Basic Concepts

Purchasing:

Sr. No

Question

Answer

1

How the numbering of documents is controlled in the Purchasing Module?

Purchasing allows the same document number to be used by different operating units. It can be automatic (system created ;only numeric ) or manual (user puts the number ;can be numeric or alpha numeric )

2

What are the types of Purchase Orders? How do they differ from each other?

1) Standard Purchase order for one time purchase 2)Blanket Purchase Agreements for specific type of items from a buyer over period 3) Blanket Releases actual purchase order4) You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services 5) A planned purchase order is a long–term agreement committing to buy items or services from a single source.

3

What is meant by Line Types in PO Module? What are the different value basis available for Line Types?

Line Types is feature in PO to differentiate order for goods from those for amount based services or outside processing.Line types can be quantity based ,amount based

4

What is meant by RFQ? How the suppliers are attached to the RFQ?

Request for quotation; Suppliers are attached to the RFQ by pressing the suppliers button in the RFQ screen and entering the names of the suppliers.

5

Can the material be returned to the supplier? Can we return the material to the receiving area? Can the system create Debit Note for the returned material?

1) Material can be returned to supplier 2) To return items to receiving, enter the return quantity in the ReceivingReturns window. If you originally performed a direct receipt, you must specify a Return To receiving location. 3) The system can create debit notes for the returned material if the ‘Create Debit Memo from RTS transaction’ check box for the supplier site is checked.

6

What is supplier item catalog? How it is used?

1) The Supplier Item Catalog provides a simple mechanism for locating items and their source information for the purpose of creating purchase order and requisition lines.2) You can open the catalog from an existing requisition or purchase order and add lines to that document. Alternatively, you can open the catalog from the Navigator and search for item information from there.

7

Can a requisition be amended?

It can be updated befor approval.It can not be updated after approval.It can be cancelled.

8

Which documents in Purchasing use the approval hierarchy?

Requisition & Purchase Order

9

Which documents in Purchasing can be autocreated?

standard purchase orders, planned purchase ,orders, blanket releases, and RFQs can be auto created.

10

What is quotation? How it is approved? Can the quotation line be approved individually?

A quotation is the supplier’s response to that RFQ.By using Approve quotation window & providing approval type & reason quotation can be approved.Line can be approved individually.

11

In which tables the RFQ & Quotation information stored?

PO_HEADERS_ALL ,PO_LINES_ALL ,PO_Headers_RFQQT_V,PO_Lines_RFQQT_V

12

What is revision no. in Purchase Order?

The revision no in PO is changed no which starts at 0 & increaments by 1 when you change the control information.One type of document can have multiple revision no.

13

Can we reference the requisition no. in PO? How the link between PO & Requisition is maintained?

YES.

14

Can we receive material without reference to PO and Supplier?

We can receive material without reference to PO by recording Unordered Receipt but the supplier name is reqd. to be specified.

15

Can we correct the receipt of material recorded by changing the quantity?

Yes. The quantity can be changed

16

Can I share the supplier header information (such as supplier number, supplier type etc.) across the operating units?

Yes. The supplier header info. is shared across the operating units.

17

Where is the currency for the invoices and payments to the supplier specified?

It is specified in the Payment Tab of the supplier site info

[^1]:

Inventory:

Sr. No

Question

Answer

1

What is item master Organization?

Items are defined in one organization. To distinguish it from others, we call it the Item Master organization. Other organizations (child organizations) refer to the Item Master for item definition.There is no functional or technical difference between the Item Master organization and other organizations.It is for simplicity & central maintenance.

2

What is a Sub-Inventory?

Subinventories are unique physical or logical separations of material. All material within an organization is held in a subinventory therefore, inventory, such as raw inventory, finished goods, or defective material. you must define at least one subinventory.

3

what is Category & category set?

A category is a logical classification of items that have similar characteristics. A category set is a distinct grouping scheme and consists of categories.Category sets group your categories into functional areas,such as inventory, cost, purchasing, order entry etc.You can use categories and category sets to group your items for various reports and programs.

4

What is a Stock Locators?

Locators are required to identify physical areas where the inventory items are stored.(rack/bin or aisle/row/bin locations.) Item quantities can be tracked by locator. Items can also be restricted to specific locators.

5

What is difference between Available Qty & On-hand Qty?

Available Quantity is the quantity available to transfer, based on the unit of measure specified. The available quantity is the quantity on hand less all reservations for the item (and minus pending transactions).On hand Quantity is the current on–hand quantity for the item, based on the unit of measure specified.

6

What are Item Templates?

An Item template is a defined set of attribute values.(you can use templates over and over to create many similar items.) When you apply a template to an item, you overlay or default in the set of attribute values to the item definition.

7

What is the purpose of organization Assignment?

After defining an item in the Item Master it has to be assigned to the organizations and is known as organization assignment.The purpose of of organization assignment is to make the item available for transactions in a particular organization.

8

Mention any 5 attributes of an Item?

Transactable,Purchasable,Stockable,Costing Enabled and Inventory Item,Restrict Subinventories,Serial Number Control.

9

Explain the features of Move Order.

Move orders are requests for the movement of material within a single organization.Move orders allow to distinguish between inventory management processes and the actual material transaction process.Move orders are created for purposes like replenishment, material storage relocations, and quality handling.

10

What is the importance of UOM.

Units of measure are defined to track, move, store, and count the items. Each item in Oracle Inventory must have a primary unit of measure.And also each transaction must have a unit of measure associated with the transaction quantity.

11

What are Transaction types?

A transaction types are combination of a transaction source type and a transaction action. They are used to classify a particular transaction for reporting and querying purposes. (A transaction source type is the type of entity against which Oracle Inventory charges a transaction like account, move order, sales order, inventory,RMA ;A transaction action is a generic type of material movement or cost update with no specificity regarding the source of the transaction like issue from store, assembly return etc)

12

Explain any two actions linked with transaction types?

The actions used to define transactions are 1)Receipt into stores,2)Issue from stores,3)Subinventory transfer4)Physical inventory adjustment

13

What are item cross references used for?

Cross–reference types define relationships between items and entities such as old item numbers or supplier item numbers.For example, you can create a cross–reference type Old to track the old item numbers, and a type Supplier to track supplier part numbers.

14

What is the effect of the following transactions on On-hand Qty ? A) Sub inventory Transfer B) Miscellaneous issues.

The On-hand Qty remains the same on a Sub inventory Transfer. The On-hand Qty reduces on Miscellaneous issues.

Order Mgmt:

Sr. No

Question

Answer

1

What are the item attributes for an item to enter the sales order?

Customer ordered, Customer order enabled,OE transactable.

2

What are the prerequisites for a sales order?

Customer, Price List, Order Type

3

What is a modifier?

Modifiers enable you to set up price adjustments (for example, discounts and surcharges), benefits (for example, free goods, coupons) and freight and special charges that the pricing engine applies immediately to pricing requests or accrues for later disbursement.

4

What are the different types of Modifiers?

Discount list, Freight & special charges, Promotion, Surcharge, Deal

5

What is meant by Primary ship to & Bill to locations?

Which default in the sales order once you select the customer

6

What are the different order types?

Order, Return & Mixed

7

What are the different steps involved in an standard order cycle?

Enter order, Book, Pick Release, Shipping, Invoicing

8

Is the customer site data available across the operating units?

No.Only header data is av.

9

What are the defaulting rules?

The 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

10

What is meant by Pick release?

Pick release is step to reserve the item against the sales order, schedule date or for the selected group.Pick release consists of 2 Move orders making the item available in staging subinventory.

11

What is meant by ATP? What is the significance of ATP?

Available to Promise

12

what is meant by RMA?

Return Material Authorization- Return Material order

13

Explain credit check & credit hold for a customer site?

Credit check is check carried by the system whether the customer is exceeded his credit limit. Credit hold is a hold applied on orders when he exceeds his credit limit.

14

What is Back order? Explain when it occurs?

In the Back order the material gets unreserved. During shipment we can do the entire shipment as Backordered/ if partial shipment is done, the remaining quantity gets Backordered.

15

Can the sales order be modified after it is Booked?

No

16

What is meant by Drop shipment order type? What are the steps involved in it for executing the sales order?

In the drop shipment order there is no shipping involved. The steps involved are book the order, Purchase release, Invoicing. The invoicing can be done only after the receipt is made for the purchase order created by the purchase requisition created from the Purchase release

17

What is the difference between a standard sales order cycle & drop shipment Order cycle?

Shipment is the difference.

18

Is Modifiers are used at Order level/Line level? Is it possible to apply for a customer site automatically?

Both

19

Warehouses are ------------- organizations in Oracle Manufacturing

Inventory

20

What is meant by Shipment tolerances? What &where are they defined?

Over/ Under shipment tolerances. While shipping we can do over/Under shipping the quantity specified in the sales order.

21

What is a trip?

A trip is an instance of a specific freight carrier departing from a particular location containing deliveries.

22

What is a Delivery?

A delivery consists of a set of delivery lines that are scheduled to be shipped to a customer's ship-to location on a specific date and time.

BOM: Bill of Materials

BILL OF MATERIAL TYPES

Standard BOM:A standard bill of material is the most common type of bill and lists the mandatory components,

the required quantity of each component, and information to control work in process, material planning, and other

Oracle Manufacturing functions. Examples include bills for manufacturing assemblies, pick-to-order bills, kit bills, and phantoms.

Model BOM :A model bill of material defines the list of options and option classes you can choose in Oracle Order Management

to order a configuration. A model bill also specifies mandatory components or included items that are required

for each configuration of that model

It is a Bill of material where component items are specific to that model.

Option class Bom : It is a bill of material for an option class item that contains a list of related options.

Planning BOM: A planning bill of material is a bill of material structure that includes a percentage distribution for its components.

Engineering BOM:

Primary Bill of material

A primary bill is a list of components thar are most frequently used to build a product.

The primary bill is the default for rolling up costs, defining a job, and calculating cumulative item lead times

Alternate Bill

An alternate bill is another list of components used to build a same product.

Supply types

Assembly Pull

Assembly Pullcomponents are issued to discrete jobs and repetitive schedules when you complete assemblies in Work in Process.

They are pulled from the supply subinventory assigned to the component requirement.

Operation Pull

Operation pull components are issued to discrete jobs and repetitive schedules when you complete backflush operations.

Components are pulled the supply subinventory assigned to the component

Push

Push components can be issued directly to discrete jobs and repetitive schedule as required. You can specify the subinventory

from which to issue push components, though Work in Process defaults the supply subinventory associated with the component.

Supplier

Supplier component requirements can be included on bills of material. Requirements for supplier components are created

when you define discrete jobs and repetitive schedules in Work in Process.

Supplier components are not backflushed nor do they default when issuing all components for an assembly. You can, however,

manually issue specific supplier components to discrete jobs and repetitive schedules

Bulk

Bulk component requirements can be viewed and are displayed on reports. They can be used to communicate to the shop floor

that bulk components must be used but need not be transacted.

Phantam

Resource

Use resources to define the time an assembly spends at an operation and the cost you incur at the operation. A resource is

anything you require to perform, schedule, or cost, including but not limited to: employees, machines, outside processing services,

and physical space. A resource and usage rate for all scheduled activities is required in a routing. Scheduled resources can

include queue, setup, run, and move time.

UOM: Unit of measure that describes how you measure resource.

Charge types

You can determine how each resource is charged in Work in Process. When an operation completes, Work in Process records the

units applied to the job or repetitive schedule in the resource unit of measure. You can charge resources manually or automatically.

Manual: Work in Process does not automatically charge this type of resource to a job or repetitive schedule. You must

manually charge it to a job or repetitive schedule using Work in Process

PO Receipt: Automatically charge this resource upon receipt of a purchase order in Oracle Purchasing. The assemblies are

not automatically moved to the next operation upon receipt, so you must manually move them using Work in Process

PO Move: Automatically charge this resource upon receipt of a purchase order in Oracle Purchasing and move the assemblies

to the Queue intraoperation step of the next operation, or to the To move intraoperation step if this is the last operation.

WIP Move: Work in Process automatically charges this type of resource to a job or repetitive schedule when you complete

an operation.

Basis type by which to charge and schedule the resource.

Item: Charge and schedule the resource where the resource usage quantity is the amount required per assembly unit you make.

Lot: Charge and schedule the resource where the resource usage quantity is the amount required per job or schedule.

ROUTING

Primary Routing:

A primary routing is the list of operations most frequently performed to build a product

Alternative Routing

An alternate routing is a different manufacturing process used to produce the same product.

Department

A department is an area within your organization that consists of one or more people, machines, or suppliers, where you want to

collect costs, apply overhead, and compare load to capacity. You assign a department to each operation in a routing, and

assign resources that are available for that department.

Department Class

Use department classes to group departments for shop floor scheduling and control, and to identify manufacturing cells

and flexible machine centers. Department classes are used for reporting purposes.

Count points and Auto charge

You can define which operations in a routing record move transactions by defining how resources are consumed at that operation.

The Count Point and Autocharge check boxes work together. In the following discussion, the Count Point and Autocharge

check boxes can be set to either on or off. However, you cannot set Count Point on and Autocharge off.

When you move assemblies from an operation with Count Point on / Autocharge on operation to another count point operation

set the same way, Work in Process automatically completes all Count Point off / Autocharge on count point operations between them.

Count Point off / Autocharge on

Assign this count point to operations that you always perform in a routing, but where you do not want to monitor assembly moves into,

out of, and through the operation. For example, choose this count point for non-bottleneck operations that are not labor or

time-intensive, such as inspection or minor assembly operations.

Work in Process automatically completes the operation and charges its WIP move resources to your job or schedule when you

record a move transaction through or beyond the operation, as with Count Point on / Autocharge on count point operations

Count Point off / Autocharge off

Assign this count point to operations that you do not typically perform in a routing. For example, a rework operation that you only

perform on occasion. If you choose this count point for an operation, Work in Process does not complete the operation and

charge its resources to your job or schedule unless you explicitly record a move transaction into and through the operation.

Work in Process does not default the operation. You can still record movements into, out of, and through the operation by overriding

the default in Work in Process.

Count Point on / Autocharge on

Assign this count point to operations you want to automatically default as destination operations in the Move Transactions window.

You should always assign this count point to the final operation in a routing, to insure that you record move transactions into

the operation, and then record completion transactions.

You can automatically complete and charge operations in a routing with this count point. Work in Process automatically completes

an operation and charges its WIP Move resources to your job or schedule when you record a move transaction through

or beyond the operation.

For operations that you always perform in a routing, you can also monitor assembly moves into, out of, and through the operation.

For example, choose this count point for critical, time-intensive, or bottleneck operations.

Standard Operation

A standard operation is a commonly used operation that you define as a template to default operation information

when you define routings.

Backflushing Transactions

You can specify at what point in the routing you backflush component material. Moves automatically backflush the

appropriate components at the time they are needed.

Operation Pull Backflush Transactions

Operation pull backflush transactions automatically pull inventory for all Operation Pull components defined at the operation.

They also pulls components for all non-backflush operations between the current operation and the last completed backflush operation.

Whether the backflush occurs automatically during a move transaction is determined by the whether the operation is or

is not defined as a backflush operation

Assembly Pull Backflush Transactions

When you complete an assembly that has Assembly Pull components, these components are automatically pulled (backflushed)

from their assigned supply subinventories/locators

If the components being backflushed are under manual lot control, serial control, or lot and serial control, you must enter lot and/or

serial numbers. If the job is tied to one or more sales orders, the system automatically completes the assembly for those orders

Sr. No

Question

Answer

1

What is the prerequisite to make a bill for an Item?

In the Item Attributes BOM Enabled is to checked

2

What are the different types of Bill of Material?

Standard, Model, Option class, Planning, Product Family

3

Explain Phantom Assembly?

The Phantom item is physically not available. It is a group items.

4

What do you mean by back flushing?

Automatic updation of Quantity depending on the supply type.

5

What are different Supply types components & subassy in BOM?

Push, Assembly pull, Operation pull, Bulk, Phantom, Supplier

6

How is the Assembly pull different from operation Pull?

The componenets are backflushed from the subinventories after the Assembly is completed

7

What is meant by ‘Bulk’ supply type?

For Bulk supply type the component is to be manually issued. They can not be backflushed.

8

What is meant by Indented Bill?

In the indented bill we can view different levels of bills , components, resources, leadtimes, supply types, cost at each item & level.

9

Bill of material structure report is used for?

To view the components to the lowest level of the Bill.

10

Bill of material loop report is used for?

To check for the loop in the entire bill at different levels

11

What is a Resource?

A resource is anything you require to perform, schedule, or cost, including but not limited to: employees, machines, outside processing services, and physical space.

12

What are the different charge types used for resources?

Person, Machine, Amount, currency, Miscellaneous

13

What are the charge types used for outside processing resource?

PO Move, PO Receipt

14

What is the information flows from BOM to MRP?

Bills & Routings ( Components, Resources, Lead times)

15

What is a Simulation set and its use?

Simulation sets are used to change the Resource capacities.

WIP: Work In Process

Sr. No

Question

Answer

1

What is the purpose of defining a WIP Accounting class?

When you issue materials to a job, the appropriate valuation accounts are charged.When the job is closed, final costs and variances are calculated and posted to the variance and valuation accounts.Accounting classes define which valuation and variance accounts are charged and when they are charged.

2

What are the various Valuation & Variance accounts?

material,material overhead,resource,overhead,osp

3

From where does the accounting class default in a discrete job?

wip parameters

4

What are the various intraoperation steps?

queue,run,to move,reject,scrap

5

What are the various supply types?

push, assembly pull, operation pull,bulk (Supply types control how component materials are supplied to discretejobs and repetitive schedules in Oracle Work in Process)

6

How does the Assembly pull differ from Operation pull?

assembly pull-pulls material on completion of assembly, operation pull-pulls material on completion of operation (Assembly Pull components are issued to discrete jobs and repetitive schedules when you complete assemblies in Work in Process ;Operation pull components are issued to discrete jobs and repetitive schedules when you complete backflush operations)

7

What do u mean by backflushing?

auto pulling material from subinventory to job

8

Where are Shopfloor statuses used?

option to prevent move transactions from steps within an
operation by defining shop floor statuses that prevent moves (Shop floor statuses help you control assembly move transactions on the shop floor.)

9

What do u mean by OSP & how does it work?

OSP is outside processing(subcontracting). By this MFG can include supplier– sourced components and resources in your manufacturing processes. competitive advantages include:
• Using specialized supplier skills in your manufacturing processto help lower engineering and manufacturing costs and increase production quality • Using supplier capacity to temporarily or permanently increaseyour overall production capacity

10

OSP Requisition creation time

At job/schedule release, At osp operation, manual

11

What is Discrete Workstation used for?

Immediate Dispatch list & Upstream Dispatch list

12

Can quantity more than job quantity be transacted during a move or completion transaction?

yes, if over completion tolerance is defined

13

Where is Over completion tolerance set for job orders?

Default Over–completion Tolerance Percent parameter at org level, item level, job level.

14

What are the various methods of generating discrete job orders?

simulate,manual,mrp workbench,import thru interface

15

What are the different types of discrete job orders?

standard & non-standard

16

What are Non-Standard jobs mainly used for?

rework, repairs

17

What are the steps followed after releasing a job till completion?

move, resource,completion transaction

18

What is MRP net quantity in discrete job?

number of assemblies that MRP considers as supply on the scheduled completion date

19

What is a firm discrete job?

prevents MRP from suggesting rescheduling and replanning recommendations when changes to supply or demand occur

20

How can u create a job for an assembly using alternate bills/routings?

selecting alternate bill/routing in discrete job form

21

In a discrete job if u select a start date, on what basis is the completion date calculated?

routing or lead time

22

What are the different discrete job statuses?

unreleased,released,complete,cancelled,closed

23

Can u process any transaction with the job status of unreleased?

no

24

What does job history in the discrete job form indicate?

quantities processed with dates

25

Which field indicates that manual resources need to be booked against the job order?

manual resources exists checkbox

26

What should be the intraoperation step at the last operation before completion?

to move

27

What transaction type is used when returning the component?

wip component return

28

What transaction type is used when returning the assembly?

wip assembly return

29

Can we add components or operations in a job? If yes, how?

Yes. Job/schedule details form

30

What does the wip value summary indicate?

cost incurred & relieved & variances

31

What modules does wip integrate with?

bom,inv,po,om

32

Open interfaces in WIP

WIP_JOB_SCHEDULE_ INTERFACE, WIP_JOB_DTLS_INTERFACE, WIP_MOVE_TXN_INTERFACE, WIP_COST_TXN_INTERFACE

Master Scheduling/MRP

Sr. No

Question

Answer

1

What are the different Forecast types?

Manual,Focus,Statistical

2

Can the forecasts be generated by the system & if yes, on what basis?

Yes, based on forecasting rules

3

What is a forecast set?

set of forecasts

4

On what basis can the forecast be consumed?

item,customer,bill-to,ship-to address

5

What are the different frequencies an item can be forecasted?

daily,weekly,periodically

6

Where can we see if the forecasted item has been consumed or not?

reliefs

7

What is outlier %?

consumption % of forecasted item in a single sales order

8

What is MDS?

Master Demand Schedule .The MDS is a statement of demand and contains details of the anticipated shipment schedule.

9

Demand from which sources can be loaded into MDS?

specific forecast, specific mds,specific mps,sales orders

10

Can demand from multiple sources be loaded in the same MDS?

yes

11

What is MPS?

Master Production Schedule .Statement of supply for demand

12

Significance of Feedback flag in MRP

to monitor the quantity of the planned order that has been implemented as discrete jobs, purchase orders, or purchase requisitions.

13

Significance of Production flag in MRP

to enable a plan to auto–release planned orders.

14

What is Shipment relief?

relieves (updates) MDS schedule quantities when you ship sales order items.

15

What is Production relief?

relieves (updates) MPS schedule quantities when you create purchase orders,purchase requisitions or discrete jobs

16

Mention the various sources of demand?

salesorders,discrete wip,internal orders,forecasts

17

Mention the various sources of supply?

discrete wip,internal req,purchase req,po,on-hand available,in transit,in receiving material

18

Items belonging to which planning methods are considered by mrp planner?

mrp mps

19

Are mrp planned items considered by mps planner?

no

20

In what form does the mrp workbench give it's recommenations for release?

planned orders

21

In what form does the recommendations for buy items get released?

purchase requisitions

22

In what form does the recommendations for make items get released?

discrete job orders

23

Can the joborder be released in Released status & how?

Yes, by setting in the preferences window

24

Does mrp consider alternate bills while releasing jobs?

no

25

Where can u view the supply demand details of the items in the workbench?

horizontal plan

26

Enterprise view in mrp workbench used for what purpose?

to view the entire supply demand status

27

Can simulations be carried out on the mrp plan?

yes

28

What are the different methods used in net chane replan?

batch mode,online mode

29

What modules does mrp integrate with?

bom,inv,po,wip,om

30

Open interfaces in MS/MRP

MRP_FORECAST_INTERFACE, MRP_SCHEDULE_INTERFACE