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

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

What is a Purchase Requisition?

A purchase requisition contains the description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services.

What are the base tables for a Purchase Requisition?

po_requisition_headers_all 

This table stores Header information of a Purchase Requisition. (SEGMENT1 column in this table represents the requisition number)

po_requisition_lines_all

This table stores information about Requisition lines in a Purchase Requisition. This table stores information related to the line number, item number, item category, item description, item quantities, units, prices, need-by date, deliver-to location, requestor, notes, and suggested supplier information for the requisition line.

po_req_distributions_all

This table stores information about the accounting distributions of a requisition line. Each requisition line must have at least one accounting distribution. Each row includes the Accounting Flexfield ID and Requisition line quantity.

What is a Requisition Import Program?

Requisition Import Program (RIP) is a concurrent program, which is used to import requisition from Oracle or third party software. Data is first loaded in po_requisition_all table. RIP concurrent can then be run, to import the records from the interface table as requisition in Oracle Processing.

RIP creates a requisition line and one or more requisition distribution for each row it finds in the interface table. It then groups these lines on Requisitions according to parameters defined

What tables are affected when you run Requisition Import Program?

po_requisition_interface_all

po_req_dist_interface_all

po_interface_errors

What are the reports associated with requisition import process?

Requisition Import Run Report: 

We can view the number of requisitions created and the number of records that showed an error

Requisition Import Exceptions Report: 

In this report we can see all the rows that fail validation.

When will you use a Requisition Template?

Requisition templates can be used to help users to create requisitions quickly. A requisition template contains much of the information needed to create a requisition, thus reducing the amount of data entry required to create a new requisition. If you find yourself repeatedly creating similar requisitions for your group or department, you should consider creating and saving requisition templates as a time-saver.

What is the purpose of choosing a Category when creating a requisition?

The Category box is a required field and is used to define goods and services at a summary or detailed level.

What does the status pre-approved mean?

Pre-Approved is the status of a requisition when an authorized approver has approved the requisition and has forwarded the requisition to another individual to review.

What is the difference between a rejected and a returned requisition?

Only an approver or a reviewer can reject requisition. Only a buyer can return a requisition. A buyer will return a requisition to the preparer for incomplete or inaccurate information.

What is RFQ and differentiate the types of RFQ’s

A Request for Quotation (RFQ) is a formal request sent to the suppliers to find the pricing and other information for an item or items. Based on the information supplied, the supplier quotes a quotation against the RFQ form.

In general, RFQ’s are created before purchasing any item to actually know the price quotes from one or more suppliers.

There are three types of quotations and RFQs that come with Purchasing by default:

Catalog: 

Used for high-volume items or items for which your supplier sends you information regularly. A Catalog quotation or RFQ also includes price breaks at different quantity levels.

Standard: 

Used for items you’ll need only once or not very often, but not necessarily for a specific, fixed quantity, location, and date. For example, you could use a Catalog quotation or RFQ for office supplies, but use a Standard quotation or RFQ for a special type of pen you don’t order very often.

Bid: 

Used for a specific, fixed quantity, location, and date. For example, a Bid would be used for a large or expensive piece of equipment that you’ve never ordered before, or for an item that incurs transportation or other special costs. You cannot specify price breaks for a Bid quotation or RFQ.

What is a Quotation, what are the different types of Quotations available and describe the Quote Analysis?

A quotation is a supplier’s response to RFQ.

Quote analysis is the process of reviewing the quotations given by the suppliers. The best quotation will be selected by analysing certain factors like price, quality, delivery time etc.

What is a Purchase Order and explain the different types of PO’s available

A Purchase order is a commercial document and first official order issued by the buyer to the supplier, indicating types, quantities, and agreed prices for products or services the supplier will provide to the buyer.

There are four types of Purchase Orders:

Standard Purchase Order:

Used for One-time purchases for goods and services. Here you know the item, price, payment terms an delivery schedule

Planned Purchase Order:

Created when you have long-term agreement with the supplier. You must specify the details of goods and services, payment terms and the tentative delivery schedule

Blanket Purchase Agreement:

Created when the details of items and services, payment terms are known but not specific about the delivery schedule

Contract Purchase Agreement:

Created when the terms and conditions of a purchase are known but specific goods and services are not.

What are the base tables that are affected when purchase order is created?

po_headers_all:

This table stores header information of a Purchasing Document. You need one row for each document you create.  (SEGMENT1 column in this table represents the Document number)

po_lines_all:

This table stores the line information of a Purchasing Document

po_line_locations_all:

This table contains the information related to purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.

po_distributions_all:

This table contains the information related to accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment

What is 2-way, 3-way, 4-way matching?

Oracle Payables shares purchase order information from purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received.

2–Way Matching: 

Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.

3–Way Matching: 

Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

4–Way Matching: 

Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Reference: Collected from various web sources

Please do refer:

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-purchasing-module-scm-functional.html http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_12.html