1. Question 1. What Are Different Planning Methods
In Inventory?
Answer :
There are 5 different
planning methods in oracle Inventory:
1. Subinv Replenishment Planning
2. Min Max Planning
3. Re-order point planning
4. Kanban Planning
5. Periodic Automatic Replenishment
o Question 2. What Are The Setups For Different
Planning Method (min-max?)
Answer :
Setup the item in master
org and assign the item to the org for which Min-Max planning is used
1. Attributes, Inv Planning method: Min-Max
2. Min-Max Qty should have been defined
3. Safety Stock method should be non MRP Planned
4. Determine what should be the status of the
Requisitions created for the planning
5. Do this with profile option INV: Minmax Reorder
Approval
6. IF Use ASL has been enabled, then Requisition
will populate the supplier data from the ASL setup which is assigned to the
item
7. Sourcing rules can be defined for this
8. Then need to assign sourcing rule to the item
9. In Inventory responsibility, under Planning run
the Min Max planning report with required parameter
o Question 3. What Is The Concurrent Program For
The Planning?
Answer :
Min Max planning report
under planning menu in Inventory responsibility
o Question 4. What Are The Setups For Expense
Item?
Answer :
1. Should not be Inventory Item
2. No Stackable
3. No Transactable
4. No Costing, Inv Asset
o Question 5. How Many Key Flex Fields Are There
In Inventory?
Answer :
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
o Question 6. What Is The Use Of Sales Order Kff?
Answer :
1. This is used during material transaction when
source is Sales Order.
2. Segments are Sales order Number. Sales Order
Type. Sales Order Source.
o Question 7. How We Can Have The Item Key Flex
Field With 2 Segments, Is It Possible, If Yes Then How, If No Then Why?
Answer :
1. This can be modified using Flexfield>Key>
Segments.
2. Query the System Items, then you can modify the
existing structure, or you can add a new one.
o Question 8. What All Setups You Have Done In
Inventory Organization Implementation?
Answer :
1. Location
2. Calendar
3. Organization
4. Parameter
5. Cost Group
6. Sub inventory
7. Stock Locator
8. Receiving Options
9. Shipping Networks
10. Intercompany Transaction flows
11. Cost Sub elements
o Question 9. What Is The Difference Between
Purchased And Purchasable Flag For An Item?
Answer :
1. Purchasable is a status attribute flag, so based
on this flag, certain transactions can be controlled for an item.
2. Purchased flag decides whether to purchase and
receive this item.
3. Purchasable flag decides whether to order this
item in a purchase order.
4. If purchasable is enabled, item can be ordered
in a purchase order, if not, new purchase orders can’t be created and approved
for the items.
5. If purchased is enabled, item can be received if
already present in an approved purchase order.
o Question 10. What Is The Valuation Accounts Used
In Inventory?
Answer :
1. 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.
2. Material Overhead: An asset account that tracks material
overhead cost.
3. Resource: An asset account that tracks resource cost.
4. Overhead: An asset account that tracks resource and outside processing
overheads.
5. Outside processing: An asset account that tracks outside
processing cost.
6. Expense: The expense account used when tracking a non-asset item.
Other Accounts:
7. Sales: The profit and loss (income statement) account that tracks
the default revenue account.
8. Cost of Goods Sold: The profit and loss (income statement)
account that tracks the default cost of goods sold account.
9. Purchase Price Variance: The variance account used to record
differences between purchase order price and standard cost. This account is not
used with the average cost method.
10. Inventory A/P Accrual: The liability account that represents all inventory purchase
order receipts not matched in Accounts Payable, such as the uninvoiced receipts
account.
11. Invoice Price Variance: The variance account used to record differences between
purchase order price and invoice price. This account is used by Accounts
Payable to record invoice price variance.
12. Encumbrance: An
expense account used to recognize the reservation of funds when a purchase
order is approved.
13. Average Cost Variance: Under average costing with negative quantity balances, this
account represents the inventory valuation error caused by issuing your
inventory before your receipts.
o Question 11. What Is Abc Analysis And Why It Is
Being Used?
Answer :
1. BC 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.
2. Using this Analysis, it will be easy to monitor
and keep on track of the valuable items like frequently doing cycle counts on A
class items, etc.
o Question 12. What Are The Processes Of Cycle
Count?
Answer :
1. Create a cycle count header with required data
2. Assign the items to be counted
3. Then run the required cycle count report
4. Using the report do the cycle counts
5. Then go and Approve the cycle count
o Question 13. What Is The Different In Mo Issue
And Mo Transfer?
Answer :
1. MO Issue will move out the stock from inventory
against an account.
2. MO transfer will move the stock from one sub
inventory to other.
o Question 14. What Is The Picking Rule In
Inventory?
Answer :
1. Picking Rule is used to determine the list of
items for sales order/ shipping based on the revision, Lot, Sub inventory and
Locator.
2. Assign the required Picking Rule to the item in
Order Management tab.
o Question 15. What Are The Criteria In Cycle
Count?
Answer :
1. Depending on the requirement, we can trigger
cycle count.
2. We can define regular cycle count of high values
items.
3. If back ordered or pick denied, we can trigger
cycle count for those items.
o Question 16. What Are The Diff In Lot And
Serial?
Answer :
1. Lot control is to control a whole batch of
items. 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.
2. Serial control is to monitor and track every
single qty of an item like electronic devices where we track by serial number.
o Question 17. What Is Move Order In Om?
Answer :
Move orders generated as
part of Pick Wave are the ones from Sales order.
o Question 18. How A Mo Is Diff From Subinv
Transfer?
Answer :
MO generally is the
request of movement of items in one organization. It may be of from 3 sources,
MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue which will issue
the item from the location and MO transfer which ll transfer the item to another
location.
o Question 19. What Is Net Table In Sub Inventory
Setup?
Answer :
This wills determine
whether to consider the onhand of the sub inventory as available for planning
tasks.
o Question 20. What Are The Status Attributes In
Item And How Many Of Them?
Answer :
We can define different
status for an item combination these attributes as per the business need.
Following are the
attributes:
1. BOM Enabled
2. Build in WIP
3. Customer order enabled
4. Internal Order enabled
5. Inviolable
6. Purchasable
7. Stackable
8. Transactable
o Question 21. What Is The Use Of Status
Attribute?
Answer :
We can define different
status for an item combination these attributes as per the business need.
o Question 22. Why Master Org Is Required?
Answer :
So that we can have an
item maintained at master level with common attributes and then we can use the
same item across multiple organizations instead of defining it again and again.
o Question 23. Inventory Master Org Is Mandatory?
Answer :
Yes. If you will not
create any specific master org, then system will consider the same inv org as
its master org.
o Question 24. What Are The Lot Control Setups?
Answer :
Lot control can be setup
at item attributes at organization level.
Either No Control or
Full Control.
o Question 25. How Lot Number Generates?
Answer :
You can generate new Lot
numbers during transactions.
o Question 26. What Is Serial Controlled And What
Are The Setups?
Answer :
Serial control can be
setup at item attributes at organization level.
o Question 27. How Serial Numbers Are Generated?
Answer :
Serial control can be
setup at item attributes at organization level.
No Control, At Receipt,
At Sales Order issue, Predefined.
o Question 28. What Is The Predefined Locator In
Sub Inventory And How It Works In Business?
Answer :
We can setup locator
control in 4 diff ways for each sub inventory:
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 sub inventory 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.
o Question 29. What Are The Transaction Managers?
Answer :
Transaction manager is
the interface managers which carry out all transaction once submitted by the
users.
o Question 30. Can We Change The Item Name After
It Created?
Answer :
Yes we can change the
name in master level.
o Question 31. How Wms Is Helpful Compared To
Inventory?
Answer :
Warehouse Management
(WMS) enables companies to maximize their utilization of labor, space and
equipment investments by coordinating and optimizing resource usage and
material flows. Specifically designed to support the needs of distribution,
manufacturing, asset-intensive, and service businesses, Oracle WMS provides a
single-platform across your entire global supply chain.
o Question 32. What Is The Use Of Wms Rules
Workbench?
Answer :
The Rules workbench
enables you to assign strategies, rules and cost group values directly to any
number of objects in an assignment matrix.
o Question 33. Why Strategy Used?
Answer :
After you define your
rules, you must set up a strategy and then associate the applicable rules.
After you assign rules to a strategy, the rules engine can execute the
strategies on any objects to which the strategy applies. The rules engine
executes each subsequent rule in your strategy until an allocation is
completely filled.
o Question 34. How Many Types Of Bar Codes Are
There?
Answer :
Mainly 2 types Linear (1
dimensional) and Matrix (2D).
o Question 35. What Is An Item?
Answer :
1. An item is a part or services where you can
Purchase, Sell, Plan, Manufacture, Stock, Distribute and Prototype.
2. Items can also be containers for items as well
as components you build into other items.
o Question 36. Explain Item Master Organization?
Answer :
An item master
organization is a logical entity where you define the item. After you define an
item in the item master, you can assign it to any number of other
organizations.
o Question 37. Define Inventory Organization?
Answer :
It is a facility which
will enable you to store and transact the items. It can be a manufacturing
unit, ware house, distribution center etc.
o Question 38. What Is A Sub Inventory?
Answer :
1. Subinventiries are unique physical or logical
separations of material inventory. These can be raw material, finished goods or
defective material sub inventory. You must define at least one sub inventory.
Sub inventories are of two types: storage and receiving.
2. Storage sub inventories are intermediate or
final put away locations for material. Material that resides in a storage sub
inventory appears in on hand quantity, and is tracked by the system. The system
can book orders against, and use manufacturing processes on material that
resides in a storage sub inventory. You must define at least one storage sub
inventory for your implementation.
3. Receiving type sub inventory is only used for
receiving items. Items in this sub inventories cannot be on-hand or reserved.
o Question 39. In Which Table Does The Sub
Inventory Related Information For An Item Is Stored?
Answer :
MTL_SECONDARY_INVENTORIES
MTL_ITEM_SUB_INVENTORIES
o Question 40. What Is A Stock Locator?
Answer :
Locators are structures
within sub inventories. Locators are the third level in the enterprise
structuring scheme of Oracle Inventory. Locators may represent rows, racks, or
bins in warehouses. You can transact items into and out of locators. You can
restrict the life of locators, establish capacity of a specific locator in
weight or units, as well as specify dimensions which define a locator’s
capacity by volume.
o Question 41. What Are The Key Flex Fields In
Oracle Inventory?
Answer :
Oracle Inventory
provides the following flex fields:
1. System Items
2. Item Catalogs
3. Item Categories
4. Stock Locators
5. Account Alias
6. Sales Order
o Question 42. What Are The Basic Steps Involved
In Defining An Item?
Answer :
1. Create an item in the item master form.
2. Copy the template from the tools menu to assign
specific attributes to the item and save it.
3. Assign the item to a category from tools menu and
save your work.
4. Select organization assignment from tools menu
and assign the item to different inventory organizations by ticking the
checkbox next to the inventory organizations.
o Question 43. What Are Item Attributes?
Answer :
Item attributes are the
collection of information about an item. These are used to store specific
characteristics of an item, such as item status, unit of measure, revision
control, etc. these can be controlled at either the master or the organization
level. These attributes are stored in a table named MTL_ITEM_ATTRIBUTES.
o Question 44. What Is The Use Of Item Template?
Answer :
An Item template is a
set of attributes that enable the user to quickly create an Item. You can use
the existing templates are you can create your custom template.
o Question 45. What Is An Item Category And
Category Set?
Answer :
A category is a logical
classification of items that have similar characteristics.
A category set is a
distinct grouping scheme and consists of multiple categories. An item can
belong to any number of category sets. We can assign item to one category within
each category set. The categories can be retrieved from the table
‘MTL_CATEGORIES_B‘ and item category set from ‘MTL_CATEGORY_SETS_B’.
o Question 46. Explain Unit Of Measure (uom) And
Uom Class?
Answer :
The unit of measure
(UOM) helps us count the number of items involved in a transaction or the
number of items that are stored in a sub inventory or a locator.
UOM classes let you
group different UMO’s into one category. Eg, quantity could be UOM classes
under which each, dozen, lot etc are separate UOM’s.
o Question 47. Explain Shipping Method?
Answer :
Shipping methods are the
way you ship material. When you create a shipping method, you must enable it
before you can use it in a shipping network. If you disable a shipping method,
it cannot be used in a shipping network.
o Question 48. Describe Inter Organization
Shipping Networks?
Answer :
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 set up a shipping network you must select a
transfer type: Intransit or Direct.
In transit: Oracle Inventory moves material to an
intermediary state before it reaches the destination organization. After the
material arrives at the destination organization, you will need a receipt
transaction to retrieve it. If in transit is selected, you can define.
Shipping Methods, GL
Accounts to use in transit, Material ownership during transfer, Planning lead
times and Transfer Charges.
Direct: Oracle Inventory moves the material
directly to the destination organization. However, for both transfer types, you
can determine default receipt routing and whether internal orders are required
to transfer material.
o Question 49. In Which Tables Are The
Transactional Details Are Stored?
Answer :
MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
MTL_MATERIAL_TRANSACTIONS_TEMP
MTL_TRANSACTION_ACCOUNTS
o Question 50. What Is Revision Control In Oracle
Inventory?
Answer :
A revision is a
particular version of an item, bill of material, or routing. Revision control
is normally enabled for identifying a modified item. Item can be placed under
revision control by checking the box `Revision control` in Inventory tab while
defining new item or for existing item. Base table for Item Revision is
MTL_ITEM_REVISIONS.
o Question 51. What Is Picking Order Of Sub
Inventory Or Locator? Where Will You Define The Order?
Answer :
The value indicates the
priority with which we pick items from sub inventory or Locator, relative to
another sub inventory or locator, where a given item resides. A picking order
of 1 means that order entry functions pick items from the sub inventory or
locator before others with a higher number (such as 2,3 and so on).
The sub inventory order
is defined in the sub inventory definition and the locator order is defined in
the locator definition. The default order for both the sub inventory and the
locator are defined in the organization.
o Question 52. What Are The Different Inventory
Transactions?
Answer :
A transaction is an item
movement within, into or out of inventory. A transaction changes the quantity
and location of an item.
The following are the
different inventory transactions:
1. Receive an item into an organization from GL
account number.
2. Issue an item from an organization into a GL
account number.
3. Transfer items from one sub inventory to other
in the same organization.
4. Transfer of items between various inventory
organizations.
5. Reservation of items.
o Question 53. Describe Various Inventory
Transaction Types?
Answer :
Miscellaneous
transaction: This transaction
is used to do adjustments in stock due to damage, obsolescence, issuing items
for R & D or issuing track able expense items.
Sub inventory transfer: This transaction is used to transfer goods
from one sub inventory to another within the same inventory organization.
InterORG transfer: This transaction is used to transfer goods
from one inventory organization to another.
Receiving transaction: This transaction is used to move goods
from receiving dock to specified sub inventory and locator.
Sales issue: This transaction is used to move goods
from pick sub inventory to staged sub inventory.
WIP issue: This transaction is used to issue
materials against production orders.
o Question 54. What Is The Difference Between A
Sub Inventory Transfer And A Move Order?
Answer :
Both these transactions
are used for the movement of items from one sub inventory to the other. The
difference is that move order generates a pick slip and a sub inventory
transfer doesn’t.
Move order requires
‘approval’. Also, move orders create allocations. So you can place hold on the
material with the intention of picking it up a little later. In sub inventory
transfer, there is no reservation / allocation.
o Question 55. What Are The Components Used In
Customizing A Transaction?
Answer :
The following are the
three components used in a transaction
1. Transaction Source Type
2. Transaction Action
3. Transaction Type
A Transaction Source
Type and a Transaction Action come together to form a Transaction Type.
o Question 56. What Is A Transaction Source Type?
Answer :
A Transaction Source
Type is defined as an entity against which Oracle Inventory charges a
transaction.
The following
transaction source types come seeded with Oracle Inventory:
1. Purchase Order
2. Account Alias
3. Move Order
4. Internal Order
5. Standard Cost Update
6. Internal Requisition
7. Sales Order
8. Cycle Count
9. Periodic Cost Update
10. Physical Inventory
11. Account
12. RMA (Return Material Authorization)
13. Inventory
14. Job or Schedule
o Question 57. What Is A Transaction Type?
Answer :
A transaction type is a
combination of a transaction source type and a transaction action. It is used
to classify a particular transaction for reporting and querying purposes.
Ex: Sales order issue (txn type) + issue from
stores (txn action) = sales order (txn source type).
Move order transfer (txn
type) + sub inventory transfer (txn action) = move order (txn source type).
o Question 58. Name Any Four Purposes Where
Miscellaneous Transaction Can Be Used?
Answer :
Cycle count adjustment,
Physical inventory adjustment, adjusting inventory quantity within an inventory
organization and decrementing on-hand balances from a subinvemtory.
o Question 59. Explain Inventory Control?
Answer :
Inventory Control is the
process by which inventory is measured and regulated according to predetermined
norms such as economic lot size for order or production, safety stock, minimum
level, maximum level, order level etc.
o Question 60. What Are The Objectives Of
Inventory Control?
Answer :
1. To meet unforeseen future demand due to
variation in forecast figures and actual figures.
2. To average out demand fluctuations due to
seasonal or cyclic variations.
3. To meet the customer requirement timely,
effectively, efficiently, smoothly and satisfactorily.
4. To smoothen the production process.
5. To facilitate intermittent production of several
products on the same facility.
6. To gain economy of production or purchase in
lots.
7. To reduce loss due to changes in prices of
inventory items.
8. To meet the time lag for transportation of
goods.
9. To meet the technological constraints of
production/process.
o Question 61. What Are The Factors That Affect
Inventory Control?
Answer :
1. Type of product
2. Type of manufacture
3. Volume of production
o Question 62. Define Abc Analysis?
Answer :
ABC analysis determines
the relative value of a group of inventory items based on a user specified
valuation criterion.
This technique divides
inventory into three categories A, B & C based on their annual consumption
value.
It is also known as
Selective Inventory Control Method (SIM).
o Question 63. What Is Consignment Inventory?
Answer :
Consignment Inventory is
inventory that is in the possession of the customer, but is still owned by the
supplier. In other words, the supplier places some of his inventory in his
customer’s possession (in their store or warehouse) and allows them to sell or
consume directly from his stock. The customer purchases the inventory only
after he has resold or consumed it. The key benefit to the customer should be
obvious; he does not have to tie up his capital in inventory. This does not
mean that there are no inventory carrying costs for the customer; he does still
incur costs related to storing and managing the inventory.
o Question 64. What Are The Different Planning
Methods Available In Oracle?
Answer :
1. Re-order point planning
2. Min-Max planning
3. Kanban cards
4. Sub inventory replenishment planning
o Question 65. When Should The Material Be
Ordered?
Answer :
When on-hand quantity +
supply – demand is less than safety stock (safety stock is nothing but minimum
inventory level)
[On-hand quantity] +
[supply] – [demand] < [min inventory level]
o Question 66. Explain Re-order Point Planning?
Answer :
Reorder point planning
uses demand forecasts to decide when to order a new quantity to replenish
inventory. Reorder point planning suggests a new order for an item when the
available quantity (on-hand quantity plus planned receipts) drops below the
item’s safety stock level plus forecast demand for the item during its
replenishment lead-time. The suggested order quantity is an economic order quantity
that minimizes the total cost of ordering and carrying inventory. Oracle
Inventory can automatically generate requisitions to inform your purchasing
department that a replenishment order is required to supply your organization.
If the forecast is
correct and the order arrives on time, the inventory level should be right at
the safety stock level at the time of receipt. In cases where the desired
safety stock level changes during the order lead time, Oracle Inventory uses
the largest safety stock quantity during the lead-time.
When an order is
triggered, the EOQ is the size of the triggered order.
EOQ = square root of:
[(2 X annual demand X order cost) / (carrying cost percent X Unit cost)]
Oracle Inventory
calculates annual demand as the current demand rate annualized by multiplying
the current period demand forecast by the number of periods per year (12 or
13).
Reorder point planning
can be performed at the organization level only.
o Question 67. Explain Min-max Planning Technique?
Answer :
Min-Max planning is a
tool for planning inventory that looks at user-defined minimum and maximum
inventory levels. It does not consider lead times.
We can perform this
technique at org level or sub inventory level.
o Question 68. Define Cycle Counting And Explain
Its Use In Oracle Inventory?
Answer :
Cycle Counting is a
process of periodic counting of individual item / all the items throughout the
course of the year to ensure the accuracy of inventory quantities and values.
We can do the cycle
counting at Organization / Sub Inventory Level.
Cycle count is used to:
To reconcile system
on-hand balances with actual counts in inventory.
Maintain control over
the items that have higher value.
o Question 69. When Do You Perform Physical
Inventory And Explain The Steps Involved In It?
Answer :
Physical inventory can
be performed, whenever there is a need to verify the accuracy of system on-hand
quantities. This can be done for entire organization or can be confined to a
specific sub inventory.
Steps to perform
physical inventory:
1. Define physical inventory
2. Take a snapshot of system on-hand quantities
3. Generate physical inventory tags
4. Enter counts
5. Do physical inventory adjustments by approving
or rejecting
6. Post adjustments
7. Purge physical inventory information
o Question 70. When Can You See Such Scenario,
Item Available To Qty Is 0 But Available To Transact More Than 0?
Answer :
1. If item is not resolvable
2. If Sub inventory Allow reservation is not
allowed
3. If Item is lot controlled and lot is expired
o Question 71. From Where I Can See The List Of
Time Zones In Oracle.
Answer :
The list of time zones
and their other details can be found from below 2 tables.
fnd_timezones_b,
fnd_timezones_tl.
o Question 72. Can One Asset Sub Inventory Be Made
Non Asset Sub Inventory Once Transactions Created On That?
Answer :
Yes Asset Sub inventory
flag can be unchecked for that sub inventory provided.
1. There is no onhand present in that sub
inventory. If present you need to issue out and change the flag and receive
those back.
2. There is no accounting details’ pending in
inventory like transaction happened but costing is not yet done.
