This section contains an overview of each task you need to complete to set up Oracle Inventory.

 Step 1 Define Inventory Flexfield (Required)

  • System Item
  • Item Categories
  • Item Catalogs
  • Stock Locators
  • Accounting Aliases
  • Sales Order
  • Service Item
Step 2 Define Your Locations (Optional)
Step 3 Define Your Employees (Optional)
Step 4 Define Your Organization Calendar (Required)
Step 5 Define Your Organizations (Required)
Step 6 Define Your Organization Parameters (Required)
Step 7 Change Organizations (Required)
Step 8 Define Your Intercompany Relations
Step 9 Define Your Receiving Options (Optional)
Step 10 Define Your Picking Rules (Optional)
Step 11 Define Your ATP Rules (Optional)
Step 12 Define Your Planners (Optional)
Step 13 Define Your Unit of Measure Classes (Required)
Step 14 Define Your Units of Measure (Required)
Step 15 Define Your Unit of Measure Conversions (Optional)
Step 16 Define Your Subinventories (Required)
Step 17 Define Your Stock Locators (Optional)
Step 18 Define Your Item Attribute Controls (Required)
Step 19 Define Your Categories (Required)
Step 20 Define Your Category Set (Required)
Step 21 Define Your Default Category Sets (Required)
Step 22 Define Your Statuses (Required)
Step 23 Define Your Item Catalog Groups (Optional)
Step 24 Define Your Item Types (Optional)
Step 25 Define Your Item Templates (Optional)
Step 26 Define Your Cross-Reference Types (Optional)
Step 27 Define Your Item Delete Constraints (Optional)
Step 28 Define Your Cost Types (Required)
Step 29 Define Your Cost Activities (Optional)
Step 30 Define Your Material Sub-Elements (Optional)
Step 31 Define Your Material Overheads (Optional)
Step 32 Define Your Default Material Overhead Rates (Optional)
Step 33 Define Your Freight Carriers (Optional)
Step 34 Define Your Organization Shipping Network (Optional)
Step 35 Define Your Shipping Methods (Optional)
Step 36 Define Your Movement Statistics Parameters (Optional)
Step 37 Define Your Account Aliases (Optional)
Step 38 Define Your Transaction Source Types (Optional)
Step 39 Define Your Transaction Types (Optional)
Step 40 Define Your Transaction Reasons (Optional)
Step 41 Define Your Purchasing Options (Optional)
Step 42 Open Your Accounting Periods (Required)
Step 43 Request Your Interface Managers (Optional)
Step 44 Set Profile Options (Required)
Step 45 Define Your Container Types (Optional)
Step 46 Define Your Commodity Codes (Optional)
Step 47 Define Your Customer Items (Optional)
Step 48 Define Your Customer Item Cross References (Optional)
Step 1 Set Up System Administrator (Required)
Step 2 Set Up Key Flexfields (Required)
Step 3 Set Up Calendars, Currencies, and Set of Books (Required)
Step 4 Set Up Organizations (Required)
Step 5 Set Up Units of Measure (Required)
Step 6 Set Up Items
           Define item attribute controls. (Required with defaults)
           Define container type QuickCodes. (Required with defaults)
           Define status. (Required with defaults)
           Define item type QuickCodes. (Required with defaults)
Step 7 Set Up Personnel (Required)
           Define employee QuickCodes. (Required with defaults)
           Define supplier and employee numbering. For this step,  Defining Financial
           Options. (Required)
           Define employees. (Required)
           Define jobs. (Required)
           Define positions. (Optional)
           Define position hierarchies. (Optional)
Step 8 Set Up Oracle Workflow (Required)
Step 9 Decide How to Use the Account Generator (Required)
Step 10 Define Manufacturing System and User Profiles (Required)
Step 11 Open Inventory and Purchasing Accounting Periods (Required)
Step 12 Define Subinventory Locations (Optional)
Step 13 Set Up Cross-Reference Types
            Tax Names, and Location Associations (Optional)
Step 14 Set Up Approval Information
            Define approval groups.(Required)
            Assign approval groups.(Required)
            Fill employee hierarchy.(Optional)
            Define document types.(Required with defaults)
Step 15 Set Up Lookups and Classes. (Required)
            Define Purchasing lookups.(Required with defaults)
Step 16 Define Standard Attachments (Optional)
Step 17 Set Up Purchasing Flexfields (Required)
Step 18 Define Purchasing Options (Required)
Step 19 Define Buyers (Required)
Step 20 Define Items (Optional)
Step 21 Set Up Document Controls (Required with defaults)
Step 22 Set Up Financial Options (Required)
Step 23 Set Up Receiving Options (Required)
Step 24 Set Up Transaction Managers and Resubmission Intervals. (Required)
             Start the following transaction managers.(Required)
             Receiving transaction manager
             Document approval manager
Step 25 Define Suppliers (Required)
Step 26 Start “Send Notifications for Purchasing Documents” Process (Required)
Step 27 Set Up Document Creation Options (Required with defaults)
Step 28 Set Up Approval Timeout Feature (Optional)
Step 29 Start Workflow Background Process (Optional)
Step 30 Modify Change Order Workflow Options (Optional)

Invoices with Rules

Invoicing and accounting rules let you create invoices that span several accounting periods. Accounting rules determine the accounting period or periods in which the revenue distributions for an invoice line are recorded. Invoicing rules determine the accounting period in which the receivable amount is recorded. You can assign invoicing and accounting rules to transactions that you import into Receivables using AutoInvoice and to invoices that you create manually in the Transactions window.

Accounting Rules

Use accounting rules to determine revenue recognition schedules for your invoice lines. You can assign a different accounting rule to each invoice line. Accounting rules let you specify the number of periods and the percentage of the total revenue to recognize in each period. You can also specify whether the accounting rules are of Fixed or Variable Duration. Accounting rules of Fixed Duration span a predefined number of periods. Accouning rules of Variable Duration let you define the number of periods during invoice entry.

Invoicing Rules

Use invoicing rules to determine when to recognize your receivable for invoices that span more than one accounting period. You can only assign one invoicing rule to an invoice. Receivables provides the following invoicing rules:

    • Bill In Advance: Use this rule to recognize your receivable immediately (see Figure 1 – 19 below).
    • Bill In Arrears: Use this rule if you want to record the receivable at the end of the revenue recognition schedule (see Figure 1 – 20 below).

Attention: With Cash Basis Accounting, you only recognize revenue when payment is received. Invoices with rules are therefore not applicable for this method of accounting, as they are designed to distribute revenue over several periods before receipt of payment. If you import invoices into a cash basis accounting system, lines with associated invoicing and accounting rules will be rejected by AutoInvoice.

Account Sets

Account sets are templates used to create revenue and offset accounting distributions for individual invoice lines with accounting rules. These account sets enable you to split revenue for a line over one or more revenue or offset accounts. You can change account sets from period to period to meet your business requirements. For example, you have an invoice with revenue that you want to recognize over a twelve month period, and the cost center of one of the accounts changes during the twelve months. You can update the account sets to the new cost center account for all of the revenue distributions still to be created. AutoAccounting creates the initial revenue and offset account sets for your invoice.

Revenue Recognition

The Revenue Recognition program identifies all transactions with rules within a given period or range of GL dates and creates the revenue distributions for those transactions. The distributions are created for the current period only, using the rules associated with the transactions.

Step 1 Flexfields. (Required)
Step 2 Multiple Organizations. MOAC (Required)
Step 3 Inventory Organizations. (Required)
Step 4 Profile Options. (Required)
Step 5 Shipping Parameters. (Required)
Step 6 Invoicing. (Required)
Step 7 Salespersons. (Required)
Step 8 Tax, Tax Categories. (Required)
Step 9 QuickCodes. (Required)
Step 10 Workflow. (Required)
Step 11 Document Sequences (Order Numbering) (Required)
Step 12 Order Import Sources. (Required)
Step 13 Units of Measure. (Required)
Step 14 Item Information. (Required)
Step 15 Define Items & Assign to Organization. (Required)
Step 16 Configurations. (Required)
Step 17 Pricing. (Required) 
Step 18 Customer Classes. (Required)
Step 19 Customers (Required)
Step 20 Item Cross References (Optional)
Step 21 Sourcing (Optional)
Step 22 Order Management Transaction Types (Order and Line Types) (Required)
Step 23 Cost of Goods Sold (COGS) (Required)
Step 24 Processing Constraints (Required)
Step 25 Defaulting Rules (Required)
Step 26 Credit Checking (Optional)
Step 27 Holds (Optional)
Step 28 Attachments (Optional)
Step 29 Freight Charges and Carriers (Required)
Step 30 Shipping (Required)
Step 31 Start Workflow Background Process (Optional)
Setp 32 Request set OM – AR Porting
ORDER MANAGEMENT Interview Questions
Q: What are the Process Constraints?
A: Processing Constraints allow Order Management users the ability to control changes to sales orders, at all stages of its order or line workflows to avoid data inconsistencies and audit problems.
Q: What is a Pick Slip Report?
A: Pick slip is a shipping document that the pickers use to locate items in the warehouse/ inventory to ship for an order.
Q: At what stage an order cannot be cancelled?
A: If the order is Pick Confirmed, it cannot be cancelled.
Q: When the order import program is run it validates and the errors occurred can be seen in?
A: Order Management Responsibility >Orders, Returns : Import Orders> Corrections
Q: What is the difference between purchase order (PO) and sales order?
A: Purchase Order: The document which is created and sent to supplier when we need to purchase something. (Buying)

Sales Order: The document which is created when customer places an order to buy something. (Selling)
Q: What are primary and secondary price lists?
A: Price list contains information on items and its prices. The pricing engine uses secondary price lists when it cannot determine the price for an item using the price list assigned to an order.
Q: Name some tables in shipping/order/move order/inventory?
Q: How is move order generated?
A: When the order is pick released.
Q: What is ONT stands for?
Q: What does Back ordered mean in OM?
A: An unfulfilled customer order due to non-existence of the ordered items in the Inventory.
Q: What are picking rules?
A: A user-defined set of criteria to define the priorities Order Management uses when picking items out of finished goods inventory to ship to a customer. Picking rules are defined in Oracle Inventory.

Q: What is drop ship in OM?
A: A method of fulfilling sales orders by selling products without handling, stocking,or delivering them. The selling company buys a product from a supplier and has the supplier ship the product directly to customers.
Q: What are Defaulting Rules?
A: While creating the order,you can define defaulting rules so that the default values of the fields pop up automatically instead of typing all information.
Q: What are validation templates?
A: A validation template names a condition and defines the semantics of how to validate that condition. Validation templates can be used in the processing constraints framework to specify the constraining conditions for a given constraint.
Q: What are different Order Types?
A: Order Only, Mixed, RMA

Q: Explain the Order Cycle?
A: Book the order
Pick Release
Pick Confirm
Ship Confirm
Close the order
Q: What is packing slip?
A: An external shipping document that is sent along with a shipment itemizing in detail the contents of that shipment.
Q: When an order cannot be deleted?
A: Order cannot be delted if the Order is Pick Confirmed.
Q: What is pick slip?
A: Pick slip is a shipping document that the pickers use to locate items in the warehouse/ inventory to ship for an order.

Q: What is Drop shipment?
A: Drop Shipment is a process where the customer places a purchase order on a company and this company instructs its supplier to directly ship the items to the customer.