Oracle R12 Order Management – Sales Order in Back Ordered Status reasons

Oracle R12 Order Management – Sales Order in Back Ordered Status reasons

Below may be the possible reasons for backordered status even after sales order lines are pick released.

1.       Sales Order in On-Hold

2.       Inventory Period not open

3.       Non availability of On-hand quantity for the ordered item

4.       Non availability of On-hand quantity to reserve / transact

5.       Non availability of On-hand quantity in the required sub-inventory

6.       Lot from which items are selected is inactive / expired 

7.       Lot control Item Lot Divisible Option not enabled

8.       Specified Lot is Disallowed Transaction (Applied on Material Status)

9.       Item On-Hand to Disallowed Transaction (Applied on Material Status)

10.   Wrong Item reservation (even inventory have enough quantity)

11.   Inventory reserved for other sales orders

12.   Previously returned to stock not properly performed

13.   Cycle Count Adjustments

14.   Serial Control Item Serial number not allocated or not assigned 

15.   Manually Backordered 

16.   Move order is in pending status

Solution:

Query the sales order in Shipping Transaction Form and ensure that the status is “Ready to Release”.

Possibilities for this problem:

Case A: Sales Order in On-Hold

Query the sales order & check whether the order is on-hold.

Navigate to the Sales Order View & query using sales order number & order type.

Click on Open Order > Click Action Button > Additional order info.

Perform the same for order level and line level.

Case B & C: Non availability of on-hand quantity / Item on-hand stock with Lot expired

Navigate to Material Workbench to check if the lot has expired or not having enough inventory for this order.

Check if any lot is reserved for other sales order as well.

In Material Work Bench, check for each lot in the physical locator by clicking on the “Attribute” button. (Lot level reservation)

Alternatively, Navigate to Shipping Transaction Form > OM Shipping View or Navigate to Lot Number, click on Attribute column to check the Sale Order reservation of the lot.

Compare the Sales Order info with the order that are having problem.

Case D: Wrong reservation (even inventory have enough qty)

Navigate to Reserve Supply form to check if the order is wrongly reserved.

Case E: Inventory reserved for other orders

In the Reserve Supply form, check if the quantity is being picked up by other order as well. (Order level reservation regardless of lot number)

Also, Navigate to Material Workbench > Availability, to check for the available to reserve.

Case F: Inventory picked up by other orders

High possibility that the On-hand quantity is reserved by order with different line, or other orders which have been auto pick release launched.

If this is the case, the sales order must be backordered manually.

Navigate to Transact Move Order Form > Pick Wave Tab > View/Update allocation > Lot/Serial.

Click on the checkbox for order which need to be backordered, then go to Tool > Back Order Line.

Case G: Previously returned to stock not done properly

Enquire the user if the order has done return to stock previously.

If yes, it might has high possibility that the return to stock not done properly.

Check the lot status, must be in “Resides in inventory”.

Check in Material Workbench to see if the lot is still packed with LPN or not.

Check also if the lot is in physical locator rather than logical locator.

Oracle India Localization Interview Questions & Answers – Part II

Oracle SCM Functional Interview Questions & Answers – India Localization – Part II

User has made a receipt with excise & VAT and forgotten to claim them. What will be the solution to claim both excise & VAT?

User can claim excise by going thru “Claim MODVAT on Receipt” form. VAT claim entry form is available for claiming VAT.

Navigation:

India Local Purchasing Responsibility > India Localization > India TCS/VAT/Service Tax > Transaction >         VAT Tax Claim.

Reasons for blank fields in the VAT claim form?

Below may be the Reasons for blank fields:

a. MODVAT & recoverable Flag are not enabled

b. Supplier additional information not defined with site

c. In item classification, defined as finished goods instead of raw material

d. In regime registration the inventory organization is not defined

e. Tax type selected as VAT instead of Value Added Tax

Can the excise & VAT taxes selected in payable invoice?

VAT can be selected but Excise taxes cannot be selected in payable invoice.

Is there localization for payable invoice?

No.

Is it possible to make partial claim for VAT & excise, how?

Yes. Partial claim is possible. Partial claim can be performed through

“VAT – Claim Terms Definition form”

Navigation:

India Local Purchasing Responsibility > India Localization > India TCS/VAT/Service Tax > Setup > VAT > VAT – Claim Terms Definition

What will be the accounting entry for the TDS invoices? What will be the payment accounting entries for the TDS invoices?

From where the Tax authority name & the TDS account is taken for the tax authority invoice?

Tax account and Tax authority information can be retrieved from Tax Form.

Why the credit percentage is not given for TDS tax?  What is the difference between single & cumulative threshold type?

TDS is not recoverable tax. Hence credit percentage cannot be defined.

Threshold types:

Single: Applicable to a single transaction.

Cumulative: In this case TDS is applicable only when the cumulative purchases made from the supplier in one financial year exceeds the specified limit.

What are the concurrent used to generate the TDS certificate?

Concurrent used to generate the TDS Certificate are:

Claim VAT button in the PO receipt is greyed out. What is the solution to enable this?

User would have selected VAT instead of Value Added Tax in the tax type creation.

Is Excise invoice generation mandatory in India Localization?

Yes, it is mandatory

Is document sequencing is mandatory for VAT?

Yes, it is mandatory

When the shipment of FG over, does it affect PLA Register or RG23A register?

System will search in RG23A register first. In organization additional information sequence is defined so that it looks into the sequence which is set.

What is the difference between CENVAT Flag and Excise Flag while defining item?

CENVAT Flag is for PO while Excise Flag is for Sales.

For a shipment the excise invoice number is not generated. What could be the reason for this?

The following could be the reasons

1. Customer additional information (check for without site & with site)

2. We have not defined order types where we define the excise invoice number generation

3. Bond register

4. Bonded sub-inventory

5. Organization additional information

What is Regime Registration? Why we are not able to select Inventory Organization in Regime Registration?

It used to define rules applicable to all taxes assigned to it. We need to complete this setup           before we move ahead with other setups.

Reference: Collected from various web sources.

Please do refer below links for Oracle SCM Functional interview questions & Answers on India Localization.

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-india-localization-interview.html

Oracle R12 – Inventory Planning & Replenishment Methods

Oracle R12 – Inventory Planning & Replenishment Methods

Oracle Inventory manages the inventory levels using any combination of the system’s planning and replenishment features, including Min–Max Planning, Reorder Point Planning, Kanban Replenishment and a replenishment system for generating the orders.

Replenishment orders are generated when the below scenario is met:

On-Hand Quantity + Supply - Demand < Minimum Inventory Level

Minimum Inventory level is a safety stock designed to be on an exception basis to meet demand or inventory while waiting for replenishment in the inventory.

Order Quantity should balances the cost of placing an order with the cost of carrying inventory while covering expected demand. Then a requisition to be created to replenish inventory from another organization or a supplier.

Inventory Planning Methods:

1. Reorder-Point Planning (Organization),
2. Min-Max Planning (Organization and Sub-Inventory),
3. Replenishment Counting,
4. Vendor Managed,
5. Kanban Planning.

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

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

What is inventory control?

Inventory control is the process of reducing inventory costs while remaining responsive to customer demands. By this definition a store would want to lower its acquisition, carrying ordering and stock-out costs to their lowest possible levels. However a store would need to have enough inventories to meet any needs of its customers.

What does inventory affect in a store?

Inventory levels and their values can affect the income of the store, the amount of taxes paid, and the total stocking cost.

How can the value of inventory be determined?

The value can be found using four methods in inventory control.

Standard Cost: The specific cost in which each item's cost is added together for the inventory's value.

Average Cost: The weighted average of the costs for a period to determine value.

FIFO Cost: First In First Out. In this method value is measured using the latest costs of goods while working towards the beginning of the period until all goods in inventory are valued.

LIFO Cost: Last In First Out. In this method the costs of gods at the beginning of the period are used to determine the inventory's value much like FIFO.

What are the important considerations in inventory control?

For inventory control to work at its best a store must consider the costs of acquisition, carrying, ordering, and stock-out. The store must also look at its reordering system, its budgeting for inventory, insurance and forecasted demand.

Will the changes made in a Workday calendar comes into effect after saving?

No. The changes made into a Workday calendar will come into effect only after Building the Calendar.

How different weekly offs can be assigned to different shifts without doing it manually?

Suppose Monday is the Calendar Start day and we want Thursday as weekly off for 1st shift and Friday for 2nd shift, enter the ‘Workday Pattern’ for 1st as 3 On 1 Off and 3 On 0 Off. This means that Monday, Tuesday and Wednesday are working days, Thursday is off and Friday, Saturday and Sunday are again working days, for any week for 1st shift. And for 2^nd shift enter the Workday Pattern as 4 on 1 off and 2 on 0 off.

What is an Organization?

An Organization is an inventory location with its own Set of Books, Costing Method, Workday Calendar and List of items.

What is a Sub inventory?

A Sub inventory is used when two physical inventory locations share the same Set of Books, Costing Method, Workday Calendar, but different list of items.

How will you that a location is available for transaction in all Organizations?

While defining the Location, don’t attach an Organization to it so that the location can be used for any organization

What is the difference between Internal and External Organizations?

The difference between Internal and External Organization is that we cannot assign people to an External Organization.

Examples of External Organizations:

Workers Compensation Insurance Carriers.

Organizations that are recipients of third party payments from Employee’s benefits.

What is an Item Master Organization?

The organization in which the items are defined is called the Item Master Organization. Child Organizations (other organizations) refer to the Item Master for the item definition. There is no functional or technical difference between the Item Master Organization and other Organizations. However, for simplicity, it is recommended to limit the item master to just for an item defining organization.

Is it possible to have different costing methods for different organizations under the same Item Master Organization?

Yes. Even we can have dummy organizations for using different costing method for different costing method for different items within an organization.

Can we use Average Costing in an organization where WIP is also installed?

No. We can’t use Average Costing if WIP is installed.

What shall be the Costing Organization of an Org?

If individual organization wants to have control over its own cost, we will assign the current organization itself as the Costing organization. If that is not the case, we can assign the Item Master Organization or any other organization as the costing organization.

What are the Inventory material transactions interface tables.

Material Transactions Interface Tables are:

mtl_transactions_interface,

mtl_transactions_lots_interface,

mtl_serial_numbers_interface,

mtl_interface_errors

In which table the inventory material transactions history data is maintained after running the interface program.

Material transactions data are maintained in “mtl_material_transactions” table.

In which table the onhand quantities of the items exist?

On-Hand quantities of the items are stored in “mtl_onhand_quantities” table.

In which table the subinventories are stored?

Sub inventories are stored in “mtl_secondary_inventories” table.

In which table the locators are stored?

Location information is stored in “mtl_item_locations” table.

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

Oracle R12 Inventory Module – Setup Steps

Oracle R12 Inventory Module – Setup Steps

Oracle Inventory – Setups steps to be followed during the implementation:

Step#	Setup	Description	Remarks
1	Setup System Administrator Responsibility	For User Creations & Printer Setups	Required
2	Define Inventory Key Flexfields	To set HR Employee & Inventory Item Flexifields	Required
3	Define Locations	To define locations for the inventory orgs, operating units.	Required
4	Define Personnel	Define employees, jobs, positions	Prerequisite setup for Inventory.
5	Define Organization Calendars	To define period types, transaction calendars & workday calendar.	Required
6	Define Organizations	To create Legal entities, Ledgers, Business Group, Operating Units, Master org & Inventory org.	Required
7	Define Organization Parameters	To define Inventory Parameters, Costing, Accounting, Item Control & Inter org information.	Required
8	Define Intercompany Relations	To define intercompany relation between the organizations	Required
9	Define Receiving Options	To define receiving parameters for the organizations	Optional
10	Define Unit of Measurement Classes	To define the unit of measurement classes	Required
11	Define Unit of Measurements	Define the units of measure for supply of items.	Required
12	Define Unit of Measurement Conversions	Define the conversion factors for the unit of measurements	Optional
13	Define Subinventories	Define Supply, Storage subinventories for the organization	Required
14	Define Stock Locators	Define the locators for the subinventories	Required
15	Define Item Attributes	Define the Item Attributes controls to control the items in the org,	Required
16	Define Categories	Define Item Categories	Required
17	Define Category Set	Define Item, Purchasing Category Sets	Required
18	Define Default Category Set	Define Inventory, Purchasing Category Sets	Required
19	Define Statuses	Define Item Statuses	Required
20	Define Item Catalog Groups	Define Item Catalog Groups	Optional
21	Define Item Types	To Define Item Types	Optional
22	Define Item Templates	To Define Templates for defining items in the org	Optional
23	Define Cross Reference Types	To Define Item Cross References	Optional
24	Define Item Delete Constraints	To Define Item deletion Constraints	Optional
25	Define Cost Types	To Define Cost Type for the Organization	Required
26	Define Cost Activities	To Define Cost Activities	Optional
27	Define Material Sub-Elements	To Define Material Sub-elements	Optional
28	Define Material Overheads	To Define Material Overheads	Optional
29	Define Default Material Overheads Rates	To Define the Default Material Overheads rates	Optional
30	Define Freight Carriers	To Define the Freight carries	Optional
31	Define Shipping Networks	To Define the Shipping Network Setup within the orgs for Inter org Transfers & Internal Orders	Optional
32	Define Shipping Methods	To Define the Shipping Methods	Optional
33	Define Transaction Sources Types	To Define the Transaction Source types required for the org.	Optional
34	Define Transaction Types	To Define the Transaction types required for the org.	Optional
35	Define Transaction Reasons	To Define the Transaction Reasons	Optional
36	Define Purchasing Options	Define Purchasing options for each operating units	Optional
37	Open Accounting Periods	Open the Accounting periods based on the periods	Required
38	Set Profile Options	To set the required profile options based on the business needs	Required
39	Define Container Types	To define the container type details	Optional
40	Define Commodity Codes	To define Commodity codes	Optional
41	Define Customer Items	To define the customer item details against the items	Optional
42	Define Item Cross Reference	Define item cross references for ordering by customer part number or any generic item number.	Optional
43	Define Items	Define the Items which are to be purchased.	Required