Oracle Procurement Interview Questions
1.What exactly do you know about Procure to pay?
Ans: Well, it is an approach which is
commonly called as P2P. Basically, it is the process of fulfilling the need for
raw material which is required to accomplish manufacturing and other important
tasks within an organization simply. The payment making of the raw material is
also included in this. One of the best things about this cycle is it easily
enables them to manage their cash flow without facing major issues.
Ans: It is a formal request intended to
procure/buy something that is needed by the organization. It is created and
approved by the department requiring the goods and services.
A purchase requisition typically contains the description and quantity
of the goods or services to be purchased, a required delivery date, account
number and the amount of money that the purchasing department is authorized to
spend for the goods or services. Often, the names of suggested supply sources
are also included.
Basically, requisitions are of two types:
1.Internal requisition
2.Purchase requisition
Internal Requisitions are created if the Items are to
be obtained from one Inventory location to another location within the same
organization. Here the source of the requisition would be INVENTORY. There is
no approval process for the internal requisition.
Purchase Requisitions are created if the goods are
obtained from external suppliers. Here the source of the requisition would be
SUPPLIERS. The purchase requisitions are sent for approvals.
Ans: PO_REQUISITION_HEADERS_ALL (SEGMENT1 column in this
table represents the requisition number):
This table stores Header information of a Purchase Requisition.
Important columns of this table:
REQUISITION_HEADER_ID:It is a unique system generated
Requisition identifier
PREPARER_ID:It is a unique identifier of the
employee who prepared the requisition
SEGMENT1:It is the Requisition number
AUTHORIZATION_STATUS:Authorization status type
TYPE_LOOKUP_CODE:Requisition type
ORG_ID:Unique Operating unit unique
identifier
PO_REQUISITION_LINES_ALL:
This table stores information about Requisition lines in a Purchase
Requisition. This table stores information related to the line number, item
number, item category, item description, item quantities, units, prices,
need-by date, deliver-to location, requestor, notes, and suggested supplier
information for the requisition line.
Important columns of this table:
REQUISITION_HEADER_ID:It is a unique system generated Requisition
identifier
REQUISITION_LINE_ID:Link between PO_REQUISITION_LINES_ALL
And PO_REQ_DISTRIBUTIONS_ALL
LINE_NUM:Indicates the Line number
LINE_TYPE_ID:Indicates the Line type
CATEGORY_ID:Unique Item category identifier
ITEM_DESCRIPTION:Description of the Item
QUANTITY NUMBER:Quantity ordered
PO_REQ_DISTRIBUTIONS_ALL:
This table stores information about the accounting distributions of a
requisition line. Each requisition line must have at least one accounting
distribution. Each row includes the Accounting Flexfield ID and Requisition
line quantity.
Important columns of this table:
DISTRIBUTION_ID:Unique Requisition distribution
identifier
REQUISITION_LINE_ID:Unique Requisition line identifier
CODE_COMBINATION_ID:Unique General Ledger charge account
identifier
DISTRIBUTION_NUM:Distribution number
4.What are the success components of an organization that procurement
can always build?
Ans:
·
Market Placement
- Company Identity
- Settling management issues
- Enhancing company
capabilities
5.What are the documents that use PO_HEADERS_ALL?
Ans: The following are the documents that
use PO_HEADERS_ALL
RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order,
Blanket Purchase Order and Contracts
6.What Are The Different Purchasing Modes In Receiving?
Ans:There are three modes:
Online: Receipts are processed online.
If there are any errors, they are shown on the FORM itself, and don’t let you
IGNORE and PROCEED.
Immediate: Receipts are processed immediately,
but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE
table.
Batch: Receipts are processed in
batch, but no errors are shown. Errors are recorded in
REC_TRANSACTION_INTERFACE table.
Note: In all the above two cases, it
requires Receiving Transaction Processor to be run periodically.
7. What Does Create Internal Order Conc Request Do?
Ans: Create internal order request will transfer the IR info to OM
interface tables.
8.What are the prime responsibilities of a Procurement Manager?
Ans: One of their prime responsibilities is to buy and make sure of
the availability of goods. They need to make sure they are buying the same at
best available prices so that profits for the organization can simply be
enhanced. Those with a good background in academics and finance can enable
organizations to get results better than expected.
9.Name any one milestone in the procurement process?
Ans: Concept and technology development
10.What Is An Approval Hierarchy?
Ans: Approval hierarchies let you automatically route documents
for approval.
There are two kinds of approval hierarchies in Purchasing:
·
position hierarchy
·
employee/supervisor relationships.
11. Explain The P2p Process Flow?
Ans: Procure to pay (p2p) is a process of requesting, purchasing,
receiving, paying for and accounting for goods and services. Procure to
Pay Lifecycle is one of the important business Process in Oracle Applications.
It’s the flow that gets the goods required to do business. It involves
the transactional flow of data that is sent to a supplier as well as the data
that surrounds the fulfillment of the actual order and payment for the product
or service.
Create a requisition>> create RFQ>> create a quotation from
quote analysis>> generate a PO>>receipt of material>> create
Invoice in payables>> transfer to GL
12.What is invoice Validation Process?
Ans: Before you pay or create accounting
entries for any invoice, the invoice validation process must validate the invoice.
Invoice Validation checks the matching, tax, period status, exchange rate, and
distribution information for invoices you enter and automatically applies holds
to exception invoices. if an invoice has a hold, you can release the hold by
correcting the exception that caused Invoice Validation to apply the hold by
updating the invoice or to the purchase order, or changing the invoice
tolerances.
13.What is Pay on Receipt AutoInvoice Program?
Ans: By running this program, we can automatically create an invoice
for a PO when we enter a receipt for the respective PO.
14.Mention the general tasks in procurement procure in a step-wise
manner?
Ans: Recognizing the need for a
product→Specifying the need→ Exploring source options→Looking for price and
terms→Making purchasing order→Product Delivery→Purchase Inspection→Invoice
Approval & payment to vendor→Maintenance of record
15.What are the important tasks that matter a lot when it comes to
handling a procurement process?
Ans: There are actually certain things
which are really very important. It is not possible for the organizations to
make sure that everything goes best in the process if they don’t pay attention
to this. The very first thing is to pay attention to the selection of vendors
who have a good reputation in the market. Once they are selected, next is to
establish the payment terms which make sure no future conflicts. Procurement is
actually an umbrella term in which purchasing can be considered integrated.
16.Does a similar procurement process works for all the organizations?
Ans: No, this is not true. Different
organizations need to adopt different processes that are different depending on
organization size and many other factors.
17.What is the Oracle Exchange?
Ans: The Oracle Exchange is an electronic catalog of goods and
services offered by a wide range of suppliers. The Oracle Exchange catalog
does not reflect pre-negotiated prices with the University.
18.What are the reasons that an Express processor may reject lines
due to validation failures?
Ans: If the item revision, Subinventory and locator is not available
& the entered destination is final. (Revision, Subinventory & Locator
are not obtainable as a default from the item definition.)
If the early / late receipt date tolerance is exceeded & the
exception control is set to Reject.
If Lot / Serial information is required.
If Ship-to- location is not available & the destination is
Receiving.
If the location is not available for Expense destination type & the
destination is final destination.
If PO Supplier & Receipt Header Supplier do not match.
If other receipts are pending for the specified shipment.
19.What is the use of Sourcing Rule?
Ans: The planning process to create Purchase Requisition for Buy
items & Internal Requisitions for Make Items uses a Sourcing Rule.
20.How will you identify the status of a Purchasing document?
Ans:If the status is to be seen for a specific document, go to the
respective document-defining window and see the current status at the Status
region.
If the status of any document is to be found out, go either to the
‘Notification window or the Action history window (Navigation: Special >
View Action History).
21.How will you find out the number of documents assigned to a
particular Buyer?
Ans:
Navigation: Management > Manage Buyer Workload
Select the field ‘Action’ > Review
Enter the other required search criteria and press FIND
In the popup window we see the following details:
Buyer Assigned Urgent Late Needed Open Pos
22.How will you ensure that Receipt Routing mentioned in a
Requisition or PO is not override at the time of Receiving?
Ans:Set the profile option ‘RCV: Routing Override’ to No.
(But in our instance I am getting the profile option named as ‘RCV:
Allow Routing Override’ and the Default value and user value field are grayed
out, I am not able to fill anything at user value also. why?)
23.What are the different Currency conversion Types?
Ans:
·
Corporate: This is an exchange rate, generally a standard market rule,
determined by the senior financial management of an organization, which will be
used throughout the organization.
·
Spot: An exchange rate entered to perform conversions based on the rate
on a specific date. It applies to the immediate delivery of a currency.
·
User Defined: An exchange rate that is specified when a foreign currency journal
entry is made, that does not have a daily exchange rate.
24.Why timely payment is necessary for the vendor?
Ans: Timely payment always makes sure of
healthy relations between the vendor and the buyer. Harming this relation is
not good for both as it can largely impact the production and the overall
availability of raw material. Sometimes vendors delay the delivery because of no
other reason than a delay in payments. This can lead to significant losses for
the business.
25.Why is stock verification necessary at the time of delivery for the
buyers?
Ans: It simply enables buyers to make sure
that no damaged goods have been supplied to the buyers. In case there is an
issue with the goods provided, buyers can raise a refund or a replacement for
the same. Verification at a later date than receiving the stock can create
conflicts between both the parties. If the stock is not as per requirement,
obviously it is a huge loss for the buyer.
26.Explain the Receipt Routing?
Ans: Receipt Routing is of three types: Direct,
Standard and Inspection
In Direct once the goods arrive at the destination, we directly move
them to a specific Sub-Inv
In Standard once the goods are at the destination, we receive it at the
receiving point first and
then move them to the Sub-Inv. In Inspection once the goods are at the
destination, we receive it at the receiving point and then we perform
inspection and accordingly we either accept it or reject them.
27.What is the Procurement Order? What are the different types of PO’s?
Purchase Order or PO is a commercial document. It is the first official
order issued by a client to the provider. A PO includes details about product
quantity, types and services the supplier will provide to the buyer.
There are four types of PO’s:
·
Standard Purchase Order
·
Planned Purchase Order
·
Blanket Purchase Agreement, and
·
Contract Purchase Agreement
28. Define Purchasing Category?
A purchasing category group purchased items with similar traits. It is
like a code accustomed to categorise purchased items based on similar
characteristics like plastic, paints, bolts, etc. For Oracle Fusion
Procurement, each item must belong to a purchasing category.
29. What does Supplier management do?
·
Supplier Management is responsible
for maintaining the suppliers’ information accurately.
·
It collects a supplier’s details
through self-profile management and external questionnaires.
·
SM promptly alerts whenever any new
information comes in that can affect supplier capabilities and risks.
30. What is meant by the term “Freight On Board” (FOB)?
It is the point (or even location) where the ownership title of goods is
transferred from the seller to the buyer.
31. When did Oracle announce Fusion?
In September 2010, Oracle made several announcements during the Oracle
OpenWorld. Of the many announcements, one was that of the Oracle Fusion
Applications. Oracle introduced it as the new set of Oracle Applications.
32. What happens to your existing application when you install Oracle
Fusion Applications?
One of the best things about Oracle Fusion Applications is that they can
co-exist alongside the existing applications. I too believe that implementing
Fusion Applications is no more a “rip and replace” exercise. Instead, you can
quickly deploy one or more pillars of Fusion Applications to take advantage of
their unique functionality. You can achieve this by integrating them with your
current applications seamlessly.
33. Describe the term “negotiation requirement”?
It’s a set of questions to seek high-level information about the
suppliers responding to a negotiation. You can obtain this information from the
suppliers or internal evaluators.
How do you calculate Total annual cost?
You can calculate the Total Annual Cost using the equation:
TC = DC + (D/Q)S + (Q/2)H, where:
TC = Total annual cost
D = Demand
C = Cost per unit
Q = Order quantity
S = Cost of placing an order or setup cost
H = Annual holding and storage cost per unit of inventory.
34. How to use a PKI system in the supply chain?
Public Key Infrastructure (PKI) offers a strong linkage between business
identities and transactions throughout the supply chain. In a PKI system, each
user has two keys: a public key and a private key. These keys can be used for
encrypting and decrypting information, for electronically signing electronic
information, and for verifying the authenticity of their owner.
35. Explain your understanding of the
supply chain performance indicators?
It consists of four types of indicators: Quality, time, financial, and
productivity. Cp is a measure of process capability that compares the
specification width with the process width.
36. Explain your experience with Material management?
The material management department has the authority and responsibility
of all activities related to the flow of materials in the organisation. As a
part of this department, my responsibilities were:
·
Responding to the market changes
related to any product.
·
Efficiently using the working
capital.
·
Maintain minimum inventory levels.
·
Ensuring cooperation among team
members.
·
Analysing materials and supply to
reduce cost.
·
Providing the best customer services.
·
Improve quality and ensure supplier
performance.
37. What are the setups for different planning method (Min-Max)?
1.
Setup the item in master-org and
assign the item to the org for which Min-Max planning is used.
2.
Attributes, Inventory Planning
method: Min-Max.
3.
Min-Max Quantity should be defined.
4.
Safety Stock method should be non-MRP
Planned.
5.
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, assign a
sourcing rule to the item.
·
In Inventory responsibility, under
Planning run the Min-Max planning report with required parameter.
38. What are the valuation accounts used in Inventory?
·
Material: An asset account that
tracks material cost. For average costing, this account holds your inventory
and in transit values. Once you perform transactions, you cannot change this
account.
·
Material Overhead An asset account
that tracks material overhead cost.
·
Resource: An asset account that
tracks resource cost.
·
Overhead: An asset account that
tracks resource and outside processing overheads.
·
Outside processing: An asset account
that tracks outside processing cost.
·
Expense: The expense account is used
when tracking a non-asset item.
39. What are the different planning methods in Inventory?
There are five different planning methods in an Oracle Inventory:
·
Min Max Planning
·
Subinv Replenishment Planning
·
Re-order point planning
·
Periodic Automatic Replenishment
·
Kanban Planning
40. Describe Risks Management in Procurement Contracts?
Risk management is an integral part of the procurement process at each
stage. To execute the risk management process successfully, one should follow
these five steps:
·
Identify the risks before implementing
the roadmap.
·
Allocate risks to only those who are
responsible for them.
·
Reduce possible risks or threats.
·
Use a roadmap to monitor the risks.
·
Take an action plan against the
threats and opportunities.
41. What do you understand by “supply chain management”?
It is basically defined as the management of the flow of goods and
services. It also includes the storage and the movement of raw materials. With
SCM, we get clear information about various aspects of the goods from storage
to consumption. Also, the supply chain activities are planned, designed,
managed, and executed with a clear objective. In most of the organisations, SCM
is an integral part. Hence, it plays a crucial role in the success of any
business.
What, according to you, are the benefits of a software-based
Supply Chain Management process?
Profit! It is the most significant benefit of any software-based SCM. It
can set a limit on the operational cost of any business. It allows you to keep
records of goods and services without involving your workforce. It saves you a
lot of paperwork and documentation. Further, it saves you time and efforts and
reduces production cost to a great extent.
42. Can Supply chain management help to improve the financial position
of an organisation?
Yes, SCM can help improve the financial state of any
organisation. This is because SCM enables organisations to cut down on their
supply chain cost with better control over the same. Organizations by
implementing SCM can also become capable of minimising their fixed assets
investments. Above all, organisations can enhance their overall profits.
43. What do you know about the Anti-dumping duty?
Basically, it is import duty. It is applicable when the goods imported
show cost lesser than the actual price. Anti-dumping duty is imposed to avoid
material loss in the country where it is imported.
Oracle Cloud Procurement Interview Questions
Practising these Oracle fusion procurement interview questions will help
you crack the interview easily. Let’s have a look at some more:
44. What factors decide the declared value of carriage of a product?
Various factors are considered for this, including the overall weight of
the product, handling instructions, shipping type, exact delivery location and
delivery time. Generally, the shipper declares all these values on the lading.
Also, it is a must for all the shippers to do so.
45. What do you call the process that involves buying the goods and raw
material at the best available prices?
This process is known as procurement.
Imagine yourself as a logistician. Explain your key
roles.
As a logistician, my prime responsibility will be to manage the complete
supply chain. Besides, I will also be responsible for transportation-related
activities and ensuring the storage of material in the right manner.
46. How many key flex fields are there in Inventory?
Seven KFF are there in Inventory:
1.
Account Alias
2.
Item
3.
Item Category
4.
Item Catalogues
5.
Stock Locators
6.
Sales Order
7.
Service Items
47. Name the different stages in a product’s life cycle.
Every product life cycle comprises five stages:
·
Extraction
·
Production
·
Packaging and Transport
·
Usage
·
Disposal
Note: This is only knowledge sharing.
Please do not take this content seriously, you may face other question even.
All the best.
Comments
Post a Comment