Oracle Purchasing interview questions and answers

Oracle Purchasing Requisition: Requisition is a document where the need for the material is specified and is raised by an employee. Types of Requisitions. 1. Internal Requisition: Transferring the material from one dept to another within the same company and not from the third party (if the reqt is fulfilled within the company) is known as Internal requisition. 2. Purchase Requisition: If we want to purchase the material from outside vendor then we raise Purchase requisition. RFQ (Request for Qutotation): The purchasing manager asks the supplier to send the quotation for the required material with the help of RFQ. Types of RFQ: 1. 2. 3. Standard RFQ: The normal quotation is the standard rfq. Bid RFQ: It is raised when we are planning to purchase heavy material which lasts longer. Catalog RFQ: When we request the supplier to send catalog of items along with the quotation then it is called as catalog rfq. Quotation: A statement of the price, terms and conditions of sale, a supplier offers us for an item or items. It is a detailed description of goods or services offered by the supplier. Types of Quotations: 1. 2. 3. Standard Quotation Bid Quotation Catalog Quotations Purchase Order: It is a statement which contains the required items, quantity, price,date when we need and the location where we need. Types of Purchase Orders: Blanket PO Contract PO Planned PO

Standard PO Standard PO: It is used for only one time purchase of various items when we know the details of goods or services we require, estimated cost, qty, delivery schedules and accounting distributions. Blanket PO: It is raised when we know the details of goods or services that we plan to buy from a specific supplier in a period, but we dont know the details of delivery schedules. Contract PO: Here we dont know any information regarding items but just know the terms and conditions. Planned PO: A planned po is along term agreement committing to by items or services from a single source. Here we know all the details. Standard P.O. Terms & Conditions Goods or Services Pricing Known Quantity Known A/C Distribution Delivery Schedule Can Be encumbered Can Encumber Releases Main concepts in PO: Item details o o o o o o Defining item category and its segment values Registering the item category. Define category sets and item. Defining job and position of the employee Defining employee and his approval limits Defining the employees as buyers Yes Yes Yes Yes Yes Yes Yes N/A Planned P.O. Yes Yes Yes Yes Yes May be Yes Yes Blanket P.O. Yes Yes May be No No No No Yes Contract P.O. Yes No No No No No No No

Employee

 Define and assign the approval groups to the employees Supplier o o Define and approve the supplier Define the supplier list Flow of Purchase Order: Raise the requisition. Check whether the requisition is approved or not. Raise RFQ. Raise the quotation. Raise the purchase order. Receipts Inspect the goods Matching approval levels: 2-Way Matching Invoice P.O. 3-Way Matching Invoice- P.O. Invoice Receipts 4-Way Matching Invoice- P.O. Invoice Receipts Invoice Inspect

Oracle Purchasing Interview Questions

1)

What is 2-way, 3-way, 4-way matching? How is this set up? Answer: 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 Answer: Due days 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? Answer: 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? Ans: 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? date.

Document Total, Accounts, Items, Item Categories, Location. 8) How many Statuses have for RFQs & 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 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