1) What are the different types of manufacturing processes? And what are the primary differences between them? OR Explain Process Manufacturing v/s Discrete manufacturing?

Discrete Manufacturing is the production of distinct items that use bills of material and routings to determine costs and lead times. Eg: Car manufacturing, Computer Manufacturing etc you get all the parts and assemble them.
OPM on the other hand caters to capabilities to allow for multiple units of measure because the flexibility in batch production is required in process industries. e.g Chemical Industries, food processing etc. This involves complex internal processes and need a high level of control.
Eg: You mix x kgs of sugar and n litres of milk, you get a sweet as the output. This can be in kilos, litres or smaller units. If you do not allow the water to evaporate the output will be a liquid, if you heat longer the output will be a burfi.

What is the difference between the two?

1)ODM uses BOM (Bill of Materials), OPM uses formulas and Recipes
2)UOM will vary depending on the material used in OPM but in ODM UOM will be each or unit
3)ODM assembles or builds things, OPM mixes , blends and transforms or converts.
4)OPM is driven by item attributes and ODM is driven by part number

Oracle Process Manufacturing – 

It the entire product lifecycle for recipe-based manufacturing, from new product development, recipe
management and production, to cost, quality, and regulatory management. It enables you to formulate products to individual customer specifications, manage variability, optimize capacity, and drive continuous process improvement 

2)  What are the modules that come under oracle’s OPM solution?

Answer: OPM includes OPM Process Planning, Product Development(which includes Formula,Recipe,Quality), Production, Financials(Costing,MAC), Logistics, Regulatory Management etc. These are products which come under this umbrella..
·         OPM Cost Management
·         OPM Formula Management
·         OPM Intelligence
·         OPM Inventory Management
·         OPM Laboratory Management
·         OPM Master Production Scheduling
·         OPM Material Requirements Planning
·         OPM Production Management
·         OPM Purchasing Management
·         OPM Quality Management
·         OPM Capacity
·         OPM Sales Management
·         Oracle Financial

3)      Name and explain frequently used terms in Oracle Process Manufacturing?


4)      Name some important tables used in OPM? ORWhich tables stores the formula information?
1)      select a.FORMULA_ID,a.formula_no,a.FORMULA_DESC1,b.INVENTORY_ITEM_ID,c.description,b.organization_id,decode(b.line_type,-1,’Ingredient’,’Product’) Type
from FM_FORM_MST a,FM_MATL_DTL b,mtl_system_items c
where a.formula_id=b.FORMULA_ID
and b.ORGANIZATION_ID=:your_Org_id
and b.INVENTORY_ITEM_ID=c.inventory_item_id
and b.ORGANIZATION_ID=c.organization_id
order by a.FORMULA_ID
from FM_FORM_MST a,FM_MATL_DTL b,mtl_system_items c
where a.formula_id=b.FORMULA_ID
and b.ORGANIZATION_ID=:your_Org_id
and b.INVENTORY_ITEM_ID=c.inventory_item_id
and b.ORGANIZATION_ID=c.organization_id
order by a.FORMULA_ID
from FM_FORM_MST a,FM_MATL_DTL b,mtl_system_items c
where a.formula_id=b.FORMULA_ID
and b.ORGANIZATION_ID=:your_Org_id
and b.INVENTORY_ITEM_ID=c.inventory_item_id
and b.ORGANIZATION_ID=c.organization_id
order by a.FORMULA_ID
2)      Select b.RECIPE_DESCRIPTION,a.RECIPE_VALIDITY_RULE_ID,c.INVENTORY_ITEM_ID,d.description,decode(c.line_type,-1,’Ingredient’,’Product’) Type,
from apps.GME_BATCH_HEADER a,apps.gmd_recipes b,gmd_recipe_validity_rules grr,apps.gme_material_details c,apps.mtl_system_items d,apps.mtl_material_transactions e
and grr.RECIPE_ID=b.recipe_id
and c.ORGANIZATION_ID=d.organization_id
and a.batch_id=e.TRANSACTION_SOURCE_ID
and a.batch_no in (select batch_no from apps.GME_BATCH_HEADER where trunc(plan_start_date) between :from_date and :to_date)
and a.ORGANIZATION_ID=:your_org_id
and trunc(e.transaction_date) between :from_date and :to_date
from apps.GME_BATCH_HEADER a,apps.gmd_recipes b,gmd_recipe_validity_rules grr,apps.gme_material_details c,apps.mtl_system_items d,apps.mtl_material_transactions e
and grr.RECIPE_ID=b.recipe_id
and c.ORGANIZATION_ID=d.organization_id
and a.batch_id=e.TRANSACTION_SOURCE_ID
and a.batch_no in (select batch_no from apps.GME_BATCH_HEADER where trunc(plan_start_date) between :from_date and :to_date)
and a.ORGANIZATION_ID=:your_org_id
and trunc(e.transaction_date) between :from_date and :to_date

from apps.GME_BATCH_HEADER a,apps.gmd_recipes b,gmd_recipe_validity_rules grr,apps.gme_material_details c,apps.mtl_system_items d,apps.mtl_material_transactions e
and grr.RECIPE_ID=b.recipe_id
and c.ORGANIZATION_ID=d.organization_id
and a.batch_id=e.TRANSACTION_SOURCE_ID
and a.batch_no in (select batch_no from apps.GME_BATCH_HEADER where trunc(plan_start_date) between :from_date and :to_date)
and a.ORGANIZATION_ID=:your_org_id
and trunc(e.transaction_date) between :from_date and :to_date

5)  Explain what do you mean by  Formula and Recipe?
Formula is Ingredients and their proportions
Receipe is Formula + Routing.

6) What are different kinds of losses?
Fixed loss and Variable loss.

Q. Once an item is assigned to an organization, is it possible to remove this association at a later time?
A. If you have assigned an item to an organization, it can only be deleted from that organization if the item has NOT been transacted. If it has been transacted against you cannot delete the item from the organization. You can, however, make the status of the item “inactive” on the main region of the Item Define form INVIDITM in ‘Item Status’ field. This will prevent users from transacting against the item although the item will continue to be included in LOV’s. 

Q. How do you setup Unit of Measure for an item?
A. When transacting an item, it will always default to the defined Primary Unit of Measure, so if you need to use another UOM, you must select it from the List of Values when you transact it. This implies that you want the Primary Unit of Measure to be that which is used most often and which is likely to be the smallest unit of that type of item. Once you have set the primary UOM for an item, it CANNOT be changed.

Q. How do I change an item’s locator control method once I have transacted against it, for example from No Control to Prespecified?
A. You cannot change this attribute if there is onhand quantity for the item. You must first perform a miscellaneous issue of all quantity. Then the attribute can be changed and once the locator(s) are set up, you can perform a miscellaneous receipt to receive the quantity back into a specified subinventory/locator.


Q. How do I change an item’s Unit of Measure?
A. You CANNOT change the UOM for an item once the UOM is assigned to the item. The suggested solution is as follows: If the item has not been transacted you can delete the item and then re-add it with the correct UOM. If the item has been transacted and has no outstanding orders, purchase orders or WIP jobs you can do the following if approved by your management.
1. Rename the existing item ’123′ to ’123-Bad UOM’ and save the item. Any prior history for item ’123′ will now be associated with item ’123-Bad UOM’.
2. Add a new item ’123′ with the correct UOM.


Q. How do I delete an Item Template I no longer use?
A. Suggested steps to follow to delete unwanted Item Templates:
1. Navigate Setup: Items: Templates – Find Item Templates form appears.
2. Click on the LOV, and select the Item Template that is to be removed.
3. Click the [Find] button on the Find Item Templates form. The Item Templates Summary form appears, with the Item Template selected.
4. Click the [Open] button on the Item Templates Summary form, and the Item Templates form appears.
5. From the menu, select Edit | Delete Record, then select Action | Save and Proceed. 6. Close the Item Templates Summary form. Be careful not to delete Item Templates you may need again as they are not retrievable once deleted.


Q. Is there a way to create custom item attributes?
A. No but you can create and define the descriptive flexfield for this form. This will allows you to associate additional data with an item such as an attribute. See the Oracle System Administrators
Users Guide and the Oracle Flexfields Manual for information on creating Descriptive Flexfields.


Q. Why does the application prompt you for Organization when you enter the Master Item form for the very first time even though you have only one Master Organization.
A. Once you setup a Multi-Org environment and you enter the form for the first time, there is the possibility there can be more than one Master Organization. The application
therefore prompts you for an organization which is then used to determine the Master Organization associated with it. In other words, you are choosing the Master Organization by choosing one of the Orgs that belongs to it.

Q. How do you change the control level for item attributes from master level to organization level for example. When I try to change this in the Attribute Control Form, I get the message: frm-40200: field protected against update.
A. First change value of the field called “status” to “not used”. You should then be able to change the control level of the attribute from master level to org level. Make sure and change to status back to what it was before the change and save the record

Q. How do I inactivate an item?
A. On the Master Item Form (Inventory->Items->Master Items), change the item status field to “Inactive” or any another defined status which disables all attributes that make an item usable (stockable, shippable, orderable, etc.). The “Inactivate” status comes pre-seeded with the Application and is for this purpose.

Q. What characters can I use in an item name (including special characters)?
A. The only hard fast rule is not to use the character designated in the segment delimiter for the System Item Flexfield. Also, you will not be able to enter any characters not allowed by the valueset associate with the flexfield. It is recommended that you avoid the use of any char that can be used as a delimiter to avoid future problems. It is best to not use special characters like #@%& if at all possible as these may have a negative impact down the road. Some characters, like percent (%), underscore (_), and pound(#), have special meaning when performing queries by form as do the query operator characters (=!><).

Q. Can you change the costing enabled and inventory asset flags on an item that has already been transacted against even if there is no on-hand quantities for the item?
A. Yes, you can change the flags. If you are changing the flags from checked to unchecked you will receive a warning that the associated cost records will be deleted alerting you that the Cost of Goods will not be calculated any longer for transactions of this item. In effect what you are doing is changing the item from an asset item to an expense item. If you are changing the flags from being unchecked to checked then a database
trigger will fire and cause cost records to be added for this item. There is no warning that is given.
Q. When I create a new item, and choose to assign to All orgs, the application allows me to even though some of those organizations are restricted to my responsibility. Is this the way it is supposed to work? If I assign in an Organization by Organization fashion, I am not allowed to assign to the restricted organizations.
A. The situation described is standard functionality. Even if a responsibility has limited access to a certain number of organizations, the “Assign to All Organizations” check box will assign the item to all orgs, not just the ones limited to the user’s responsibility.

Q. How do you tell that an item is an expense item or asset item?
A. Navigate to the Organization Items form: Inventory->Items->Organization Items. Query up the item in question. Change to the “Costing” alternative region. The value of the “Inventory Asset Value” flag determines this. If checked, the item is an asset item.

Q. Is there a way to delete or disable an item revision once entered?
A. There is no way to delete a revision nor is there a way to disable it. It must remain there for historical data. The suggested workaround is to create a new item, transfer any Quantity on-hand from the old item to new item and delete the old item. The only down side is you will lose some transaction history
A journey from Oracle E-Business Suite R12.1 to R12.2:

I will try to analyze architectural overview of the latest updates, installation and upgrade options, new configuration options, and new tools for hot-cloning and automated “lights out” cloning in R12.2.

Oracle E-Business Suite 12.1 Architecture
Oracle E-Business Suite 12.2 Architecture

Release 12.2 will replace Oracle Containers for Java (OC4J) 10g with WebLogic Server 11g

Release 12.2 Database tier will run RDBMS 11gR2 to support online patching

There will be number of updates coming in release R12.2, from a technology stack perspective, EBS 12.2 will be notable for two things:

1-Replacing Oracle Containers for Java (OC4J) 10g with WebLogic Server 11g

EBS 12.2 will use WebLogic Server from Fusion Middleware 11g in place of OC4J 10g as part of the release’s internal technology stack. Other additional new Fusion Middleware 11g components used will include WebLogic JSP and UIX 11g

2-Online Patching support via 11gR2 Edition-Based Redefinition

EBS 12.2 will use the 11gR2 Database’s Edition-Based Redefinition features to provide support for Online Patching. Edition-Based Redefinition is really exciting new technology. From the 11gR2 Application Developer’s Guide:

“Edition-based redefinition enables you to upgrade the database component of an application while it is in use, thereby minimizing or eliminating down time.

“To upgrade an application while it is in use, you copy the database objects that comprise the application and redefine the copied objects in isolation. Your changes do not affect users of the application—they continue to run the unchanged application. When you are sure that your changes are correct, you make the upgraded application available to all users.”

It is not released yet but It will include significant changes to the Application Server architecture, It will use RDBMS Version 11gR2 or higher, It will change Patching, Cloning, the User Experience

Comparison of Oracle E-Business Suite 12.1 vs 12.2 Installation Steps
Oracle E-Business Suite 12.1 installation

Database Technology Stack
Apps Technology Stack
Apps File System

Oracle E-Business Suite 12.2 installation
Following will be main features planned for R12.2 installations:
Native Technology Stack Install
Database RMAN Restore
Dual File System
Optional 11g Home for Upgrades
WebLogic Server (WLS)

Graphical UI to manage WLS Domain
Administration (Start/Stop WLS Instances)
Configuration (Config and Deploy, Cluster, Host, JDBC, JMS Messaging)
Monitoring (Server & Application Performance)
Troubleshooting (Performance Tuning, Log Viewer)

Following will be main features planned for R12.2 Native Technology Stack Install:
Better integration with Oracle
Universal Installer
Faster Technology Stack Installation
Silent-mode calls to install and configure Oracle Database 11.2, WebLogic Server (WLS) and Oracle HTTP Server (OHS)
AutoConfig Integration

Following will be main features planned for R12.2 Database RMAN Restore:
Simplifies Integration with Grid Infrastructure
Seamless integration with different storage methods (OCFS2, NFS, etc)
Faster integration with Automatic Storage Management (ASM)

Following will be main features planned for R12.2 Dual File System:
Online Patching allows users to continue using the application while patching
Dual File System allows replacing files with minimum downtime
Improves High Availability

Dual Port Pool configuration
Easier port assignments
Allows port customization in runtime and patching file systems

Following will be main features planned for R12.2 Optional 11g Home for Upgrades:
Allow integration with an existing 11gR2 Oracle Home
Simplified Technology Stack Upgrade
Reduced Upgrade time

Following will be main features planned for R12.2 WebLogic Server (WLS):
Graphical User Interface
WebLogic Scripting Tool (WLST)
High Availability & Failover
Consolidated Administration, Configuration and Deployment
Monitoring & Messaging
Troubleshooting framework
Integration with OAM

Flex fields – Order Management
  1. What are the Key flex fields owned by Order Management
Ans: Nil. OM Does not own any key flex fields.

OM System Parameters:-

  1. What is Item Validation Organization in Order Management
Ans: In Order Management, the Item Validation Organization parameter indicates the Oracle Manufacturing organization against which items are validated.
You set the Item Validation Organization parameter in the Parameters window, and can only set the value to the operating unit associated with your current sign on responsibility. You must also define all transact able items in this organization.
  1. What is the Navigation to set up Item Validation Organization.
Ans: Order Management > Setup > System Parameters > Values
Under above: In Generic Parameters : Item Validation Organization
  1. What is the purpose of setting up OM System Parameters?
Ans: Setting up parameters enable to Validate items, to enable customer relationships and to provide operating unit defaults.
New parameters can be defined and values to those parameters can be defined using different sources like SQL and Constant values.
  1. What is the navigation to Define OM System Parameters
Ans: Order Management > Setup > System Parameters > Define
  1. What are the possible Value sets that can be associated with the OM System Parameters
Ans: None or Table .
For seeded parameters make sure that you use a value set that begins with “ONT.”
  1. Which look up type controls the OM Sys Parameters category
To create a new category, add the lookup code in the lookup type “OM_PARAMETER_CATEGORY” and then enter that lookup type in your parameter definition window.
  1. In which level OM System Parameter values are set?
Ans: Parameter values are set at the operating unit level
  1. What are the seed System parameter categories provided by Oracle

Parameter Categories Parameters

Approval Parameters: 1) No Response from the Approver
Default Value: Reject
Alternative Value: Continue
Note: If the approver is the final approver on the list and does not respond, the transaction will be rejected regardless of the parameter value.
Copy Parameters 1Call line DFF extension API in COPY
Default value for Action- Copy Complete Configuration

Generic Parameters 1) Audit Trail 2) Customer Relation Ships
3) Default Hint for Pricing and Availability
4) Enable Freight Ratings 5) Enable Ship Method
6) Item Validation Organization 7) Margin Calculation
8) OM: Configuration Date Effectively
Payment parameters 1) Allow Multiple Payments
Yes: Allows multiple payments per order AND to use the full/partial down payment feature. Enables navigation to the Payments window from the Sale Order form using the Payments Action.
2) Authorize first installment only
Retro billing Type 1) Default Order Type 2) Enable Retro billing
3) Retro Bill Reason Code
Scheduling Parameters 1)Allow Partial Reservations
2) Firm Demand Events
3) Latest Acceptable Date
4) Promise Date Setup
5) Reschedule with request Date change
6) Reschedule with Ship method change

OM – Tax features:-

  1. What are the Tax Related Processing Constraints
Through the use of seeded processing constraints, Order Management does not allow a user to:
• Enter/Change Tax Code on Order Line if the profile option Tax: Allow Override of Tax Code is set to NO.
• Enter/Change Tax Handling, Tax Exemption Number and Tax Exemption Reason when the profile option Tax: Allow Override of Customer Exemptions is set to NO.
• Update Tax Exempt Number, Reason, or any other tax related .fields once an invoice has been generated.
If your business process allows tax information to be updated after an invoice has been created, you must modify the seeded processing constraints that affect updating tax information.
  1. At what stages tax calculation can occur in OM
Ans: Entry, Booking Or Invoicing
Tax calculation for the above events can only be controlled at the order level (not at the order line level). You specify when to calculate the tax for an entire order when you create Order Types within the Order Management transaction Types window.
Tax Calculation at Entry
With tax calculation at Entry, tax is calculated as each order line is entered. This tax calculation is used, for example, in businesses that requires the user performing order entry to view the total of the order, including tax, so it can be quoted to a customer. To include tax in Commitment Applied Amount, set the tax event to Entry.
Tax Calculation at Booking
When tax calculation occurs at Booking, tax is calculated on each of the booked order lines. This tax calculation option is used, for example, in business that require tax visibility for booked orders, but who want to increase order entry input times by not calculating tax at entry.
Tax Calculation at Invoicing
When tax calculation occurs at Invoicing, no tax calculations will occur within Order Management. Tax calculation will occur in Oracle Receivables when the order or order line is invoiced.
  1. How you will calculate tax for an order while entering sales order?
Ans: To calculate tax at any time, select Calculate Tax from the Actions button menu within the Sales Order or Order Organizer windows.
  1. What are OM Tax security options
Ans: Order Management enables you to update the tax security information on an order or return by setting the Tax: Allow Override of Customer Exemption profile option. This profile option controls the modification of the Tax Handling Status, Reason & Certificate .fields at the order header and order line levels. Standard tax calculations can be overridden by setting the profile option to Yes. The Tax: Allow Override of Tax Code profile option determines whether the defaulted tax code on an order line can be updated.

Quick Codes(Order Management Lookups):-

  1. What are various set ups for which we can create Quick Codes
Ans: Cancellation Codes • Credit Cards • Freight Terms • Hold Types • Note Usage Formats • Release Reasons • Sales Channels • Shipment Priorities, etc.
  1. What is the navigation to define Quick codes
Ans: Order Management > Setup > Quick Codes > Order Management.

Document Sequences for Order Numbering:

  1. What is document sequence:
Ans: A document sequence is a range of numbers that can be used for an order type and is defined by a numbering method (automatic, manual or gapless) and the beginning order number.
  1. Can you assign a Single document sequence to all your Sales documents
  1. Can sales documents contain alphabetic characters
  1. What are various types of Document sequence numbering methods
Automatic: The system automatically increment document numbers. Automatic sequences do not guarantee contiguous numbering.
• Gapless: The system guarantees that the numbers returned are contiguous. Order Management prevents deletion of orders that have been numbered using the gapless numbering sequence.
• Manual: The user must specify a unique document number.
  1. Which profile option should be considered while implementing Document Sequence Numbering
Ans: Set the profile option Sequential Numbering to Always Used at the Order Management Application level.
  1. What is the navigation to define Document sequence
Ans: Order Management > Setup > Documents > Define.
  1. What Document sequence category ?
Ans: A document category is a specific type of document such as a sales order or a purchase order. These are used in many Oracle applications for key entities. In Order Management when you create an order transaction type the system automatically creates a document category with the same name. This is used to assign the numbering sequence to the order type.
  1. What is the navigation to assign Document sequence to Order Transaction Type
Ans: To assign your order type to a document sequence navigate to Setup -> Documents -> Assign.
  1. Can you change the Document sequence assignment for an order type
Ans: No. you cannot change the assignment for an order type and set of books. To change the assignment you must assign an end date to the existing assignment and create a new one for the new assignment. You cannot have more than one assignment for the same date range, document type and set of books.

Transaction Types (Order Types)

  1. What is transaction type?
Ans: The transaction types determine what workflow the order and line will have and also it acts a source for defaulting and to establish processing controls. For each order type, you can assign a default price list, defaulting rules, order lines, return lines, line types, workflow assignments, payment terms, and freight terms, etc.
It also controls order numbering, credit check rules and workflow of header and line
Main : Document – Agreement type, Whether agreement required, PO required
Default return line type, default order line type
Pricing – Enforce Price list , Default price list, Minimum margin percentage
Credit Check rule – Ordering, Picking, Picking/Purchase release, Shipping
Shipping: None of the fields in the shipping tab are applicable to BSAs
Warehouse , Shipment Priority, FOB, Demand Class, Inspection Required, Line
Shipping method, freight terms, Shipping source type, Scheduling Level, Auto Schedule, and Fulfillment set
Finance: None of the fields in the Finance tab are applicable to BSAs
Rule: Invoicing Rule , Accounting Rule
Source: Invoice Source, Non Delivery Invoice Source
Credit Method for: Invoice with Rules: , Split Term Invoices
Receivable Transaction type, Tax event, COGS Account, Currency, Conversion type
  1. Assignment of line flows are required for Quotes
  1. Can you change the existing line flow assigned to a order type
No. Once you have created a document using an order type you cannot change the existing line workflow Assignments. Instead, enter an end date for the existing assignment and enter a new Assignment for the for the new workflow.
Defaulting Rules:-
  1. What is defaulting rules
Ans: Defaulting rules enables to define rules to determine the source and prioritization for defaulting order information to reduce the amount of information you must enter manually in the Sales Orders window For most fields, you can assign one or more defaulting sources in a priority sequence, or, if the default is always the same, you can define a constant value.
  1. Which program to be run after updating defaulting rules?
Ans: Defaulting Generator concurrent program must be run to generate new defaulting packages. This can be run from Tools menu while updating parameters
  1. What is the navigation to define Defaulting rules?
Order Management > Set Up > Rules ? Defaulting
  1. What do u mean by Entity in Defaulting rules
Ans: The Entity field displays the name of the object for which defaulting rules and conditions are being defined such as the order line.
Entity means a group of related attributes that correspond to a table or forms in Order Management. Examples of Entities : Line Payment, Order Header, Order Line, Order Payment,
An ‘Attribute’ is a field or column that belongs to that entity. Fox example: Ordered Quantity UOM is an attribute of Order Line Entity
  1. Can you create new record in Attribute Region
No. You are not allowed to enter new record
  1. What is defaulting source and mention those sources
A defaulting rule source is the location from which you obtain a defaulting value; Defaulting sources: Constant Value, Application Profile (Profile Options), Same record, Related record, System Variable, PL/SQL API, WAD Attribute, WAD Object Attribute
  1. Defaulting are set at which responsibility? ***
Ans: Defaulting rules are defined at Application Level.

Credit Checking Rules

  1. How the credit checking is implemented?
Ans: To implement credit checking, set the following
Use the Profile classes, Payment Terms that are checked credit check box and
Assign the credit-checking rule in OM Transaction type
  1. What are Credit checking rules?
Ans: Order Management credit check rules enable you to determine what credit checking criteria is used when determining credit exposure during the credit checking process.
Credit check rules defines the following:
credit check level – whether Sales Order level or Sales line level
Credit hold Level – whether Sales Order level or Sales line level
Whether to include tax and freight charges ,whether to include un invoiced Orders, etc.
Order Management transaction types determine when credit checking actually occurs, and when used in conjunction with credit checking rules.
  1. What is credit profile?
Ans: Organization Credit Profiles are a set of criteria that define an operating unit’s credit policy for credit control and order credit checking. Credit Profiles include the credit limit and pertinent data needed to determine total credit exposure for orders undergoing credit checking.
Credit usage rules are assigned to Credit profiles.
  1. What is the navigation for defining credit profiles?
Order Management > Set Up > Credit > Define Credit Profiles
  1. What are Credit Usage Rules?
Ans: Credit Usage Rule Sets define the set of currencies that will share a predefined credit limit during the credit checking process, and enable the grouping of currencies for global credit checking.
Navigation: Order Management > Set Up > Credit > Define Credit Usage Rules
  1. What are various Credit Profile types and What is their Hierarchy when performing credit checking?
• Customer: Enables you to define credit limits by currency for Customers.
• Customer Site: Enables you to define credit limits by currency for Customer Sites.
• Operating Unit Default: Enables you to set credit limits and terms, by currency, within a given operating unit
Credit Profile Limits Hierarchy when performing credit checking:
• Customer Site Profile
• Customer Credit Profile
• Operating Unit Default Credit Profile
  1. What is the purpose of Credit Profile Window?
Ans: The Credit Profile window enables users to create and maintain credit information for Operating Units and Item Categories and assigning credit usage rules to that profile.
You cannot define Credit Profiles for Customer or Customer Site by directly navigating to the Credit Profile window. Credit Profiles for Customer and Customer Sites are initially defined when entering credit information in the Credit section of theProfile-Transactions tab of the Customer and Customer Site windows. You must then assign a Credit Usage Rule to your Customer or Customer Site if you want to enable multi currency credit check.
42. What are the methods to deactivate Credit Checking
Ans: There are three ways to deactivate Credit Checking on an order:
• Use an order type that does not have an assigned credit rule
• Define the Customer Profile so that the Credit Check box is not checked
• Use payment terms for which the Credit Check box is not checked
Deactivating Credit Checking does not automatically release orders previously on credit hold. However, the next time you attempt to Book, Pick Release or Purchase Release (for drop shipments), Pack, or Ship Confirm an order which utilizes a Order Management Transaction type that enables credit checking to occur at the specified order points, or you perform an order change that trigger credit checking in the Sales Orders window, Order Management will releases the credit check hold if the order or line meets the requirements for successful credit check
43. Which hold will be applied while checking credit/
Ans: Credit check failure hold will be automatically applied when he credit check evaluation fail on orders set up to be credit checked.
44. What are holds?
Ans: When you prevent further processing on an order through an exception, you are placing a hold on the order.
For each hold, you can specify hold security by responsibility to control which responsibilities have authority to apply and/or remove the holds you define. Holds can be defined to be specific to pick, pack, ship, or invoice interface activities. Order Management Hold database tables are striped by organization ID. Therefore, you will need to define holds for each operating unit within your enterprise structure. However, hold type quick codes only need to be defined once.
  1. Which profile options enables to modify seeded hold attributes.
Ans: OM: Modify Seeded Holds : This profile enables you to modify seeded hold attributes. Options are Yes or No. The default is No or Null.
  1. How many ways you can create holds?
Ans: You can create holds based on a combination of two criteria, such as customer and item, or item and warehouse.
  1. Can Generic Hold applied at line level?
No. Generic hold can be applied at header level only.
  1. What are various profile options that are to be considered while setting up holds
OM: Prevent Booking for Line Generic Holds : This profile controls whether a transaction will fail booking if a generic hold has been applied.
OM: Schedule Line on Hold This profile controls whether scheduling should attempt to schedule lines that are on hold. The default is set to No.
OM: Promotion Limit Violation Action : This profile controls how and where holds are placed on order lines and headers when promotion limits are exceeded in Advanced Pricing or Trade Management. Available options are: Place holds where violated, place order on hold when any violation occurs, or no holds applied. No holds applied is the default.
OM: Schedule Line on Hold This profile controls whether scheduling should attempt to schedule lines that are on hold.
OM: Modify Seeded Holds This profile, when set to yes, allows a user to modify seeded hold attributes. Use caution when activating this profile as other system parameters may interact with the seeded hold values.
  1. What is hold source
Ans: A hold source allows you to apply a particular hold to a group of existing orders, returns or lines and to new orders and lines meeting your hold criteria. Hold Sources are created to hold all current and future orders for an item, customer, order, warehouse or customer site (Bill to or Ship To locations), Blanket Sales Agreement No or a combination two attributes.
To define a hold source, navigate to (N) Order Management > Orders, Returns > Order Organizer.
Select the Tools menu, and choose Create Hold Source.
Order Management supports Hold Sources with up to two entities. The combinations of two supported entities are as follows:
• Item > Customer : • Item > Ship To Site : • Item > Bill To Site
• Item > Warehouse • Item > Blanket Number • Warehouse > Customer
• Warehouse > Ship To Site • Warehouse > Bill To Site
• Blanket Number > Ship To Site • Blanket Number > Bill To Site
• Blanket Number > Warehouse • Blanket Number > Ship To Site
• Blanket Line Number
50. What is the navigation to create attachments?
Order Management: Setup > Orders> Attachments >Documents
51. Defining Attachment Addition Rules
Using standard Oracle Attachment functionality, you can specify rules for automatically attaching of all types of documents to orders and order lines. You can specify that documents be applied to orders or lines for a certainCustomer, Bill To customer, Ship To customer, item, order type, and/or purchase order.
For Order Management, you can specify attachment addition rules at the order level for the following attributes for orders, quotes, or returns:
• Customer • Customer PO • Invoice To • Order Category • Order Type • Ship To
At the order line level, you can specify your attachment addition rules by specifying values for the following attributes on the order, order line, quote line, or return line:
• Customer • Inventory Item • Invoice To • Line Category Line Type • Purchase Order • Ship To
52. How you will enable automatic attachments to Sales Orders?
Ans: By setting the profile option OM: Apply Automatic Attachments: to Yes
Order Management Work Flows:
  1. What is Workflow?
Ans: Workflow technology supports routing information of any type according to user defined business rules. Business transactions, such as order placements or purchase requests, which involve various controls, routings, and approvals, can be managed more efficiently by leveraging Workflow technology.
· An order and each of its lines can follow different workflow processes,
· Different lines on an order can follow different line flows,
· Order Management provides you with seeded workflows with functional activities and sub processes. Using the Workflow Builder, you can define new function activities and notifications.
· The product comes seeded with several order and line flows. If these seeded flows do not meet your requirements you can define your own. You can use these for processing your orders and lines, by assigning them to order and line transaction types.
· Line level workflow processes are assigned based on an order type, line type, and item type combination.
  1. What are setups for using workflow in Order Management
Set up : Here are the things you need to do before using Workflow with Order Management:
· Setup “Order Management WF Administrator” Workflow item attribute
You need to assign a responsibility (role) to the Order Management Workflow item attribute “Order Management WF Administrator” for unexpected error handling. . Whenever an unexpected error occurs, a notification is sent to the responsibility assigned to “Order Management WF administrator” item attribute.
You can set this item attribute via the WF builder.
· Review seeded OM WF data and define Workflow processes via the Workflow builder: Review the seeded flows, activities, notifications, etc. Check whether the seeded data meets your business needs. 2. Create custom activities, notifications, and any other components needed to build flow processes to meet your specific business requirements. 3. Use the seeded runnable flows as examples to create your own flows, using seeded and/or custom sub-processes/activities. OR Copy a seeded workflow process to create a new workflow process and modify this newly, copied workflow process according to your business requirements.
· Setup approval notifications and OM: Notification Approver
· Setup Workflow assignments for order/line transaction types
Both order and line types are setup using the Transaction Types form.. When you define an order type, you need to assign a header workflow to it. Line level workflow processes are assigned based on an order type, line type, and item type combination.
· Setup the WF background Engine
The Workflow Background Engine processes deferred activities, wait activities and timed out activities. You need to schedule the “Workflow Background Process” concurrent program to re-submit periodically. When scheduling the concurrent program, please specify Order Management work item types as parameter so that it only picks up activities specific to Order Management work items.
  1. What is workflow Builder
Oracle Workflow Builder is used to define new workflow processes.
  1. What is workflow Engine
The Oracle Workflow component that implements a workflow process definition. The Workflow Engine manages the state of all activities for an item, automatically executes functions and sends notifications, maintains a history of completed activities, and detects error conditions and starts error processes. The Workflow Engine is implemented in server PL/SQL and activated when a call to an engine API is made.
  1. What is Purchase release?
The seeded Purchase Release sub-process interfaces information to Purchasing when order lines need to be drop-shipped.
  1. How you will see the workflow status in Order Management
To view processes for specific orders within Oracle Order Management, complete the following steps:
· Open the desired order in Oracle Order Management.
· Navigate to the Tools menu and select Workflow Status.
· A new window opens and displays the workflow status as an activities list.
· From the Activities List window you can select the order header workflow Process or the order line workflow processes associated with the order. Selecting an order line workflow process opens a new activities list for thatprocess.
· Select View Diagram under the activities list to view the actual workflow diagram.
  1. What are various work flow item types
Ans: Order Management (OM) comes seeded with the following workflow item types:
1) OM Order Header (OEOH) – All Order Header level activities and sub-processes, are seeded under this WF Item type. Header flows are started using this item type, with the header ID as the Item Key. An order flow is started when an order header is created and saved.
2) OM Order Line (OEOL) – All order line level activities and sub-processes, are seeded under this WF item type. Line flows are started using this item type, with the line ID as the item key. An order line flow is started when an order line is created and saved.
3) OM Standard (OESTD) – Common functions and lookups are seeded under this item type. No flows are started using this item type.
4) OM Change Order (OECHGORD) – Change Order Notification flows are started using this item type.
  1. What are workflows associated with OM Order Header Item Type
· Order Flow – Generic
· Order Flow – Generic with Header Level Invoice Interface
· Order Flow – Return with Approval
  1. What is Order Flow – Generic
The Order Flow – Generic workflow process is the most often used workflow in Oracle Order Management. This process includes activities that book and close the order header. This can be used with any line flow for any item type with outbound lines and return lines
Sub Process: Book – Order Manual, Close –Order
  1. What is Order Flow – Generic with Header level Invoice Interface
Ans: This work flow is used when business requires that all lines on the order invoice together at the header level. Order Flow – Generic with Header Level Invoice Interface first ensures that the order is booked before generating the invoice. After booking is complete, the process interfaces with Oracle Receivables to generate an invoice for the order. Upon completion of the invoice interface, the process closes the order.
This process must be used in conjunction with Line Flow – Generic with Header Level Invoice Interface.
Sub Processes: Book Order Manual, Header Level Invoice Interface, Close
  1. What is Order Flow- Return with Approval
Ans: This workflow is used when all lines on the order are returns and header level approval is required.
  1. What are various item types for which line flows can be assigned
1) ATO Models, Classes, Options, Items 2) Configured Item 3) Kits 4) Included Items 5) PTO Models, Classes, Options 6) Standard Items 7) Service Items
If the item type code is left blank, the specified workflow assignment applies to all item types for which there is no specific assignment. Specify an assignment for the configured item type if you plan to use the line type for ATO configurations.
  1. What are seeded line item flows associated with OM Order Line Type.
Ans The Oracle seeded processes associated with OM Order Line include the following:
Generic Processes:
1) Line Flow – Generic 2) Line Flow – Generic with Header Level Invoice Interface
3) Line Flow – Generic, With Export Compliance 4) Line Flow – Generic, Bill Only
5) Line Flow – Generic, Bill Only with Inventory Interface
6) Line Flow – Generic, Ship Only
Assemble To Order (ATO) Processes:
1) Line Flow – ATO Item 2) Line Flow – ATO Model 3) Line Flow – Configuration
Oracle Release Management Processes:
1) Line Flow – Generic with Authorize to Ship (RLM)
Inbound or Return Processes:
1) Line Flow – Return for Credit Only
2) Line Flow – Return for Credit Only with Approval
3) Line Flow – Return for Credit with Receipt
4) Line Flow – Return for Credit with Receipt and Approval
Service Item Processes:
1) Line Flow – Standard Service
  1. What is Order header flow and Line flow
Header flow consists of information about customer such as price lists, shipping parameters, Ship Methods, Warehouses etc., and these values can be used as default information for line flows.
Line flow consists of information about items, quantities ordered, price, request date, schedule ship date, schedule arrival date, source, etc.,
  1. Explain various line level Generic processes:
1) Line Flow – Generic Use this process for all items except for service items, including assemble-to-order (ATO) items, ATO models, kits, and pick-to-order (PTO) models. If, however, you are a high volume ATO user, specific Assemble to Order (ATO) Processes can improve performance.
Sub Processes: Enter Line, Schedule – Line, Create Supply Order – Line Manual, Ship Line, Manual, Invoice Interface Line,. Close-Line.
2) Line Flow – Generic with Header Level Invoice Interface :Use this process when all order lines must invoice simultaneously. Invoice is controlled by the Auto Invoice concurrent program. Set up grouping rules in Oracle Receivables if only one invoice for the order is necessary. This process must be used in conjunction with Order Flow – Generic with Header Level Invoice Interface.
Sub Processes: Enter Line, Schedule – Line, Create Supply Order – Line Manual, Ship Line, Manual, Header Level Invoice Interface-Line, Deferred, Close-Line.
3) Line Flow – Generic, With Export Compliance Select this process when products exported to a denied party must be checked. This process is commonly used in the defense industry,
Sub Processes: Enter Line, Schedule – Line, Export Compliance Screening-Line, Create Supply Order – Line Manual, Ship Line, Manual, Invoice Interface Line,. Close-Line.
4) Line Flow – Generic, Bill Only Use this process when scheduling and shipping are not necessary for an ordered item. This process fulfills the order line, then proceeds with invoice interface. For example, this process might be used if an invoice was incorrect and an adjustment must be made visible in Oracle Order Management
Sub Processes: Enter Line, Invoice Interface- Line, Deferred
5 ) Line Flow – Generic, Bill Only with Inventory Interface Use this flow when products are not shipped but inventory decrement is required. For example, some distributors have customers who pick up products in person. The inventory transaction must be accounted for, so the process line moves to invoice interface. The product is picked up, so shipping is not necessary.
Sub Processes: Enter Line, Invoice Interface- Line, Deferred
6) Line Flow – Generic, Ship Only Use this process if you must ship a product but an invoice is not necessary. This flow decrements inventory. For example, this process Selecting Workflows could be used when shipping free samples for a new product, or for shipping a non-billable toolset to repair a previously invoiced item.
Sub Processes: Enter Line, Schedule Line, Create Supply Order – Line. Maual,
Ship – Line, Manual, Close-Line
  1. Explain various line level processes used for inbound or return processes:
Ans: The following line level workflow processes are used for returns or inbound lines:
1) Line Flow – Return for Credit Only This process is used only for incoming lines. The process runs an activity that issues credit without waiting for a receipt of goods or an approval. This flow could be used, for example, if you give credit for a product shipped on a CD, but you do not want the CD to be returned.
2) Line Flow – Return for Credit Only with ApprovaThis processes is used only for incoming lines that requires approval. This process could be used, for example, when a return must be approved by a manager or a customer service representative before credit is issued.
3) Line Flow – Return for Credit with Receipt This process is used only for incoming order lines that require receipt of goods before credit can be issued. Once the returned items are received by Oracle Purchasing, the process continues through invoicing and credit is issued. This process is useful when the returned items are expensive; credit should not be
issued until the items are received.
4) Line Flow – Return for Credit with Receipt and Approval This process is the most restrictive for incoming lines. The process requires both receipt of goods and an approval. This process is commonly used when items such as modems are returned. The modem is received then inspected to ensure that no mistreatment or neglect of the item occurred. Once inspected and approved, credit is issued.
  1. Which line flow is used for service and support items
Ans: Line Flow – Standard Service Use this process for service items such as support. Once the line is fulfilled, invoice interfacing occurs.
  1. What is ATO Item
Ans: It is an item you make in response to a customer order.Also know as Assemeble to Order
  1. What is ATO Model
Ans: A configuration you create for customer order that includes optional items.
  1. What do you mean by Available to Promise (ATP)
Ans: ATP (Available to Promise) typically refers to the ability to promise finished goods availability based on a statement of current and planned material supply.
Ans: The quantity of on-hand stock, outstanding receipts and planned production which are not committed through a reservation or placing demand. In Oracle Inventory, you define the types of supply and demand that should be included in your ATP calculation.
  1. What is the difference between Item and Model
Model : An item whose bill of material lists options and option classes available when you place an order for the model item.
Order Entry:
  1. What is standard Order process?
Ans: A Standard Sales order can contain the following process steps:
Order Entry:
Order Booking:
Pick Release:
Ship Confirm
These are dependent upon Order type and Line type that are associated with appropriate work flow process
  1. What do you mean Booking of Order in OM
Ans: Booking a sales order indicates that the order entry process is complete and that the customer has committed to the order. Booking is required before the order or return can advance to the next workflow activity.
  1. What is schedule arrive date
Ans: Schedule arrival date means the date returned by the system on which your customer can receive the products.
  1. What is scheduling
Ans: Order scheduling includes assigning demand or reservations, warehouses, shipment dates, and lots or subinventories to an order line. This will cause the demand to be planned in Material Planning Systems.
  1. What is schedule date
Ans: For Order Management, it is considered the date the order line should be ready to ship, the date communicated from Order Management to Inventory as the required date any time you reserve or place demand for an order line.
  1. Various Terms
Ship to contact: This is the person that Customer Service and Shipping Personal should be contacting to make delivery appointments and pass rescheduling notifications.
  1. What is Internal Sales Order
Ans: A request within your company for goods or services. An internal sales order originates from an employee or from another process as a requisition, such as inventory or manufacturing, and becomes an internal sales order when the information is transferred from Purchasing to Order Management.
Order Header Status
Order Line Status
Delivery Lines
Information is entered but Sales order line are not available for shipping processes
Awaiting Shipping
Ready to Release
a) All the relevant information is entered
b) Delivery Lines are created with ready to release status and
delivery lines are eligible for pick release
Pick Release
Picked Partially
Staged/Pick Confirmed
Released to Warehouse
Back Ordered
Deliveries are in open status
Pick Release completed normally and full quantity picked. Inventory moves from sub inventory to staging area
If the pick release not completed normally
Quantity is not picked fully for delivery lines.
Ship Confirm
Shipped or Interfaced
Back Ordered
Deliveries are in closed status
For Shipped quantities
For non shipped and back ordered quantities
Interfaced to receivables
Awaiting fulfillment
If all the lines are completed
If all the lines are not fulfilled or not interfaced to receivables
Workflow processes are closed
Picking – Shipping
  1. What is Picking
Ans: The process of withdrawing items from inventory to be shipped to a customer.
  1. What is pick release rule
Ans: A user-defined set of criteria to define what order lines should be selected during pick release.
  1. What is pick release sequence rule?
  1. What is pick slip
Ans: Internal shipping document used by pickers to locate items to ship for an order.
  1. What is pick slip grouping rules?
Criterion for grouping together various types of pick slips. The rule dictates how the Pick Slip Report program groups released lines into different pick slips.
  1. What is RMA
    Ans: Return Materials Authorization: Permission for a customer to return item,
  1. What is back order and back ordered lines>
Ans: Back Order: An unfulfilled customer order or commitment.
Backordered lines: Unfulfilled order line details which have failed to be released at least once by Pick
Release or have been backordered by Ship Confirm.
  1. What is delivery
A set of order lines to be shipped to a customer’s ship-to location on a given date in a given vehicle. Multiple deliveries can be grouped into a single departure. A single delivery may include items from different sales orders and may include back orders as well as regular orders.
  1. What is delivery line
Ans: Delivery line means a shippable and booked line
  1. What is drop shipment
Ans: 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.
  1. What is fulfillment set
Ans: Items in a fulfillment set will be available for scheduling and shipping only when all the items are available and ready to be scheduled/shipped.
  1. What is Outbound and Inbound Lines
In the Oracle Order Management, lines on a header are either outbound (sales order lines in which material on the header is leaving the warehouse to go to a customer) or inbound (return lines in which material on the header is arriving at the warehouse to be credited back to the customer). In Order Management, headers can be Return (all inbound), Order (all outbound), or Mixed (both inbound and outbound lines).
  1. What is scheduling
Order scheduling includes assigning demand or reservations, warehouses, shipment dates, and lots or sub inventories to an order line.
  1. What is ship confirm
A process in Shipping Execution which allows you to identify shipped quantities, assign inventory control information for released lines, assign freight charges, and specify whether or not to back order unfulfilled quantities of released line items.
  1. What are the general activities involved in Ship confirm?
Ans: Preparing the orders for shipment
· Includes the packing the items
· Includes the weighing the shipment
· After the Quality Inspector finishes with her/his inspection: Confirm the delivery in Oracle
Includes additions of any special charges
After shipment documents print, after labels to containers or pallets
· Seal Containers
· Release shipments to Carrier
· Submit request for Bill of Lading copy
· Forward copy of Bill of Lading to accounts payable for reconciliation of carrier invoices
· File Shipping documents
  1. Various Shipping terms
Ship Set A group of order lines, linked by a common number, for which you want the full quantity to ship all together.
Shippable lines: The lines that have pick released and are now eligible for Ship Confirm.
Ship Method: It is the combines of carrier, mode, and level of service.
Shipping documents: Shipping related reports, such as the Bill of Lading, Commercial Invoice, Mailing
Label, Pack Slip, Vehicle Load Sheet Summary, and Waybill.
Shipping instructionsNotes that print on the pick slip. These instructions are intended for internal use.
Sold to contact: This is the person that the Customer service representative will contact at the Customer Site in the event of Ordering queries.
Sub inventory: Subdivision of an organization, representing either a physical area or a logical grouping of items, such as a storeroom or receiving dock.
Locator: Physical area within a sub inventory where you store material, such as a row, aisle, bin, or shelf.
Serial number control : A manufacturing technique for enforcing use of serial numbers during a material
Waybill A document containing a list of goods and shipping instructions relative to a shipment.
  1. What is Revenue Recognition ?
Ans: The schedule for which revenue for a particular transaction is recorded in your general ledger.
  1. What is Sales group
Ans: Sales Group represents a managerial unit for sales resources and can be defined as a team of sales people. Sales groups make up enterprise sales organizations.
  1. What is sales tax structure
Ans: The collection of taxing bodies that you will use to determine your tax authority.’ State.County.City’ is an example of a Sales Tax Structure.
  1. What is Standard Item
Ans: Any item that can have a bill or be a component on a bill except planning items, option classes, or models. Standard items include purchased items, subassemblies, and finished products.
  1. What is bill of lading
A carrier’s contract and receipt of goods transported from one location to another.
  1. What is invoicing rules
Ans: Rules that Oracle Receivables uses to determine when you bill your invoices. You can bill In Advance or In Arrears.
103. What is list price : Ans: In Oracle Pricing, the base selling price per unit of the item, item category or service offered. You define the list price on a price list. All price adjustments are applied against the list price.
Modifier: Defines the terms of how Oracle Pricing will make adjustments. For example, a modifier can take the form of: discounts, or surcharges. In Oracle Pricing, when you setup modifiers, you define the adjustments your customers may receive. You control the application of modifiers by the pricing engine by also setting up rules that specify qualifiers and attributes governing their use.
Modifier list A grouping of modifiers in Oracle Pricing.
Price list A list containing the base selling price per unit for a group of items, item categories or service offered. All prices in a price list are for the same currency.

104.  what is the allocation process? 

 Oracle Shipping Execution’s pick release procedure creates move order lines. In order to release those lines to the warehouse and print pick slips, the lines must be allocated. The process by which the Oracle Inventory picking engine generates transaction line suggestions is called allocation. The allocation process for a pick wave move order line also creates a high-level (organization-wide) reservation on the material if no reservations previously existed.
You can choose to have the system automatically allocate move order lines, or you can postpone this step and manually allocate the move order lines at a later time. In either case, pick release creates move orders in an approved status, so that no additional approval process is required in order to transact them. Postponing the allocating process can be useful to organizations that pick release across multiple warehouses but prefer to allow each warehouse to determine when to release its order lines to the floor. You use a shipping parameter in Oracle Shipping Execution to specify whether the allocating process is automatic or manual

105. What is pick confirmation?
The move order line allocations (transaction lines) created by the allocation process must be transacted to confirm the material drop-off in staging. This process is called pick confirmation. Pick confirmation executes the subinventory transfer that moves the material from its source location in the warehouse into the staging location. Pick confirmation automatically transfers any existing reservation to an allocated reservation (including lots, revision, subinventory, and locators) in the staging location. At pick confirmation, you can report a missing quantity or change the transaction line if the picker chooses to use material from a different lot, serial, locator, or subinventory. If an organization’s picks rarely deviate from the suggested picking lines and the overhead of requiring a pick confirmation is unmanageable, the pick confirm transactions can occur automatically, immediately after the lines are allocated. 

You use an Oracle Inventory parameter to specify whether pick confirmation occurs automatically or whether you want your picker to pick confirm move order lines manually

1) It is possible to release an order line independently of other order lines
    and order header.
   Yes you can using the shipping transaction form.(From pick release you can release
 complete order and not independently the lines).
 Immediately after the order is booked, we can come to the shipping
 transaction form, pull up that order, and for a specific line, we can
 “Launch Pick Release”. We can also subsequently create a delivery for this
 order line and then ship the order as well. Hence we can ship an order line
 independently of the other order lines.
 Pick release can also be used to release lines independently, by providing
 conditional scheduled ship dates ,request dates,in which case, it will release
 those specific lines.
2) Once The order is booked ,are the delivery details/lines created ??
  Yes. immediately after the order is booked, the delivery lines are created (not deliveries)
  (which can be seen from the wsh_delivery_details which reference the sales
  order). However once the deliveries are created (either automatically after
  the pick release or manually based on the system options), these deliveries
  lines are asssigned to the delivery created. Only after
  the deliveries are created we can ship (or ship confirm) them.
3) What is Defer Interface?
   There is a flag in global parameters setting which is Defer Interface.
   Typically once the order is ship confirmed, then the
 trip stop report is printed and the order is ready for interfacing to AR.
 However if the defer interface flag is set, then even after the ship confirmation,
    the trip stop process does not pick this up and is subsequently not invoiced.
 Defer Interface flag can also be set at the ship confirm window level.
4)How do we apply credit holds to Orders :
 One way of applying a credit hold for an order (based on the customer credit)
 is to use the credit management. Another way is to specify within the OM,
 the credit limit at the customer or site level as follows,
  Customer => Profile : Amounts
   We can specify both order credit limit (which is specific to an order)or credit
   limit(which is entire credit limit).
5).What are Deliveries and Delivery Lines, and which one is created first?
  Lets take an example. Let us say there is a sales order which consists of
   two lines. Once the order is booked, two delivery lines are created automatically.
   If there are two order lines, there will be two delivery lines,so for each
   order line, there is a delivery line.  Then as a next step, we assign these
   delivery lines to a delivery. And if the autocreate is checked, then automatically
   a delivery is created after pick relase  and the two delivery lines are assigned
   to the newly created delivery.
6) What are Container Items :
    Container Items are also inventory items,which are flagged as “Container”
 in the Physical Attributes tab. Usually they are not Customer orderable,
 customer ordered ,invoicable etc. ;
    Items => Physical  Attributes => Container Area.
    We can also set the item as a Vehicle as the case may be.
7) What is packing the Items :    
   Usually we  Pack the Items, that is when we need to define the Container Item
   Relationship,which is defined here,
      Setup => Shipping => Container Load Details.
 Here you specify the relationship between the regular items (like say Printer)
 and the container items (like Box, Carton)and the maximum quantity that can
 be filled in that container etc.
 Once that is done, we should be able to do the packing.
   8) What is partial cancelling of the order line.
   If you change the order quantity say from an original value of 50 to ,say, 45,
   then the orderline is said to be partially cancelled.
   write more about this
   9) What is splitting the order lines and how does pick release help in the case
   of split lines ?
   Let us say we have an order which requires multiple shipments over time, then 
   you would split the order line, rather than creating multiple order lines.
   So in each split line, we specify the quantity and the request data,warehouse
   from where it should be shipped. Based on this, the scheduled ship dates are
   also populated accordingly for each split line. 
   Once this is done, during the pick release process, we can specify up to which
   schedule date /request date we want the lines to be released and then accordingly
   the lines will be released.
10. What are line sets,ship sets, arrival set, fulfillment sets?
      Line set is a generic term,which you specify at the order header level,
    which can be a ship set, arrival set or fulfillment set.
    If you specify a ship set,say 1, for a group of lines, then during pick
    release we can release the lines based on that ship set number.
    Also a line can belong to a ship set or arrival set,but not both.
13). What are backflush transactions ?
 Backflush transactions are those WIP (workin process) transactions which pull
 the inventory for the manufacturing operation. It is an issue (outgoing from
 inventory) operation and not a receipt operation. 
14) What are the examples of ShipOnly and InvoiceOnly orders.
    Ship only orders are those where we just ship the item to the customer and do
   not invoice them. Example of shiponly orders are demo items, and sample
   items,which the customer uses and probably returns them after.
 Invoice Only Orders are those where we just invoice the customer,but we do not
   ship any item.Example of Invoiceonly order could be a subscription item
   where we just invoice the customer for that month,but we donot ship
   any item.
15) What are trips and stops and how they are related to deliveries.
   A trip consists of atleast two stops, one the pick-up point and one a drop-off
   point. When we ship confirm a delivery,a program called “Interface Trip Stop”
   is automatically run which creates a trip stop and the delivery is assigned
   to that trip.
16)What are the different kinds of Orders
       Regular sales order, RMA, Drop ship, Internal Sales order.    
17) What are the possible reasons the inventory quantity can be driven negative
   for reservable items.
   Usually when we pick release, a quantity is reserved and if there is not enough
   quantity then the reservation does not happen, and the pick release will fail.
   However after a successful reservation , when we come to the delivery lines,
   we can change the shipped quantity on the delivery lines as well. If that shipped
   qauntity is more than the requested quantity and if that quantity is more than
   the available quantity, (and if negative quantities are  allowed) then the
   inventory quantity can be made negative. if negative quantities are  allowed for
   that inventory organization, then those records might be stuck in the inventory
18) Can we change an order after we book it ???
    Yes, as long you dont violate any processing constraints.
19) What is the difference between Pick Release and Pick confirmation.
 Pick release is the process that you do in Order Management which will create a
 move order and it goes thru approval, allocation and transaction.
 Pick Confirmation is an inventory operation which is basically transacting a
 move order which results in a subinventory transfer of the material from the source
 subinventory to staging subinventory.
    Hence Pick Release will internally call pick confirmation process.
20) What is retroactive billing ??
21) what is shipping document set??
   A shipping document set is a set of shipping documents,which you specify at the time
   of ship confirm,so that Oracle shipping wil print all those documents. And they are
      Bill of Lading => A receipt given by the carrier to the customer,acknowledging
         the goods being shipped and specifying terms of delivery.
      Waybill =>it is identical to Bill of Lading, but it is not a document of title.
      Commercial Invoice=> prints all confirmed shipped item in a delivery along with value.
      Mailing Label => address label showing where we are shipping.
      Pack Slip  => slip which shows the contents of the package.
      Vehicle Load Sheet Summary =>specifies the loading sequence of items in a delivery.
 Please note that the document set need not consist of all of the documents.
22) Is it possible to book an order with out any line items ? What would be the
 business scenario for this kind of order ??
23) What is packing slip ?
   Let us say we have an order consisting of 10 items. A pack slip mentions all the
   items. Basically it is just a confirmation from our side ,what we are shipping.
   A bill of lading is a document from the carrier what we are shipping. 
24) What is pick slip?
   A pick slip is a document printed by the move order process in Inventory,which
   tells what has been picked.
25) Does the order header close immediately after all the order lines are closed??
26)What is the backordered status in the delivery lines mean ?
   The term “backorder” or “backordered” is a status,which means that during
 pick release, that item is not having enough stock and hence the status of
 the order line or shipping line changes to backorder. Please remember that
 backordered is just a status, it does not initiate any kind of drop ship
 process,to purchase that item from a supplier etc. To resolve this issue ,you
 will have to manually do a receipt for that item and have enough quantity onhand.
27) What are the different modules which Order Management will interact with ?
 Order Management interaacts with different modules based on different kinds
 of items, pricing, type of shipping etc
     Inventory (for pick release, shipconfirm)
  Pricing,Advanced Pricing  (for formula, attributes, qualifiers, modifiers)
  Shipping Execution (shipping transactions ex delivery,trips,stops)
  Manufacturing (for BOM Items, assemblies etc before/after booking process)
  Purchasing (for drop ship, internal sales order, RMA receipts)
28) If aline is stuck at Shipped status, and is not closed, then what is the
 difference between running Workflow Background Process in Inventory versus
 Order management,coz running from Inventory is pushing to AR ?
29) Does Order Header close immediately once all the order lines statuses are closed?
 No. The standard functionality of the Order header closed an order header at
 the month end even if all the lines are closed in the middle of the month. So
 even if we run the  Workflow Background Process for Order Header, the status
 will not change to Closed for the Order Header. However this does not stop
 interfacing the lines to AR. 
30) Can you explain the difference between the Subinventory Transfer,Move Order,
 Inter-org Transfer And Internal Sales Order?
31) Explain the process of backorder during the ship confirm process.
   We know that during the pick release process ,if there is not enough quantity
   the delivery line status will automatically change to backordered. Now even
   during the ship confirm, we can do a back order. During pick release the quantity
   has moved from source to staging subinventory.
   Sometimes we may not ship the entire quantity that is pick released. The business
   reason for this could be that we need that material for some urgent or important
   customers and hence we might partially ship the quantity. And this is done in
   the following steps as follows.
 — In the delivery line, the requested qty(say 100) and shipped qty is null. Let
 us say we want to ship only 60 and not the remaining 40. So in the shipped qty
 you enter 60, so the backordered quatity will be 40
 — In the ship confirm window, in the unspecified quantities list box change it
 to “Backorder”. Then the 60 will be shipped and the remaning 40 will need to be
 pick released.
 — Now come to the sales order and look at the lines, the original line will be
 split into two lines one with 60 ,having status of shipped and one with 40 having
 a status of “Awaiting shipping”.
 — Do an explict subinventory transfer back from staging to source subinventory as
 this will not happen automatically.
 Hence understand the status “backordered” ,the quantity needs to be pick released
32).  what is the difference between bookings and revenue ?
 typically revenue is referred to as current sales while booking is referred to
 as the projected future revenue.
33)   what is the difference between billing and invoicing ?
 Billing is a generic term used for AR invoices, credit memos,debit memos etc,
 while invoicing information specifically refers to AR invoices.
34)   what is item conversion and customer conversion ?
 Lets say we have Oracle ERP A and ERP B and we are trying to convert items
 from A to B. Then, when you bring an item X from A to B system, then that
 id/code will be preserved.
 The other option is to create corresponding new items in system B for each
 item in system A and then try to reference the items from system A.
35)   What is customer conversion and how does it affect order management ?
 Basically when we are integrating two systems, then we need to bring in the
 customers of one system to another,so we can transact in the new system
 i.e we can create orders.
 Hence if we are bringing open orders from system A to B, then we need to
 do the item/customer conversion, because the open orders in the new system
 will be referring to the old item numbers or customer numbers. For new
 orders, that means the orders themselves are created in the new system.
36)  what is business alignment ?
 Business alignment is basically business aligning with IT. For ex, IT might
 implement a new version of oracle ERP with new features ,then the business
 should agree to the change and be able to adapt to the changes.
37).  What is a Managed Service Point :
 Means some company XYZ takes care of a particular functionality (like billing
 invoice,check printing) in some other company ,say like Cisco. And for this
 service, cisco pays them a flat usually monthly payment. Usually the managed
 services provider works remotely from the company i.e managed services offerer.
38). What are the checklist of items that happen while booking the order ?
 Credit check,
 Checking Hold if they exists,
 Process Price adjustments (apply modifiers),
 Payments (Authorization of credit cards)
 Sales credit verified,
 Constraints are validated,
 System parameters are validated,
 tax calculation,
 Configuration Validation,
 Workflow progress based on the type of order,
 Shipping data are populated,
 IB(Install Base), CZ(Configurator) are populated.
39). How do you fulfill the software Orders versus tangible item orders ?
For tangible items orders, fulfilment is shipping the order; and the IB instances are
created once the item is shipped. For software orders;  the two ways of fulfillment are
Ship the cd box or fulfill it online (by downloading etc);
        If it is fulfilled online, the IB instance is immediately created with out the serial number;
        And once the product is shipped, that is when the IB instance can be updated
 with the right serial#.(you cant put a serial# on the box).
40). How do you ship the orders which you frequently ship the items together ?
For ex, let us say you very frequently ship the order consisiting of one cd, one hardware
token and one user manual. Then it makes sense to group them into a BOM(bill of material)
Kit. That is a BOM of the type of Kit. A kit is a group of components,but a kit itself is not
shippable although the component items are shippable. Also ensure that the on hand exists
for all the component items so the pick release/ship confirm will not fail.
41). what is defer interface (at ship confirm) in order management ?
 Basically at the time of ship confirmation, if the Defer interface is checked/enabled
 then the Interface Trip Stop program is not run. If the Defer interface is not
 checked/enabled then the Interface Trip Stop program is run. The interface trip stop
 program basically updates the inventory,reduces the on hand quantity and also updates
 the order lines status to closed from shipped.
42). At what point of time the onhand quantity gets decremented ?
So once the ship confirm completes and if the defer interface is not set, that is when the
 inventory interface happens and the onhand quantity is decremented to reflect the
 correct status in inventory.
43). Once the order is shipped, how can we see the delivery lines ?
Once the order is shipped, we can pull up that order in the shipping transactions find form,
 by selecting null from the line status field.
 We can also run the report like “Shipped Delivery Lines report” and provide the order number to
 see the delivery# details etc.
        Shipping => Interfaces => Run => Shipped Delivery Lines report    
44)  Profile option for seeing the output file ?
The profile option to see the output file and the log file is starting with “Viewer%”
45). you can have an item which is not inventory item, but it could be a customer orderable item?
Yes. for ex, service item, which are not inventory items (because they are not stockable/shippable) however a customer can order the service item.
46). What are the different scenarios of ordering service from OM ?
Consider these situations :
You can order service from OM for an item
    which the customer has on the same order
            This is a simple case.
    the customer already owns the item,
            Then you should know that order number,line#,shipment#,date of service start. Done on the service tab.
    or the item should be there in Oracle installed base.
            Then you should know the item instance# or item serial number,called reference number in the form. And if the item does
             not exist in the Installedbase,then you should create it manually.
47). where do you define a fulfillment flow. ??
 Each order type will have a workflow for header/line attached to it and the order lines
 will flow those steps.
48). Does defer interface defer OM/AR interface ?
 No the defer Interface is basically defers the shipping module writing the status
 back to the OM/inventory interface. However only after this writeback(interface trip stop
 program completion), the line status at the order level changes from shipped to closed and
 at the shipping line status changes from closed to Interfaced.
  And only after the Orderline status is closed, it can be interfaced to AR(if it is an invoicable
49). How do you fulfill a service item order  ???
 Lets us say there is a consulting service order. Usually these kinds of orders
 are fulfilled after the serviced is delivered. the regular orders as fulfilled
 once the item is shipped.while these orders are fulfilled once the service is
 performed and the timesheet is filled,approved the appropriate authority and sent over.
50).  Why is that in OM, once a sales order is created for a customer, a credit hold is
 automatically applied?
 It may or may not be. It is decided by the workflow process.
51).   I understand that BOM’s should be defined if the warranty has to be automatically
  created upon purchase of a product. What if the customer does not implement BOM?
 When you purchase OM, the basic functionality of BOM is provided by default.
52). Does the workflow background process need to be run with deferred processes yes?
 Yes to clear the waiting processes,if any.
53).  Can the delivery lines in Shipping module be sourced from Other modules than OM?
 The sources for the delivery lines are Order Management,Project Contracts and Shipping.
54). What is credit managment module and what is its functionality ?
 Credit Management is a separate module which basically checks whether the customer
 credit is in good holding and if not,it will put the customer order on hold.
 Credit management can be hooked up to the OM/AR/Collections as different touch points. 
 (just like ipayments module).
55). Is a move order created for a non-reservable items ?
 No, when you created a non-reservable item and pick release a sales order for that item,
 then there will not be a move order and hence there will not be a reservation or
 the item movement from the current subinventory to the staging inventory.So the item
 stays in the place where it is currently. This is said to be looser inventory control.
55 a).What is the difference between pick releasing a Reservable Item versus
      Non-reservable Item?
   Usually the inventory items are by default reservable and when an order with
   a reservable item is pick released , then during the allocation and transaction
   process, the material reservation is made and move order is transacted.
   However when a order with a non-reservable item is pick released, then during
   during the pick release process,then there is no allocation required.
56) What are the conditions under which the inventory quantity can be driven
   negative(for non-reservable items)?
   Usually when the items are non-reservable, then the pick release process will
   not check for the item quantity and there is no reservation involved. Hence
   when you shipconfirm ,there is a chance that sufficient quantity might not be
   there to ship.
   So if there is insufficient quantity in an inventory organization ,&
     if negative quantities are allowed in that organization , &
   if the item and subinventory both are reservable (if an item is reservable
   but a subinventory is not, the item quantity in that subinventory is not
 Then if the above conditions are satisifed, the inventory quantity can be
 driven negative.
57). What are the consequences of allowing /disallowing negative balances in inventory?
 If you do not allow negative balances in your inventory it will block any shipment
 (delivery) where a line is shipping more than the quantity available in inventory.
 The error is generally human. You accidentally enter a larger Ship Quantity than you picked.
 The whole delivery will be stuck in the Inventory Open Interface.
 To solve the problem either go through the entire delivery and find out which line
 was overshipped. Then move the required quantity to the staging area and resubmit
 all the lines in the Inventory Open Interface. Now run the Interface Trip Stop – SRS
 in Order Management. This should do the trick.
 Otherwise, allow negative balances in your inventory. And resubmit etc. When the
 delivery has been processed there will be a negative balance in the staging area.
Research onthis. if the shipped quantity is more than the requested quantity for the reservable vs non reservable items
do a copmlete flow on this. ??
58). How to create a Manual Delivery in OM ?
 Navigate to Shipping Transaction Form
 Ensure that radio button is on deliveries in the top right corner (ie in “Search For” region)
 Click On find button (You can enter a few criteria to make the search faster)
 Once the results screen opens, click on the general create button green “+” icon at
  the top left menu.
 It will create a new record. Enter all required details and save.
 Now you can come to the shipping trx form ,find delivery lines for a sales order and
  assign the manually created delivery above to these delivery lines.
 This can be understood in the way that when we create a customer, the first thing
 that comes up is the customer search screen,so that we can find existing customers,so
 that there are no duplicate customer entries.
59). what is the difference betweeen manual delivery vs automatic delivery ?
 Actually the difference is when you are creating Automatically, the system will
 create one delivery for the lines involved but if you want to do it your way i.e.
 either club deliveries or may be have a delivery for each line seperately then it’s of use.
 To my knowledge if you don’t have a seperate Trip Planning or Delivery Planning department
 it should be left to create aumoatically as you won’t be getting benefited much by that.
59).  How do you fulfil an RMA order?
  Standard tangible orders(with tangible items) are fulfilled by physically shipping those
items. However return orders(like return only, rma only, rma with credit etc) are fulfilled
after we receive that item into the inventory. So the steps would be
 – First book the rma order and note that order #.
 – then go to purchasing/receipts and in the customer tab, receive that item
  into inventory. check to see if the onhand has increased,ensure that the
  receving transaction processor is running.
60). What are the steps involved in shipping of an ATO Item  ?
  For ATO model you cannot ship the item immediately after booking. Please
  find the following steps.
 Click the actions button and select progress order. This will run a concurrent
   program called autocreate final assembly. If you see the output of the
   request you will get the job no.
 Query the job in discrete job window and check whether it is released.
   If not release it.
 Transact the job in move transaction form.
 Complete the job
 Now query your sale order and check the line status. It will be Awaiting
 Now you can ship the order.
61). What is lead time ?
 The generic lead time definition suggests it is the amount of time between the
 placing of an order and the receipt of the goods ordered.
 Usually we can see it as the time difference. So we can have different kinds of
 lead times like Transit lead time & Delivery Lead Time etc.
62).  What is the difference between Operating Unit Id and Inventory Org id?
 As mentioned before, usually whenever we are dealing with org id’s in the
 Purchasing,OM, we are referring to the operating unit id, while in the
 inventory we are referring to the inventory org id.Now when we enter lines
 in OM, we choose an inventory item id. Now this inventory item is corresponding
 to the inventory organization id that is specified in the Warehouse id.
 Actually the warehouse id corresponds to the Inventory Organization Id.
 Incidentally the warehouse id is present both at the header level as well
 as the line level.  Also we can even mention what is the subinventory from
 which this item should come at the order line level.
 So what this effectively means is that we can place sales orders having
 two lines corresponding to the two different inventory organization ids as the
 warehouse id is present also at the line level.
63). What are defaulting rules in Order Management ?
  Generally while we are creating an order online/offline, certain information
  defaults based on the defaulting rules. these defaulting rules can be defined from the
   setup => rules => defaulting.
  One important point to note here is that when we create a default rule for each
  attribute, we mention what is called the default sourcing rules. Here we specify
  the sequence in which this attribute will be sourcing. An an ex, consider
  a bill to attribute, we specify the sequence as
           shipto. billto
 which means if the shipto entity does not have the billto info,then it goes
 to the customer and gets the billto, and if it does not find there to
 it goes to blanketheader and gets it etc.     
64). Explain the terms, Manufacturer, distributor,reseller, retailer?
    A Manufacturer manufactures or produces the goods etc.
    A Distributor buys the goods from the Manufacturer, stocks them and sells them
 to the resellers or retailers(although he may not stock them sometimes).
    Reseller(also called Value Added Resellers,VAR’s) will get the goods from a distributor
 and sells it to the consumers. Remember they add value,rather than just selling like
 that. For ex; they buy a computer and they can add a one year ext warranty for that
 for a price and then sell it.
    Retailer is also a reseller,however they usually dont add value,they just sell like that.
64a). What is the difference in buy-stock-sell vs sell-source-ship model?
    The traditional model of buy-stock-sell is distributors will buy goods, stock and sell
 them; in this model the lead time for the order fulfilment is very less.
    The new model is sell-source-ship ,where we take the order and source those orders
 from an external supplier (at that point of time) and then ship, here the lead time
 is more,however it results in cost savings. This is typically the drop ship model.
65). How does the receiving system recognize the difference between receipt of a regular PO
 versus drop ship PO???? i.e what is that specific flag that recognizes the difference ?
   I believe when an order line is marked as with source type “External”, then it make
   an entry into a drop ship sources store(i.e oe_drop ship sources which stores the
   order header and line id info).
   And when the receiving system looks for a PO, it looks in this table if it is a drop
   ship PO, and if it is then it does a logical receipt of the goods.
66). What is the logical receipt of goods in the system?
  The logical receipt means the onhand quantity does not go up in the inventory. Basically
  the system increments and decrement in one transaction and onhand remains same. This happens
  in the case of drop ship PO receipt of goods.
67).How do you do a drop ship order across operating units i.e you create an drop ship
   order in US to ship a product from an australia supplier to your australia customer?
  Basically cross OU/ledger functionality is available only in R12 and not in 11i.
  The only difference is a couple of steps
 First, set the receiving or in the sales order line as cross OU,receiving org.
 second, receive the PO in the desitination OU/ledger and follow the same stepsfrom thereon.
 Third, intercompany transactions for this transfer.
1.Explain about Accounts Payable. 
Ans)The Accounts Payable application component records and manages accounting data for all
vendors. It is also an integral part of the purchasing system: Deliveries and invoices are
managed according to vendors. The system automatically triggers postings in response to the
operative transactions. In the same way, the system supplies the Cash Management application
component with figures from invoices in order to optimize liquidity planning. 

2.What is the meaning of invoice?
Ans)An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

3Can you give a sample Process Flow for Procure to Pay Cycle?

Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure – Commercial Department The following steps involve to procure any item
1. Received Requisition from concern Department
2. Request for Quotation from Suppliers at least three
3. Finalize the best Quotation by keeping in mind about our companies standard
4. Check the Budget for the same
5. Negotiate with supplier for more economic pricing and finalize the payment terms
6. Process the PO and forward to the supplier to supply the goods and services 

Pay Cycle – Finance Department 
The following steps need to be fulfill
1. Invoice should be match with PO
2. Invoice should has all the supporting documents such as PO copy,Delivery note duly signed by receiver (our staff who authorized to received goods / store keeper)
3. If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval 
4. Even if it not the services invoice, it should forwarded to the concern person’s approval who request the PO for the same
5. Finance can reject the invoice if it is not budgeted and ask for the reasons.
6. After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells you if the PO already used or cancel)
7. Finance approved the invoice and process the payment base on payment terms with the supplier.

4)What are the journals entries in Procure to Pay Cycle.

Description                                                                             DR                                  CR

A) Po creation                                                                    No Entry                          No Entry

B)  While Receiving the goods                                       Material Receiving            Ap Accurval 

C) While Inspection                                                        No Entry                            No Entry 

D) While Trans ford the good to Inventory               Inv Org Material              Material Receiving
                                                                                     Purchase price Varience

F) While Po Is Matching to Invoices                         Ap Accurval                        Liability

G) While Making the Payment                                 Liability                               Cash Clearing 

 H) Ofter Reconciliation                                           Cash Clearing                     Cash

 I) Final Entry                                                            Inv Org Material                Cash

5)What is the difference between EFT & Wire?
Ans)EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for transfering funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is a RTGS i.e. real time gross settlement system of making the fund transfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.  

6) What is meant by Distribution Sets:

Ans)You can use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. For example, you can create for an advertising supplier a Distribution Set that allocates advertising expense on an invoice to four advertising departments.
You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you enter for that supplier site. If you do not assign a default Distribution Set to a supplier site, you can always assign a Distribution Set to an invoice when you enter it.

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts. For example, a Full Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility expense account and 30% to the Administration facility expense account. A Skeleton Distribution Set for the same invoice would create one distribution for the Sales facility expense account and one distribution for the Administration facility expense account, leaving the amounts zero. You could then enter amounts during invoice entry depending on variables such as that month’s headcount for each group.

7)What is the meaning of GRN? 

GRN contains the following details.

1.Ordered quantity .
2.Received Quantity.
3.Defective quantity in received quantity .
4.Quality standards details.

8) How does the payment mechanism work?

Ans) The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in abank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

9) Difference between interface tables and base tables?
Ans)   The difference between the interface and base tables is as below

Interface table: is the table where the data gets validated before data get posted to the base tables. There are many interfaces which are seeded with Oracle. You can consider as the entry point of the data, and the interface checks the sanity of data.

Base tables: As told earlier once the data is validated will get updated in the base tables, and is considered as the data which is in the base table is accurate and used in many ways. (Reporting..etc..)

The base tables in AP are as follows:

1) ap_invoices_all

2) ap_invoice_payments_all

3) ap_invoice_distibutions_All

4) ap_payment_schdules

5) ap_payment_dustributions_all

6) ap_checks_all

7) ap_accounting_events_all 

8) ap_bank_accounts_all

9) ap_bank_accounts_uses_all


10) What is the process of creating an Invoices and transferring it to GL?

 1. create batch
2. create invoice
3. create distribution
4. validate the invoice
5. actions -à approve
6. if individual create accounting click ok
7. If batch go to batch create accounting.
8. Create accounting hits Payable Accounting(Transfer) ??Program which will create accounting.
9. Run Transfer to GL Concurrent Program
10. Journal Import
11. Post journals
12. Hits balances.

11) How do u Transfer from AP to GL? 
Ans)“Payables transfer to GL program” is used to transfer from AP to GL.

12) How many types of invoices are there in AP.
1. Standarad invoice 
2. Debit Memo
3. Credit Memo
4. Mixed Invoice
5. Retain age Invoice
6. Transportation invoice
7. Prepayment invoice
8. Expenses Report Invoice
9. Payment Request Invoice
10. Po default
13) How many types of purchase order types/agreements are there?

A) Standard Purchase Order: You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

B) Planned PO : A planned purchase order is a long-term agreement committing to buy it
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.
EX: Buying goods for Christmas from a specific dealer.

C) Contract PO : You create contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you use encumbrance accounting.

D) Blanket PO : You create blanket purchase agreements when you know the detail of 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.
A Blanket Purchase Agreement is a sort of contract between the you and ur supplier about the price at which you will purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items worth a fixed amount against the contract.

14.Payment Method:
A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

  • Check
  • Electronic
  • wire
  • Clearing

You can pay with a manual payment, a Quick payment, or in a payment batch.

Electronic An electronic funds transfer to the bank of a supplier.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.


Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

15.What id recurring invoices? What are AP setup steps? 
Ans) some times suppliers would not be sending any invoices. but still the payment have to made to home: rent, lease rentals. in this situation we have to create invoice every period wise. For that purpose we have to create one recurring invoice template. Template means with one master copy creating the multiple invoices is called template. Here we are creating the one invoice master copy is formally known as recurring invoice or recurring invoice template.

 1)we have to create one special calendar 
2)we have to create one full distribution set 
3)we have to enter payment terms in the recurring invoice window 
4)enter the template no, first invoice amount, special invoice amounts