Oracle SCM Functional Interview Questions & Answers - Order Management Module - Part VI

Oracle SCM Functional Interview Questions & Answers - Order Management Module - Part VI

Question & Answers on Drop Shipment Orders

Define Drop Shipment?

Oracle Order Management & Purchasing integrate to provide Drop Shipments.

Drop Shipments are orders for items that supplier ships directly to the customer either because stock nil or currently don't have the items in inventory, or because it's more cost effective for the supplier to ship the item to the customer directly.

How is a Drop Ship Purchase Order created?

Drop Shipments are created as Sales Orders in Order Management. Purchase Release concurrent program or workflow in Order Management creates rows in the Requisition Import tables in Purchasing. Then Purchasing's Requisition Import process creates the requisitions. Drop Shipments are marked with the Source Type of External in Order Management and Supplier in Purchasing.

Item Attributes setup required for Drop Shipment item?

Item Attributes setup steps for the Drop Ship item

How to avoid the miscounting of supply as logical organization is involved?

Drop-ship items must be received in a logical organization.

If Oracle master Scheduling/MRP and Oracle Supply Chain Planning is used to avoid miscounting supply it’s not necessary to include logical organizations in the planning. If logical organizations is included in the planning, ensure that doing so does not cause planning and forecasting complications.

If any changes are made in a Sales Order after the Purchase Order (PO) has been generated, will the order changes automatically be updated on the PO?

Order changes will not be automatically updated on the PO. Pulling up the Discrepancy report will allow to view the differences between the Sales Order and PO. However, user has to manually update the POs in the Purchasing application.

If items on a Drop Ship order are cancelled, does the system automatically generate a PO Change to the PO originally sent to the supplier?

No, user has to manually verify the discrepancy report which will report differences between the PO and the Sales Order.

Does Order Management 11i have functionality to do serial number management with Drop Shipments?

Serial numbered can be received in Drop Ship stock. Order Management will receive the serial number noted on the PO.

Can Configurable Items be Drop Shipped?

Currently only Standard Items can be Drop Shipped.

Is it possible to perform Drop Shipment across operating units?

Release 11i does not currently support this functionality.

How are over/under shipments handled in Drop Shipment?

If part of a drop-ship line ships and user do not wish to fulfill the remaining quantity, cancel the line. Over shipments must also be handled manually. If the supplier ships more than the ordered quantity, user can bill your customer for the additional quantity or request that they return the item. Use the Drop Ship Order Discrepancy Report to view differences between the drop-ship Sales Orders and their associated purchase requisitions and orders.

Is it possible to create releases based on drop shipment orders for the items in the blanket agreement when a valid Blanket PO is created?

Yes, it is possible to create releases from drop ship orders automatically or via Autocreate window, if the drop ship Requisition has the correct Blanket Information (Source)

Approved Supplier List to be set for the supplier site desired.

Depending on the hierarchy determine which assignment better suits and define sourcing rule according to the required level with the required supplier site.

Also ensure that ASL entry exists for the above supplier/site.

For automatic sourcing to be done also set profile 'PO: Allow Automatic Sourcing' to Yes so that the source document will be determined automatically depending on the creation dates and the type of the document.

Is it possible to cancel Drop Shipment after it is received?

Drop Shipments cannot be cancelled once Oracle Purchasing obtains the receipt. A user who wants to cancel a Drop Ship Sales Order line must ensure no receipts have been created against the line and that the requisition and/or Purchase Order associated with the line is cancelled. Cancellation of a Partial Drop Ship receipt is allowable. But only the portion that has not been received can be cancelled. If a Drop Shipment line is cancelled for which the entire quantity is not shipped, the order processing splits the line. The first line contains the quantity shipped and the second line contains the non-shipped quantity in backorder. Now the second line the backorder on the Sales Order can be cancelled. The PO line quantity should be changed to reflect the new quantity.

What is the Import source and status of PO generated from Drop Shipment?

Import source for the Drop Shipment orders will be Order Entry & Status of PO will always be Approved.

Can we receive a PO Shipment for which the related Sales Order Line is Cancelled / Closed?

PO Shipments for which relates Sales Order line has been cancelled or closed cannot be received. The PO shipment should be cancelled. A new Sales Order Line should be created, if needed.

Reference: Collected from various web sources

Please do refer:

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-scm-functional-interview_14.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_22.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_23.html

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-scm-functional-interview.html

Oracle SCM Functional Interview Questions & Answers - Purchasing Module - Part IV

Oracle SCM Functional Interview Questions & Answers - Purchasing Module - Part IV

How to reflect discount from a supplier on a Purchase orders? 

Purchase Order is a legal document not the quote and therefore the purchase order should reflect agreed upon price. Secondly if the discount comes after the PO then Oracle AP should handle it when invoicing. If a blanket Purchase order is used then price breaks can be used. 

How to change the created date on a Purchase Order? 

'Created date’ on the Purchase order is not an updateable field, due to it being a legal document once approved. 

What is the sorting order for requisition lines in autocreation of a Purchase Order?  

Requisition lines first meet search criteria determined by "find" screen, and then are grouped together by item and item category, then by need-by date. After an action is choosed, enter any search criteria to narrow the selection of requisition lines. Oracle Purchasing chooses requisition lines from the requisition pool that meets the search criteria. All requisition lines for the same item and item category are grouped together, but they are not necessarily in order alphabetically. Within each grouping of item and item category, requisition lines are ordered by need-by date. 

What does the error 'APP-50022: Oracle Human Resources could not retrieve a value for User Type profile option' mean? 

Profile Option ‘HR: User Type’ needs to be set. Set the profile option 'HR: User Type' at the Responsibility level. 

Why the action options for creating receipts different in Inventory are compared Purchasing? When in the Enter Receipts form and using different responsibilities produces different values in the action required field. Purchasing Responsibility shows Direct and Standard while the Inventory Responsibility shows Direct.

Set the Profile option ‘RCV: Allow routing override’ to 'YES' at the application level. 

How to purge Cancelled Requisitions? 

To purge any Purchase orders or Requisitions:

Assign the Payables Purge GUI responsibility to the user – have the user choose that responsibility, then choose Purge from the menu. Under the Category field do a List of Values and pick Simple Requisitions for cancelled requisitions the choices are listed. 

On the requisition form in the source details block, there is a field labelled supplier item. Where does this information on the quick-pick come from and how can this information default in? 

The supplier item field on the requisition can be populated by using either the supplier item catalog or ASL. Take an item from the supplier item catalog that has an associated supplier item, add it to the order pad and then add it to the requisition. After doing this go to the source details zone.

The supplier item is defaulted in for that item chosen from the catalog.

Navigation:

India Local Purchasing Responsibility > Oracle Purchasing > Supplier Item catalog

User entering a requisition and unable to find the header or line note fields. Was this replaced in GUI by attachments?
The attachments have replaced notes. The attachments are better because at the header level, the requisition notes were not coming over to the Purchase Order whereas the attachment does come over to the Purchase Order.

When user selects the Notifications form to review approvals and click on approve button for a Requisition waiting for approval, the 'Reject' box is greyed out. How does the approver reject a requisition?

User cannot reject Requisitions submitted by him. User can only reject those from others.

What are standard Quotations used for?
Standard quote is one that can be tied back to a PO.

Example, navigate to
RFQ > Auto create > Enter a PO and reference it back.

When does the status of a Purchase order can been seen as Archived?
User must approve or print a specific purchase order before this it can be seen it in the history information.

Where are standard notes in GUI?
Navigate to

Setup > Attachments > Create attachment.

Now navigate to Purchase Order and attach the attachment to the Purchase Order.

In GUI, notes are replaced by attachments.

In Oracle Purchasing, where is the automatic numbering for Purchase Order defined and maintained?
Navigation path to define the purchase order auto numbering is:
Setup > Organizations > Purchasing Options > Numbering alternate region
Navigation path for Character is:

Setup > Purchasing Options > Purchasing > Numbering options
 

There is a field for the organization code. What is this code?
This code is a short abbreviation for the organization.

Can the original Purchase Order can be viewed in any way without resorting to SQL, for a revised Purchase Order?
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.

Reference: Collected from various web sources.

Please do refer below links for Oracle SCM Functional interview questions & Answers on Purchasing module.

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-purchasing-module-scm-functional.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_56.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_12.html

Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part X

Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part X

How will you find out whether any cycle count entry is pending approval?

Run the ‘Cycle Count Pending Approval Report’.

Does Hit / Miss Tolerance is applicable to Physical inventory?

No. It is applicable only for Cycle Counting.

Which are the Physical Inventory Reports?

How will you find out the pending transactions before closing a period?

Navigation:

India Local Inventory Responsibility > Oracle Inventory Accounting Close Cycle > Inventory Accounting Period

Click the Pending Button.

Can you transfer an item from an Expense Subinventory to an Asset Subinventory?

It can be done provided that the profile option ‘INV: Allow Expense To Asset Transaction’ is set to ‘Yes’.

Will the System stop Inventory processing after taking snapshot?

The System will not stop doing transaction after taking snapshot; but we must continuously avoid transaction till then the quantities are counted and entered in the System avoiding errors in counted quantities.

If transaction are done immediately after entering the count quantities, before approving and posting adjustments will it lead to errors in Physical inventory processing?

No. The variation between system On-hand qty. and count quantities are derived by comparing the static qty. recorded at the time of snapshot, and the count quantities entered. The system never makes comparison between count qty. and the current On-hand qty.

Suppose in a particular case, you have selected ‘Never’ in the ‘Approval Required’ field of Physical Inventory, after that you missed to make a few entries of count quantities of several items. In this case, if you post adjustments, what will happen to the missing entries?

The System will consider the count quantities as zero and adjustments will be posted accordingly. So, it is always advisable to run the Physical Inventory Missing Tag Report to find out any missing entries before posting adjustments.

How will you ensure that you didn’t miss to enter count quantity of any item?

Run the Physical Inventory Missing Tag Report.

If the System doesn’t have on-hand qty. for a particular item; will tags be created for them during Physical Inventory Tag Generation?

No. Tags will be generated only for items, which are having on-hand quantity.

Why will you generate blank tags for a physical inventory?

For taking care of items, if any, which are having no system on-hand qty. and at the same time there is physical balance available in the Subinventory.

If the approval action selected is not ‘Never’, is it absolutely essential to perform the approval action (either Approve or Reject) before running the Adjustment Program?

Yes. Oracle Inventory does not posts physical inventory adjustments if any adjustments that are still pending approval.

If the approval action selected is ‘If Out Of Tolerance’ and your count quantity is falling within the approval tolerance, then approving is not required for posting adjustments.

Reference: Collected from various web sources.

Please do refer below links for Oracle SCM Functional interview questions & Answers on inventory module.

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-inventory-scm-functional.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_9.html

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-scm-functional-interview_28.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_10.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_12.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_13.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_16.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_19.html

Oracle Apps - Replicate Seed Data

Oracle Apps - Replicate Seed Data

Concept of Replicate Seed Data Concurrent Program:

Concept of Replicate Seed Data concurrent program is that whenever new organizations are created, it should be provided with seeded data from all relevant modules for normal integration among the modules.

Example:

In an organization, if users are not going to use Oracle Purchasing module, the seeded vendor’s information is required in other modules to choose the required data.

Purpose of Replicate Seed Data Concurrent Program:

Replicate Seed Data Concurrent Program is to populate the Installed modules seeded values, so that new organizations can use the seeded data.

Replicate Seed Data program copies the applicable setup data delivered with Oracle Applications for each defined operating unit.

Example:

Under a Multi-org Setup, whenever a new operating units are created, running Replicate Seed data is a mandatory step before users start working in the newly created organizations.

How Replicate Seed Data Concurrent Program works?

Replicate Seed Data Concurrent Program works based on the input parameters, it can be run for a particular Operating Unit or for all Operating Units (as it is not mandatory parameter) but it cannot run for a particular module.

Navigation:

System Administrator Responsibility > View > Requests > Submit New Request > select Replicate Seed Data Concurrent Program

For Single organization - Particular Operating Unit.

For All Organizations - This mode applies when the seed data replication program is executed with blank input parameter. 

Oracle R12 Purchasing – Document Approval Methods:

Oracle R12 Purchasing – Document Approval Methods:

Oracle Purchasing provides three methods of document approvals:

1. Employee / Supervisor Approval Method

2. Approval Hierarchy Method

3. Approval Management Engine (AME)

What approval method is to be used?

Oracle Purchasing checks the setup in the Financial Options screen, Human Resources tab, “Use Approval Hierarchies” check box.

If the checkbox is checked, purchasing will use the Approval Hierarchy method.

If the checkbox is unchecked, purchasing will use the Employee Supervisor Hierarchy method.

Employee / Supervisor Approval Method:
This hierarchy is defined by using the employee / supervisor relationship.

To Implement this approval methods, jobs are to be defined. Job to be defined in the approval group and based on the approval limits from approval group the document will be either approved or forwarded to the employee’s supervisor.

The supervisor of an employee is defined on the Assignment region of the Employee form. If the purchase order entered by the employee exceeds the approval limits, the purchase order is forwarded onto the employees’ supervisor, as defined on the Employee form.

Approval Hierarchy Method:
This hierarchy is defined using the Position relationship.

To Implement this approval method, positions are to be created, build the position hierarchy.

The hierarchy for positions is defined on the Position Hierarchy form.

Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy.

Oracle Purchasing utilizes the positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated.

When this setup is completed or changed, “Fill Employee Hierarchy” concurrent program should be run to initiate the effect of the new hierarchy.

Approval Management Engine (AME)

Approval Management Engine (AME) is a self-service web application.

AME lets users define business rules governing who should approve transactions that originate in other Oracle applications. It mainly provides the following services to the calling application:

1. Centralized rules repository for defining and sharing rules.

2. It also provides the history of approval status.

3. Based on specific transaction date, it provides an execution engine to evaluate the rules.

4. It provides the List Management capabilities.

In Oracle Purchasing, the following restrictions applies to use AME functionality:

1. Current / Pending Approvers information in Action History is not supported in Forms. This information is available in the Buyer Worker Center Action History only.

2. AME cannot be used for planned purchase orders and purchase order releases.

3. AME cannot be used for local blanket purchase agreements. If want to use the AME feature, then use for global blanket purchase agreements.

Oracle Receivables – Receipt Status

Oracle Receivables – Receipt Status

The following are the Receipt Status available in Oracle Receivables:

S no	Status	Description
1	Confirmed	Customer has approved the application of this receipt and their account balances have been updated within Receivables. This status is only valid for automatic receipts.
2	Remitted	This receipt has been remitted. This status is valid for both automatic and manually entered receipts.
3	Approved	This receipt has been approved for automatic receipt creation. This status is only valid for automatic receipts.
4	Reversed	This receipt has been reversed. User can reverse a receipt when the customer stops payment on a receipt, if a receipt comes from an account with non-sufficient funds or if user want to re-enter and reapply it in Receivables. User can reverse cash receipts and miscellaneous transactions.
5	Cleared	Payment of this receipt was transferred to your bank account and the bank statement has been reconciled within Receivables. This status is valid for both automatic and manually entered receipts.

Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part IX

Oracle SCM Functional Interview Questions & Answers - Inventory Module – Part IX

What is the difference between Fixed Lot Multiplier and Fixed Order Quantity?

Fixed Order Quantity:

Enter the quantity used to modify the size of planned order quantities or repetitive daily rates. When net requirements fall short of the fixed order quantity, the planning process suggests the fixed order quantity. When net requirements exceed the fixed order quantity, the planning process suggests multiple orders for the fixed order quantity.

For discrete items, use this attribute to define a fixed production or purchasing quantity. For repetitive items, use this attribute to define a fixed production rate. For example, if your suppliers can provide the item in full truckload quantities only, enter the full truckload quantity as the fixed order quantity. (This field will come under general planning tab of item master screen)

Fixed Lot Multiplier:

Enter the fixed lot multiple quantity or repetitive rate (units per day). Planning algorithms (reorder point, min–max, MPS, and MRP) use this to modify the size of planned order quantities or repetitive daily rates.

When net requirements fall short of the fixed lot size multiplier quantity, planning algorithms suggest a single order for the fixed lot size multiplier quantity. When net requirements exceed the fixed lot size multiplier quantity, planning algorithms suggest a single order that is a multiple of the fixed lot size multiplier. (This field will come under general planning tab of item master screen).

What is the difference between ‘Shrinkage Rate’ and Yield % mentioned in the BOM?

Shrinkage Rate:

It is the expected loss of Finished Goods on prolonged storage. (May be some weight losses due to drying etc.)

Yield %:

It represents the expected losses of components, used to manufacture an item, occurring during the manufacturing process.

The same item can have different Yield % in different Bill, but the Shrinkage % remains the same.

The Item Attribute, ‘Acceptable Days Early’ is applicable to items meant for Discrete Jobs or Repetitive Schedules?

The said attribute is applicable only for Discrete Jobs. Planning suggests a rescheduling only if the rescheduling is required earlier than the number of days mentioned here

The item Attribute, ‘Overrun percentage’, ‘Acceptable Rate Increase’ and ‘Acceptable Rate Decrease’ are used for what?

All these item attributes mentioned above are used only for Repetitively Planned items. The planning process suggests a new daily rate if the current rate exceeds the suggested rate by more than the acceptable overrun amount.

Acceptable Rate Increase and Acceptable Rate Decrease are the tolerance for the daily rates that planning process has to confine while suggesting new daily rates. Or in other words, the planning process can’t suggest any new rate beyond the limits of the acceptable rate increase and acceptable rate decrease.

How will you ensure that a Customer order is not placed on an item, which is at the developing stage?

Set the item attribute, ‘Customer Orders Enabled’ to No.

What is Transaction Source Type?

A Transaction Source Type is the type of entity against which Oracle Inventory charges a transaction. Along with a transaction action, it uniquely identifies the type of transaction we perform.

What is Transaction Type?

A Transaction Type is a combination of Transaction Type Source and a Transaction Action. It is used to classify a particular transaction for reporting and querying purpose.

While doing transaction in Inventory, (Misc. Receipt / Issue, Subinventory Transfer, Inter-Org Transfer etc) what date we can enter as the transaction date is governed by what?

It is governed by the profile option ‘INV: Transaction Date Validation’.

The option available for this profile are:

1.     Allow date in any open period.

2.     Do not allow past date.

3.     Do not allow date in past period.

4.     Provide warning when date is in past period.

How will you remove transaction details permanently from the database tables?

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Transaction > Purge

Type: Request  

Name: Transaction Purge

Parameter: Purge Date & Purge Name.

Note: Inventory does not purge transaction in an open period.

What are the Reports available on Transactions?

Few reports available on transactions:

Which are the combination results of ‘Content Scope’ and ‘Valuation Scope’ in an ABC Compile?

The combination results of ‘Content Scope’ and ‘Valuation Scope’ in an ABC Compile?

Which are the criteria used in an ABC Compile?

The Criteria used in ABC Compile are:

Can Cycle Counting and Physical Inventory go side by side?

Yes

What are the Cycle Count Reports?

Reference: Collected from various web sources.

Please do refer below links for Oracle SCM Functional interview questions & Answers on inventory module.

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-inventory-scm-functional.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_9.html

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-scm-functional-interview_28.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_10.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_12.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_13.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_16.html

Basic Procure To Pay (P2P) Cycle

Basic Procure To Pay (P2P) Cycle:

Procure To Pay (Purchase To Pay or P2P) is the process of procuring & managing the raw materials requirements for manufacturing a finished product or providing a service.

This is the basic P2P cycle process and may vary according to the business requirements.

Procure To Pay Cycle:

Steps involved in Procure To Pay Cycle are:

1. Requirement Identification: 

This is the Initial stage of P2P Cycle. This stage the member of user department (Maintenance, Production, Sales and distribution, administration etc..) identifies the requirement and raises the Purchase requisition (Req). This document normally consist of Item description, quantity requirement, cost involved (approx.) and requirement date, etc…

2. Purchase Requisition Authorization: 

Based on the Requisition value, the requisition is routed for approval and incase the Requisition value is higher than the fixed approval limit then the requisition is sent to the next approval level for approval. This stage, the next level approver may return the Requisition to the creator for corrections or approve it.

3. Purchase Requisition Approval: 

Once the Req is authorised by the user requirement department then it is forwarded to the inventory controller. Inventory controller shall review the Req and shall check the availability of Open Purchase orders (PO), any other scheduled or planned delivery for the material. If there is any planned delivery or any existing open PO then Inventory controller will return the Req to the user department to revise the quantity of the material. After the approval of Inventory controller, the approved req is forwarded to the Procurement department.

4. Suppliers Identification: 

Buyer will interact with the user department for the suppliers in the data base, to identify the suppliers for the material requirement.

5. Request For Quotation (RFQ): 

After the identification of the suppliers, Buyer will float the Request For Quotation (RFQ) to the suppliers. RFQ normally consist of Item Description, Technical Specifications of the material, quantity requirement, term and conditions, delivery date, date of submission of the RFQ, Quality standards, Validity of the offer, etc.

6. Receipt of Quotation:

After sending the RFQ to the suppliers, the buyer will receive the quotations from the suppliers. Normally, suppliers are instructed to send their quotation in a sealed envelope, mentioning only RFQ reference no on it.

Quotations are normally opened by the procurement committee for evaluation.

Technical Evaluation of Quotations: 

Quotations will be sent to the technical department for technical evaluations. Here, technical department will shortlist the quotations based on the technical specifications.
Receipt of Commercial Quotations: 

After completion of the technical evaluation, the buyer will follow with the shortlisted suppliers for commercial quotations. Quotation comparison statement is prepared by the buyer to compare all the commercial quotes of the supplies and suppliers are short listed for negotiations.

7. Quote Negotiation: 

Short listed suppliers are invited for negotiations. In negotiation buyer will negotiate with the supplier for:
1. Price Reduction of the materials
2. Price Breakup on year basis
3. Quantity and Price breaks
4. Delivery Terms and conditions
5. Quality Improvement
6. Freight & additional charges
7. Payment terms, Etc.

8. Supplier Selection: 

Based on the negotiations with the shortlisted suppliers, the revised quotations are prepared and supplier is finalized for award of contract based on the weightage to the commercial, technical parameters, previous performance of the supplier, delivery dates of the material, etc.

Award of Contract: 

After the supplier is finalized LOI can be sent to him and he may be asked to deposit security or bank guaranty before signing the agreement. Agreement can be of Fixed or Blanket (the same can be mentioned in the RFQ)

Purchase Order:

The buyer shall raise the call offs against contracts (Fixed or Blanket). If the value of the PO is more than that of his approval limit he shall forward it to his supervisor for approval else he shall approve and send the purchase order to the supplier.

9. Purchase Order acknowledgement:

After receiving the PO the supplier send the acknowledgement to buyer and buyer records the acknowledgement. If any ERP is being used for procurement functions then supplier can remotely download purchase orders and can acknowledge the PO

10. Advance Shipment Note: 

Based on the PO, Supplier responds Advance Shipment to buyer as soon as the material is shipped to the buying organization. Advanced Shipment Note normally consist of Ship Date, Transporter’s name , Airway Bill No, No of packages, weight of the packages, receiving location address, PO No, description of goods, etc..

11. Goods Receipt: 

Once the goods are received at the receiving organization, the receiving staff checks the delivery note, PO no etc and acknowledges the receipt of material. After the material is received the same is checked for quantity in case of discrepancy the same is reported to the supplier.

12. Invoice Entry: 

Supplier sends the invoice to accounts department of buying organization for claiming payment against the materials despatched.

13. Invoice Matching:

After the Invoice entry, the invoice is validated / matched with the materials received at the warehouse.

14. Pay the Supplier: 

After the invoice matching the payment is credited in supplier account.

Oracle Receivables – Types of Invoices

Oracle Receivables – Types of Invoices:

Following are few types of invoices in Oracle Account Receivables Module:

Invoice Type	Description
Invoice	An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities and agreed prices for products or services the seller had provided the buyer. A document that lists amounts owed for the purchases of goods or services, any tax, freight charges and payment terms.
Credit Memo	A document that partially or fully reverses an original invoice.  A credit note lists the products, quantities and agreed prices for products or services the seller provided the buyer, but the buyer returned or did not receive. It may be issued in the case of damaged goods, errors or allowances.
Debit Memo	A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo.
Chargeback	A new debit item that is assigned to the customer when closing an existing, outstanding debit item.
Deposit	A type of commitment whereby a customer agrees to deposit or prepay a sum of money for the future purchase of goods and services.
Guarantee	A contractual obligation to purchase a specified amount of goods or services over a predefined period of time.
Bills Receivables	A bill receivable is a document that customer formally agrees to pay at some future date (the maturity date). Bills receivable are often remitted for collection and used to secure short term funding.  A written evidence of debt that is payable to the holder; a promissory note or an acceptance (a bill of exchange that has been accepted) is in the hands of a person to whom it is payable a bill receivable.