1. What is a Purchase Requisition and define various
requisitions
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:
Internal requisition and 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 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.
2. What are the base tables for a Purchase Requisition?
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
3. What is a Requisition Import Program?
It is a concurrent program, which is used to import requisition
from Oracle or Non-Oracle system.
Data is first loaded in PO_REQUISITION_ALL table. The RIP can
then be run, to import the records from the interface table as requisition in
Oracle Processing.
RIP creates a requisition line and one or more requisition
distribution for each row it finds in the interface table. It then groups these
lines on Requisitions according to parameters defined
4. What tables are affected when you run Requisition Import
Program?
PO_REQUISITION_INTERFACE_ALL
PO_REQ_DIST_INTERFACE_ALL
PO_INTERFACE_ERRORS
5. What are the reports associated with requisition import
process?
Requisition Import Run Report: We can view the number of requisitions created and the
number of records that showed an error
Requisition Import Exceptions Report: In this report we can see all the rows
that fail validation.
6. When will you use a Requisition Template?
Requisition templates can be used to help you quickly create
requisitions. A requisition template contains much of the information needed to
create a requisition, thus reducing the amount of data entry required to create
a new requisition. If you find yourself repeatedly creating similar
requisitions for your group or department, you should consider creating and
saving requisition templates as a time-saver.
If the data of requisition remain the same for repeated purchase
of an item, the information can be copied to a template and the same can be
copied to the Requisition as many number of times as required.
7. What is the purpose of choosing a Category when
creating a requisition?
The Category box is a required field and is used to define goods
and services at a summary or detailed level.
8. What does the status pre-approved mean?
Pre-Approved is the status of a requisition when an authorized
approver has approved the requisition and has forwarded the requisition to
another individual to review.
9. What is the difference between a rejected and a
returned requisition?
Only an approver or a reviewer can reject requisition. Only a
buyer can return a requisition. A buyer will return a requisition to the
preparer for incomplete or inaccurate information.
10. What is RFQ and differentiate the types of RFQ’s
A Request for Quotation (RFQ) is a formal request sent to the suppliers to
find the pricing and other information for an item or items. Based on the
information supplied, the supplier quotes a quotation against the RFQ form.
In general, RFQ’s are
created before purchasing any item to actually know the price quotes from one
or more suppliers.
In Oracle EBS, RFQ’s can be
auto created from an existing Purchase Requisition or
can be a fresh RFQ.
There are three types of quotations and RFQs that come with
Purchasing by default:
·
Catalog: Used for high-volume items or items for
which your supplier sends you information regularly. A Catalog quotation or RFQ
also includes price breaks at different quantity levels.
·
Standard: Used for items you’ll need only once or not very often,
but not necessarily for a specific, fixed quantity, location, and date. For
example, you could use a Catalog quotation or RFQ for office supplies, but use
a Standard quotation or RFQ for a special type of pen you don’t order very
often. A Standard quotation or RFQ also includes price breaks at different
quantity levels.
·
Bid: Used for a specific,
fixed quantity, location, and date. For example, a Bid would be used for a
large or expensive piece of equipment that you’ve never ordered before, or for
an item that incurs transportation or other special costs. You cannot specify
price breaks for a Bid quotation or RFQ.
11. What is a Quotation, what are the different types of Quotations
available and describe the Quote Analysis?
A quotation is a supplier’s response to RFQ.
Quote analysis is the process of reviewing the quotations given
by the suppliers. The best quotation will be selected by analyzing certain
factors like price, quality, delivery time etc.
12. What is a Purchase Order and explain the different
types of PO’s available
A Purchase order is a commercial document and first official
order issued by the buyer to the supplier, indicating types, quantities, and
agreed prices for products or services the supplier will provide to the buyer.
Basically, there are four types of Purchase Orders, viz
Standard Purchase Order
|
Used for One-time
purchases for goods and services. Here you know the item, price, payment
terms an delivery schedule
|
Planned Purchase Order
|
Created when you
have long-term agreement with the supplier. You must specify the details of
goods and services, payment terms and the tentative delivery schedule
|
Blanket Purchase Agreement
|
Created when the
details of items and services, payment terms are known but not specific about
the delivery schedule
|
Contract Purchase Agreement
|
Created when the
terms and conditions of a purchase are known but specific goods and services
are not.
|
13. What are the base tables that are affected when
you create a P.O?
PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)
This table stores header information of a Purchasing Document.
You need one row for each document you create.
PO_LINES_ALL
This table stores the line information of a Purchasing Document
PO_LINE_LOCATIONS_ALL
This table contains the information related to purchase order
shipment schedules and blanket agreement price breaks. You need one row for
each schedule or price break you attach to a document line.
PO_DISTRIBUTIONS_ALL
This table contains the information related to accounting
distribution of a purchase order shipment line. You need one row for each
distribution line you attach to a purchase order shipment
VENDORS_ALL
This table stores the general information about the suppliers
PO_VENDOR_SITES_ALL
This table stores information about the supplier sites.
Each row includes the site address, supplier reference, purchasing, payment,
bank, and general information.
PO_RELEASES_ALL
This table stores information related to planned and blanket
Purchase Order releases. Each row includes the buyer, date, release status, and
release number. Each release must have at least one purchase order shipment.
PO_VENDOR_CONTACTS
This table stores information about contacts related to Supplier
site. Each row includes contact name and site.
PO_ACTION_HISTORY
This table stores information about the approval and control
history of a Purchasing Document. This table stores one record for each
approval or control action an employee takes on a purchase order, purchase
agreement, release or requisition.
14. What is 2-way, 3-way, 4-way matching?
Oracle Payables shares purchase order information from your
purchasing system to enable online matching with invoices. Invoiced or billed
items are matched to the original purchase orders to ensure that you pay only
for the goods or services you ordered and/or received.
Two–Way: Purchase order
and invoice quantities must match within tolerance before the corresponding
invoice can be paid.
Three–Way: Purchase order, receipt, and invoice
quantities must match within tolerance before the corresponding invoice can be
paid.
Four–Way: Purchase
order, receipt, accepted, and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
15. Explain the P2P process flow
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
16. What is an approval hierarchy?
Approval hierarchies let you automatically route documents for
approval. There are two kinds of approval hierarchies in Purchasing: position
hierarchy and employee/supervisor relationships.
17. What are the documents that use PO_HEADERS_ALL?
The following are the documents that use PO_HEADERS_ALL
RFQ’s, Quotations, Standard Purchase Order, Planned Purchase
Order, Blanket Purchase Order and Contracts
18. Can the original Purchase Order 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.
19. Can we automatically ‘Close’ the Purchase order
without receiving the full quantity?
The Receipt Close Tolerance lets you specify a quantity
percentage within which Purchasing closes a partially received shipment. For
example, if your Receipt Close Tolerance is 5% and you receive 96% of an
expected shipment, Purchasing automatically closes this shipment for receiving.
20. When does a Purchase Order line get the Status
‘Closed for Receiving’?
Goods have been received on the system against this line but an
invoice has not been
matched to the order.
21. Can we match an Invoice against a line even when
it is ‘Closed for Invoicing’?
The Close for invoicing status does not prevent you from
matching an invoice to a purchase
order or to a receipt.
22. What does create internal order conc request do?
Create internal order request will transfer the IR info to OM
interface tables.
23. Explain the Receipt Routing
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.
24. What are the different Purchasing modes in Receiving?
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.
25. Which tables are updated When you save a Received Data in a form?
RCV_SHIPMENT_HEADERS: It contains supplier shipment header data like Shipment date, supplier Name
RCV_TRANSACTIONS_INTERFACE It contains received data like Item name, quantity, and receiving location
RCV_SHIPMENT_LINES
MTL_MATERIAL_TRANSACTIONS_TEMP
PO_LINE_LOCATIONS_ALL
PO_DISTRIBUTIONS_ALL
26. What are the major transactions in RECEIVING?
Purchase Order Receipts
Internal Requisition Receipts
Inventory Inter-Org Transfer Receipts
Customer Return Receipts
27. What is Pay on Receipt
AutoInvoice Program?
By running this program, we can automatically create an invoice
for a PO when we enter a receipt for the respective PO.
28. What is Invoice Validation Process?
Before you can 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 the purchase order, or
changing the invoice tolerances.
Source : Internet
