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

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

If the Line Type selected in a PO is ‘Outside Processing’, what should be the Destination type?

Shop floor.

Is it possible to schedule an item for Cycle Counting when it is under Serial Control?

Yes from release 11.0 it is possible but for prior release it is not possible as cycle counting and serial number control doesn’t go parallel.

What is Hit/Miss % stands for in a Cycle Count?

A Count is considered a Hit if it is within the Hit/Miss tolerance and a Miss, if it is beyond the tolerance. The Hit/Miss tolerance can be either the approval tolerance or slightly wider. The Hit/Miss tolerance is used to evaluate the accuracy of the Cycle Count procedures rather than the actual accuracy of the Inventory.

If you don’t want the quantity, ordered or due, is to be displayed while receiving an item, how will you do this?

Set the Receiving Option ‘Allow Blind receiving’ to Yes.

How will you ensure that all Receipts will be numbered automatically?

Define the numbering method Automatic or Manual in Receiving Options. If Automatic is selected, enter the starting number also in the field ‘Next number’.

If you want updation of Item Names, where will you mention it?

The profile option ‘INV:Updatable Item Names’ to Yes.

What is an Intransit Inventory?

When materials are transferred between organizations, we use Intransit Inventory if the distance between the shipping and receiving organizations are high and consequently the transportation time is more. The material is in Intransit Inventory means that it is in the transport used (Truck etc.).

How will you track material in Intransit Inventory?

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Transaction > Material Transaction.

Enter the required search criteria and click Find.

The pop up window has the following regions:

Location:

Display the Item, Subinventory, Locator, Revision, Transfer Locator, Transfer Subinventory, Transfer organization, Transaction Date, Transaction Type Information.

Intransit:

Display the Shipment Number, Way bill /Air bill Number, Freight Code, Container, Quantity and Transaction Type Information.

Reason, Reference:

Display the Item, Transaction Reason, Transaction Reference, Costed Indicator, Supplier, Lot, Source Code, Source Line ID and Transaction Type Information.

Transaction ID:

Display the Item, Transfer Transaction ID, Transaction Header Number, Receiving Transaction ID, Completion Transaction ID, Department Code, Operation Seq. Number and Transaction Type Information.

Transaction Type:

Display the Item, Source, Source Type, Transaction Type, Transaction UOM, Transaction Qty., Transaction ID and Transaction Date Information.

What is the difference between Focus Forecasting and Statistical Forecasting?

Focus Forecasting:

This procedure tests, the selected items against a number of forecasting techniques and choose the best one, based on history, as the technique to forecast future demand.

Statistical Forecasting:

Uses the exceptional smoothing, trend and seasonality algorithms to forecast demand for an item.

What does the term ‘Alpha Smoothing Factor’ used in Statistical Forecasting means?

This Factor is used to smooth demand for each successive period in the forecast. This levels the demand throughout the forecast, reducing dramatic upward or downward fluctuations.

The value can range from 0 to 1. Values closer to 0 give more weight to past demand; values closer to 1 give more weight to current demand.

What is the Item Attributes Control Level?

The Item Attributes can be controlled at Organization Level and Master Level.

Can you set item attributes differently for different organizations?

Yes. Those attributes that are controlled at organization level can be set differently for different organizations.

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Items > Organization Items.

Set the required attribute and this will be applicable only to that particular organization.

Which are those item attributes that can be controlled only at one level? Mention the attribute and its unique control level.

While doing the Sales Order scheduling with Demand Reservation, the item is not getting reserved. Where will you check?

1. Check the Item Attribute ‘Reservable’ is set to ‘Yes’ or not.

2. Set the Profile Option ‘OE: Reservations’ is set to ‘Yes’ or not.

Reservation control for a Subinventory overrides reservations control for an item. In other words, if an item is reservable but the Subinventory is not, the item quantity in that Subinventory is not reservable.

Suppose one of your suppliers of a particular item supplies the material only in full truckload. How will you ensure that the Order Quantity will always be the full truckload quantity or it’s multiple?

Enter the full truckload quantity in the ‘Fixed Order Quantity’ field of item Attributes.

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

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_10.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_12.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_13.html

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

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

Is it possible to define safety stock for an item at subinventory level?

No. The safety stock can be defined only at organization level.

What are the two methods adopted by Oracle Inventory to calculate the Safety Stock if it is generated by the system?

Mean Absolute Deviation (MAD) Method:

In this method, the Safety Stock = Z x (1.25 x MAD) where Z is the number from the normal distribution probabilities corresponding to the service level specified by the user and MAD is the mean absolute deviation of the historic forecasts from the actual demand.

Percentage of Forecast Demand Method:

In this method, the Safety Stock = Forecast Demand x Safety Stock % / 100

How does Oracle Inventory arrive at the time of creating an Order, for an ROP planned item?

The Order is raised when the, (On-Hand Qty. + Planned Receipts) < (Forecast Demand + Safety Stock) during lead-time.

How does Oracle Inventory arrive at the size of the Order for an ROP planned item?

The Order size will be the Economic Order Quantity (EOQ), EOQ = Sq.root of (2 x Annual Cost x Order Cost) / Carrying Cost.

Replenishment Count planning is adopted to replenish items of what type of Subinventory?

Replenishment Count planning is adopted to replenish items in Expense Subinventory.

Can we use the Replenishment Count planning for an item assigned to an Asset Subinventory (Qty. tracked)?

It can be used, provided that we give one of the following two information in addition to the item and Subinventory.

Order Quantity: Specify the Qty. that is to be ordered (Or) Order Max. Qty.: Inventory orders the Min-Max, maximum qty.

What is the very primary step that is to be taken before starting the first transaction in a new organization?

Open the Inventory Accounting Periods.

Navigation:

India Local Inventory Responsibility > Oracle Inventory > Accounting Close Cycle > Inventory Accounting periods.

How will you receive substitute items?

First define item relationships. If substitutes are defined in the item relationship window, we will get a list of substitutes while receiving the items from which we can choose the required substitute.

Set ‘Allow Substitute Receipts’ to you in the Receiving Option, Item Attribute and Supplier.

How many Interface Managers are there? What do they do?

There are four Interface managers:

Cost manager

Demand reservation

Material transaction

Move transaction

The Transaction Manager run at periodic intervals, as per the period we set for each Manager so that they execute the processes like resource Cost transaction, Demand Reservation, Material Transaction and Move Transaction.

How will you transfer the Transaction details into GL?

If ‘Transfer to GL’ in organization definition is set to Yes, we can transfer the details through the Navigation:

India Local Inventory Responsibility > Oracle Inventory > Accounting Close Cycle > General Ledger Transfer.

The transfer is done for specific periods.

How will you print a receipt note for each shipment received?

Set the profile option ’RCV: Print Receipt Traveler’ to Yes.

In the Organization definition we enter the mode of inter-Org Transfer Charge; but where will you enter the actual charge value?

In the ‘Add Value’ field of Transaction Lines in Inter-Org. Transfer.

While defining a Forecast, we don’t mention about the Forecast Rule. Then what is the use of a Forecast Rule?

The Forecast Rule is used if the system generates a forecast from the historical data.

If the Receiver of an item should not change the Ship-to-Location mentioned in the PO, how will you ensure this?

Set ‘Enforce Ship-To-Location’ to Yes in the following areas:

1.     Item Attributes.

2.     Receiving Options.

Which are the Destination type that can be there for an item to be being received?

Receiving, Inventory, Shop floor and Expense.

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

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_10.html

http://learnoraclecsbscm.blogspot.in/2015/10/oracle-scm-functional-interview_12.html

Oracle SCM Functional Interview Questions & Answers - Inventory Module - Part I

Oracle SCM Functional - Inventory Module:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

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

Demand such as Sales order booking

Supply such as Purchase orders, requisitions etc.

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

Multi-organization Quantity Report

8. What are types of managers in Oracle?

• Cost Manager
• Lot Move transaction Manager
• Move Manager
• Material manager

9. 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.

10.  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.

11.  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.

12.  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.

13.  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.

14.  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.

15.   Can I perform Sub-inventory transfer to transfer items across organizations?

Sub inventory transfer can be used to transfer items from one sub inventory to another within a single inventory organization.

Reference: Collected from various web sources

Please do refer:

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_9.html

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

Oracle SCM Functional - Purchasing:

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

2-way matching:
2-way matching verifies that Purchase order and invoice quantities must match within your tolerances as follows:
Quantity billed <= Quantity Ordered
Invoice price <= Purchase order price
(<= sign is used because of tolerances)
Often used for services where no receiver is generated.
3-way matching:
3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined:
Quantity billed <= Quantity received
4-way matching:
4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:
Quantity billed <= Quantity accepted.
(Acceptance is done at the time of Inspecting goods).

2. Difference between Job hierarchy and position hierarchy?  What are the steps involved in setting up Position Hierarchy?

Job hierarchy is used when there is a single approval hierarchy system in the organization compared to Position hierarchy which is used if for the same job, multiple positional approvals are required i.e. Junior buyer’s requisition needs to be approved by senior buyer and senior buyer’s requisition is sent to Supply Chain manager and then to Finance manager for final approval. In Position hierarchy, approval might happen between different positions for the same Job.

Setups required:

• Use Approval hierarchy must be checked in Finance Options
• Jobs must be defined
• Position must be defined and mapped to jobs
• Position hierarchy must be setup
• Position hierarchy must be mapped to Document type
• Define and assign Approval groups
• Assign employees
• Run Fill Employee hierarchy concurrent program

3. What is the difference between bill of distribution and sourcing rule?

Sourcing rule is used to determine the source of particular item i.e. Suppliers or source organization in an organization.  Bill of distribution is used to determine how the item is distributed in an organization i.e. warehouses to which item are to be distributed.

4. A buyer is authorized to approve PO worth 5000 but though the PO is below 5000, buyer is not able to approve it? Which setup is missing?

·           There might be restriction on the item, category or account combination that would prevent a particular user not approve a PO.

·           Check if approval workflow is running

·           If any changes have been done to position or Job, has the Fill employee hierarchy program been run to update these positions

·           If Employee supervisor hierarchy is set, is the supervisor a valid and active employee.

·           Are multiple users mapped to same employee?

5. If ranks and allocations are provided in Sourcing Rules to Suppliers or Inventory organizations, what is the use of these ranks and allocations and where is it used?

Ranks and allocations are used by MRP or ASCP modules to create supply based on the ranks provided. If a requisition needs to be created for a demand of an item, then system checks the sourcing rule and creates a requisition to the Rank 1 supplier and based on the allocation percentage specified.

For example, if demand for an item X, is to be satisfied by creating a requisition, then system looks at the sourcing rule, if two suppliers are given Rank 1 and allocation as 70% and 30% then system creates two requisition lines, one for 70% of supply quantity from supplier 1 and other for 30% of supply quantity from supplier 2.

Total of allocation for each rank must sum up to 100 for the sourcing rule to be planning active.

6. Client requires every Purchase order to have paper based Requisition number entered mandatory in Create Purchase order screen by users [Client doesn’t want to create Requisition in APPS and use Auto-create functionality in this scenario]. How to handle this requirement?

Enable a DFF at PO line level and make the DFF mandatory to be entered by user for each line.

7. What is the difference between Blanket Purchase Agreement and Contract Purchase Agreement?

Blanket purchase agreements carry detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.

Contract purchase agreements are created with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts

8. Client requires control over procurement for each department. Is it possible in Oracle EBS to handle such a requirement?

Yes, Using Encumbrance functionality, each department can be allocated a specific amount and purchasing would honor this and ensure system doesn’t approve PO more than the budgetary amount.

9. What are the types of receipts and their functions in Purchasing?

There are no distinct types of receipts as we find in PO documents (Requisition, Quotation, Purchase order etc). Receipts differ mainly by the method of recording the receiving transactions.
1) Unordered receiving
2) Blind receiving
3) Express receiving
4) Substitute receiving

10.   For an OSP Sub-assembly, when you move transaction to the 'Queue' of an OSP Operation, Requisition Import is fired which creates an Approved Requisition and an Unapproved PO. What are the setups that govern creation of PO?

Sourcing Rule needs to be defined for the item. The sourcing rule needs to be mapped to item and organization under an assignment set.

11.  When does a Purchase order or requisition goes into ‘Pre-Approved’ status?

• A person with the final authority to approve the document approves it, but then forwards it to someone else for additional approval, thus changing its status to Pre–Approved.

• Your organization uses encumbrance (reserves funds for documents), and the document is authorized for approval but funds have not yet been reserved for it. Even if someone with sufficient approval authority approves the document, its status may still be Pre–Approved if funds were not able to be reserved at the time of approval. Once funds are reserved for the approved document, the document changes its status to Approved.

12.  If the preparer of purchase requisition is not authorized to Approve that requisition then what setup should be performed in the system to achieve this?

In document type, set Owner can approve flag to No

13.  How do I ensure if Purchase order is cancelled then corresponding requisition is also cancelled

In Purchasing Option, Set Cancel requisition to ‘Optionally’ or ‘Always’

14.  What is the functionality I am achieving by setting Receipt close % as 100 %?

Receipt close % ensures that PO line ordered quantity is closed up to that specified percentage. If Receipt close point is set as 60% and if Order quantity is 100 then if PO receipt is made for 40 quantities then PO line would be moved to closed status automatically,

15.  Client wants each requisition auto created in the system to be grouped by Buyer, how to achieve this in EBS?

In Purchasing option, Set requisition group by parameter to ‘Buyer’

 Reference: Collected from various web sources

Please do refer:

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_56.html http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_12.html