Q. How many types of Purchase Orders (PO’s)?
Standard Purchase Order: It’s a legal document to buy the goods or services by supplier it will be created when we know the goods or services, price, quotation, delivery schedule and accounting distribution and also is one time purchase order.
Blanket PO: Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not know the detail of your delivery schedules.
Planned PO: Planned PO is a long–term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.
Contract PO: Contract PO is created when you agree with your suppliers on specific terms and conditions without indicating the goods and services that you will be purchasing.
Q. What is 2 way, 3 way and 4 way matching?
Making payments to the suppliers in 3 ways. what ever you have ordered for the PO we will make the payment for the suppliers in 2-way(we will compare two documents PO and Invoice).
eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. 2) In 3-Way we will compare 3 documents PO+reciept+Invoice.
Eg:Suppose we have ordered 100 items in PO. But we had received only 80 items ,But we had received invoice for 100 items. so, we will make payment for only 80 items 3) IN 4-Way we will compare 4 documents PO+Receipt+Invoice+Inspection Eg:Suppose we have 100 items in PO. Suppers send us 80 items We will do inspection on those items what ever we have received, If 10 items got damaged. finally, we are going to make payment to the 70 items only.
Q. What is Payment Terms and How to define Payment Terms?
Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter. Payment terms will default from the supplier site. If you need to change the payment terms and the terms you want to use are not on the list of values, you can define additional terms in the Payment Terms window.
Q.What is Key flex filed how many types in GL, AP, AR, & FA?
Key Flex field: is used to capture mandatory information of the organizations
In GL 3 types
1. Accounting flex field (mandatory) 2. Reporting attribute (optional) 3. Gl ledger flex field (optional)
IN AP No flex fields
IN AR Two types 1. Sales Tax Location flexfield (mandatory) 2. Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.
Q. What is a Purchase Requisition and define various requisitions?
It is a formal request intended to procure/buy something that is needed by the organization. It is created and approved by the department requiring the goods and services.
A purchase requisition typically contains the description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.
Basically, requisitions are of two types:
Internal requisition
Purchase requisition
Internal Requisitions are created if the Items are to be obtained from one Inventory location to another location within the same organization. Here the source of the requisition would be INVENTORY. There is no approval process for the internal requisition.
Purchase Requisitions are created if the goods are obtained from external suppliers. Here the source of the requisition would be SUPPLIERS. The purchase requisitions are sent for approvals.
Q. What are the base tables that are affected when you create a P.O?
PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)
This table stores header information of a Purchasing Document. You need one row for each document you create.
PO_LINES_ALL
This table stores the line information of a Purchasing Document
PO_LINE_LOCATIONS_ALL
This table contains the information related to purchasing order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.
PO_DISTRIBUTIONS_ALL
This table contains the information related to the accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment
VENDORS_ALL
This table stores the general information about the suppliers
PO_VENDOR_SITES_ALL
This table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.
PO_RELEASES_ALL
This table stores information related to planned and blanket Purchase Order releases. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.
PO_VENDOR_CONTACTS
This table stores information about contacts related to Supplier site. Each row includes contact name and site.
PO_ACTION_HISTORY
This table stores information about the approval and control history of a Purchasing Document. This table stores one record for each approval or control action an employee takes on a purchase order, purchase agreement, release or requisition.
Q. What is 2-way, 3-way, 4-way matching?
Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received.
Two–Way: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Three–Way: Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Four–Way: Purchase order, receipt, acceptance, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Q. What are the major transactions in RECEIVING?
Purchase Order Receipts
Internal Requisition Receipts
Inventory Inter-Org Transfer Receipts
Customer Return Receipts
Q. What is Invoice Validation Process?
Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances.
Q. What is an approval hierarchy?
Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.
Q. Can we automatically ‘Close’ the Purchase order without receiving the full quantity?
The Receipt Close Tolerance lets you specify a quantity percentage within which Purchasing closes a partially received shipment. For example, if your Receipt Close Tolerance is 5% and you receive 96% of an expected shipment, Purchasing automatically closes this shipment for receiving.
Q. When does a Purchase Order line get the Status ‘Closed for Receiving’?
Goods have been received on the system against this line but an invoice has not been matched to the order.
Q. Can we match an Invoice against a line even when it is ‘Closed for Invoicing’?
The Close for invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt.
Q. What does create internal order conc request do?
Create internal order request will transfer the IR info to OM interface tables.
Q. Explain the Receipt Routing?
Receipt Routing is of three types: Direct, Standard and Inspection
In Direct once the goods arrive at the destination, we directly move them to a specific Sub-Inv
In Standard once the goods are at the destination, we receive it at the receiving point first and then move them to the Sub-Inv.
In Inspection once the goods are at the destination, we receive it at the receiving point and then we perform inspection and accordingly we either accept it or reject them.
What are the different Purchasing modes in Receiving?
There are three modes:
Online: Receipts are processed online. If there are any errors, they are shown on the FORM itself, and don’t let you IGNORE and PROCEED.
Immediate: Receipts are processed immediately, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.
Batch: Receipts are processed in batch, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.
Note: In all the above two cases, it requires Receiving Transaction Processor to be run periodically.
Q. How will you approve a quotation?
Navigate: RFQ and Quotations > Quote Analysis.
Q. 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.
Q.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.
Q. 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.
Q. 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. Moreover, we can decide which Requisition lines we want to combine and where we want them to appear on the document.
Q. 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.
Standard Purchase Order: It’s a legal document to buy the goods or services by supplier it will be created when we know the goods or services, price, quotation, delivery schedule and accounting distribution and also is one time purchase order.
Blanket PO: Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not know the detail of your delivery schedules.
Planned PO: Planned PO is a long–term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.
Contract PO: Contract PO is created when you agree with your suppliers on specific terms and conditions without indicating the goods and services that you will be purchasing.
Q. What is 2 way, 3 way and 4 way matching?
Making payments to the suppliers in 3 ways. what ever you have ordered for the PO we will make the payment for the suppliers in 2-way(we will compare two documents PO and Invoice).
eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. 2) In 3-Way we will compare 3 documents PO+reciept+Invoice.
Eg:Suppose we have ordered 100 items in PO. But we had received only 80 items ,But we had received invoice for 100 items. so, we will make payment for only 80 items 3) IN 4-Way we will compare 4 documents PO+Receipt+Invoice+Inspection Eg:Suppose we have 100 items in PO. Suppers send us 80 items We will do inspection on those items what ever we have received, If 10 items got damaged. finally, we are going to make payment to the 70 items only.
Q. What is Payment Terms and How to define Payment Terms?
Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter. Payment terms will default from the supplier site. If you need to change the payment terms and the terms you want to use are not on the list of values, you can define additional terms in the Payment Terms window.
Q.What is Key flex filed how many types in GL, AP, AR, & FA?
Key Flex field: is used to capture mandatory information of the organizations
In GL 3 types
1. Accounting flex field (mandatory) 2. Reporting attribute (optional) 3. Gl ledger flex field (optional)
IN AP No flex fields
IN AR Two types 1. Sales Tax Location flexfield (mandatory) 2. Territory Flexfield
In FA Three Flex field i.e. Category (mandatory), Asset key (mandatory), Locations flex field.
Q. What is a Purchase Requisition and define various requisitions?
It is a formal request intended to procure/buy something that is needed by the organization. It is created and approved by the department requiring the goods and services.
A purchase requisition typically contains the description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.
Basically, requisitions are of two types:
Internal requisition
Purchase requisition
Internal Requisitions are created if the Items are to be obtained from one Inventory location to another location within the same organization. Here the source of the requisition would be INVENTORY. There is no approval process for the internal requisition.
Purchase Requisitions are created if the goods are obtained from external suppliers. Here the source of the requisition would be SUPPLIERS. The purchase requisitions are sent for approvals.
Q. What are the base tables that are affected when you create a P.O?
PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)
This table stores header information of a Purchasing Document. You need one row for each document you create.
PO_LINES_ALL
This table stores the line information of a Purchasing Document
PO_LINE_LOCATIONS_ALL
This table contains the information related to purchasing order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.
PO_DISTRIBUTIONS_ALL
This table contains the information related to the accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment
VENDORS_ALL
This table stores the general information about the suppliers
PO_VENDOR_SITES_ALL
This table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.
PO_RELEASES_ALL
This table stores information related to planned and blanket Purchase Order releases. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.
PO_VENDOR_CONTACTS
This table stores information about contacts related to Supplier site. Each row includes contact name and site.
PO_ACTION_HISTORY
This table stores information about the approval and control history of a Purchasing Document. This table stores one record for each approval or control action an employee takes on a purchase order, purchase agreement, release or requisition.
Q. What is 2-way, 3-way, 4-way matching?
Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received.
Two–Way: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Three–Way: Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Four–Way: Purchase order, receipt, acceptance, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Q. What are the major transactions in RECEIVING?
Purchase Order Receipts
Internal Requisition Receipts
Inventory Inter-Org Transfer Receipts
Customer Return Receipts
Q. What is Invoice Validation Process?
Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances.
Q. What is an approval hierarchy?
Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.
Q. Can we automatically ‘Close’ the Purchase order without receiving the full quantity?
The Receipt Close Tolerance lets you specify a quantity percentage within which Purchasing closes a partially received shipment. For example, if your Receipt Close Tolerance is 5% and you receive 96% of an expected shipment, Purchasing automatically closes this shipment for receiving.
Q. When does a Purchase Order line get the Status ‘Closed for Receiving’?
Goods have been received on the system against this line but an invoice has not been matched to the order.
Q. Can we match an Invoice against a line even when it is ‘Closed for Invoicing’?
The Close for invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt.
Q. What does create internal order conc request do?
Create internal order request will transfer the IR info to OM interface tables.
Q. Explain the Receipt Routing?
Receipt Routing is of three types: Direct, Standard and Inspection
In Direct once the goods arrive at the destination, we directly move them to a specific Sub-Inv
In Standard once the goods are at the destination, we receive it at the receiving point first and then move them to the Sub-Inv.
In Inspection once the goods are at the destination, we receive it at the receiving point and then we perform inspection and accordingly we either accept it or reject them.
What are the different Purchasing modes in Receiving?
There are three modes:
Online: Receipts are processed online. If there are any errors, they are shown on the FORM itself, and don’t let you IGNORE and PROCEED.
Immediate: Receipts are processed immediately, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.
Batch: Receipts are processed in batch, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.
Note: In all the above two cases, it requires Receiving Transaction Processor to be run periodically.
Q. How will you approve a quotation?
Navigate: RFQ and Quotations > Quote Analysis.
Q. 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.
Q.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.
Q. 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.
Q. 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. Moreover, we can decide which Requisition lines we want to combine and where we want them to appear on the document.
Q. 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.
