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(before you start going through the below interview questions, read the info in the below link. Its really good)
http://prasanthapps.blogspot.com/2011/04/purchasing-po-usefulinformation.html#axzz1Y33IJuHA
1.Can we automatically 'Close' the Purchase order without receiving the full quantity?
Ans. The Receipt Close Tolerance lets you specify a quantity percentage within which
Purchasing closes a partially received shipment. For example, if your Receipt Close
Tolerance is 5% and you receive 96% of an expected shipment, Purchasing automatically
closes this shipment for receiving.
2. When does a Purchase Order line get the Status 'Closed for Receiving'?
Ans. Goods have been received on the system against this line but an invoice has not
been matched to the order.
3. What is the difference between the control actions 'On Hold' and 'Freeze' for a
Purchase order?
Ans. You can place a Purchase order 'On hold' only at the header level. This unapproves
the purchase order while preventing printing, receiving, invoicing, and future approval
until you remove the hold. You can 'Freeze' only at the header and release level. You
freeze a Purchase order when you want to prevent any future modifications to the
Purchase order. When you freeze a Purchase order, you can still receive and pay for
goods you already ordered.
4. What are the different document statuses used in Oracle Purchasing?
Ans. Delete, Cancel, Final Close, Freeze, Hold, Firm, Close, Close for receiving, Close for
invoicing, Open, open forreceiving, Open for invoicing, Unfreeze.
5. If a Purchase Order/Requisition is cancelled accidentally, can we revert it back?
Ans. No. The cancellation is a non-reversible process. Once the document is cancelled
we cannot revert it back.
6. Can we receive a shipment even when it is "Closed for Receiving"?
Ans. Yes, it does not prevent you from receiving.
5. 5. The purchase order which consists of Supplier, Item and Cost but doesnt know the
delivery schedules
Ans: Blanket purchase Agreement
9. Purchasing performs matching to verify that purchase order and invoice information
Match within tolerance this is called as
Ans: 2 way
10. Purchasing performs matching to verify the purchase order, receipt, and invoice
information match within tolerance this is called as
Ans: 3 way
11. Purchasing performs matching to verify the purchase order, receipt, inspection, and
invoice information match within tolerance this is called as
Ans: 4 way
12. A statement of the price, terms, and conditions of sale a supplier offers you for and
item or items is called as
Ans: Quotation
13. A document you use to solicit supplier quotations for goods or services you need is
called as
Ans: Request for quotation (RFQ
Oracle apps (Oracle 11i) purchasing (PO) functional interview questions. These are asked in
different interviews HCL, Wipro, Accenture, Oracle corp, Zensar. Collected all these questions
and answers. Few of these dont have answers we try to update very soon, I would appriciate if
you can send the answers for those don't have answers to oraclerespository@gmail.com
1. If Purchase Invoice amount sent by the supplier is more than the PO amount and Invoice has
to be passed by invoice amount only. How this can be achieved.
Ans: Manually Release the hold by going into the invoice hold option. Thus how we do it in
Purchasing module of oracle applications.
2. How you will hide the button Site on the Supplier master form.
Ans: A restricted list of functions a user can perform. For example, two responsibilities may
have access to the same window, but one responsibilitys window may have additional function
buttons that the other responsibilitys window does not have.
3. When can you make payment for the supplier invoice weather at the time of receipt of
material or after receiving
Ans: Invoice only.
4. Payment due days if 30 days means will it be from invoice date or material receiving date.
Ans: Due days calculation is based on what you set up in the PAYMENT tab window of Supplier
Master form.
It has Four options:
1. Goods Received
2. Invoice
3. Invoice received
4. System
5. Where do you define matching option for purchasing.
Ans: This is also defined in the supplier master form under tab Control window.Two options
are given as Purchase Order or Receipts.
In receiving tab define whether it is 2 way, 3 way, 4 way match.
6. What is security type and Cross-validation rules.
Ans: There are two ways security can be defined. One at individual segment level and One for
the entire code combination.
Security type with hierarchical security / non-hierarchical / no security is defined in the value
set going to be attached with the individual segment. Here you exclude the segment value
which user will not see at time of transaction capturing. Where are Security rule is defined
including and excluding the entire code combination which will be seen at the time of
transaction and if excluded combination is selected then user define message will appear. In
both the case security rule is required to be defined.
Security defined for segment is assigned to your application and responsibilities.
Security rule defined for application, structure and flexfield title with inclusion and exclusion.
7. How many types of Purchase Order are there.
Ans: Following are types
i. Standard
ii. Blanket
iii. Contract
iv. Planned
8. What do you mean by planned purchase order.
Ans: A planned purchase order is a long-term agreement committing to buy items or services
from a single source. You must specify tentative delivery schedules and all details for goods or
services that you want to buy, including charge account, quantities, and estimated cost.
9. What do you mean by blanket purchase order.
Ans: You create blanket purchase agreements when you know the 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.
10. Once these two purchase orders are prepared what is the next step.
Ans:You issue scheduled release and blanket release against a planned purchase order to place
the actual orders.
11. What is approval hierarchy for Purchase Order.
Ans: Position and Employee. If HR Module is not installed then only employee option is used Set
up hierarchy for Purchasing
1. Organization.
2. Financial and Payable.
3. Payment document or supplier site for payment accounting entries.
4. Supplier and Supplier Site.
Payment terms as per supplier site or purchase order if both are there then finally takes from
purchase order.
12. Where do you define matching option for purchasing.
Ans: This is also defined in the supplier master form under tab Control window.Two options
are given as Purchase Order or Receipts.
If you choose to use position hierarchies, you must set up positions. Even though the position
hierarchies require more initial effort to set up, they are easy to maintain and allow you to
define approval routing structures that remain stable regardless of how frequently individual
employees leave your organization or relocate within it.
Q: What is the difference between purchasing module and iProcurement module?
A: Iprocurement is a self-service application with a web shopping interface. WE can only create
and manage requisitions and receipts.
Purchasing module is form based and also lets you create PO and many other functions are
possible other than requisitions and receiving.
Q: What is dollar limit and how can you change it?
A: An approval group is defined which is nothing but a set of authorization rules comprised of
include/exclude and amount limit criteria for the following Object Types: Document Total,
Account Range, Item Range, Item Category Range, and Location that are required to approve a
PO.
You can always change the rules by doing the below:
Navigation:
Purchasing Responsibility > Setup > Approvals > Approval Groups
Query the Approval group and change teh rules accordingly.
Q: What is Planned PO?
A: A Planned PO is a longterm agreement committing to buy items or services from a single
source. You must specify tentative delivery schedules and all details for goods or services that
you want to buy, including charge account, quantities, and estimated cost.
Q: What is backdated Receipt?
A: Creating a Receipt with "Receipt Date" less than sysdate or today's date is referred to as
'Backdated Receipt".
Q: Is it possible to create a backdated receipt with a receipt date falling in closed GL period?
A: No. The receipt date has to be with in open GL period.
Q: What is Receipt Date Tolerance?
A: The buffer time during which receipts can be created with out warning/error prior or later to
receipt due date.
way, 3-way or 4- way match. You can find more detailed informationabout matching in the
Oracle Payables Reference Manual (Volume 3) Topical Essay on Integrating yourPayables and
Purchasing Information.
3. How do you reflect discount from a supplier on a Purchaseorders?
Answer- --- -- The legal document is the Purchase order not the quote and therefore the
purchaseorder should reflect agreed upon price. Secondly if the discount comes after the PO
then AP shouldhandle it when invoicing. If you are using a blanket Purchase order then you can
use price breaks.
4. Howdo you change the created date on a Purchase Order?
Answer- --- -- The 'Created' date on the Purchaseorder is not an updateable field, due to it being
a legal document once approved.
5. What is the sortingorder for requisition lines in autocreation of a Purchase Order?
Answer-- --- - Requisition lines first meetsearch criteria determined by "find" screen, and then
are grouped together by item and item category,then by need-by date. After you choose an
action, enter any search criteria to narrow the selection ofrequisition lines. Oracle Purchasing
chooses requisition lines from the requisition pool that meet yoursearch criteria. All requisition
lines for the same item and item category are grouped together, but they arenot necessarily in
order alphabetically. Within each grouping of item and item category, requisition linesare
ordered by need-by date.
6. What does the error 'APP-50022: Oracle Human Resources could notretrieve a value for User
Type profile option' mean?
Answer--- --- The profile HR: User Type needs to beset. Set the profile option 'HR: User Type' at
the Responsibility level.
7. In the Enter Receipts(RCVRCERC) form and using different responsibilities produces different
values in the action requiredfield. The Purchasing Responsibility shows Direct and Standard
while the Inventory Responsibility showsjust Direct. Why are the action options for creating
receipts different in Inventory compared Purchasing?
Answer- --- -- Set the Profile option RCV: Allow routing override to 'YES' at the application level.
8. How doyou purge Cancelled Requisitions?
Answer- --- -- To purge any Purchase orders or Requisitions: - assignthe Payables Purge GUI
responsibility to the user - have the user choose that responsibility - then choosePurge from the
menu - under the Category field do a List of Values and pick Simple Requisitions forcancelled
Q. What isTCA??
Trading Community Architecture. Covered in AR. This is party, customer relationship and stored
in HZ tables.
Q. How intercompany sourcing happens and how PO will be managed in two companies?
Internal Requisition/Internal Sales Orders
Q. What is the need to add the price into price list...when we have given price for the item in
Inventory setup?
Price that we mentioned is the Purchase list price. But for OM, it picks the price from Price list.
Q. While giving the value in Price list...do we add our all the cost and profit in that
For internal items, the transfer price is calculated based on the cost + the transfer options.
Q. What does create internal order conc request do?
Create internal order request will transfer the IR info to OM interface tables.
Q. Why is the cost zero for Internal Orders?
We did not enter any cost for the item, so the cost was zero.
Q. could you please show this cost thing by raising external sales order?
Out of Scope. OM class is required.
Q. Cost is zero for internal sales order, however you told that it will be 10% addition of the cost
of that item then why it is not 10 % addition in the cost?
Q. Why is the cost of the Item zero?
The cost of the Item was zero because we did not enter the cost of the item.
Q. Where do we enter the cost?
We enter the cost while defining the Item.
Q. How does the price default while creating IR?
The price of the item while creating IR, is the cost of the Item.
Q. Can you clarify where we set up zero cost for an Item for IR?
We did not specify the zero for IR. If we do not enter the cost, it will be considered as zero.
Q. Can we change PO Currency?
Yes. We can change PO currency. It defaults from supplier setup but we can change it.
Q. Can you explain what is confirming order ?
Sometimes, the Purchase manager requests for certain items over phone. Then he sends the
PO just to confirm the verbal order. If the vendor thinks that this is a duplicate order and
delivers double, it could cause problem, so he sends a PO with a message that it is confirming
order.
What is Difference Between Blanket release and Planned Release?
Blanket release is against blanket purchase agreement and planned release is against planned
orders.
Under what Circumstance we'll use Blanket and Planned Agreement
In blanket, the price of the agreement is fixed but the quantity is not fixed. We get price breaks
in Blanket for volume discounts.
In planned, the shipment is tentative. It does not have any price breaks so no volume discounts.
So, blanket is for high volume transactions.
Q. For planned orders, Schedule is available but blanket is for as and when required?
The schedule in planned Orders is just tentative. The actual schedule is determined later.
Blanket can have an effective date range. Planned does not have any effective date range.
Q. Can you cover Advance Pricing?
Not in scope.
Q. What is the way for adding items or modify BPA from supplier point of view..are they need
have oracle apps installed with Oracle iSupplier portal?
They will have access to Oracle iSupplier portal which is a web based application. No installation
is required.
Some readings :
the requisition line. PARENT_REQ_LINE_ID contains the REQUISITION_LINE_ID from the original
requisition line if you exploded or multi-sourced this requisition line.
Table Name : PO_HEADERS_ALL
Columns:
PO_HEADER_ID
AGENT_ID
TYPE_LOOKUP_CODE
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information for your purchasing documents. There are six types of documents that use
PO_HEADERS_ALL. RFQs, Quotations, Standard purchase orders, planned purchase orders,
Blanket purchase orders, Contracts can uniquely identify a row in PO_HEADERS_ALL using
SEGMENT1 and TYPE_LOOKUP_CODE or using PO_HEADER_ID.BLANKET_TOTAL_AMOUNT for
blanket purchase orders or contract purchase orders. If we use copy document Oracle
Purchasing stores the foreign key to your original RFQ in FROM_HEADER_ID.
Table Name : PO_LINES_ALL
Columns:
PO_LINE_ID
PO_HEADER_ID
LINE_TYPE_ID
LINE_NUM
Stores current information about each purchase order line. CONTRACT_NUM reference a
contract purchase order from a standard purchase order line.
Table Name : PO_VENDORS
Columns:
VENDOR_ID
VENDOR_NAME
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information about your suppliers. Purchasing, Receiving, Payment, Accounting, Tax,
Classification, and General Information.
Table Name : PO_VENDOR_SITES_ALL
Columns:
VENDOR_SITE_ID
VENDOR_ID
VENDOR_SITE_CODE
Information about your supplier sites. A row for each supplier site you define. Each row
includes the site address, supplier reference, purchasing, payment, bank, and general
information. Oracle Purchasing uses this information to store supplier address information.
Table Name : PO_DISTRIBUTIONS_ALL
Columns:
PO_DISTRIBUTION_ID
PO_HEADER_ID
PO_LINE_ID
LINE_LOCATION_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
QUANTITY_ORDERED
DISTRIBUTION_NUM
Contains accounting distribution information for a purchase order shipment line. You need one
row for each distribution line you attach to a purchase order shipment.
There are 4 - types of documents using distributions in Oracle Purchasing:
Standard Purchase Orders
Planned Purchase Orders
Planned Purchase Order Releases
Blanket Purchase Order Releases
Includes the Destination Type, Requestor ID, Quantity Ordered and DeliverTo Location for the
distribution.
Table Name : PO_RELEASES_ALL
Columns:
PO_RELEASE_ID
PO_HEADER_ID
RELEASE_NUM
AGENT_ID
RELEASE_DATE
Contains information about blanket and planned purchase order releases. You need one row
for each release you issue for a blanket or planned purchase order. Each row includes the
buyer, date, release status, and release number. Each release must have at least one purchase
order shipment.
Table Name : PO_VENDOR_CONTACTS
Columns:
VENDOR_CONTACT_ID
VENDOR_SITE_ID
Stores information about contacts for a supplier-site. You need one row for each supplier
contact you define.
Each row includes the contact name and site.
Table Name : PO_ACTION_HISTORY
Columns:
OBJECT_ID
OBJECT_TYPE_CODE
OBJECT_SUB_TYPE_CODE
SEQUENCE_NUM
Information about the approval and control history of your purchasing documents. There is one
record in this table for each approval or control action an employee takes on a purchase order,
purchase agreement, release, or requisition.
OBJECT_ID - Document header Identifier
OBJECT_TYPE_CODE - Document Type
OBJECT_SUB_TYPE_CODE - Document subtype
SEQUENCE_NUM - Sequence of the approval or control action for a document.
Table Name : PO_REQ_DISTRIBUTIONS_ALL
Columns:
DISTRIBUTION_ID
REQUISITION_LINE_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
REQ_LINE_QUANTITY
DISTRIBUTION_NUM
Stores information about the accounting distributions associated with each requisition line.
Table Name : PO_LINE_LOCATIONS_ALL
Columns:
LINE_LOCATION_ID
LAST_UPDATE_DATE
LAST_UPDATED_BY
PO_HEADER_ID
PO_LINE_ID
SHIPMENT_TYPE
Contains information about 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.
There are 7- Types of documents that use shipment schedules:
RFQs
Quotations
Standard Purchase Orders
Planned Purchase Orders
Planned Purchase Order Releases
Blanket Purchase Orders
Blanket Purchase Order Releases
Each row includes the location, quantity, and dates for each shipment schedule. Oracle
Purchasing uses this information to record delivery schedule information for purchase orders,
and price break information for blanket purchase orders, quotations and RFQs.
Invoice.
2-Way Matching verifies that Purchase order and invoice information match within your
tolerances as follows:Quantity Billed <-Quantity Ordered Invoice Price <- Purchase Order Price
(<- Sign is used because of tolerances)
3-Way Matching verifies that the receipt and invoice information match with the quantity
tolerances defined:Quantity billed Quantity received
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).Whether a PO shipment has 2-way, 3-way or 4-way matching can be
setup in the Shipment Details zone of the Enter PO form (character).
RECEIPT REQUIRED INSPECTION REQUIRED MATCHING
Yes Yes 4-Way
Yes No 3-Way
No No 2-Way
In More alternative region of Shipments block, you define the Invoice Matching option, where
you can choose 2-way, 3-way or 4-way match.
Step 6:Because of these Transactions Inventory and Payables get affected.