Oracle Inventory Interview Questions - Part II

Where do you establish a Serial Number Control for an Item?

Serial number control for an inventory item can be established when you define it on the Item Master. The Drop down has the following options

·         No control,

·         Predefined,

·         At inventory receipt, or

·         At sales order issue

How do you generate serial numbers?

1.      Navigate to Generate Serial Numbers window

2.      Enter Serial Number Generation in the Name field. The Parameters window opens

3.      Enter an Item that is under serial number control

4.      Enter a quantity of serial numbers to define and reserve for the item. The quantity must be a positive integer.

5.      Click Submit to launch the process.

Whether two items can have the same serial number?

No

Can serial numbers and lot numbers co-exist for an item?

Yes

How do you assign a Serial Number to an Item at Issue or Receipt?

1. Click the Lot/Serial button from a transaction window. The Serial Number Entry window appears displaying the item and transaction information.

The Serial Entry window displays the item, revision, lot, subinventory, locator, UOM, quantity, and quantity entered. The Quantity field displays the total transaction quantity, and the Quantity Entered field displays the item quantity you have assigned to serial numbers.

2. Indicate whether to enter a range of serial numbers, or individual serial numbers for each item or lot quantity. If you select a range of serial numbers, the system assigns each item in the line item or lot quantity to a serial number within the range.

3. Enter a serial number for an individual item, or a beginning serial number for the range.

4.  If you are using a serial number range, enter an ending serial number for the range.

5. If you selected Individual for the serial number entry mode, enter the desired serial numbers.

6. Click Done to return to the Transaction Lines window.

Explain the use of material status

Material Status control restricts the movement and usage of portions of on-hand inventory. Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it. In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning.

Material statuses can be assigned at four levels:

·         Subinventory,

·         Locator,

·         Lot, and

·         Serial

List some of the seeded material transaction types

Some of the seeded material transaction types are Active, Hold, Immature, Almost Mature

Status	Active	Hold	Immature	Almost Mature
Allowed	Everything	Subinventory transfers	Picking and Shipping for Internal Customers	Picking for Customers
Disallowed	Nothing	Picking, Shipping and Production	Picking and Shipping for External Customers	Shipping for Customers

What are transaction source types?

A transaction source type is the type of entity against which Oracle Inventory charges a transaction.

Eg: Account, Internal Requisition, Internal Order, Sales Order, Move Order, Purchase Order, RMA, Cycle Count, etc.,

What are the Control Options and Restriction for Inventory Transactions?

1.      Locator Control

2.      Lot Control

3.      Serial Number Control

4.      Revision Quantity Control

5.      Subinventory and Locator Restrictions

6.      Defaulting Subinventories and Locators

7.      Converting UOM

What is a Transaction Action?

A transaction action is a generic type of material movement or cost update with no specificity regarding the source of the transaction.

Eg: Issue from Stores, Subinventory Transfer, Direct Organization transfer, Intransit Receipt, Intransit Shipment, Receipt into Stores, Assembly Completion, Assembly Return, Staging Transfer, Ownership Transfer, Negative Component Issue and Return, etc.,

What is a Transaction Type?

A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.

Few Examples:

Sales order Issue (Txn Type) + Issue from stores (Txn Action) = Sales Order (Txn Source Type)

Move Order Transfer (Txn Type) + Subinventory Transfer (Txn Action) = Move Order (Txn Source Type)

RMA Receipt (Txn Type) + Receipt into Stores (Txn Action) = RMA

Miscellaneous Receipt (Txn Type) + Receipt into Stores (Txn Action) = Inventory

What is a Miscellaneous Transaction?

Miscellaneous transaction allows you to issue material to or receive material from general ledger accounts in your current organization. This allows you to issue material to groups that are not inventory, receiving, or work in process such as a research and development group or an accounting department. Manual adjustments can also be made to the general ledger by receiving material from one account to inventory, and then issuing that material from inventory to another account.

What do you mean by Item Reservation?

A reservation creates a permanent data link between a supply source and a demand source, and represents a guaranteed allotment of material to a specified demand source.

What are the two types of Item reservation in Inventory Supply?

There are two types of reservations,

1.      High level reservations, and

2.      Low level reservations

High level reservations contain information about the item and the organization.

Low level reservations contain more detailed information about the item such as revision, lot, subinventory, serial, and locator.

What do you mean by Crossdocking?

At supply receipt, the system directs you to move the material to appropriate staging lane instead of to a storage location to fulfill an order.

What is the difference between move order and subinventory transfer?

1. Move orders require approvals on the transaction from the warehouse manager while subinventory transfer does not require any approvals.

2. Move orders create allocations. So Hold can be placed on the material with the intention of picking it up a little later while in subinventory transfer, there is no reservation / allocation.

3. Move Order can generate Pick Slip while Subinventory transfer doesn't create Pick Slip.


Read Oracle Inventory Interview Questions - Part I

Oracle Inventory Interview Questions - Part I

What is an Item?

Item is a part or service you Purchase, Sell, Buy, Plan, Manufacture, Stock, Distribute and a Prototype. It can also be the containers and the components you build into other items.

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.

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.

What is subinventory?

Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material. All material within an Inventory Structure organization is held in a subinventory therefore, you must define at least one subinventory.

What is Locator?

Locators are structures within Subinventories. Locators are the third level in the enterprise structuring schema of Oracle Inventory. Locators may be a row, bin, aisles in a warehouse. Stock locators are used to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators.

Can you copy inventory org structure?

Yes. But can copy only organizations within the same operating unit.

What is Shipping Network?

An inter-organization shipping network describes the relationships and accounting information between a shipping organization and a destination organization. You must define a shipping network between two organizations before you can transfer material between organizations. When you setup a shipping network you must select a transfer type as Intransit or direct.

Explain Intransit and Direct Transfers?

In Intransit transfer, Oracle Inventory moves material to an intermediary state before it reaches the destination organization, and a receipt transaction is required in the destination organization once the material arrives in order to retrieve it.

In Direct transfer, Oracle Inventory moves the material directly to the destination organization.

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.

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.

How do you assign items to item categories?

1. Navigate to the Category Set window.

2. Enter a category set.

3. Choose Assign. The Item Assignment window appears.

4. Select the item from the current organization to assign to the category.

5. Select a category.

The list of values contains categories with the same flexfield structure as the category set you selected in the Category Set window. If Enforce the list of valid categories is selected the list is limited to those categories.

6. Save your work.

(Or)

1. Navigate to the Master Items Summary or Organization Items Summary window.

2. Select an item.

3. Choose Categories from the Tools menu.

The item you selected appears at the top of the Category Assignment window.

4. Select a category set

5. Select a category.

The list of values contains categories with the same flexfield structure as the category set you selected. If Enforce the list of valid categories is selected the list is limited to those categories.

6. Save your work.

How do you load / import items?

Navigate to Items à Import Items

Items can be imported using Open Item Interface.

You can import and update items, and their category assignments from any source into Oracle Inventory and Oracle Engineering using the Item Interface.

With this interface, you can convert inventory items from another inventory system, migrate assembly and component items from a legacy manufacturing system, convert purchased items from a custom purchasing system, and import new items from a Product Data Management package.


Read Oracle Inventory Interview Questions - Part II

Oracle Inventory - Receipt to Issue Life Cycle

Oracle Inventory uses the Receipt to Issue process to manage the inventory. When inventory arrives in the warehouse, the inventory is received.  After the inventory is received, it can be transferred within the organization or to another organization. Finally, the material can be issued out of Oracle Inventory.

So, the Receipt to Issue process has three steps

ü  Receive

ü  Transfer and

ü  Issue

Receiving Inventory

There are different ways material can be received into the organization.

Purchasing

Oracle Purchasing can be used to receive material from outside of the organization.

Can be received through:

Purchase order receipts

Internal requisitions

In-transit receipts

Return material authorizations

Unexpected receipts

Work in Process

Oracle Work in Process can be used to receive material from the manufacturing floor.

Can be received through:

Component returns

Negative component issues

Assembly returns

Inventory

Oracle Inventory can be used to receive material in to your warehouse. 

Can be received through:

Miscellaneous account receipts

Receipt from projects

User-defined receipts

Inter-organization transfers

Types of Inventory Receipts

ü  Receipt and Deliver (Direct)

ü  Receipt then Deliver (Standard)

ü  Inspection

o   Receipt

o   Inspect

o   Deliver

Transferring Inventory

Different applications can generate requests to transfer inventory.

Shipping

Oracle Shipping Execution can be used to generate a transfer to move material from a storage area to a staging to for shipping.

Order Management

Oracle Order Management can be used to generate a transfer to move material from a storage area to a staging area for shipping.

Work in Process

Oracle Work in Process can be used to generate a transfer to acquire components for a project.

Inventory

Oracle Inventory can be used to:

ü  Transfer material between organizations

ü  Transfer material within an organization

ü  Replenish materials

ü  Request transfers

Issuing Inventory

The following applications can be used to issue material:

Order Management

Oracle Order Management can generate an inventory issue through:

Sales orders

Internal orders

Purchasing

Oracle Purchasing can generate an inventory issue for:

Return to vendor materials

Work in Process

Oracle Work in Process can generate an inventory issue through:

Component issues

Assembly returns

Inventory

Oracle Inventory can issue stock through:

User-defined material issues

Inter-organization transfers

Cycle count negative issue

Issue requests

Data Flow for Order to Cash Cycle in Order Management

I came across this document in the blog http://functionalguy.blogspot.com/2008/05/data-flow-for-order-to-cash-cycle.html.

1. Order Entry

This is first stage, when the order is entered in the system; it creates a record in order headers and Order Lines table.

Enter header details: Once you enter details on the order header and save it or move it to lines, record goes to one table OE_ORDER_HEADERS_ALL FLOW_STATUS_CODE = ENTERED, BOOKED_FLAG = N), Primary key=HEADER_ID

No record exists in any other table for this order till now.

Enter Line details for this order: Enter different item numbers, quantity and other details in line tab. When the record gets saved, it goes to one table. Order header details will be linked with line details by order HEADER_ID. OE_ORDER_LINES_ALL (FLOW_STATUS_CODE = ENTERED, BOOKED_FLAG = N, OPEN_FLAG = Y) Primary key= LINE_ID

2. Order Booking

This is next stage, when Order is booked then the Flow status changed from Entered to Booked. At this stage, these below table get affected.

OE_ORDER_HEADERS_ALL

OE_ORDER_LINES_ALL

WSH_DELIVERY_DETAILS

WSH_DELIVERY_ASSIGNMENTS

In shipping transaction form order status remains "Ready to Release".

At the same time, Demand interface program runs in background and insert into inventory tables MTL_DEMAND, here LINE_ID come as a reference in DEMAND_SOURCE_LINE

3. Reservation

This step is required for doing reservations SCHEDULE ORDER PROGRAM runs in the background and quantities are reserved. Once this program get successfully get completed, the MTL_DEMAND and MTL_RESERVATIONS table get updated. LINE_ID gets updated in DEMAND_SOURCE_LINE_ID in both the tables.

4. Pick Release

Pick Release is the process of putting reservation on on-hand quantity available in the inventory and pick them for particular sales order.

Pick release can be done from 'Release Sales Order' form or 'Pick release SRS' program can be scheduled in background. In both of these cases all lines of the order gets pick released depending on the Picking rule used. If specific line/s needs to be pick release it can be done from 'Shipping Transaction form. For this case Pick Release is done from 'Release Sales Order' form with Pick Confirm=NO.

Once pick release is done these are the tables getting affected:

If step 3 is not done then MTL_RESERVATIONS gets updated now.

WSH_NEW_DELIVERIES

WSH_DELIVERY_ASSIGNMENTS

WSH_DELIVERY_DETAILS

MTL_TXN_REQUEST_HEADERS

MTL_TXN_REQUEST_LINES (LINE_ID goes as TXN_SOURCE_LINE_ID)

(Move order tables: Here request is generated to move item from Source (RM or FG) sub-inventory to staging sub-inventory)

MTL_MATERIAL_TRANSACTIONS_TEMP

MTL_SERIAL_NUMBERS_TEMP

MTL_SERIAL_NUMBERS

In shipping transaction form order status remains "Released to Warehouse" and all the material still remains in source sub-inventory. We need to do Move Order Transaction for this order. Till this no material transaction has been posted to MTL_MATERIAL_TRANSACTIONS

5. Pick Confirm/ Move Order Transaction

Items are transferred from source sub-inventory to staging Sub-inventory. Here material transaction occurs.

Order line status becomes 'Picked' on Sales Order and 'Staged/Pick Confirmed' on Shipping Transaction Form.

MTL_MATERIAL_TRANSACTIONS_TEMP

OE_ORDER_LINES_ALL

MTL_MATERIAL_TRANSACTIONS

MTL_TRANSACTION_ACCOUNTS

WSH_DELIVERY_DETAILS

WSH_DELIVERY_ASSIGNMENTS

MTL_ONHAND_QUANTITIES

MTL_SERIAL_NUMBERS_TEMP

MTL_SERIAL_NUMBERS

This step can be eliminated if we set Pick Confirm=YES at the time of Pick Release

6. Ship Confirm

Here ship confirms interface program runs in background. Data removed from WSH_NEW_DELIVERIES.

The item on the delivery gets shipped to customer at this stage.

OE_ORDER_LINES_ALL

WSH_DELIVERY_DETAILS

WSH_SERIAL_NUMBERS

MTL_TRANSACTION_INTERFACE

MTL_MATERIAL_TRANSACTIONS

MTL_TRANSACTION_ACCOUNTS

Data deleted from MTL_DEMAND, MTL_RESERVATIONS

Item deducted from MTL_ONHAND_QUANTITIES

MTL_SERIAL_NUMBERS_TEMP

MTL_SERIAL_NUMBERS

7. Enter Invoice

After shipping the order the order lines gets eligible to get transfered to RA_INTERFACE_LINES_ALL. Workflow background engine picks those records and post it to RA_INTERFACE_LINES_ALL. This is also called Receivables interface that mean information moved to accounting area for invoicing details. Invoicing workflow activity transfers shipped item information to Oracle Receivables. At the same time records also goes in the table RA_INTERFACE_SALESCREDITS_ALL which hold details of sales credit for the particular order.

RA_INTERFACE_LINES_ALL (interface table into which the data is transferred from order management) Then Autoinvoice program imports data from this table which get affected into this stage are receivables base table. At the same time records goes in

RA_CUSTOMER_TRX_ALL

RA_CUSTOMER_TRX_LINES_ALL

8. Complete Line

In this stage order line level table get updated with Flow status and open flag.

OE_ORDER_LINES_ALL (FLOW_STATUS_CODE ‘SHIPPED’, OPEN_FLAG “N”)

9. Close Order

This is last step of Order Processing. In this stage only OE_ORDER_LINES_ALL table gets updated. These are the table get affected in this step.

OE_ORDER_LINES_ALL

OE_ORDER_HEADERS_ALL

Source: http://functionalguy.blogspot.com/2008/05/data-flow-for-order-to-cash-cycle.html