1.

At the time of PO receipt, how to change destination (One

Inventory to Another Inventory) type ?
Ans: RCV: Allow routing override
Yes or No indicates whether the receiving routing assigned
during requisition or purchase order entry can be overridden
at receipt time.
2. We have 2 check boxes Purchase and purchasable in Purchase

tab for Master Item attributes. What is the difference

between them, and why can't we use make or buy if some one
answers as we are purchasing from supplier we say
purchasable?
Ans: Purchased indicates whether to purchase and receive an
item . Turning this option 'ON' allows you to set the
purchasable attribute.
Purchasable indicates whether to order the item through
puchase order, you can set this ON only when purchased is
turned ON.
Inventory
1.

What are different planning methods in Inventory

There are 5 different planning methods in oracle Inventory

Subinv Replenishment Planning

Min Max Planning

Re-order point planning

Kanban Planning

Periodic Automatic Replenishment

2.

What are the setups for different planning method (Min-Max)

Setup the item in master org and assign the item to the org for which MinMax planning is used

Attributes, Inv Planning method: Min-Max

Min-Max Qty should have been defined

Safety Stock method should be non MRP Planned

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 need to assign sourcing rule to the item

In Inventory responsibility, under Planning run the Min Max planning report
with required parameter
3.

4.

What is the concurrent program for the planning

Min Max planning report under planning menu in Inventory responsibility
What are the setups for expense item?

Should not be Inventory Item

No Stockable

No Transactable

No Costing, Inv Asset

5.

How many key flexfields are there in Inventory?

Seven KFF are there in Inventory

Account Alias

Item

Item Category

Item Catalogues

Stock Locators

Sales Order

Service Items

6.

What is the use of sales order KFF?

This is used during material transaction when source is Sales Order

Segments are Sales order Number.Sales Order Type.Sales Order Source

7.
How we can have the item key flexfield with 2 segments, is it
possible, if yes then how, if no then why?

This can be modified using Flexfield>Key> Segments

Query the System Items, then you can modify the existing structure, or you
can add a new one.
8.

How will you inactivate the Inventory locations

By giving Inactive date in the Location form

9.
What all setups you have done in inventory organization
implementation

Location

Calendar

Organization

Parameter

Cost Group

Subinventory

Stock Locator

Receiving Options

Shipping Networks

Intercompany Transaction flows

Cost Subelements

1.

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 intransit 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 used when tracking a non-asset

item
Other Accounts

Sales
The profit and loss (income statement) account that
tracks the default revenue account.

Cost of Goods Sold The profit and loss (income statement) account
that tracks the default cost of goods sold account.

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.

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.

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.

Encumbrance
An expense account used to recognize the
reservation of funds when a purchase order is approved.

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.

2.

What is ABC Analysis and why it is being used

ABC 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.

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.

3.

What are the process of cycle count

Create a cycle count header with required data

Assign the items to be counted

Then run the required cycle count report

Using the report do the cycle counts

Then go and Approve the cycle count

4.

What is the different in MO Issue and MO Transfer

MO Issue will move out the stock from inventory against an account

MO transfer will move the stock from one subinventory to other

5.

6.

What is the Picking rule in Inventory

Picking Rule is used to determine the list of items for sales order/
shipping based on the revision, Lot, Subinventory and Locator.
Assign the required Picking Rule to the item in Order Management tab.
What are the criteria in Cycle count
Depending on the requirement, we can trigger cycle count.
We can define regular cycle count of high values items.
If back ordered or pick denied, we can trigger cycle count for those items.

6.

What are the diff in Lot and Serial

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.
Serial control is to monitor and track every single qty of an item like
electronic devices where we track by
serial number.
6.

What are the material status in a subinventory

7.

What is Physical Inventory

1. What is move order in OM

Move orders generated as part of Pick Wave are the ones from Sales order

2. How a MO is diff from Subinv transfer

Ans: MO generally are 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.
3. What is nettable in Subinventory setup
This will detrrmine whether to consider the onhands of the subinventory as
available for planning tasks.
4. What are the status attributes in Item and how many of them
We can define different status for an item combination these attributes as per the
business need
Following are the attributes
BOM Enabled
Build in WIP
Customer order enabled
Internal Order enabled
Invoicable
Purchasable
Stockable
Transactable
5. What is the use of status attribute
We can define different status for an item combination these attributes as per the
business need
6. Why master org is required
So that we can have an item maintained at master level with common attributes
and then we can use the same item across multiple organization instead of defining
it again and again.
7. Inventory Master org is mandatory?
Yes. If you will not create any specific master org, then system will consider the
same inv org as its master org.

8. What are the Lot control setups

Lot control can be setup at item attributes at organization level.
Either No Control or Full Control
9. How lot number generates
You can generate new Lot numbers during transactions
10. What is serial controlled and what are the setups
Serial control can be setup at item attributes at organization level.
11. How serial numbers are generated
Serial control can be setup at item attributes at organization level.
No Control, At Receipt, At Sales Order issue, Predefined
12. What is the predefined locator in Subinventory and how it works in
business
We can setup locator control in 4 diff ways for each subinventory
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 subinventory 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
13. What are the transaction managers
Transaction manager is the inetrface managers which carry out all transaction once
submitted by the users
14. Can we change the item name after it created?
Ans: Yes we can change the name in master level.

1. How WMS is helpful compared to Inventory

Ans: 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.
2. What functionality in inventory uses the calendar
3. What is the diff in inv and wms from accounting perspective
4. What is the use of WMS Rules Workbench
Ans: The Rules workbench enables you to assign strategies, rules and cost group
values directly to any number of objects in an assignment matrix
5. Why strategy used
Ans: 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.
6. How many types of bar codes are there
Ans: Mainly 2 types Linear (1 dimensional) and Matrix (2D)