Oracle SCM Functional Interview Questions: InventoryWritten By Bishnu Prasad Choudhury on May 18, 2014 | 1:27 PM Inventory 1. What are different planning methods in Inventory There are 5 different planning methods in oracle Inventory Subinv Replenishment Planning Min Max Planning Re-order point planning Kanban Planning Periodic Automatic Replenishment 2. What are the setups for different planning method (Min-Max) Setup the item in master org and assign the item to the org for which Min-Max planning is used Attributes, Inv Planning method: Min-Max Min-Max Qty should have been defined Safety Stock method should be non MRP Planned Determine what should be the status of the Requisitions created for the planning Do this with profile option INV: Minmax Reorder Approval IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL setup which is assigned to the item Sourcing rules can be defined for this Then need to assign sourcing rule to the item In Inventory responsibility, under Planning run the Min Max planning report with required parameter 3. What is the concurrent program for the planning Min Max planning report under planning menu in Inventory responsibility 4. What are the setups for expense item? Should not be Inventory Item No Stockable No Transactable No Costing, Inv Asset 5. How many key flexfields are there in Inventory? Seven KFF are there in Inventory Account Alias Item Item Category Item Catalogues Stock Locators What all setups you have done in inventory organization implementation Location Calendar Organization Parameter Cost Group Subinventory Stock Locator Receiving Options Shipping Networks Intercompany Transaction flows Cost Subelements 1. then you can modify the existing structure. Material Overhead An asset account that tracks material overhead cost.Sales Order Source 7.Sales Order Type. you cannot change this account. Expense The expense account used when tracking a non-asset item Other Accounts Sales revenue account. How we can have the item key flexfield with 2 segments. How will you inactivate the Inventory locations By giving Inactive date in the Location form 9. is it possible. What are the valuation accounts used in Inventory Material An asset account that tracks material cost. or you can add a new one. if yes then how. What is the use of sales order KFF? This is used during material transaction when source is Sales Order Segments are Sales order Number. this account holds your inventory and intransit values. Sales Order Service Items 6. The profit and loss (income statement) account that tracks the default . For average costing. Resource An asset account that tracks resource cost. 8. Once you perform transactions. Outside processing An asset account that tracks outside processing cost. Overhead An asset account that tracks resource and outside processing overheads. if no then why? This can be modified using Flexfield>Key> Segments Query the System Items. We can define regular cycle count of high values items. 3. Subinventory and Locator. this account represents the inventory valuation error caused by issuing your inventory before your receipts. such as the uninvoiced receipts account. This account is used by Accounts Payable to record invoice price variance. etc. Purchase Price Variance The variance account used to record differences between purchase order price and standard cost. Invoice Price Variance The variance account used to record differences between purchase order price and invoice price. Average Cost Variance Under average costing with negative quantity balances. Lot. This account is not used with the average cost method. If back ordered or pick denied. we can trigger cycle count for those items. Assign the required Picking Rule to the item in Order Management tab. Encumbrance An expense account used to recognize the reservation of funds when a purchase order is approved. Inventory A/P Accrual The liability account that represents all inventory purchase order receipts not matched in Accounts Payable. What are the process of cycle count Create a cycle count header with required data Assign the items to be counted Then run the required cycle count report Using the report do the cycle counts Then go and Approve the cycle count 4. 6. . we can trigger cycle count. What is the Picking rule in Inventory Picking Rule is used to determine the list of items for sales order/ shipping based on the revision. it will be easy to monitor and keep on track of the valuable items like frequently doing cycle counts on A class items. Using this Analysis. 2. Cost of Goods Sold The profit and loss (income statement) account that tracks the default cost of goods sold account. What is ABC Analysis and why it is being used ABC Analysis is an Inventory categorization method to categorize items into 3 different classes A being the most valuable and C being the least valuable ones. What is the different in MO Issue and MO Transfer MO Issue will move out the stock from inventory against an account MO transfer will move the stock from one subinventory to other 5. What are the criteria in Cycle count Depending on the requirement. Replenish MO. What is Physical Inventory 1. . Inventory Master org is mandatory? Yes. What is move order in OM Move orders generated as part of Pick Wave are the ones from Sales order 2.6. What are the diff in Lot and Serial Lot control is to control a whole batch of items. Serial control is to monitor and track every single qty of an item like electronic devices where we track by serial number. Pick Wave MO. 3. MO requisition. 7. If you will not create any specific master org. 4. How a MO is diff from Subinv transfer Ans: MO generally are the request of movement of items in one organization. Why master org is required So that we can have an item maintained at master level with common attributes and then we can use the same item across multiple organization instead of defining it again and again. then system will consider the same inv org as its master org. 6. What are the material status in a subinventory 7. MO can be MO Issue which will issue the item from the location and MO transfer which ll transfer the item to another location. What are the status attributes in Item and how many of them We can define different status for an item combination these attributes as per the business need Following are the attributes BOM Enabled Build in WIP Customer order enabled Internal Order enabled Invoicable Purchasable Stockable Transactable 5. What is nettable in Subinventory setup This will detrrmine whether to consider the onhands of the subinventory as available for planning tasks. What is the use of status attribute We can define different status for an item combination these attributes as per the business need 6. for example in drug industry we have batch number which can be controlled using lot where we can track the complete batch using specific data. It may be of from 3 sources. manufacturing. the rules engine can execute the strategies on any objects to which the strategy applies. you must set up a strategy and then associate the applicable rules. 1. At Receipt. and service businesses. What is serial controlled and what are the setups Serial control can be setup at item attributes at organization level. What functionality in inventory uses the calendar 3. What is the diff in inv and wms from accounting perspective 4. What is the predefined locator in Subinventory and how it works in business We can setup locator control in 4 diff ways for each subinventory None: There will not be any locator information required during any transaction Prespecified: System will ask you to select locator combinations which already been defined in the subinventory during the transaction Dynamic Entry: Either you can select any locator during transaction or you can create a new combination Item Level: This will take the locator which has been defined at item attribute level 13. At Sales Order issue. Predefined 12. Can we change the item name after it created? Ans: Yes we can change the name in master level. Oracle WMS provides a single-platform across your entire global supply chain. What are the Lot control setups Lot control can be setup at item attributes at organization level.8. asset-intensive. The rules engine executes each subsequent rule in your strategy until an . Why strategy used Ans: After you define your rules. How serial numbers are generated Serial control can be setup at item attributes at organization level. Specifically designed to support the needs of distribution. What is the use of WMS Rules Workbench Ans: The Rules workbench enables you to assign strategies. How WMS is helpful compared to Inventory Ans: Warehouse Management (WMS) enables companies to maximize their utilization of labor. What are the transaction managers Transaction manager is the inetrface managers which carry out all transaction once submitted by the users 14. rules and cost group values directly to any number of objects in an assignment matrix 5. space and equipment investments by coordinating and optimizing resource usage and material flows. 2. No Control. Either No Control or Full Control 9. How lot number generates You can generate new Lot numbers during transactions 10. After you assign rules to a strategy. 11. allocation is completely filled. How many types of bar codes are there Ans: Mainly 2 types Linear (1 dimensional) and Matrix (2D) . 6.