Oracle Applications Interview Questions (FAQS)

Q1. What is the setup needed for using Create Documents workflow?

A: - If you want document creation to be launched online upon requisition approval, then item �Send PO Autocreation to Background� in requisition approval process should be set to �N�. Otherwise if this attribute is set to �Y� (default) then the requisition approval process launches the create document workflow when workflow background process is run. In this case, workflow background process must be run with parameters: item type �PO Requisition Approval� and deferred �Yes�. 
- Sourcing should be set up, so that the requisition gets sourced while creating it. 
- If you want Create Document workflow to create the documents, then the �Release Method� in ASL attributes should be defined as �Release Using AutoCreate�. 
- In workflow definition for workflow �PO Create Documents�, the item attribute �Is Automatic Creation Allowed?� should be set to �Y� (Default). Also if attribute �Should Workflow Create the Release?� is set to �Y� (default), then workflow tries to create the releases. 

  

Q2. Can POs be automatically approved when created by this workflow?

A: In workflow �PO Create Documents�, set item attribute �Is Automatic Approval Allowed?� to �Y�. By default this attribute is set to �N�. If you change this attribute to �Y�, then upon document creation, PO approval workflow is automatically launched.

  

Q3. How does the Create Document Workflow decide which buyer to use for the automatically created documents? 

A: Workflow tries to retrieve buyer information in following order: 
- Buyer specified on the Requisition Line 
- Default buyer from Master Item 
- Category 
- Buyer of the source document 
When creating a release, workflow retrieves the buyer�s name from the blanket agreement. If workflow cannot find a buyer, it doesn�t create a document

FAQ Details

Q1. How do you generate a PO that includes tax and freight? 

A: This is not handled under Purchasing. PO only sets a taxable flag for the item to identify it as a taxable item which is calculated correctly upon being invoiced. - Accounts Payables handles this. - Tax codes and freight costs are setup in AP. - Tax code varies by state and freight costs may vary due to different packing methods, etc. and these costs are summed when invoiced. 

  

Q2. How do you reflect discount from a supplier on a Purchase orders? 

A: Purchase order is a legal document, not the quotation. Therefore, the purchase order should reflect agreed upon price. Secondly if the discount comes after the PO then AP should be able to handle it while invoicing. If you are using a blanket Purchase order then you can use price breaks. 

  

Q3. What is 2-way, 3-way, 4-way matching? How is this set-up? 

A: 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 &n 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. You can find more detailed information about matching in the Oracle Payables Reference Manual (Volume 3) ical Essay on Integrating your Payables and Purchasing Information. 

  

Q4. Where are standard notes? 

A: In 11.x, notes are replaced by attachments. Go to Setup -> Attachments -> Create attachment. Go to Purchase Order and attach the attachment to the Purchase Order. 

  

Q5. What is the difference between the agreed amount and the amount limit fields while entering a contract purchase agreement and issues related to these fields? 

A:1. The agreed amount field at the header level is copied to the amount limit in the terms and conditions block. This is also the amount that is printed on the blanket agreement and represents the contract amount between you and the vendor.

2. The amount limit field will restrict the cumulative releases applied to this purchase agreement from exceeding the specified dollar amount entered here. The value of this field must be equal to or greater than the agreed amount field. This column is used for release approval amount validation. If the total cumulative releases exceed this amount approval will fail. The purpose of this field is to allow user to set a higher approval amount limit than the amount agreed. 

  

Q6. You are unable to view the PO from the Invoice Match window. It gives an error: APP-14122: NO RECORDS MEET YOUR SEARCH CRITERIA. 

A: This could happen if the document security setup of PO does not allow this user to access the PO. - You need to ensure that user is set to Buyer in the Purchase Order, or - You need to alter the setup (Security Level) to Public.

  

Q7. What is the difference between PO_LINE_ID and LINE_NUM in the table PO_LINES_ALL? 

A: PO_LINE_ID is the unique system generated line number invisible to the user. LINE_NUM is the number of the line on the Purchase Order.

  

Q8. What's the difference between the due date and close date on the RFQ? 

A: Enter the Due Date when you want your suppliers to reply. Purchasing prints the reply due date on the RFQ. Purchasing notifies you if the current date is between the RFQ reply due date and the close date and if the RFQ is Active. Purchasing knows that a supplier replied to an RFQ if you enter a quotation for this supplier referencing the RFQ. Enter the Close Date for the RFQ. Purchasing prints the close date on the RFQ. Purchasing notifies you if the current date is between the RFQ reply due date and the close date and if the RFQ is Active. Purchasing warns you when you enter a quotation against this RFQ after the close date. 

  

Q9. When does a Purchase Order line get the closure status of 'Closed for Receiving'? 

A: Purchasing automatically closes shipments for receiving and invoicing based on controls that you specify in the Purchasing Options window. Once all shipments for a given line are closed, Purchasing automatically closes the line. 

  

Q10. When does a Purchase order get the status of 'Closed'? 

A: When all lines for a given header are closed, Purchasing automatically closes the document. 

  

Q11. What is the use of list price and market price on Purchase Order? 

A: If you have entered an item, Purchasing displays the list price for the item. You can accept the default list price or change it. You can use this field to help evaluate your buyers. Purchasing uses the list price you enter here in the savings analysis reports. Savings Analysis Report (By Buyer) and Savings Analysis Report (By Category). If you enter an item, Purchasing displays the market price for the item. Use this field to help evaluate your buyers. Purchasing uses the price you enter here in the savings analysis reports if you do not provide a value in the List Price field. 

  

Q12. What is the significance of the fields 'Allow Price override' and 'Price limit'? 

A: For planned purchase orders and blanket purchase agreements only, check Allow Price Override to indicate that the release price can be greater than the price on the purchase agreement line. If you allow a price override, the release price cannot exceed the Price Limit specified on the line. If you do not allow a price override, the release price cannot exceed the Unit Price. You cannot enter this field if the line type is amount based. If you allow price override, enter the Price Limit. This is the maximum price per item you allow for the item on this agreement line. 

  

Q13. What is the difference between the control actions 'On Hold' and 'Freeze' for a Purchase order? 

A: You can place a Purchase order 'On hold' only at the header level. This un-approves the purchases 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. 

  

Q14. What is the difference between the Field 'Firm' in the 'Terms and Conditions' window and in the alternate region 'more' in the PO shipments? 

A: The Field 'Firm' in the 'Terms and Conditions' indicates that the Purchase order is firm. Firm your purchase order when you want to indicate to Master Scheduling/MRP or your manufacturing application that it should not reschedule this purchase order. The Field 'Firm' in the alternate region 'more' in the PO shipments indicates that the Purchase order shipment is firm. Firm your purchase order shipment when you want to indicate to Master Scheduling/MRP or your manufacturing application that it should not reschedule this purchase order shipment. 

  

Q15. Unable to open the Purchase Orders form due to error: You are not setup as an employee. 

A: The error is referring to the Buyer form setup in the Purchasing module. The employee setup might state that they hold a Buyer position or job. However, in order to access the Purchase Orders or Autocreate form you must define the employee in the Buyer form (Setup/Personnel/Buyers). Also, ensure the employee name is defined in the employee's login information (System administrator/Security/User/Define) 

  

Q16. How do I change the Supplier on a saved or approved PO? 

A: The system does not allow Supplier update on a saved or approved PO. You will need to cancel the PO and create a new PO with the correct Supplier. 

  

Q17. I have accidentally cancelled a PO. 

A: The System asks for your confirmation before canceling a PO. Canceling is not a reversible process. You cannot retrieve back a cancelled PO. 

  

Q18. Can I setup a different Purchase Order type default for the PO form? 

A: The Purchase Orders form always defaults a PO type of 'Standard Purchase Order', and there is no setup, which can change this. Although the default value cannot be changed, the user can overwrite the defaulted type once the Enter PO form is opened. 

  

Q19. The Item is setup in the item master but is missing from the item List of Values. 

A: You should check the Financial Options setup and ensure in the alternate region zone Supplier-Purchasing that you have in the Inventory Org the correct organization. The majority of Oracle customers have this set to their Item Master for the best results. Selecting another organization limits items and related activity to that specific org. With the broad selection of item master the client will have greater functionality across multiple organizations. 

  

Q20. How do you change the unit price on a PO line once the line has been received or invoiced?

A: Oracle Purchasing will not allow unit price update on Inventory line items when the line is received or billed because accounting transactions have already taken place. The difference between the PO price and invoice price will be recorded in the Invoice Price Variance Account, which will show up on the Invoice Price Variance report. If you have mistakenly entered the incorrect price on the PO, then you can workaround this by canceling or backing out the invoice and processing a return on the receipt, which will allow unit price update.

  

Q21. Can the original Purchase Order can be viewed in any way, for a revised Purchase Order?

A: The original version of a revised PO cannot be viewed from the PO form or PO summary form. Information on the original PO is stored in the PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables, and can be obtained through SQL, using the PO_HEADER_ID column as a common reference. 

  

Q22. Where is the automatic numbering for Purchase Orders defined and maintained? 

A: It is defined in Purchasing Options window. The navigation is: Setup/Organizations/Purchasing Options, Numbering alternate region. 

  

Q23. Why is my Purchase Order closing before a receipt is processed? 

A: Check the Receipt Closed Tolerance and the Matching setup. If Matching is set to equal 2-way, the PO will close once the Purchase Order is approved. If the line of the Purchase Order is received within the tolerance the line will close. 

  

Q24. Create a Purchase Order. Input the Header and Line information and find that the Shipments button at the bottom of the form is grayed out. 

A: Setup the Receiving Options to enable the Shipment Button in the Purchase Order form. Navigation: Setup --> Organizations --> Receiving Options. Once set-up these options for your Organization you will have the Shipments button enabled. Ensure that the Purchasing Options and Financial Options are defined for your Organization.

  

Q25. Accessing the Purchase Order entry screen and getting the error: APP-14142 GET_WINDOW_ORG_SOB 040 ORA-1403 No Data Found. 

A: Attach the correct Operating Unit to the responsibility B. Define Purchasing Options C. Define Financial Options. 

  

Q26. When I enter a new PO, the Preparer is always defaulted as the buyer. Why am I unable to change it?

A: Uncheck the check box 'Enforce Buyer Name in the Purchasing Options. Setup ->Organization -> Purchasing Options (Alternative region 'Control') 

  

Q27. Why is there no category displayed or list of values for the category field in the purchase order you are creating? 

A: You must also create category codes for your items. Then create a Category set for Purchasing controlled at the master level. Assign your items to a category code and the Purchasing category set you have created. Confirm that in Default Category Sets the Purchasing application points to the Purchasing Category set. This will populate the category and description when the item number is selected at the PO line level. 

  

Q28. I have enabled PO_LINES DFF with a context field capital_expense_flag as reference. I now receive APP-FND-00676 error in Enter Quotations form. 

A: This DFF is based on PO_LINES_ALL table. The Quotation lines as well as the PO lines share this table as the base, as well as share the same DFF. Field capital_expense_flag is not present in Quotations form. Therefore you may not use this field as the reference field for PO Lines DFF. Other fields which you may not use include: Inspection_Required_Flag, Item_Class_Lookup_Code, List_Price_Per_Unit, Negotiated_By_Preparer_Flag, Reference_Num, Taxable_Flag