Internal Order and Internal Ordered Enabled set to Yes.

Shipping Network(Intransit or Direct) must be defined.

Internal Customer must be defined

30. What are Modifiers and Qualifiers?

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.
31. What are the possible reasons for Interface trip stop to complete with Error?
Few reasons may be
1) Order is on Hold
2) Tax is not applied properly
3) On-Hand qty is not available in the Inventory
4) Inventory Period is not open
5) Make sure Schedule Ship Date or Requested Date is within the range of order Date

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Monday, June 2, 2014

Order Management Interview Questions

Following questions I have came across on various blogs and sites and posted for your reference here
also
Q: What are the Process Constraints?
A: Processing Constraints allow Order Management users the ability to allow or disallow changes to
various Order Management documents like Sales order, Sales agreement etc to avoid data
inconsistencies and audit problems. You can access it at OM>setup>Rules>security>Processing
Constraints
Q: What is a Pick Slip Report?
A: Pick slip report is generated after release sales order and it is used by warehouse personnel to pick
item from various inventories for shipping them to a customer.
Q: At what stage an order cannot be cancelled?
A: If the order is Pick Confirmed, it cannot be cancelled.

Q: When the order import program is run it validates and the errors occurred can be seen in?
A: Order Management Responsibility >Orders, Returns : Import Orders> Corrections
Q: What is the difference between purchase order (PO) and sales order?
A: Purchase Order: The document which is created and sent to supplier when we need to purchase
something. (Buying)
Sales Order: The document which is created when customer places an order to buy something. (Selling)
Q: What are primary and secondary price lists?
A: Price list contains information on items and its prices. The pricing engine uses secondary price lists
when it cannot determine the price for an item using the price list assigned to an order.
Q: Name some tables in shipping/order/move order/inventory?
A: WSH_DELIVERY_DETAILS,WSH_NEW_DELIVERIES, OE_ORDER_HEADERS_ALL,
OE_ORDER_LINES_ALL, MTL_SYTEM_ITEMS_B, MTL_MATERIAL_TRANSACTIONS
Q: How is move order generated?
A: When the order is pick released, it generate a move order to to pick material from various
subinventories. You can transact it manually or automatically based on setting in Release orders.
Q: What is ONT stands for?
A: ORDER MANAGEMENT
Q: What does Back ordered mean in OM?
A: An unfulfilled customer order due to non-existence of the ordered items in the Inventory.
Q: What are picking rules?
A: A user-defined set of criteria to define the priorities which Order Management uses when picking items
out of finished goods inventory to ship to a customer. Picking rules are defined in Oracle Inventory. If
WMS installed then you can define user generated Picking rules and strategies.
Q: What is drop ship in OM?
A: Its a method of directly shipping product from your supplier to your Customers.
Q: What are Defaulting Rules?
A: While creating the order,you can define defaulting rules so that the default values of the fields pop up
automatically instead of typing all information.
Q: What are validation templates?
A: A validation template names a condition and defines the semantics of how to validate that condition.
Validation templates can be used in the processing constraints framework to specify the constraining
conditions for a given constraint.
Q: What are different Order Types?
A: Order Only, Mixed, RMA
Q: Explain the Order Cycle?
A: Book the order > Pick Release > Pick Confirm > Ship Confirm > Close the order
Q: What is packing slip?
A: An external shipping document that is sent along with a shipment itemizing in detail the contents of that
shipment.
Q: When an order cannot be deleted?
A: If the Order is Pick Confirmed.

Simplifying Oracle E Business Suite". This blog is dedicated to share Oracle Apps Knowledge related to Oracle apps
E Business Suite's Order Management, Procurement, Inventory, WMS, Supplier Scheduling, OSP, Sys Admin, Useful
SQL Queries etc

Home

Tutorials
Order Management

Order Management

Advance Pricing

EDI RLM
Procurement

Procurement

Supplier Scheduling

Inventory

OSP

System Administrator

Technical

Technical

Useful Queries

Form Personalization

FND Tables

HZ Parties Tables

Account Payables Tables

WMS

Interview
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Others

Short Stories

Earn From Blogging

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Openings
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Contact Us

Monday, June 2, 2014

Order Management and Shipping

Concepts and interview Questions
What is a Delivery?
A delivery consist of delivery lines that are scheduled to be shipped to customer ship to location. You can manually
or automatically create a delivery and group lines. A delivery can have delivery lines from multiple sales order.
You can control Auto create Delivery in Shipping Parameters Pick Release tab and Delivery
Grouping criteria in delivery tab.
What is a Pick Release?
A Pick Release is to release eligible delivery lines for picking material to full a customer order. When you pick
release, system find eligible delivery lines to be released for picking based on release rules and create a pick slip
report which then handed over to operator for picking
Picking rules: Specify which material to be picked based on picking rules defined i n oracle inventory. This is used
to help system determines Pick from Sub inventory/Locator.
Release sequence Rules: This specify the order in which eligible delivery lines are released on shop floor. This is
based on the following:

Order number

Outstanding invoice value

Scheduled date

Departure date

Shipment priority

What are the methods of Pick Release?

Online Mode: It pick Release immediately without waiting for the order to process through the
concurrent manager. You can see this option when releasing sales order from release sales order form.

Concurrent : This enable you to run pick release in background along with other request.

Standard Report Submission: SRS you call it. You can schedule this program and it runs in the
background several time in a day.

Shipping Transaction Window: You can use action button in shipping transaction form to pick release.

What are Trips? (refer : OracleUG)

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. Trips can be created automatically or manually.
Automatic
If your shipping process does not require advanced planning, you may prefer to automatically create trips:
Auto-creating a trip for a delivery: You can find the delivery you want to ship, and auto-create a trip and
related trip stops.
Auto-creating a trip for containers and lines: You can find the lines and containers you want to ship and
auto-create a trip which creates a trip, related deliveries, and trip stops.
Manual
During transportation planning, you can manually create a trip and later assign delivery lines or find the
delivery lines and create a trip. For example, for a regular trip scheduled to depart every Friday, you can
manually set up a trip ahead of time and then assign delivery lines. When you manually create a trip, you
can manually assign stops, deliveries, and delivery lines to that trip.
What is Item Cross Reference?
Item cross reference is used to link our item with supplier or customer item.
What is a Modifier and what are different types of Modifiers?
A modifier is used to adjust the price on sales order lines. It includes adjustments, benefits, Freight and
special charges. Examples : Discount List, Freight and Special Charges, Promotion surcharge.
What are defaulting Rules?
Defaulting rules helps us to automatically default some information from various sources there by
reducing the effort in entering some of the information in order management. For example when you enter
a Customer on sales order Ship to, Bill To, Price list etch automatically defaults form customer level
setting. Deafuling rules navigation is OM>setup>Rules>Defaulting
Customer sites are controlled at what level?
Customer sites are controlled at operating unit level where as customer are at Business Group Level
What is ATP and why we use it?
ATP Stands for Available to Promise. Its is a business function which can be used to find out the available
quantity when customer give a request.
ATP=On Hand + Supply - Demand
On hand: Netable on Hand quantity

Supply : Planned Order, Scheduled Receipts, Discrete Jobs

Demand : Sales Orders, Discrete Jobs
You can refer below link. there is excellent slide by apps learn
http://applearn.blogspot.in/2009/03/available-to-promise-atp-in-oracle.html
What is an RMA?
RMA stands for Return Material Authorization. It used to receive material back from customer if ther eis
any defect. You can configure approvals for RMA.
Whats is a credit check functionality in Oracle Order Management?
Please refer http://mandeeporacle.blogspot.com/2014/03/credit-check-functionality-in-order.html
Whats is Over Picking?
Over picking is used to pick more than what is ordered and you can define over pick tolerances at item
level in order management tab or in profile option OM: Over Shipment Tolerance
How to Ship in fastest way?
Check the Autodetail option in Pick Release. Set the profile INV: Detail Serial Numbers to Yes. Inventory
will then suggest serial numbers during the Detailing process. Do not check the Pick Confirmation
Required flag in the Organization Parameters form. there by avoiding picking conformation step
Can you update the Sales Order once it is Booked?
It depends on processing constraints set up in Order Management. Some of them are seeded and can
not be modified but some you can configure on your own.
What are the prerequisites of the Sales Order?
You need to define Customers, Price List and Transaction Types.
What are different order types?

Order

Return

Mixed

Simplifying Oracle E Business Suite". This blog is dedicated to share Oracle Apps Knowledge related to Oracle apps
E Business Suite's Order Management, Procurement, Inventory, WMS, Supplier Scheduling, OSP, Sys Admin, Useful
SQL Queries etc

Home

Tutorials

Order Management

Order Management

Advance Pricing

EDI RLM
Procurement

Procurement

Supplier Scheduling

Inventory

OSP

System Administrator

Technical

Technical

Useful Queries

Form Personalization

FND Tables

HZ Parties Tables

Account Payables Tables

WMS

Interview
EBS Quiz
Books
Forum
Others

Short Stories

Earn From Blogging

FAQs
Openings
Services
Contact Us

Monday, June 2, 2014

Order Management and Shipping

Concepts and interview Questions
What is a Delivery?
A delivery consist of delivery lines that are scheduled to be shipped to customer ship to location. You can manually
or automatically create a delivery and group lines. A delivery can have delivery lines from multiple sales order.
You can control Auto create Delivery in Shipping Parameters Pick Release tab and Delivery
Grouping criteria in delivery tab.
What is a Pick Release?
A Pick Release is to release eligible delivery lines for picking material to full a customer order. When you pick
release, system find eligible delivery lines to be released for picking based on release rules and create a pick slip
report which then handed over to operator for picking
Picking rules: Specify which material to be picked based on picking rules defined i n oracle inventory. This is used
to help system determines Pick from Sub inventory/Locator.
Release sequence Rules: This specify the order in which eligible delivery lines are released on shop floor. This is
based on the following:

Order number

Outstanding invoice value

Scheduled date

Departure date

Shipment priority

What are the methods of Pick Release?

Online Mode: It pick Release immediately without waiting for the order to process through the
concurrent manager. You can see this option when releasing sales order from release sales order form.

Concurrent : This enable you to run pick release in background along with other request.

Standard Report Submission: SRS you call it. You can schedule this program and it runs in the
background several time in a day.

Shipping Transaction Window: You can use action button in shipping transaction form to pick release.

What are Trips? (refer : OracleUG)

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. Trips can be created automatically or manually.
Automatic
If your shipping process does not require advanced planning, you may prefer to automatically create trips:
Auto-creating a trip for a delivery: You can find the delivery you want to ship, and auto-create a trip and
related trip stops.
Auto-creating a trip for containers and lines: You can find the lines and containers you want to ship and
auto-create a trip which creates a trip, related deliveries, and trip stops.
Manual
During transportation planning, you can manually create a trip and later assign delivery lines or find the
delivery lines and create a trip. For example, for a regular trip scheduled to depart every Friday, you can
manually set up a trip ahead of time and then assign delivery lines. When you manually create a trip, you
can manually assign stops, deliveries, and delivery lines to that trip.
What is Item Cross Reference?
Item cross reference is used to link our item with supplier or customer item.
What is a Modifier and what are different types of Modifiers?
A modifier is used to adjust the price on sales order lines. It includes adjustments, benefits, Freight and
special charges. Examples : Discount List, Freight and Special Charges, Promotion surcharge.
What are defaulting Rules?
Defaulting rules helps us to automatically default some information from various sources there by
reducing the effort in entering some of the information in order management. For example when you enter
a Customer on sales order Ship to, Bill To, Price list etch automatically defaults form customer level
setting. Deafuling rules navigation is OM>setup>Rules>Defaulting
Customer sites are controlled at what level?
Customer sites are controlled at operating unit level where as customer are at Business Group Level
What is ATP and why we use it?
ATP Stands for Available to Promise. Its is a business function which can be used to find out the available
quantity when customer give a request.
ATP=On Hand + Supply - Demand
On hand: Netable on Hand quantity
Supply : Planned Order, Scheduled Receipts, Discrete Jobs
Demand : Sales Orders, Discrete Jobs
You can refer below link. there is excellent slide by apps learn
http://applearn.blogspot.in/2009/03/available-to-promise-atp-in-oracle.html
What is an RMA?

RMA stands for Return Material Authorization. It used to receive material back from customer if ther eis
any defect. You can configure approvals for RMA.
Whats is a credit check functionality in Oracle Order Management?
Please refer http://mandeeporacle.blogspot.com/2014/03/credit-check-functionality-in-order.html
Whats is Over Picking?
Over picking is used to pick more than what is ordered and you can define over pick tolerances at item
level in order management tab or in profile option OM: Over Shipment Tolerance
How to Ship in fastest way?
Check the Autodetail option in Pick Release. Set the profile INV: Detail Serial Numbers to Yes. Inventory
will then suggest serial numbers during the Detailing process. Do not check the Pick Confirmation
Required flag in the Organization Parameters form. there by avoiding picking conformation step
Can you update the Sales Order once it is Booked?
It depends on processing constraints set up in Order Management. Some of them are seeded and can
not be modified but some you can configure on your own.
What are the prerequisites of the Sales Order?
You need to define Customers, Price List and Transaction Types.
What are different order types?

Order

Return

Mixed

Oracle E Business Suite

Hello and Welcome to "Simplifying Oracle E Business Suite". This blog is dedicated to share Oracle Apps Knowledge
related to Oracle apps E Business Suite's Order Management, Procurement, Inventory, WMS, Supplier Scheduling,
OSP, Sys Admin, Useful SQL Queries etc

Home

Tutorials

Order Management

Order Management

Advance Pricing

EDI RLM

Procurement

Procurement

Supplier Scheduling

Inventory

OSP

System Administrator

Technical

Technical

Useful Queries

Form Personalization

FND Tables

HZ Parties Tables

Account Payables Tables

WMS

Interview
EBS Quiz
Books
Forum
Others

Short Stories

Earn From Blogging

FAQs
Openings
Services
Contact Us

Thursday, July 3, 2014

Oracle Inventory Interview Questions

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.

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.
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.
What is a subinventory?
Answer: 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 onhand or reserved
In which table does the subinventory related information for an item is stored?
Answer: MTL_ITEM_SUB_INVENTORIES
What is a stock locator?
Answer: 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 locators capacity by
volume.
What are the Key flex fields in oracle Inventory?
Answer: Oracle Inventory provides the following flexfields:
System Items, Item Catalogs, Item Categories, Stock Locators, Account Alias and Sales Order
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.

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

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.
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
fromMTL_CATEGORY_SETS_B.
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 subinventory or a locator.
UOM classes let you group different UMOs into one category. Eg, quantitycould be a UOM class under
which each, dozen, lot etc are separate UOMs.
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.
Describe Interorganization 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.
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
In which tables are the transactional details are stored?
Answer:
MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
MTL_MATERIAL_TRANSACTIONS_TEMP
MTL_TRANSACTION_ACCOUNTS
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.
What is Picking Order of Subinventory or Locator? Where will you define the order?
Answer: 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 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.
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 subinventory to other in the same organization.

Transfer of items between various inventory organizations

Reservation of items

Describe various inventory transactions?

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.
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
What is the difference between a subinventory transfer and a move order?
Answer: 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 doesnt.
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.
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.
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
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) + subinventory transfer (txn action) = move order (txn source type)
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
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.
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.
What are the factors that affect inventory control?
Answer:
Type of product
Type of manufacture
Volume of production
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). Click here for more on ABC Analysis
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 customers 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
What are the different planning methods available in Oracle?
Answer: Re-order point planning
Min-Max planning
Kanban cards
Subinventory replenishment planning
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]
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 items 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 (2 or 3).
Reorder point planning can be performed at the organization level only.
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
subinventory level. Click here for complete cycle
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
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 subinventory.
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

nventory
1.

What are different planning methods in Inventory

There are 5 different planning methods in oracle Inventory

Subinv Replenishment Planning

Min Max Planning

Re-order point planning

Kanban Planning

Periodic Automatic Replenishment

2.

What are the setups for different planning method (Min-Max)

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
3.

What is the concurrent program for the planning

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?

Seven KFF 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.

8.

How will you inactivate the Inventory locations

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

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, 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.

2.

What is ABC Analysis and why it is being used

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.
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.

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

5.

What is the Picking rule in Inventory

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.

6.

What are the criteria in Cycle count

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

1. What is move order in OM

Move orders generated as part of Pick Wave are the ones from Sales order
2. How a MO is diff from Subinv transfer
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.
3. What is nettable in Subinventory setup
This will detrrmine whether to consider the onhands of the subinventory as available for planning
tasks.
4. What are the status attributes in Item and how many of them
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
Invoicable
Purchasable
Stockable
Transactable
5. What is the use of status attribute
We can define different status for an item combination these attributes as per the business need
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.
7. Inventory Master org is mandatory?
Yes. If you will not create any specific master org, then system will consider the same inv org as its
master org.
8. What are the Lot control setups
Lot control can be setup at item attributes at organization level.
Either No Control or Full Control
9. How lot number generates
You can generate new Lot numbers during transactions
10. What is serial controlled and what are the setups
Serial control can be setup at item attributes at organization level.
11. How serial numbers are generated
Serial control can be setup at item attributes at organization level.
No Control, At Receipt, At Sales Order issue, Predefined
12. 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
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
13. What are the transaction managers
Transaction manager is the inetrface managers which carry out all transaction once submitted by the
users

14. Can we change the item name after it created?

Ans: Yes we can change the name in master level.

1. How 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.
2. What functionality in inventory uses the calendar
3. What is the diff in inv and wms from accounting perspective
4. What is the use of WMS Rules Workbench
Ans: The Rules workbench enables you to assign strategies, rules and cost group values directly to
any number of objects in an assignment matrix
5. Why strategy used
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)

Read more: http://www.learnoracle.in/2014/05/oracle-scm-functionalinterview_18.html#ixzz3Y0yHIOhV

1.

What is an item?

2.

Explain Item Master Organization?

3.

Define Inventory Organization?

4.

What is a subinventory?

5.

In which table does the subinventory related information for an item

is stored?

6.

What is a stock locator?

7.

What are the Key flex fields in oracle Inventory?

8.

What are the basic steps involved in defining an item?

9.

What are item attributes?

10.

What is the use of item template?

11.

What is an item category and category set?

12.

Explain unit of measure (UOM) and UOM class?

13.

Explain shipping method?

14.

Describe Interorganization Shipping Networks

15.

In which tables are the transactional details are stored?

16.

What is revision control in Oracle Inventory?

17.

What is Picking Order of Subinventory or Locator? Where will you

define the order?

18.

What are the different inventory transactions?

19.

Describe various inventory transactions?

20.

What is the difference between a subinventory transfer and a move

order?

21.

What are the Components used in Customizing a Transaction?

22.

What is a Transaction source type?

23.

What is a transaction type?

24.

Name any four purposes where miscellaneous transaction can be

used?

25.

Explain inventory control?

26.

What are the objectives of inventory control?

27.

What are the factors that affect inventory control?

28.

Define ABC analysis?

29.

What is consignment inventory?

30.

What are the different planning methods available in Oracle?

31.

When should the material be ordered?

32.

Explain re-order point planning?

33.

Explain min-max planning technique?

34.

Define cycle counting and explain its use in oracle inventory?

35.

When do you perform physical inventory and explain the steps

involved in it?

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?
MTL_ITEM_SUB_INVENTORIES
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 locators 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
namedMTL_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 fromMTL_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 UMOs into one category. Eg, quantitycould be a UOM
class under which each, dozen, lot etc are separate UOMs.
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?

MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
MTL_MATERIAL_TRANSACTIONS_TEMP
MTL_TRANSACTION_ACCOUNTS
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
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 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 doesnt.
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?
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.

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 customers
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)
[On-hand quantity] + [supply] [demand] < [min 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 items 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.
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.
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
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.

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

6 Comments
Anonymous September 21, 2014

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Super
REPLY
Vali Shaik November 21, 2014

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How can we create a normal order line and a return line in a single order
How to change price in sales order line after booking without using any modifier. Is it

possible, if Yes how?

Advanced Pricing
Configurator
What is Item validation org and how it is different from Item Master Org
Is it possible to do any transaction (receiving) transaction in Item master org?
What steps you will do to check if picking did not happen for an order after pick release?
What is system parameter and what is its significance?
What all setups required for an ATO order?
What all setups required for Back to Back order?
In an IR, the price of the item, from where it populates?
How can you change the price of the item in an IR?
How invoice get generated for IR?
What is the accounting entry happens for an IR invoice?
What is allocation means in sales order and in which step it happens?
What is the difference between allocation and reservation?
If an item is not allowed to enter in any sales order form, what is the setup behind this?
What is the difference between customer ordered and customer order enabled flag?
What are the drop shipment setups and explain the flow?

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What are the tables involved in Drop Shipment

What is the difference between Pick Slip and Pack Slip?
What is Bill Of Lading?
If I want to have single invoice generated for all the lines of a sales order even if the lines
were shipped in different delivery, what can I do?
What to do if I want to create a same delivery for all the lines of an order even if they
were picked in different pick slip and delivery already created for few lines?
Any major issue you have faced in order management during implementation from
standard oracle process, not customization
Shar