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

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

Describe the order flow in Order to Cash life cycle

1. Enter the sales order

2. Book the sales order

3. Pick release

4. Ship confirm

5. Auto Invoice generation

6. Creating receipt

7. Transfer to GL

Describe the processes involved after entering sales order?

1. The items specified on the order are validated in Oracle Inventory

2. The price of the items are calculated using the pricing engine

3. Customer definition

4. The availability of the items are checked and may be reserved

5. The items are then pick released and shipped to the customer.

What are the different types of sales orders available?

Standard

Mixed

Return

When is an item eligible for customer order?

When the attributes ‘Customer Ordered’ and ‘Customer order enabled’ are checked in the order management tab of Master Items.

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

Describe the line status during the sales order process?

Entering the sales order                                                Entered

Booking the sales order                                Awaiting shipping (when sufficient OH is available)

Supply eligible (when OH is not available)

Pick release the order                                    Picked

Ship confirm the order                                  Shipped

Running interface trip stop                          Closed

Differentiate available quantity and on-hand quantity?

Available quantity + Reserved quantity = On-hand quantity

Differentiate Supply Eligible Status and Supply Partial Status?

Supply Eligible:

When there is no sufficient quantity available.

Ex: When user tries to book a sales order for Item 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.
Ex: When user tries to book a sales order for Item for a quantity of 10 but the item contains only 4 quantities. Then the Sales Order Line Status changes to ‘Supply Partial’.

What are the various order management processes supported by oracle Order Management

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, supplier will ship the goods to customer on behalf of an organization.

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.

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 to 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.

Describe scheduling in sales order?

It is a process of communicating the balance between customer demand and a company’s ability to fulfil an order from current inventory and supply sources

What are the various ways of scheduling the sales order?

Set the Profile option “OM:AutoSchedule” as yes

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

Right Click on Sales Order Line >Scheduling >Schedule.

Run the Schedule Order Concurrent Program.

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, the order cannot shipped.

In the Arrival Set process, the customer requests specific order lines to arrive together

What is shipping exceptions report?

Shipping exceptions report prints the exceptions messages during ship confirmation.

What is Interface trip stop?

(Refer the link for more detail - http://learnoraclecsbscm.blogspot.in/2015/08/oracle-order-management-interface-trip.html)

Interface Trip Stop 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)

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.

When is drop ship order created?

(Refer the link for detailed Drop Shipment Order Flow http://learnoraclecsbscm.blogspot.in/2015/06/oracle-r12-order-management-drop.html)

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

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

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

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

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 seller’s premises. “FOB destination” designates the seller will pay shipping costs and remain responsible for the goods until the buyer takes possession.

What are the different RMA Order Types?

RMA with Credit :

It is used when the customer returns the physical product and also receives credit as a result of the return.
RMA no Credit:

It 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:

It is used when the customer will receive a credit, but the physical return of the product is not required.

What are the necessary setups to perform Internal Sales Order?

Internal Order and Internal Ordered Enabled set to ‘Yes’.

Shipping Network (Intransit or Direct) between the orgs must be defined.

Internal Customer must be defined

What are the possible reasons for Interface trip stop to complete with Error?

Few reasons for ITS error are:

1. Order is on Hold

2. Tax is not applied properly

3. On-Hand quantity 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

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