Oracle SCM Functional Guide: Oracle SCM Functional Interview Questions & Answers - Inventory Module

Oracle SCM Functional - Inventory Module:

Operating Unit 1 (OU1) has 3 Inventory orgs say M1, M2 & M3 and Operating Unit 2 (OU2) has 3 Inventory orgs say S1, S2 and S3. OU1 & OU2 has different Set of Books (SOB) and Legal Entity (LE). Now is it Possible to change the Operating Unit (OU) for Inventory Org S3 from OU2 to OU1. If Possible, what are the Inventory Setup requirement needed? Also, what are all the financial impacts?

No, it’s not possible to change an inventory org from one OU to another.

Please explain the concept of 'Genealogy' in Inventory Management?

Genealogy is the maintained for all Lot controlled and Serial controlled items. Lot Genealogy tracks the relationship between lots and provides lot traceability that result from inventory transactions.

Serial genealogy tracks the transaction and multilevel composition history of any serial-controlled item from receipt through work in process and inventory to your customer sale. The composition genealogy is captured through material transactions in Oracle Work in Process.

During closure of inventory period, system throws an error stating pending transaction exist for this period? How to resolve this and close the Inventory period?

Navigate to inventory accounting period, click on the pending task and identify the nature of the task which is pending and resolve as per issue.

What is concept of Multi-org? What is the purpose of running concurrent request ‘Replicate Seed Data’?

Multi-org means single installation of Oracle Applications will support multiple organizations with the use of different Set of Books. Multi-org supports any number of Legal Entities.

Replicate seed data is a concurrent program used to replicate the generic data attributes such as Supplier, customer header information across OUs. This program is typically run after creation of new OUs.

What’s the difference between Cycle counting and Physical inventory?

Cycle counting is recurring and more often phenomena compared to Physical inventory. Cycle counting typically happens for A class items on periodic interval say every quarter.

Physical inventory is done on an annual basis for all items in the inventory.

What transactions would be available in Item Supply/Demand form?

Demand such as Sales order booking

Supply such as Purchase orders, requisitions etc.

Which report should I run for viewing item on hand quantity across organization?

Multi-organization Quantity Report

What are types of managers in Oracle?

Cost Manager
Lot Move transaction Manager
Move Manager
Material manager

Whats the difference between nettable and non-nettable sub inventories?

Nettable sub inventories are the only sub inventories which are used by MRP/ASCP engines for identification of any supply for an item

Non Nettable sub inventories are not considered by planning engines as sources of supply.

What transactions would be available in Transaction Open interface?

Transaction Open interface is a key interface through which user can submit transactions. Transaction open interface can process different transactions to do on hand conversions from legacy systems and do other transactions like sub inventory transfer, account alias issue / receipts etc.

The transactions could involve Lot and /or serial controlled items.

What is the difference between Intra-class and Inter-class UOM conversions?

UOM conversions that happen within the same UOM class (Quantity, Weight) are known as Intra-class UOM conversions. (Kg to Pounds)

UOM conversions that happen across UOM class are known as inter-class UOM conversions.

In Shipping Networks, whats the role of field FOB?

Receipt: The shipping organization owns the shipment until the destination

Organization receives it.

Shipment: The destination organization owns the shipment when the from

Organization ships it (and while the shipment is in transit).

In EBS, Free on Board is specified in shipping network for the system to recognize the costing impact of inter-organization transaction. If FOB is set as Shipment then costing of transaction would happen during sale order shipment. If FOB is set as Receiving then costing of transaction would happen during Receipt of item in the requesting organization.

What is the purpose of Organization Access?

Organization Access is used to restrict responsibilities to organization. Once this mapping is set up, a user logging into an Oracle Manufacturing product is restricted to the organizations mapped to the responsibility chosen.

Client doesn’t have business practice of issuing transactions that would drive inventory to have negative balances, how would you setup this requirement in EBS?

In organization parameters form, ensure the Allow negative balance checkbox is not checked.