Introduction to Oracle E-Business Suite (EBS)

Introduction

Oracle E-Business Suite (EBS) version 12 is an internet enabled product that can be managed
from a single site. A company can operate a single data center with a single database, similar to
other ERP products. This release was launched in February 2007 and contains a number of
product lines which users can implement for their business. Oracle EBS includes the company’s
enterprise resource planning (ERP) product as well as supply chain management (SCM) and
customer relationship management (CRM) applications. Each application is licensed separately so
companies can select the combination that is suitable for their business processes.
The applications found in the Oracle EBS include:

 Oracle CRM
 Oracle Financials
 Oracle Human Resource Management System (HRMS)
 Oracle Logistics
 Oracle Supply Chain Applications
 Oracle Order Management
 Oracle Transportation Management
 Oracle Warehouse Management System

Oracle CRM

The Oracle CRM application provides the "front office" functions which help a business to
increase customers and customer loyalty and satisfaction. The basic functionality includes
marketing, order capture, contracts, field service, spares management and the call center
functionality. The CRM application also includes internet focused products such as catalogs,
content management, quote and order management.

Oracle Financials
The Financials applications include General Ledger, Cash Management, Payables, Receivables,
Fixed Assets, Treasury, Property Management, Financial Analyzer and a self-service expenses
function.

Oracle Human Resource Management System (HRMS)

The HRMS application helps companies manage the recruit-to-retire process. The application
gives users a real-time view of all the HR activities, including recruiting, time management, training,
compensation, benefits and payroll. The HRMS suite integrates fully with the other EBS
applications and supplies the users with an analytics package that allows the extraction of HR data
with ease.

Oracle Logistics

The logistics module allows users to plan, manage, and control the flow and storage of products
and services within a business. It provides information to plan future demand and safety stock
within the warehouse. The application can create detailed, constraint-based production schedules
and material plans.

Oracle Supply Chain Applications

Supply chain applications powers a businesses information-driven supply chains. Companies can
predict market requirements, innovate in response to volatile market conditions, and align
operations across global networks. Oracle offers industry-specific solutions that includes product
development, demand management, sales and operations planning, transportation management,
and supply management.

Oracle Order Management

Order management applications can streamline and automate a business’s entire sales order
management process, from order promising and order capture to transportation and shipment.
Order management also includes EDI, XML, telesales and web storefronts. Some of the business
benefits that can be achieved include reduced fulfillment costs, reduced order fulfillment cycle
time, increased order accuracy and greater on-time delivery.

Oracle Transportation Management

Transportation management (TMS) provides transportation planning and execution capabilities to

shippers and third party logistics providers. It integrates and streamlines transportation planning,
execution and freight payment. The TMS function delivers functionality for all modes of
transportation, from full truckload to complex air, ocean, and rail shipments. The benefits of the
TMS function include reduced transportation costs, improved customer service and greater asset
utilization.

Oracle Warehouse Management System

Oracle’s Warehouse Management System allows the coordinated movement of goods and
information throughout the extended distribution process. The module provides business
processes that can deliver efficient utilization of employees, equipment, and space in the
distribution process. Benefits include an acceleration of the flow of products through the supply
chain while reducing lead times and releasing working capital, real time inventory management,
cross-docking, pick-by-line, advanced ship notices (ASN), inbound planning and yard
management.

Conclusion

Oracle’s ERP product is second only to SAP in sales and its best of breed solution can be found in
thousands of companies across the world. The applications that are included in the E-Business
Suite cover the wide range of business processes that are found in any company. The industry-
specific solutions supplied by Oracle can easily reduce time and resources required to implement
the solution and provide businesses with configured business processes that will improve overall
effectiveness.

Oracle Financials is a powerful and dynamic Financial Reporting Tool.Oracle Financials has
become the choice for blue-chips companies, multi-nationals and multi-sites organisations.This is
an E-business Suite, fully integrated and heavy-duty.

Oracle Financial (features)

Oracle Financials products provide organizations with solutions to a wide range of long- and short-
term accounting system issues. Regardless of the size of the business, Oracle Financials can meet
accounting management demands with:

Oracle Assets: Ensures that an organization's property and equipment investment is accurate and
that the correct asset tax accounting strategies are chosen.

Oracle General Ledger: Offers a complete solution to journal entry, budgeting, allocations,
consolidation, and financial reporting needs.

Oracle Inventory: Helps an organization make better inventory decisions by minimizing stock and
maximizing cash flow.
Oracle Order Entry: Provides organizations with a sophisticated order entry system for managing
customer commitments.

Oracle Payables: Lets an organization process more invoices with fewer staff members and tighter
controls. Helps save money through maximum discounts, bank float, and prevention of duplicate
payments.

Oracle Cash Management: Lets you perform bank reconciliation and cash forecasting.

Oracle Personnel: Improves the management of employee- related issues by retaining and making
available every form of personnel data.

Oracle Purchasing: Improves buying power, helps negotiate bigger discounts, eliminates paper
flow, increases financial controls, and increases productivity.

Oracle Receivables: Improves cash flow by letting an organization process more payments faster,
without off-line research. Helps correctly account for cash, reduce outstanding receivables, and
improve collection effectiveness.

Oracle Revenue Accounting: Gives an organization timely and accurate revenue and flexible
commissions reporting.

Oracle Sales Analysis: Allows for better forecasting, planning. and reporting of sales information.
 Oracle Application Implementation Methodology
To setup and implement Oracle Financial Management Application, you must follow a proven
Methodology. Methodology serves as a road map for implementation process. The following are the
essential steps in setting up and implementing Financial Management Application.

1. Planning
During the Planning step, you will complete the following tasks:

 Determine the project goals, milestones and critical success factor

 Define the implementation team, staffing, roles and responsibilities
 Develop the implementation Team time line
 Design the technical architecture
 Plan initial training

2. System Configuration

During the system configuration step, you will complete these tasks:

 Install hardware and software

 Establish the network infrastructure.

2.1 Customer Support Identification Number (CSI Number)

1. Oracle uses a CSI Number (Customer Support Identification Number) to verify if a

customer is eligible to receive Oracle support. The CSI number is also used to identify
a customer's account and track service requests.
2. When you buy an Oracle product, support for one year is normally included with the
purchase price. After that, the support contract must be renewed annual. The renewal
fee is normally 22% of the original purchase price.

2.2 Download the Software and Install the CRP1 Instance

3. Requirement Gathering :
During requirement gathering step, you gather requirements from Clients. The more detailed your
requirements, your deliverables will include:

The objective of Business Requirement Gathering is to identify various events, processes, inter
relationship, approval hierarchies and security levels which will facilitate accounting and Reporting
Requirements from Statutory and MIS point of view and at the same time establish control in day to
day operations.

Narrative documents which provide test description of each requirement Process flow diagrams
which graphically depicts how work flows from one stage to the next.

3.1 Requirement Gathering - Business Process Model

This is the very important step in AIM methodology. The whole implementation success will
depends on the requirement gathering.

Here you have two important Documents to be prepared

Current Business Baseline (As-Is-Process): RD 20

The essential content of RD020 is as follows:

 Schedule, confirm, and prepare for process definition sessions by business

area.
 Identify the core business processes (level 1 if you are using Oracle Business
Models) and Write a summary description of each process.
 Conduct interviews using the questionnaires and other sources of information
to clarify Questions you have identified.
 Gather any other current business materials that may enhance team
understanding and Documenting of current business process requirements.
 Identify any issues regarding the current business analysis.
 Review the Current Business Baseline with users and business area
management.
 Secure acceptance of the Current Business Baseline from business area
management.
 Secure acceptance of the Century Date compliance approach described.

Note: The AIM Methodology Provides a Questionnaire for every module which you have to
modify to suit to your Business.

Future Business Model (To-be-Analysis) : BP 80

The essential content of BP080 is as follows:

 Review any documented future business requirements.

 Identify and describe the events to which the business responds.
 List each process and write a summary description of each, identifying the event to which it
Responds and its main inputs and outputs.
 Construct the top level of the hierarchy from information provided by interviews with senior
Management and Current Business Baseline RD.020) information
 Identify the steps that make up each process, their sequence, any conditions that determine
Alternative execution paths, and the agent responsible for each step; validate that each step
Maps to an elementary business function
  Construct process flow diagrams for processes with more than two steps or with conditional
Steps showing the sequence of process steps and the flows between them. Show conditional
Steps where appropriate
 Break down the detailed Future Process Model into a list of the steps carried out by all
Participants in the process (if your project includes process change)

At the time of Requirement gathering you should also have to consider the following things:

Requirement Gathering - Financials Reporting (Daily Reporting)

Requirement Gathering - Auditing and Taxation Reporting (Statutory Reporting)
Requirement Gathering - Management Information System (MIS Reporting)

Plan the Data Migration from the Legacy System

For a new E-Business Suite implementation or a reimplementation, determine a

data migration strategy for historical data. Your strategy should address the scope of data to migrate, for
example, “migrate all open payables and receivables invoices.” If your intended migration scope is large,
consider engaging an experienced migration consultant from Oracle Consulting or one of Oracle’s
partners.

It’s important to determine whether your historical data needs cleansing to eliminate
any data that is incorrect, out-of-date, redundant, incomplete, or incorrectly formatted. Typically, data that
has undergone several prior upgrades or migrations can benefit from cleansing. By cleansing
historical data, you can reduce data migration volume and prevent data inconsistencies in your
Release 12.1 system.

For audit purposes, establish a method for reconciling migrated data with legacy data.
For example, you could compare the outputs obtained from Release 12.1 reports with the equivalent
reports from your legacy system. In addition, you should validate through testing that you can
successfully perform Release 12.1 operations on data migrated from your legacy system.

Data Migration Strategy

The data migration strategy consists of the following:

1. Identifying the data to be migrated.

2. Determining the timing of data migration.
3. Generating the data templates.
4. Freezing the tools for data migration.
5. Deciding on migration related setups.
6. Deciding on data archiving.

The data to be migrated:

The data to be migrated to Oracle Applications consists of four groups of data. These
data need to be entered in the given order since each of these groups is dependent on the data entered in
the previous step.

1. Configuration data (Set up data): Here the general principles and processes to be followed
by the system are defined. This is a onetime data entry and is predominantly entered manually. The key
points to be considered while entering the setup data is the scalability requirement if additional
countries are expected to link to the instance at a later point in time.
 2. Sub Master Data: These are primarily the set of transaction related policies and rules
followed in the organization. These include, among others, the payment terms, the delivery terms, the
delivery methods etc. These data is normally a onetime entry and predominantly entered
manually.

3. Master data: The master data is a list of regularly updatable entities that the organization is
expected to use in day to day transactions. These include, among others, supplier master, customer master,
chart of account master (for each segment), banks master, currency master, region master, country
master, location master, tax master etc. The principle feature of the master data is the extensibility of
data. These are in the nature of transactional data and will need regular updates and maintenance.
The mode of data entry will depend on the data volume. Predominantly, different tools are used to load
the master data into the application. Localization requirements form an important part of the master
data. It has to be ensured that the templates being used to load master data collects the localization
information relating to each master entity. Since master data is subjected to regular updates, it is
prudent to load the master data very close to the go live date.

4. Transaction Data: Completion of transaction data entry is normally called as ‘System Go

Live’. The transaction data normally consists of the supplier balances, the customer balances, the trial
balance, the assets master etc. Since the entry of open balances has financial implementations, the
above data entry is subject to a series of decisions. The decision include loading open balances
versus loading both the open and closed transactions, the archiving requirement, whether to resolve the
disputed transactions before or after data migration, whether to post the migrated balances to GL
and finally the strategy for validation of data entered into the system. This is a onetime data entry
and is normally tool based data load.

5. Timing of data load: as far as timing of data load is concerned each of the above data follows
different time lines. Normally the set up data is completed and signed off before the conference room
pilots are completed so that the UAT is conducted in an environment similar to the production
environment. Since some of the setup data cannot be modified once it is entered (for example the
Accounting Calendar), a lot of care need to be taken before entering the setup data in the system. It is a
very good practice to follow version controlled documentation for the setup data.

Since the sub masters are also one time data entry, these will follow the same process
discussed for set up data mentioned above. However, since the sub masters are OU specific, separate
data load process need to be used for each OU.
As discussed in the section on data, the master data are subject to continuous updates.
Hence the strategy to be followed for master data consists of incremental load as the process moves from
CRP1 through UAT. The primary objective of the incremental data entry is to test the completeness of
the templates. This means that every load of the master data should be used to test the tools and the
templates in addition to the data itself.

The transaction data can also follow the same data load process as the master data.
Since the transaction data has accounting implications, it is suggested that every load of transaction data test
the whole data load cycle including transferring to GL and validating the accounting entries.

4. Fit Analysis (Business Requirement Mapping)

 During fit analysis, you map your requirements to the functional components of Oracle
Application . If you discover that certain requirements do not fit the default functionality inherent in
Oracle Application, you have three choices:

 Customize the Oracle Application.

 Modify the requirement.
 Create workaround.

Business Requirement Mapping Document: BR 30

Internal: Process which is available in Oracle

External: GAP
Identification of GAP Analysis - Model Design and Build
(Cosmetic Changes).

Documents in GAP:
 MD 50: Functional Consultant.
 MD 70: Technical Consultant.
 TE 20: Testing and Certifying by Functional Consultant.

5. Build

The coding and testing of all customizations and other custom software including
enhancements, data conversions, and interfaces is done during Build. Policy and procedure
changes relating to business process modifications are developed. Business system testing is
performed to validate that the developed solutions meet business requirements. If customizations,
extensions, or conversions are not required, Build is still important because it includes the business
system test, which is commonly conducted as a formal conference room pilot. The business system
test validates the solutions and is performed in an environment that closely resembles production.

During the setup step, you perform two types of setup:

 For the Business Setup, you configure the Oracle Application according to the Client
requirement.
 For the technical setup, you must build conversion programs, interfaces and
Customization based on the Gap Analysis.

Document: BR 100

6. Testing:

 Performance Testing enables you to define, build, and execute a performance test. Use the
results to make decisions on whether the performance is acceptable for the business and to
help propose tactical or strategic changes to address the performance quality shortfall.
Performance Testing is closely related to Application and Technical Architecture; they are
interdependent.
 Business System Testing focuses on linking test requirements back to business requirements
and securing project resources needed for testing. It supports utilizing common test
 information including data profiles to promote testing co-ordination and to minimize
duplication of test preparation and execution effort.
 After Completion of Performance and Business Test we will take the acceptance from client
(UAT).

7. Transition:

 User Training: Training prepares both users and administrators to assume on the tasks of
running the new application system. It includes development of materials and methods as well
as administration. Instructors and courseware developers orient their material toward roles and
jobs, and not toward application modules.
 Documentation: Documentation begins with materials created early in the project. Using
detailed documents from the project, the writing staffs develop user and technical material that
are tailored to the implementation.
 Deliverables of the Financials Reporting for Daily Basis.
 Deliverables of the Taxation Reporting, Reconciliation Process and Statutory Reporting.
 Deliverables of the Month End Closure Reporting and Yearly Closure Procedures.

8. Production:

Production Migration moves the company, system, and people to the new enterprise system.
Following production cutover, it monitors and refines the production system and plans for the future.
The Production Migration process encompasses transition to production readiness, production cutover,
and post-production support

Oracle E-Business suit’s Interview Questions &

Answers
General ledger(GL)
ACCOUNTS PAYABLE(AP)
ACCOUNTS RECEIVABLES(AR)
PURCHASING
ORDER MANAGEMENT
INVENTORY
General ledger

1) What is Flex field? What are different types of Flex field?

Flex field is used to capture information of your Organizations. Key Flex Field,
Descriptive Flex Field.

2) Difference between KFF and DFF?

KFF is Unique identifier, Stored in segment Column. DFF Is used to capture additional
information, Stored in attribute Column.

3) How many KFF are in GL?

Only one KFF in Gl that is GL Accounting Flex Field.

4) How many segments are in Accounting Flex Field?

Max 30 segments and min two segments.

5) What are flex field Qualifiers?

Flex field Qualifiers is used to identify the segments. Various types of flex field qualifiers
are listed below:
a) Balancing Segment Qualifier.
b) Cost Center segment Qualifier.
c) Natural Account Segment Qualifier.
d) Intercompany Segment Qualifier.

6) What is ledger and in which table ledger is stored?

Ledger is a Financial Reporting entity which Consist of four.
a) Chart of Accounts
b) Currency
 c) Calendar.
d) Accounting Method.
Ledger is stored in GL_SETS_OF_BOOKS
7) What is Profile and what are different types of Profiles.
Profile is the changeable option that affects the way your application runs. There are two
types of profile.
1. System defined
2. User defined

8) In Which tables Journal entries created.

Important table’s are-
1. Batch: GL_JE_BATCHES
2. Header: GL_JE_HEADERS
3. Lines: GL_JE_LINES.

9) What is a Roll up group?

Rollup group is to identify a group of parent values for reporting or other application purposes. It
is used to create summary accounts for reporting purposes.

10) What are Security Rules and Cross Validation Rules? How it can be set?

Security Rules:

Security Rule to limit the access of different segment values for different responsibilities

To assign security rules:

1. Navigate to Security Rules window & Security rules

2. Assign it to application and responsibility that uniquely identifies the responsibility to

which we want to assign security rules.

Cross Validation Rule:

A cross–validation rule defines whether a value of a particular segment can be combined

with specific values of other segments. Cross–validation (also known as cross–segment
 validation) controls the combinations of values that we can create when we enter values
for key flexfields.It is assigned to Chart of account.

11) How do you define Parent-Child Relationship for segment values?

In segment value enable the parent value, define the child range and enter the low high ranges of
child value
12) What is Chart of Accounts? What are its pre-requisites?
Chart of accounts
The account structure your organization uses to record transactions and maintain account
balances.
Pre-Requisites for Chart of Accounts
1. Segment
2. Value Set
3. Flex field Qualifier
4. Values
5. Segment Qualifier

13) What is an Accounting Calendar?

Accounting calendar is to specify the number of periods in the year for the purpose of transaction
and marinating accounting data.

14) What is step-down Auto Allocation?

You must create journal batches in a specific sequence when using step -down auto allocation.
Order your journal batches so that the posted result of one step are used in the next step of the
Auto Allocation set.

15) What is FSG? What are the components of FSG?

Financial Statement Generator
A powerful and flexible tool that can be used to build customized reports without programming.
Reports can be defined online with complete control over the rows, columns and contents of the
report.
Components of FSG
1. Row set
2. Column set
3. Row order
4. Content set.

16) What is Year -end closing steps? How will you get Opening balances for a new year?

1) Run “Post all Journals"

2) Run “Close process - Create Income statement closing Journals”
3) Run “Close process - Create Balance Sheet closing Journals”
4) Close the period - Nav to Setup - Open/close, Select the period as close.

17) In Value set, how will you restrict wrong entry of values and also ensure security rules?

Using format validation we can specify the format type, Maximum size, Maximum & Minimum
value, Precision and so on to restrict the wrong entry of values
By enabling security type as Hierarchical security or Non-Hierarchical security we can create
security rule to ensure security.

18) Set up steps for Translation?

Define a period in the calendar that proceeds the first period we want to translate.
Define a period in the calendar following the period we want to translate.
Enter period and historical rates for the targeted currency.
Review the setting of the profile option GL: Owners Equity translated as PTD.

19) What is the difference between revaluation and translation?

Translation is a process that allows restating functional currency account balances into a
reporting currency using average, periodic, or historical rate.
Whereas revaluation is a process that allows revaluing assets and liabilities denominated in a
foreign currency using a period-end (usually a balance sheet date) exchange rate and any gain or
loss is accounted.

20) What is the security provision in FSG?

Using system administrator responsibility, we can define security rules to control what financial
information specific users can print when they run FSG reports.

To enable FSG security:

1. Define security rules for specific account segment values.
2. Assign security rules to specific responsibilities.
3. Set the profile option FSG: Enforce Segment Value Security to Yes.
ACCOUNT PAYABLE(AP)

1) What are the encumbrance options for AP? How are they used?

Requisition Encumbrance, and PO Encumbrance available in Financial Option.

Encumbrance used to reserve the Funds at the time of raising the Requisition or creating
of PO.

2) What are the different types of supplier sites?

Pay, Primary Pay, RFQ, Purchasing and Procurement Card.

3) What are the types of Accounting Methods?

Accrual and Cash.

4) What is Automatic Offset Methods?

Payables automatically create balancing accounting entries for your invoice and payment
transactions. Three types of Offset Methods are None, Balancing, Account.

5) What are the tables involved in AP Invoice Interface?

AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE

6) What are the Offset Taxes? Where it is used?

Offset Taxes:
Offset tax codes are used to record self–assessed taxes on invoices, while reducing or
completely offsetting tax liability. Offset taxes have negative–amount rates, so when you
use them, you enter negative–amount invoice tax distributions.
It used in European Union, if you are a member of the European Union (EU), you
can report on these zero–rated taxes using the Intra–EU VAT Audit Trail report.

7) What are the different types of taxes used in payables?

Sales use tax, offset, user-defined and withholding tax.

8) What are the different types of payment methods?

 Manual, quick and refund.

9) What are the perquisites for entering a Standard Invoice?

Supplier, supplier site, payment term, payment method, distribution set (optional).

10) What are Term date basis & pay date basis?
Term date basis: Date from which the due date will be calculated based on the payment
term.
Pay date basis: Selection criteria of invoices based on the due date or scheduled.

11) How do you create interest invoice?

In Payable Option under Interest Tab Allow Interest Invoices. Enable this option if you want
to allow Payables to calculate interest for overdue invoices and create interest
invoices for selected suppliers. Payables automatically create interest invoices when you pay
overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice
using a manual payment, Payables warns you that interest is due on the invoice and you
should pay the invoice in a payment batch or with a Quick payment.

12) What is a distribution set? What are the types of distribution set?
Distribution Set is to automatically distribute Invoice amount in to different GL Account
code Combination.
Type of Distribution Set:
 Full Distribution:
Full Distribution means we know the exact percentage and exact account code
combination. The sum of the distribution percentages must equal 100 or 0.
 Skeleton Distribution Set:
Whereas in Skeleton we don't the percentage but we know the GL Account Code
Combination. So percentage should not be entered here.

13) What are the modules that are interfaced with Oracle payables?
General Ledger, Purchasing, AOL, Cash Management and Assets.

14) How does the information defaults in payables?

Financial Option > Payables > Supplier > Supplier Site > Invoice > Distribution and
Schedule of Payment.

15) What are recurring invoices?

A feature that lets you create invoices for an expense that occurs regularly and is not
usually invoiced. Monthly rents and lease payments are examples of typical recurring
payments.

16) What is the Prepayment Invoice? What are the Types of Prepayment Invoice?
A prepayment is a type of invoice we enter to make an advance payment to a supplier or
employee.
The Following are the Two Types of Prepayments:-
1. Temporary prepayments can be applied to invoices or expense reports you receive.
2. Permanent prepayments cannot be applied to invoices.

17) What is the Payable Open Interface Table?

The Payables Open Interface tables store invoice information. The Payables Open
Interface Import program builds Payables invoices based on the invoice records in the
Payables Open Interface tables.
After the import program builds the invoices, they can be viewed, modified, and
approved in the Invoice Workbench. The invoice data is from e–Commerce invoices
from your suppliers, invoice records that you entered in the Invoice Gateway window,
invoices that you loaded with Oracle SQL*Loader, lease invoices that were transferred
from Property Manager, and credit card transaction data.

18) What are the ways in which invoice can be approved?

Before you can pay or create accounting entries for an invoice, including
prepayments, you must submit Approval for the invoice in one of three ways:
• Online by using the Invoice Actions window.
• Online by using the Approve button in the Invoice Batches
• Batch by submitting the Payables Approval program from the Submit Request
window.

19) What are the hold options at the supplier Site?

In the Supplier Sites window, we can enable the Hold All Payments, Hold
Unapproved Invoices, or Hold Unmatched Invoices options. We also have the option of
specifying an Invoice Amount Limit for a supplier site.
ACCOUNTS RECEIVABLES(AR):-

1) How many KFF are in AR?

In AR two Flex Fields. Sales tax Location Flex field, Territory Flex field.

2) What are Aging Buckets?

It is for Outstanding Reports purpose the number of days in various ranges.

3) How will you know a Customer Balance Amount?

Using with the Customer Account Overview window

4) How many Transactions we have?

Six Transactions. Credit Transactions, Invoice, Debit Memo, Charge back, Guarantee,
Deposit.

5) What is Accounting Rules?

It is For Generating Revenue Recognition Programs like Monthly, Quarterly.

6) What are the Pre-Requisites for Generating Receipts?

Pre-Requisites for generating Receipts Receipt Class, Receipt Source and Banks.

7) What is the database tables involved for performing Auto invoice?

1. RA_INTERFACE_LINES_ALL
2. RA_INTERFACE_SALESCREDITS_ALL
3. RA_INTERFACE_DISTRIBUTIONS_ALL.

8) What are chargeback and adjustments? How to create them?

 Chargeback is postpayment of payment date. It can be done only in the receipts
workbench. In this process the old invoice is cancelled and a new transaction is created
for the postponed date.

9) What are Standard Remittances and Bills Receivable Remittances?

Standard remittance is remitting the cheque /DD to the bank for collection.
Bills Receivable remittances means remitting the Bills Receivable to the bank for
collection on maturity date.

10) What is the difference between Deposit and Gurantee Transactions?

Deposit: It is the pre-payments made by a customer that should be adjusted against
the future debit transactions that are raised with respect to these pre-payments.
Guarantee: It is a documentation of the promise made by the customer to obtain the
goods from the organization. This promise is documented as a guarantee. The customer
does not make payment for the guarantee.

11) What are the Customer Interface Tables provided in AR?

 RA_CUSTOMER_INTERFACE

 RA_CUSTOMER_PROFILES_INTERFACE

 RA_CUSTOMER_BANKS_INTERFACE

 RA_CUST_PAY_METHOD_INTERFACE

 RA_CONTACT_PHONES_INTERFACE

12) What are Customer Profile Classes?

The Customers are categorized in terms of their credit worthiness, credit limits
offered to them, payment terms, finance charges percentage etc. This process of setting
the profile parameters for each category of customers is referred to as the profile class.

13) What is taxable Basis available for a Tax Code?

(i) Before Tax (ii) After Tax (iii) prior Tax (iv) Quantity Based Tax.

14) What is a Receivable Activity?

It is an activity specific to the organizational needs for Miscellaneous Receipts,
Finance Charges, Bank Errors and Adjustment transactions.
15) What are the pre-requisites for entering a Manual receipt in AR?
Invoices should have been defined against which the receipts will be applied and
the payment method should be predefined and attached to the receipts.

16) What is an Auto cash Rules?

Auto cash rule set provides a set of rules which Receivables should follow for
applying the receipts against the transactions. The default auto cash rule set can be
specified in the System Option.

17) What are the types of tax methods in Receivables?

(i) Location Based Tax (i.e.) Sales Tax
(ii) (ii) VAT Tax

18) What is an Application Rule set?

Application rule sets specify the default payment steps for your receipt
applications and how discounts affect the open balance for each type of associated
charges. By defining your own application rule set, you can determine how Receivables
reduces the balance due for a transaction's line, tax, freight, and finance charges.
Receivables provide the following application rules:
 Line First - Tax After: Apply to the open line item amount first. Apply any remaining
amount in the following order: tax, freight, and then finance charges.
 Line First - Tax Prorate: Apply a proportionate amount to the open line item amount
and the open tax amount for each line. Apply any remaining amount to freight and then to
finance charges.
 Prorate All: Apply a proportionate amount to the line, tax, freight, and finance
charges.

19) What are Statement Cycles? How can you print a Statement for a customer?
Statement cycles are to determine when to send statements to the customers. You
assign these cycles to your customer and site level profiles. Receivables let you generate
statements for all customers associated with a specific statement cycle.

20) What are Dunning Letters?

Dunning Letters are the Warning/Reminder letters to the customers for their over dues.
INVENTORY management

1) Which are required steps in Inventory module set up?

a) All the 6 key flex fields i.e. Items, Item Catalog, Account Alias, Sales Order, Locator and
Item Category
b) Organizations
c) Change Organizations
d) Intercompany Relations
e) Unit of Measure Classes
f)Sub inventories
g)Item Attribute Controls, Categories
h)Default Category set
i)Item Statuses
j) Cost types
k)Profile Options
l)Inventory Accounting Periods

2) What is Item Master Organization?

An item master organization is a logical entity that you use to define items. After you define an
item in the item master, you can assign it to any number of other organizations. You should also
define one item master organization per implementation. When you define an item, Oracle
automatically changes your current organization to the master organization.

3) What is an Inventory Organization?

Inventory Organization is a facility where you store and transact items. It can be a manufacturing
unit, warehouse, distribution centre, item master organization (logical entity), etc.
4) Can you change customer item name or Item after you save it?

Yes, you can change it if you have set the profile option INV: Updatable Customer Item to Yes
and INV: Updatable item to Yes respectively.

5) What is item status? Name the related table?

INVENTORY_ITEM_STATUS_CODE is the Colum in table MTL_ITEM_STATUS will tell
you the different status for item while you defining the item in item master form (INVIDITM).
You can have different status as shown in below, also u can define your own custom status in
status code form in item setups (INVSDOIS)like “easyapps”

Active, Inactive, Engineer, Obsolete, Phase-Out, Prototype, OPM, Lease, Production, Concept,
Design, DEM_Status, Pending.

6) Define the difference between cycle counting and physical inventory?

(1)Cycle counting is the periodic counting of individual items throughout the course of the year
to ensure the accuracy of item. Physical Inv. counts the entire inventory once a year Physical Inv.
takes a snapshot of inv.'s on-hand quantity at the beginning of the process. All adjustments are
made against snapshot quantity.

(2) In cycle counting fewer items are counted each day so less disruption to normal production or
distribution In PI all items are counted once a year so a lot of disruption.

7) Different type of inventory planning?

There are 4 inventory Planning methods as mentioned below:

1) Min-max planning
2) Re-order point planning
3) Kanban planning
4) Periodic Automatic Replenishment(PAR)

8) What are the Flex fields in inventory?

 System Item

 Item Catalog

 Item Categories

 Stock Locator
  Account Aliases

9) What is the use of Item templates?

There are two types of templates:-

Predefine

Custom Template

Predefined templates are planning item, purchased, outside processing item, lease item. So that
once you assign any template, to new item then all default characters are assign to new item.

10) In which table sub inventory related information for item is stored?

MTL_ITEM_SUB_INVENTORIES.

11) What are the prerequisite set ups for inter organization transaction?

Prerequisites:

 Define an inventory item that is common to both organizations.

 Define at least two organizations, one of which is valid to receive material from the
other.
 Set up inter–organization relationships and their corresponding accounts.,Like Shipping
Network. For direct transfers, if the item to transfer is under serial number control, the
item must have the same unit of measure in each organization.

12) What is the difference between category and category set?

Categories and Category Sets can be used to group the items for various reports and
programs. A category is a logical classification of items that have similar characteristics. A
category set is a distinct grouping scheme and consists of categories

13) Which is the table for storing organization information?

 MTL_parameters

14) Where to define inter organization transaction charges and what are the different
options?

Depending on the inter–organization transfer charge that applies between the organizations, a
percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute
transfer charges.

15) What is the difference between Organization_id and Org_id?

Org Id is a unique ID for the Operating Unit.

Organization Id is an ID for the Inventory Organization which is under an Operating Unit.

16) Can you apply material overheads to Average Costing Organization?

No, you can not apply it to Average Costing Organization. However you can apply it to
Standard Costing Organization.

17) What is a Transaction Action?

A transaction action is a predefined method of changing the quantity and/or location and/or cost
of an item. It is used in Transaction Type form.

18) Can you do Inventory transactions in prior periods?

Yes, you can do by setting the profile option INV: Transaction Date validation to Provide
warning when date in past period or Allow date in any open period. It allows entry of a past date.

19) What does Inventory Interface do?

Inventory Interface Program populates the interface tables with transactions submitted through
Confirm shipment forms. It updates order lines with shipped quantities and updates inventory.

20) Explain UOM and UOM class?

Unit of measure classes represent groups of units of measure with similar characteristics. For
example, quantity is a unit of measure class and each, dozen, and gross are examples of units of
measure within the class

21) How many Predefined Transaction Actions are available in Inventory module?

You may use one of six predefined transaction actions: --issue from stores, subinventory
transfer, direct organization transfer, intransit shipment, cost update and receipt into stores.
 22) Can you apply material overheads to Average Costing Organization?

No, you can not apply it to Average Costing Organization. However you can apply it to
Standard Costing Organization
23) How move Order Number is generated?

Move Order number is generated automatically by the set-up we do while defining the
organization parameters. In the organization parameters we choose the move order number
generation as either automatic or manual and hence it gets generated.

24) Which is the table for storing Item information?

MTL_SYSTEM_ITEMS_FVL
25) Which is the table for storing Unit of Measure information?

MTL_UNITS_OF_MEASURE_VL

ORDER MANAGEMENT

1) How many types of sales Order are there?

 Standard Sales Orders.

 RMA sales Order.

 Back to Back Sales Orders.

 Drop Ship.
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) 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

6) 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.

7) At which stage the item is moved from ware house to staging inventory?

During Pick Confirm

8) What happens during Ship Confirm?

Ship Confirm indicate that the items are loaded onto the carrier from staging location.

9) 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.

10) 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.

11) 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

12) 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.

13) 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.

14) What is Ship Confirming?

Ship Confirming the item removes the existing reservations and performs the sales order
issue transaction

15) 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

16) 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.

17) 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.
18) 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

19) 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'.

20) 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.

21) Which is the table for storing Sales Order information?

oe_order_headers_all, oe_order_lines_all

22) Which is the table for storing Blanket Sales Order information?

oe_blanket_headers_all, oe_blanket_lines_all

23) Which is the table for storing Sales Order Hold information?

oe_hold_definitions, oe_hold_authorizations, oe_hold_sources_all, oe_order_holds_all

24) Which is the table for storing Sales Order Hold Release information?

oe_hold_releases_all

25) Which is the table for storing Cancel Order information?

oe_order_lines_all
PURCHASING

1) What is 2-way, 3-way, 4-way matching? How is this set up?

Making payments to the suppliers in 3 ways. Whatever 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.

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.

IN 4-Way we will compare 4 documents PO + Receipt + Invoice+ Inspection.

Eg: Suppose we have 100 items in PO. Suppliers send us 80 items. we will do inspection
on those items whatever we have received, If 10 items got damaged. Finally, we are
going to make payment to the 70 items only.

2) Payment due days if 30 days means will it be from invoice date or material receiving
date.

Due day’s calculation is based on what you set up in the PAYMENT tab window of
Supplier Master Form. It has four Options. Goods Received Invoice, Invoice Received
and System.

3) How many types of Purchase Order are there?

Following are types

i. Standard
ii. Blanket
iii. Contract
iv. Planned.

4) What do you mean by planned purchase order?

Ans: A planned purchase order 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.
5) What do you mean by blanket purchase order?

You create blanket purchase agreements 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 yet know the detail of
your delivery schedules. You can use blanket purchase agreements to specify negotiated
prices for your items before actually purchasing them.

6) What is a Position Hierarchy? Is there any restriction to create that?

It is a Grouping of Persons for Approving and Forwarding the Documents from one person
to another person, there is no restriction.

7) How many Approval Groups we have? Describe?

Document Total, Accounts, Items, Item Categories, Location.

8) How many Statuses have for RFQ’s & Quotations Describe?

In Process, Print, Active, Closed for Rfq's In Process, Active, Closed for Quotation.

9) How many Types of Purchase Orders We Have?

Standard, Purchase Order, Contract Purchase Agreement, Blanket Purchase Agreement,

Planned Purchase Order.

10) In which table is Purchase order number stored?

po_headers_all , po_lines_all, po_distributions_all
11) How many types of Approval Hierarchies are used in purchasing?

Two Approval Hierarchies. Employee-Supervisor Hierarchy and Position Hierarchy.

12) Where are standard notes in GUI?
Go to Setup –> Attachments –>Create attachment. Go to Purchase Order and
attach the attachment to the Purchase Order. In GUI, notes are replaced by
attachments.

13) Can the original Purchase Order can be viewed in any way without resorting
to SQL, for a revised Purchase Order?

The original version of a revised PO cannot be viewed from the PO form or PO

summary form. Information on the original PO can be obtained from the
PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables using the
PO_HEADER_ID column as a common reference using SQL only.
14) What does the error 'APP-50022: Oracle Human Resources could not retrieve a value
for User Type profile option' mean?

The profile HR: User Type needs to be set. Set the profile option 'HR: User Type' at the
Responsibility level.

15) How do you change the created date on a Purchase Order?

The 'Created' date on the Purchase order is not an updateable field, due to it being a legal
document once approved.

16) What is Catlog Rfq?

It contains Price breaks with different quantity levels

17) In which table is Requisition stored?

po_requisition_headers_all, po_requisition_lines_all, po_req_distributions_all

18) What is the difference between the control actions 'On Hold' and 'Freeze' for a Purchase
order?

You can place a Purchase order 'On hold' only at the header level. This unapproved the
purchase order while preventing printing, receiving, invoicing, and future approval until you
remove the hold. You can 'Freeze' only at the header and release level. You freeze a Purchase
order when you want to prevent any future modifications to the Purchase order. When you
freeze a Purchase order, you can still receive and pay for goods you already ordered.

19) Can we re-open a Closed and Finally Closed Purchase Order?

You can Open a Closed purchase order but you cannot take any control action on Finally Closed PO.

20) 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.

21) 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.

22) 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.

23) What are the different document statuses used in Oracle Purchasing?

Delete, Cancel, Final Close, Freeze, Hold, Firm, Close, Close for receiving, Close for invoicing, Open,
open for receiving, Open for invoicing, Unfreeze.
24) If a Purchase Order/Requisition is cancelled accidentally, can we revert it back?

No. The cancellation is a non-reversible process. Once the document is cancelled we cannot revert it
back.

25) When a user enters a new PO, the Preparer (user) is always defaulted as the buyer. User is not able
to change it too. How do we allow the user to change this?

In document type setup you have a checkbox Enforce Buyer - when unchecked the preparer will be
able to change the default buyer.