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Oracle Purchasing FAQs-1

 Purchasing/PO interview questions
Oracle Purchasing

Q1 Is it possible to create a Quotation by using the Autocreate function?

No. But the Quotation can be created simply by copying the RFQ.


Q2 Where will you use Amount base Line Types?

We can use Amount Based line types when ordering a service. For example, $5000 of consulting services over the next year.


Q3 Can we change the line type assigned to a line of the Purchase Order after saving?
No. the line type assigned to a line of a purchase order can’t be changed after saving.


Q4 How many types of RFQs are there? Explain each.

There are three types of RFQs viz. Bid, Standard and Catalog
Bid: The Quotation or RFQ is for a specific fixed quantity, location and date.
Catalog: The quotation or RFQ includes price break at different quantity level.
Standard:


Q5 Which Profile option will you set so that Forms for catering data of both Purchase requisition and Internal requisition will be available?

PO: Legal Requisition Type : Both


Q6 Is it possible to create a PO from an Internal Requisition?

No. PO can’t be created from Internal Requisition.


Q7 What factors decide whether the Requisition created by the system is Internal or Purchase?

Sourcing : Internal or Supplier
Make / Buy : Make or Buy


Q8 An approved supplier can perform which four activities (Business rules)?

1.     PO Approval
2.     Sourcing
3.     Schedule Confirmation
4.     Manufacture Link To Distributor

Q9 How will you enter the Supplier Acceptance of a PO?

Query for the required PO and choose Acceptances from Special Menu. The type acceptance can be defined in Quick Codes (All Terms Accepted, Partially accepted etc.)

Q10 How will you approve a quotation?

Navigate: RFQ and Quotations > Quote Analysis.

Q11 How will you decide the life of a Quotation to be expired after a certain period?

While approving the Quotation, enter an ‘Effective To’ date, so that the Quotation will not be available for reference after the entered date.

Q12 Can you limit the usage of Quotation Information only for creating Requisitions?

While approving the Quotation, select the ‘Shipment Approved Type’ as Requisition so that the Quotation information could be used only for Requisitions.
The other Types are All Orders (can be used in POs and Requisitions), Purchase Agreements and Standard Pos.

Q13 How can we place a temporary Hold on all payments to a supplier?

Check the toggle ‘Hold All Payments’ in the Supplier Definition.


Q14 How will you inform the System that a Hierarchy is to be used for approvals?

Check the toggle ‘Use Approval Hierarchy’ in the Requisitions region of Financial Options.(is the following form is correct?)


Q15 How will you inform the System, which Hierarchy is to be used for approval?

Enter the Hierarchy to be used in the field ‘Security Hierarchy’ in Purchasing options.(where will we get this form?)


Q16 How will you find out whether any document is awaiting approval?

Either go to the Notification window or Action History window.


Q17 How will you ensure that the System will notify you certain days in advance about the approaching expiration of an Quotation, BPA, CPA, PPO or SPO?

Quotation:
Enter the number of days, during which the System should notify you in advance, in the field ‘Quote Warning Delay’ in Purchasing Options.

BPA, CPA, PPO & SPO:
In the concerned window of purchase order, invoke the Notification Control window from Special Menu, where we can enter the number of days before the expiration of the document that we should get warning.


Q18 Where will you search whether any Quotation, BPA, CPA, PPO or SPO is approaching expiry?

In the Notification window we will get the above information.


Q19 Apart from the Item Attribute, ‘Use Approved Supplier’ what additional setup entry you will ensure so that only approved supplier are used in purchase documents?

In addition to the said Item Attribute, we have to set the profile option ‘PO:Override Approved Supplier’ to No.

 Q20 What are the three types of Invoice Matching?

     2 Way Invoice Matching:
            Purchase Order Quantity and Invoice Quantity should match.
     3 Way Invoice Matching:
             Purchase Order Quantity, Receipt Quantity and Invoice Quantity should match.
     4 Way Invoice Matching:
             Purchase Order Quantity, Receipt Quantity, Inspection Passed Quantity and Invoice Quantity should match.

Q21 How will you ensure that an unapproved Quotation information will not be used to create a PO?

Enter ‘Quote Approved Required’ while creating the RFQ.

Q22 What is Supplier Scheduling?

Q23 If you want to have automatic numbering of your supplier, where will you mention it?

Mention the mode of supplier numbering (Automatic or Manual and if Automatic, what should be the starting number) in the Financial Options.


Q24 If you want to have automatic numbering of your employees, where will you mention it?

Mention the mode of employees numbering (Automatic or Manual and if Automatic, what should be the starting number) in the Financial Options.


Q25 Where will you mention that auto numbering is required for your RFQs, Quotations and PO?

The mode of numbering of RFQs, Quotations and PO (Automatic or Manual and if Automatic, what should be the starting number) should be defined in the Purchasing Options.


Q26 While creating the Purchase Documents in the ‘Auto Create’ mode, within it, there is a ‘Manual Mode’. This Manual mode is required for what?

If the numbering method selected for the document being created is manual, we can enter the document number in the ‘Manual’ mode. More over, we can decide which Requisition lines we want to combine and where we want them to appear on the document.


Q27 Is it possible to enter Price Break information in an RFQ, if the RFQ Header Type is selected ‘Bid’?

No. The Price Break window will be available only for Catalog Quotation Class.
 

Q28What are the different Currency conversion Types?

Corporate: This is an exchange rate, generally a standard market rule, determined by the senior financial management of an organization, which will be used throughout the organization.

Spot: An exchange rate entered to perform conversions based on the rate on a specific date. It applies to the immediate delivery of a currency.

User Defined: An exchange rate that is specified when a foreign currency journal entry is made, that does not have a daily exchange rate.


Q29 How will you ensure that Receipt Routing mentioned in a Requisition or PO is not override at the time of Receiving?

Set the profile option ‘RCV: Routing Override’ to No.
(But in our instance I am getting the profile option named as ‘RCV: Allow Routing Override’ and the Default value and user value field are grayed out, I am not able to fill any thing at user value also. why?)


Q30 How will you ensure that the Buyer name is enforced in a PO?

Set the Purchasing Option ‘Enforce Buyer Name’ to Yes.

Q31 Compare between different types of POs?



SPO
PPO
BPA
CPA
Terms and condition known
Yes
Yes
Yes
Yes
Goods and service known
Yes
Yes
Yes
No
Pricing known
Yes
Yes
May Be
No
Quantity known
Yes
Yes
No
No
Accounting distribution known
Yes
Yes
No
No
Delivery schedule known
Yes
May Be
No
No
Can be encumbered
Yes
Yes
No
No
Can encumber later
N.A.
Yes
Yes
N.A.

   
Q32 While creating a Requisition, the ‘RFQ Required’ toggle remains checked always by default for all the lines and in a majority of the cases, you don’t want this toggle to be checked. So, you are forced to do the work of unchecking the toggle every now and then, can you make this toggle remain unchecked by default?

The default for this checkbox is coming from the Purchasing options. So, uncheck this toggle in Purchasing Options and the problem will be solved.

Q33 What all is the conditions you can specify as restrictions on an Approval Group for the approval of a purchase document?
        
The approval Group authority can be limited by:
1.     Account Range
2.     Document Total
3.     Item Category Range
4.     Item Range
5.     Location


Q34 You have placed a Vendor on Hold using the enter supplier window. Now, you don’t want any new PO is to be approve with this supplier. How will you achieve this?

Check the toggle ‘Enforce Vendor Hold’ in Purchasing Options.



And this is the enter supplier window where we will put hold first the screen is shown below:





Q35 Is it possible to receive and invoice items supplied by a supplier on Hold?

Yes. A supplier Hold doesn’t prevent from receiving and invoicing Pos placed earlier to the Hold.


Q36 How will you find out the number of documents assigned to a particular Buyer?

Navigation: Management > Manage Buyer Workload
Select the field ‘Action’ > Review
Enter the other required search criteria and press FIND
In the popup window we see the following details:
Buyer Assigned   Urgent Late Needed   Open Pos





Q37 How will you reassign the Buyer to even out the workload of Buyers?

Navigation: Management > Manage Buyer Workload
Select in the field ‘Action’ ‘Assign’
Enter the required search criteria and FIND

In the popup window, enter the New Buyer name, select the required lines & save. Upon saving, the lines will be reassigned to the new Buyer.

Q38 How will you identify the status of a Purchasing document?

If the status is to be seen for a specific document, go to the respective document-defining window and see the current status at the Status region.
If the status of any document is to be found out, go either to the ‘Notification window or the Action history window (Navigation: Special > View Action History).


Q39 If you are an authorized approver, how will you find out whether any document is awaiting approval from you?

This info. can be seen in the notification window.

Q40 Is it possible to create an RFQ from an unapproved requisition?

Yes. We can create RFQ even from an unapproved requisition.

Q41 Is it possible to create a PO from an unapproved requisition?
No.

Q42 Where will you define the Line Type that has to be defaulted while creating a purchase document?

Enter the required line type in the field, ‘Line type’ in the Purchasing option.


Q43 When will you use Requisition preferences?

Requisition Preferences are used to enter information that are to be defaulted in a Requisition. When multiple requisitions are to be created with many data the same, all those data can be entered as a Requisition Preference. The preferences defined will be defaulted in all new Requisition Lines as long as the user is exiting the Application. The defined preferences are not saved to the database.

Q44 Which are the different Destination Types?

Inventory, Expense and Shop floor are the diff. Destination Types.



Q45 When will you use a Requisition Template?

If the data of requisition remain the same for repeated purchase of an item, the information can be copied to a template and the same can be copied to the Requisition as many number of times as required.


Q46 How will you retrieve quotation information while creating a PO?

Use the Supplier Item Catalog window by choosing ‘Catalog’ from the PO entering window to retrieve quotation information (Region: Negotiated Sources)

Q47 Which are the four different regions of the Supplier Item Catalog? Where will you define which region is to be displayed first while invoking this window?

The four different regions of the Supplier Item Catalog are:
1.     Negotiated Sources        - BPA, PPO, Catalog Quotation.
2.     Prior Purchases              - Actual past buys.
3.     Sourcing Rules               - Auto Source Rules.
4.     Requisition Templates   - Requisition Templates

(The ‘PO: Legal Requisition Type’ profile option governs whether templates for supplier and internally sourced lines are displayed)


Q48 Which of the above mentioned regions should default while invoking the Supplier Item Catalog is to be defined against the profile option ‘PO: Supplier Item Catalog Option’?




Q49 The Supplier Item Catalog is accessible from which all areas?

Supplier Item Catalog is accessible from the following areas:
1.     From the Menu.
2.     Requisition window.
3.     Purchase Order window.


Q50 While invoking the Supplier Item Catalog window from the Menu, ‘search Supplier Item Catalog’ window appears; but while invoking the same from the Requisition or PO, the Search window doesn’t appear. What setup change will you make so that the Search window will appear if it is invoked from the Requisition or PO entering window?
Set the profile option ‘PO: Display Find On Open Catalog’ to Yes.


Q51 If the Search Supplier Item Catalog window is not appearing while invoking from the Requisition or PO entry window, the System will use which criteria to search?

The values that are defaulted from the Requisition or PO will be used by the system to query the default source options.


Q52 How will you ensure that a requestor or Preparer of a Requisition
 Will be notified if any BPA exists for the item, which he is placing in the requisition?

Check the toggle ‘Notify if Blanket PO Exists’ in Purchasing Options.


Q53 Is it possible to change the supplier after approving the PO?

No. The supplier can’t be changed after approving the PO. If such situations arise, cancel the PO & create a new PO with the new supplier.


Q54 Does the Cascade function notify the destination information?

No. The Cascade function doesn’t notify the destination information; it uses the information defined in the routing and defaulted from the shipment.


Q55 Suppose you shipped a quantity of 10 from one organization to another & the receiving organization received also 10. But, in reality, you found that the arrival qty. in the receiving organization is actually 12. How will you correct the error?

We have to create & receive a new in-transit shipment for the additional qty. of 2. We can’t simply correct the received qty.


Q56 Suppose, you receive & deliver 10 nos. before you discover that you actually delivered 11 items. How will you correct the discrepancy?

Correct the Receipt Transaction from 10 to 11 & then correct the delivery transaction.


Q57 Is it possible to access a Purchase Document currently under approval process using the entry window by anybody as per the access level nor security level?

No. Nobody can access it through the Entry window.


Q58 What are the reasons that an Express processor may reject lines due to validation failures?

1.     If the item revision, Subinventory and locator is not available & the entered destination is final. (Revision, Subinventory & Locator are not obtainable as a default from the item definition.)
2.     If the early / late receipt date tolerance is exceeded & the exception control is set to Reject.
3.     If Lot / Serial information is required.
4.     If Ship-to- location is not available & the destination is Receiving.
5.     If the location is not available for Expense destination type & the destination is final destination.
6.     If PO Supplier & Receipt Header Supplier do not match.
7.     If other receipts are pending for the specified shipment.






Q59 While receiving, of the Express button is disabled, what shall be the reason?

Some manual action must have been done on lines.


Q60 How will you receive those lines which failed the validation test performed by the express Processor?

Those lines should be received manually, when the validation processing is complete. Purchasing displays a dialog telling how many lines passed validation & how many failed.


Q61 Is it possible to inspect an item whose Receipt Routing is defined as Direct or Standard?

We can’t inspect the items if the Routing is defined as Direct. But we can inspect the items if the defined Routing is Standard. (Here, inspection is not mandatory as with the case of a Routing defined as ‘Inspection Required’.)


Q62 How will you setup options for automatically creating invoices in Payables whenever there is a receipt of items?

In the ‘Purchasing’ region of the supplier definition, enter the following options:
1.     Pay On Receipt:  This allows the Pay On Receipt AutoInvoice program to be run on receipt so that invoices are created automatically.
2.      Alternate Pay Site:
3.     Invoices Summary Level:
Pay Site : creates one invoice for this Supplier Site.
Packing Slip : creates one invoice per packing slip for this Supplier Pay site.
Receipt: creates one invoice per receipt for this Supplier Pay site.

Q63 How will you generate AutoInvoices after receiving material?

Ensure that the required setup, as mentioned above, is done in the supplier definition – region ‘ Purchasing’. If it is done, we can run the AutoInvoice program after receiving the material as follows:

Navigation:  Reports  > Run
Type: Request                        
Name : Pay On receipt AutoInvoice
Transaction Source   : ERS
Commit Interval:
Receipt Number:


Q64 What is ‘Terms Date Basis’?

Terms Date Basis is defined both in Financial Options, which defaults in the Supplier definition. It is the date from which Payables calculates a scheduled payment of a Supplier. The available choices are:
1.     Current:   When we enter invoices, Payables defaults the current date as the Terms Date.
2.     Goods Received: When we enter invoices, Payables prompts us to enter the date we received the goods for an invoice as the Terms Date.
3.     Invoice: When we enter invoices, Payables defaults the invoice date as the Terms Date.
4.     Invoice Received: When we enter invoices, Payables prompts us to enter the date we received an invoice as the Terms Date.


Q65 What is the use of Sourcing Rule?

The planning process to create Purchase Requisition for Buy items & Internal Requisitions for Make Items uses a Sourcing Rule.


Q66 Is it possible to use a Sourcing Rule which will be available in all the organizations?

Provided that the Sourcing Rule is defined as Global, it will be available in all organizations.


Q67 What is the condition that should be met in a Sourcing Rule, so that it will be eligible to be assigned to an Assignment Set?

The ‘Allocation Percentage’ mentioned for all the Shipping Organization must be 100. If this is the case, the toggle ‘Planning Active’ will be automatically checked in the Sourcing Rule definition window.

Q68 What is Allocation Percentage used in a Sourcing Rule?

The Allocation Percentage includes the number of planned orders issued to the part of the planning horizon. The total allocation may not exceed 100.

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