Purchasing Interview Questions:

Q. AME is possible in PO approval ??

NO. AME for Req approval

Q. Can we create Position heiracchy for Requisition Approval

Yes

Q. vacation rule has to be created by the same user...if being as a first person in the approver  goup the user not able to create vacation rule and goes on leave...then any other way, by  which we can handle that out of scope

Q. Can I get the recording version of yesterda's session?

No.

Q. Where did we do setups for taxes

Ebiz Tax

Q. Is AME diff in 11i and R12

Conceptually, AME is same or 11i and R12 but the look and feel and navigation is  completely different.

Q. Any profile for confidentiality of Quotation?

No. Anybody with access to quote and quote analysis screen has access to quotations

Q. when we delete approved record, if it is by other user, will he be notified for the same

No.

Q. How to protct cofidentialiy and modification of quot from others

- to prevent access to quote screen

- make the quote screen read only

Q. is there any work flow proces behind this?

no

Q. Can we have PO without RFQ or quotes for that matter.

Yes. We can have PO with RFQ and quotes. But its not a good practice.

Purchase Manager can be questioned why he gave order to some supplier. He will always have 2-3 quotes with him.

Q. but for blanket type of PO do you think quotes are required?

2 ways to determine price for an item

            - Quotations  - document provided by vendor to supply at a price

            - Blanket PO - agreement between vendor and us

Q. If we dont want other buyer can see qout of other buyer even they have access to RFQ screen ??

only related buyer only can see his Quot not other one which is not related to him ??

Personalization. Without personalization, its not possible.

Q. Can we copy Catalog RFQ to Standard quotation?

Yes. Copy Catalog RFQ to Catalaog quote or Standard quotation. Copy Bid RFQ to Bid quotation.

Q. Can you show us Creating PO from Requisition having RFQ as Source Doc.

RFQ cannot be source doc. We can have Quote as Source and we will be creating PO from Req using Quote as Source.

Q. Yes but not for release.

Question not clear

Q. What about negotion process in this ??

Negotiation is possible in Oracle Sourcing. Out of Scope.

Q. Are u going to take Planned Purchase order

Yes. That will be covered later.

Q. Will we cover Schedule release VMIand Consigned.?

Out of scope. Inventory related. Kindly attend Inventory training.

Q. Is there  any analytics available in this release to freeze the minimum quote automatically?

No. Quote analysis and approval is a manual process. No automation is provided.

Q. Can you cover the Advance Pricing intergration in Purchasing?

This will be covered conceptually. There wont be any practicals on the same.

Q. What about Bill of distribution??

Sourcing Rules  - ASL is required. Will cover Sourcing rules later.

Q. Sourcing means for RFQ ??

Selecting the Source of Supply of material.

Sourcing - Sourcing Rules - automatically create PO from requisitions

Q. While using ASL for Commodity theall items listed under that commodity will get imapcted . believe it's true can u confirm .

Yes. I will show you guys a chart

Q. How the Supplier status behave differently in Global & Local ASL?

Local ASL will override Global

Local (M1) - debarred Global - Approved

PO for M1 - will not allow

PO for M2 - should allow

But local is specific to that org not for others. so for M2 it should allowed.

Q. what is category level supplier?

The supplier will be ASL for all items which fall under that category.

Q. then where do we define that?

That is defined in ASL

Q. Where do we define the range of items under that category?

Linked while defining Items

Q. AND is approved for Item not for category so Item shoud be presidance. and it should allowed. Item shoud have more presidance then category.

NO. Category is having higher precedence. So, if a Supplier is debarred for a category then he is debarred for all items under that category.

Q. Can we create Req to Release Item if is not matching on Requisition and BPA. but ASL is set.

Question is not clear

Q. what if allocation for ASL is <100 %

For manual PR, 100% allocation does not matter. 100% allocation is required only for planned orders. For manual PR the PO will be raised against the supplier with highest allocation.

Q. What does Sourcing Assignment signify?

Sourcing Assignment will determine which supplier to source an item for a given ORG

Q. If we have one org then can we do transaction in Master Org

Yes. No restriction. Best practice that we should not do any transaction in Master Inv Org.

Q. What isTCA??

Trading Community Architecture. Covered in AR. This is party, customer relationship and stored in HZ tables.

Q. How intercompany sourcing happens and how PO will be managed in two companies?

Internal Requisition/Internal Sales Orders

Q. What is the need to add the price into price list...when we have given price for the item in Inventory setup?

Price that we mentioned is the Purchase list price. But for OM, it picks the price from Price list.

Q. While giving the value in Price list...do we add our all the cost and profit in that

For internal items, the transfer price is calculated based on the cost + the transfer options.

Q. What does create internal order conc request do?

Create internal order request will transfer the IR info to OM interface tables.

Q. Why is the cost zero for Internal Orders?

We did not enter any cost for the item, so the cost was zero.

Q. could you please show this cost thing by raising external sales order?

Out of Scope. OM class is required.

Q. Cost is zero for internal sales order, however you told that it will be 10% addition of the cost of that item then why it is not 10 % addition in the cost?

Q. Why is the cost of the Item zero?

The cost of the Item was zero because we did not enter the cost of the item.

Q. Where do we enter the cost?

We enter the cost while defining the Item.

Q. How does the price default while creating IR?

The price of the item while creating IR, is the cost of the Item.

Q. Can you clarify where we set up zero cost for an Item for IR?

We did not specify the zero for IR. If we do not enter the cost, it will be considered as zero.

Q. Can we change PO Currency?

Yes. We can change PO currency. It defaults from supplier setup but we can change it.

Q. Can you explain what is confirming order ?

Sometimes, the Purchase manager requests for certain items over phone. Then he sends the PO just to confirm the verbal order. If the vendor thinks that this is a duplicate order and delivers double, it could cause problem, so he sends a PO with a message that it is confirming order.

What is Difference Between Blanket release and Planned Release?

Blanket release is against blanket purchase agreement and planned release is against planned orders.

Under what Circumstance we'll use Blanket and Planned Agreement

In blanket, the price of the agreement is fixed but the quantity is not fixed. We get price breaks in Blanket for volume discounts.

In planned, the shipment is tentative. It does not have any price breaks so no volume discounts.

So, blanket is for high volume transactions.

Q. For planned orders, Schedule is available but blanket is for as and when required?

The schedule in planned Orders is just tentative. The actual schedule is determined later.

Blanket can have an effective date range. Planned does not have any effective date range.

Q. Can you cover Advance Pricing?

Not in scope.

Q. What is the way for adding items or modify BPA from supplier point of view..are they need have oracle apps installed with Oracle iSupplier portal?

They will have access to Oracle iSupplier portal which is a web based application. No installation is required.

Oracle Purchasing Tables Table

Oracle Purchasing Tables
Table Name : PO_REQUISITION_HEADERS_ALL
Columns:
REQUISITION_HEADER_ID
PREPARER_ID
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Segment1: Is the system–assigned number you use to identify in forms and reports?
Stores information about requisition headers. You need one row for each requisition header you create. Each row contains the requisition number, preparer, status, and description.SEGMENT1 is the number you use to identify the requisition in forms and reports (unique).

Table Name : PO_REQUISITION_LINES_ALL
Columns:
REQUISITION_LINE_ID
REQUISITION_HEADER_ID
LINE_NUM
LINE_TYPE_ID
CATEGORY_ID
ITEM_DESCRIPTION
UNIT_MEAS_LOOKUP_CODE
UNIT_PRICE, QUANTITY
DELIVER_TO_LOCATION_ID
TO_PERSON_ID
SOURCE_TYPE_CODE
Stores information about requisition-lines. Line number, item number, item category, item description, need–by date, deliver–to location, item quantities, units, prices, requestor, notes, and suggested supplier information for the requisition line. LINE_LOCATION_ID - Purchase order shipment line on which you placed the requisition. It is null if you have not placed the requisition line on a purchase order. BLANKET_PO_HEADER_ID and BLANKET_PO_LINE_NUM store the suggested blanket purchase agreement or CATALOG quotation line information for the requisition line. PARENT_REQ_LINE_ID contains the REQUISITION_LINE_ID from the original requisition line if you exploded or multi-sourced this requisition line.

Table Name : PO_HEADERS_ALL
Columns:
PO_HEADER_ID
AGENT_ID
TYPE_LOOKUP_CODE
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information for your purchasing documents. There are six types of documents that use PO_HEADERS_ALL. RFQs, Quotations, Standard purchase orders, planned purchase orders, Blanket purchase orders, Contracts can uniquely identify a row in PO_HEADERS_ALL using SEGMENT1 and TYPE_LOOKUP_CODE or using PO_HEADER_ID.BLANKET_TOTAL_AMOUNT for blanket purchase orders or contract purchase orders. If we use copy document Oracle Purchasing stores the foreign key to your original RFQ in FROM_HEADER_ID.

Table Name : PO_LINES_ALL
Columns:
PO_LINE_ID
PO_HEADER_ID
LINE_TYPE_ID
LINE_NUM
Stores current information about each purchase order line. CONTRACT_NUM reference a contract purchase order from a standard purchase order line.

Table Name : PO_VENDORS
Columns:
VENDOR_ID
VENDOR_NAME
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information about your suppliers. Purchasing, Receiving, Payment, Accounting, Tax, Classification, and General Information.

Table Name : PO_VENDOR_SITES_ALL
Columns:
VENDOR_SITE_ID
VENDOR_ID
VENDOR_SITE_CODE
Information about your supplier sites. A row for each supplier site you define. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information. Oracle Purchasing uses this information to store supplier address information.

Table Name : PO_DISTRIBUTIONS_ALL
Columns:
PO_DISTRIBUTION_ID
PO_HEADER_ID
PO_LINE_ID
LINE_LOCATION_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
QUANTITY_ORDERED
DISTRIBUTION_NUM
Contains accounting distribution information for a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment.
There are 4 - types of documents using distributions in Oracle Purchasing:
· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Order Releases

Includes the Destination Type, Requestor ID, Quantity Ordered and Deliver–To Location for the distribution.

Table Name : PO_RELEASES_ALL
Columns:
PO_RELEASE_ID
PO_HEADER_ID
RELEASE_NUM
AGENT_ID
RELEASE_DATE
Contains information about blanket and planned purchase order releases. You need one row for each release you issue for a blanket or planned purchase order. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

Table Name : PO_VENDOR_CONTACTS
Columns:
VENDOR_CONTACT_ID
VENDOR_SITE_ID
Stores information about contacts for a supplier-site. You need one row for each supplier contact you define.
Each row includes the contact name and site.

Table Name : PO_ACTION_HISTORY
Columns:
OBJECT_ID
OBJECT_TYPE_CODE
OBJECT_SUB_TYPE_CODE
SEQUENCE_NUM
Information about the approval and control history of your purchasing documents. There is one record in this table for each approval or control action an employee takes on a purchase order, purchase agreement, release, or requisition.
· OBJECT_ID - Document header Identifier
· OBJECT_TYPE_CODE - Document Type
· OBJECT_SUB_TYPE_CODE - Document subtype
· SEQUENCE_NUM - Sequence of the approval or control action for a document.

Table Name : PO_REQ_DISTRIBUTIONS_ALL
Columns:
DISTRIBUTION_ID
REQUISITION_LINE_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
REQ_LINE_QUANTITY
DISTRIBUTION_NUM
Stores information about the accounting distributions associated with each requisition line.

Table Name : PO_LINE_LOCATIONS_ALL
Columns:
LINE_LOCATION_ID
LAST_UPDATE_DATE
LAST_UPDATED_BY
PO_HEADER_ID
PO_LINE_ID
SHIPMENT_TYPE
Contains information about purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line. There are 7- Types of documents that use shipment schedules:
· RFQs
· Quotations
· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Orders
· Blanket Purchase Order Releases
Each row includes the location, quantity, and dates for each shipment schedule. Oracle Purchasing uses this information to record delivery schedule information for purchase orders, and price break information for blanket purchase orders, quotations and RFQs.

Functional-- Purchase Order Flow

Functional Training  of Purchase Order Flow
What is flow of PO:

Step 1:We will be raising the Requisitions for the items which are needed.
Requisition is 2 types • Internal Requisition • Purchase
Internal Requisition is used when we are getting the items from one organization to another organization of the same business group.
Purchase Requisition is raised when we are getting the items from outside the business group.

Step 2:Once the Requisition has been approved, we will be sending (Request For Quotes) RFQ’s to different Suppliers. It contains the information regarding the type of RFQ, terms and conditions, shipments, currency.
RFQ is of 3 types
• Bid RFQ • Catalog • Standard
BID: Used for a fixed specific quantity, Location and date. This will be used for large or expensive price of equipments. That you have never order before. There won’t be price any breaks for a BID Quotation.
CATALOG: This will be used for high volume items for which your supplier sends information regularly. The CATALOG RFQ includes price breaks at different quantity levels.
STANDARD: It is used for items we need only once or not very often for a specific fixed quantity, location and date. It includes price breaks at different quantity levels.

Step 3:We will be receiving the quotations from different suppliers. Quotation is of 3 Types.
• Bid
• Catalog
• Standard

Step 4:Based on the quotations, we will be deciding the supplier and purchasing order is given to that supplier.
Purchasing is of 4 types
• Standard
• Planned
• Blanket
• Contract

Step 5:Once we receive the items from the Supplier we will issue the receipts to the Supplier. This is done in 3 ways.
• Two-Way: In 2-way we will compare PO and Invoice.• Three-Way: In 3-way we will compare the PO, Receipt and Invoice.• Four-Way: In 4-way we will compare PO, Receipt, Inspection and Invoice.

2-Way Matching verifies that Purchase order and invoice information match within your tolerances as follows:Quantity Billed <-Quantity Ordered Invoice Price <- Purchase Order Price (<- Sign is used because of tolerances)


3-Way Matching verifies that the receipt and invoice information match with the quantity tolerances defined:Quantity billed Quantity received

4-Way Matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:Quantity billed <- Quantity accepted. (Acceptance is done at the time of Inspecting goods).Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character).

RECEIPT REQUIRED INSPECTION REQUIRED MATCHING
Yes Yes 4-Way
Yes No 3-Way
No No 2-Way
In ‘More’ alternative region of Shipments block, you define the Invoice Matching option, where you can choose 2-way, 3-way or 4-way match.

Step 6:Because of these Transactions Inventory and Payables get affected.