Oracle Order Management Interview Questions

1.       What is a Standard Item?
A standard item is a finished good that is not an assembled or configured item, a service or a component.

2.       What happens when you enter an Order?
After you enter an order, the items on the order are validated in Oracle Inventory; a price is calculated for the items using the pricing engine; the availability of the items are checked and may be reserved; the items are then pick released and shipped to the customer.

3.       Explain about Processing Constraints
Processing Constraints are a security framework where you can define rules in Oracle Order Management that validate back-end operations such as Create, Update, Delete and Cancel.
Examples:
You cannot change the Order Type in the order header once the order is Booked.
You cannot delete the line in an order once the Order Status is Closed (if the order is ship confirmed or invoice interfaced).

4.       What are Defaulting Rules?
Defaulting Rules enable you to speed up data entry by passing values in the window based on some key values you have entered.
Examples:
In the order header, Ship-To Address and Bill-To Address values default in the window once you enter the customer name or number.
If you enter an item number, the Unit of Measure and Item Description automatically default on the order line.

5.       How Drop Ship Order is created?
Drop shipments are created as sales orders in Order Management, indicated as drop shipments when their Source Type is entered as External.

6.       When will you create a Drop Ship Order?
Drop shipments are used due to the following reasons:

·         Customer requires an item that is not normally stocked

·         Customer requires a large quantity of the item which is not available with you

·         It is more economical when the supplier ships directly to the customer.

7.       What are the types of Drop Ship Order?

There are three types of drop shipments:

·   Full Drop Shipment:

The seller sends the purchase order to the supplier for the full quantity that the customer had ordered

·   Normal Shipments and Full Drop Shipment:

The seller ships some goods from inventory to the customer, and the other goods are always shipped from an external source (supplier)

·   Normal Shipments and Partial Drop Shipment:

o If the seller has only part of the quantity available for shipping to the customer, then that quantity is shipped.

o The user looks at the availability for the order qty by using the ATP check and if the whole qty is not available the balance qty is fulfilled using the drop ship process.

o A purchase order is created for the remaining quantity which the seller was not able to fulfill.

8.       What is a Sales Agreement?
A Sales Agreement is a supplier’s representation of an agreement with a customer for the supplier to sell and the customer to buy goods or services.

9.       What is ASN?
ASN stands for Advanced Shipment Notice. ASN is transmitted via Electronic Data Interchange (EDI) from a supplier to let the receiving organization know that a shipment is coming. The ASN contains details including shipment date, time, and identification number, packing slip data, freight information, and item detail including cumulative received quantities, purchase order number, and returnable container information.

10.   What are Modifiers and Qualifiers?
Modifiers are discount, surcharge or special charge that may be applied to the base price and may alter the value of the item. It can be applied either at order level or at the line level.
A qualifier helps you define who is eligible for a price list or modifier. A qualifier can be a customer name, a customer class, an order type, or an order amount that can span orders.

11.   Explain One Step Pick Release Process:
The one-step process consists of selecting the Auto Allocate box on the Inventory tab and the Auto Pick Confirm box on the Inventory tab when you run Pick Release, which means that the Pick Recommendation is automatically created and Pick Confirmed without any manual intervention.

12.   Explain Two Step Pick Release Process:
The two-step process consists of selecting Auto Allocate (not Auto Pick Confirm), which creates a move order that is automatically detailed.  It enables you to view the Pick Recommendation and provides the opportunity to change quantity, location, and sub-inventory. You can report a missing quantity at the Pick Confirmation step in the Transact Move Orders window. Once you have made your changes, you can transact the move order to Pick Confirm the inventory.

13.   Explain Three Step Pick Release Process:
The three-step process consists of selecting neither the Auto Allocate or Auto Pick Confirm check boxes. This creates a move order whose details you can enter manually or automatically in the Transact Move Orders window. After the details are entered, you can transact the move order to pick confirm the transaction.

14.   What are various ways you can run Pick Release?

·         Release Sales Orders Window

·         Using a Concurrent Program

·         SRS – Pick Selection List Generation – SRS.

·         Release Rule Name need to be specified to proceed with the pick release when using the concurrent program or SRS.

15.   At which stage the item is moved from ware house to staging inventory?
During Pick Confirm

16.   What happens during Ship Confirm?
Ship Confirm indicate that the items are loaded onto the carrier from staging location.
At which stage the Oracle Inventory is decremented and Sales Order Line status is updated?
During Ship Confirm

17.   What is Autoinvoice?
AutoInvoice is a concurrent program in Oracle Receivables that performs invoice processing at both the order and line levels. Once an order or line or set of lines is eligible for invoicing, the Invoice Interface workflow activity interfaces the data to Receivables. Oracle Order Management inserts records into the following interface tables: RA_INTERFACE_LINES and RA_INTERFACE_SALES_CREDITS.

18.   If the order or lines are On Hold, what happens during Invoice Interface?
The Invoice Interface workflow activity will complete with a status of On Hold and the order details will not be interfaced to Receivables.

19.   What is Credit Check?
Credit Checking feature is the process by which orders are validated and released against your credit checking business rules.

20.   What are the two Invoicing Rules?
Advance Invoice and Arrears Invoice

21.   How many types of Purchase Order are there?

·         Standard Sales Orders.

·         RMA sales Order.

·         Back to Back Sales Orders.

·         Drop Ship.

22.    What happens when you enter an Order?
After you enter an order, the items on the order are validated in Oracle Inventory; a price is calculated for the items using the pricing engine; the availability of the items are checked and may be reserved; the items are then pick released and shipped to the customer

23.   Explain about Processing Constraints
Processing Constraints are a security framework where you can define rules in Oracle Order Management that validate back-end operations such as Create, Update, Delete and Cancel.
Examples:
You cannot change the Order Type in the order header once the order is Booked.
You cannot delete the line in an order once the Order Status is Closed (if the order is ship confirmed or invoice interfaced).

24.    What are Defaulting Rules?
Defaulting Rules enable you to speed up data entry by passing values in the window based on some key values you have entered.
Examples:
In the order header, Ship-To Address and Bill-To Address values default in the window once you enter the customer name or number.
If you enter an item number, the Unit of Measure and Item Description automatically default on the order line.

25.   When will you create a Drop Ship Order?
Drop shipments are used due to the following reasons:

·         Customer requires an item that is not normally stocked

·         Customer requires a large quantity of the item which is not available with you

·         It is more economical when the supplier ships directly to the customer

26.   What are Modifiers and Qualifiers?
Modifiers are discount, surcharge or special charge that may be applied to the base price and may alter the value of the item. It can be applied either at order level or at the line level.
A qualifier helps you define who is eligible for a price list or modifier. A qualifier can be a customer name, a customer class, an order type, or an order amount that can span orders.

27.   At which stage the item is moved from ware house to staging inventory?
During Pick Confirm

28.   What happens during Ship Confirm?
Ship Confirm indicate that the items are loaded onto the carrier from staging location.

29.   What is Auto invoice?
Auto Invoice is a concurrent program in Oracle Receivables that performs invoice processing at both the order and line levels. Once an order or line or set of lines is eligible for invoicing, the Invoice Interface workflow activity interfaces the data to Receivables. Oracle Order Management inserts records into the following interface tables: RA_INTERFACE_LINES and RA_INTERFACE_SALES_CREDITS.

30.   If the order or lines are On Hold, what happens during Invoice Interface?
The Invoice Interface workflow activity will complete with a status of On Hold and the order details will not be interfaced to Receivables.

31.   What are the Inventory Set ups required for Back to Back Order Processing?
Order Management Tab: Customer Orderable, Assemble to Order (ATO), Purchasing Tab: Purchasable, WIP Tab: Build in WIP, General Planning Tab: Buy

32.   What is a Pick Release?
Pick Release finds and releases eligible delivery lines that meet the release criteria, and creates move orders. You can pick release by order, trip, stop, container, delivery, warehouse, and customer, scheduled or requested dates, shipment priority, or combinations of the above criteria.

33.   What is a Pick Slip?
The Pick Slip Report prints all picking line details in a picking batch. This report is used by warehouse personnel to collect all items included in shipments.

34.   What is Ship Confirming?
Ship Confirming the item removes the existing reservations and performs the sales order issue transaction

35.   What is a trip?
A trip is an instance of a specific freight carrier departing from a particular location containing deliveries. A trip is a carrier specific and contains at least two stops, such as a stop to pick up goods and another stop to drop off goods and may include intermediate stops

36.   What is Bill of Lading?
The Bill of Lading prints all sales orders that have been confirmed from a selected delivery. This document lists the ship date, carrier, bill of lading number, delivery name, shipper, ship-to address, carrier name, waybill number, quantity and description of unpacked items, quantity and total of items packed in containers, total quantity of items, and weight/volume information defined in shipping. Any hipping notes you may have created are also printed.

37.   What are the possible reasons for Interface trip stop to complete with Error?
Few reasons may be Order is on Hold, Tax is not applied properly, On-Hand qty is not available in the Inventory, Inventory Period is not open,  Make sure Schedule Ship Date or Requested Date is within the range of order Date.

38.   Explain Internal Sales Order
Internal Sales Orders are used to transfer material from one inventory organization to other inventory or warehouse organization with the same company.
Flow of Internal Sales Order
Internal requisition in PO/INV à Requisition Approval à Run Create Internal Sales Order Concurrent Program à Run Order Import Concurrent Program in OM à Pick Item in INV thru OM à Ship Confirm à Receive Internal Order in INV / PO
Select Order Source as Internal while importing Orders. Shipping Network (Intransit or Direct) to be defined between two organizations (Source and Destination). Destination (requesting) Organization should be defined as Internal Customer with a Ship to address in Order Management. An Internal Sales Order does not generate Accounts Receivable Invoice

39.   When scheduling, the line got error "ATP Error Scheduling failed". How will you resolve?
This error may be due to Item setup in Inventory & Order Transaction Type Setup Order management. Ensure the Below Setups

·         Inventory à Items à Organization Items à Order Management à Check ATP should be none.

·         Order Management à Setup à Transaction Types à Define. In 'Shipping' sub-tab uncheck 'Auto Schedule' check box.

·         Profile Option 'OM: Auto Schedule' should be 'No'.

40.   What is ASN?
ASN stands for Advanced Shipment Notice. ASN is transmitted via Electronic Data Interchange (EDI) from a supplier to let the receiving organization know that a shipment is coming. The ASN contains details including shipment date, time, and identification number, packing slip data, freight information, and item detail including cumulative received quantities, purchase order number, and returnable container information.