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

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

What is a Cost Master Organization?

If costs are shared under standard costing, the organization in which the costs are defined is called Cost master Organization or Costing Organization.

Any Organization shares standard costs from a Cost master Organization can’t use Bills of Material.

How unit cost is derived under Average Costing?

Under Average Costing, the unit cost is derived by averaging the value of all receipts of that item to inventory, on a per unit basis. Each receipt to the inventory updates the unit cost of the received item. Issues from inventory uses the current average cost as the unit cost.

                             (Transaction value + Current inventory value)

Average Cost= -------------------------------------------------------------

                             (Transaction qty. + current on-hand qty.)

Transaction Value = PO price x Transaction qty.

Incase of Standard Costing org, how does the system get the unit cost?

We have to define unit cost of all the items as standard cost and the difference between the defined standard cost and the actual cost are recorded as variances. Under Standard Costing we can share costs across multiple organizations and hence the standard costs will be defined only in one organization. The Cost Master Organization will normally be the Item Master Organization.

What is Purchase Price Variance (PPV)?

When using the standard Costing, the difference between the defined standard cost and the actual cost are recorded as Purchase Price Variance (PPV). Purchase Price Variance is not used for Average Costing Org.

PPV = (PO Unit Price – Standard unit Cost) x Qty. Received.

What is Invoice Price Variance (IPV)?

Invoice Price Variance (IPV) is the difference between PO unit price and the actual invoice unit price multiplied by the quantity invoiced.

IPV = (PO Unit Price – Invoice unit Price) x Qty. Invoiced

Does Repetitive Schedule Supports Average Costing?

No. We can’t define Repetitive Schedules in an organization that is defined as a manufacturing, average cost organization. The reason for this is that weighted average costing cannot be applied to repetitively manufactured items.

Under average costing, can we share costs between organizations?

No. We can’t share costs between organizations under average costing because average costs are maintained separately in each organization.

What is the pre-requisite for updating the subinventory parameters?

The subinventory parameters can be updated only if there is no On-Hand quantity in that subinventory.

What is an Expense Subinventory and what all are the parameters you will select while defining an Expense Subinventory?

A subinventory where qty. is not tracked is called an Expense Subinventory. No parameters will be selected for this subinventory. (When the ‘Qty. Tracked’ parameter is not selected, automatically the other parameter go inactive.)

Can you prevent some specific items to be assigned to any subinventory other than a selected one?

Yes. Set the item attribute ‘Restrict Subinventory’ to the required Subinventory.

In item Status,’ Default Value’ and ‘’Sets Value’ stands for what?

If ‘Default Value’ is selected against a Status Attribute, the user may change the defaulted value whereas if ‘Sets Value’ is selected, the user will not be able to change the defaulted value.

In which combination the onhand quantities of the items are available in “mtl_onhand_quantities” table?

Items quantities are stored in the combination of ORGANIZATION, SUBINVENTORY and LOCATOR.

In which table the item categories are stored?

Item categories are stored in “mtl_categories” table.

In which table the AR invoices will be stored?

AR Invoices are stored in “ra_customer_trx_all” & “ra_customer_trx_lines_all” tables.

What are the interface tables for storing the AR invoices while importing the invoices using interface program.

The interface tables are “ra_interface_lines_all” & “ra_interface_distributions_all”

Can we import the cost for an item using item interface.

Yes. Cost of an item can be imported using item interface.

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