Tag Archives: purchasing

Oracle Purchasing – Purchase Order FAQ


What is 2-way, 3-way, 4-way matching? How is this set-up?

Answer

2-way matching verifies that Purchase order and invoice information match within your tolerances as follows:

Quantity billed <= Quantity Ordered
Invoice price <= Purchase order price
(<= sign is used because of tolerances)

3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined:

Quantity billed <= Quantity received

4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:

Quantity billed <= Quantity accepted.
(Acceptance is done at the time of Inspecting goods).

Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character)

Receipt required  Inspection required       Matching

Yes                            Yes                                         4-way

Yes                            No                                           3-way

No                              No                                           2-way

In GUI, Shipments block, alternative region, click on More…this brings up a region with ‘Invoice matching’ column where you can choose 2-way, 3-way or 4-way match.

How do you reflect discount from a supplier on a Purchase orders?
Answer
The legal document is the Purchase order not the quote and therefore the purchase order should reflect agreed upon price.  Secondly if the discount comes after the PO then AP should handle it when invoicing.  If you are using a blanket Purchase order then you can use price breaks.

How do you change the created date on a Purchase Order?
Answer
The 'Created' date on the Purchase order is not an updateable field, due to it being a legal document once approved.

What is the sorting order for requisition lines in autocreation of a Purchase Order?
Answer
Requisition lines first meet search criteria determined by "find" screen, and then are grouped together by item and item category, then by need-by date. After you choose an action, enter any search criteria to narrow the selection of requisition lines.  Oracle Purchasing chooses requisition lines from the requisition pool that meet your search criteria.  All requisition lines for the same item and item category are grouped together, but they are not necessarily in order alphabetically.  Within each grouping of item and item category, requisition lines are ordered by need-by date.

What does the error ‘APP-50022: Oracle Human Resources could not retrieve a value for User Type profile option’ mean?
Answer
The profile HR: User Type needs to be set. Set the profile option ‘HR: User Type’ at the Responsibility level

When do you see the status of a Purchase order as Archived?
Answer
You must approve or print a specific purchase order before you can see it in the history information.

In Oracle Purchasing, where is the automatic numbering for Purchase Order defined and maintained?
Answer
The navigation path for GUI is:
Setup --> Organizations --> Purchasing Options, Numbering alternate region

11i Manufacturing Expert – Devendra Gulve


Name

Devendra Gulve

Expertise

Module: INV, BOM, OM, Depot Repair

 skill area: Manufacturing and Distribution

Organization

Current: Zensar Technologies, Pune, India

Past: Mahindra & Mahindra Nashik, Valley Gauges, Pune.

Contacts

Email:devendragulve@gmail.com                        

blog/site: http://functionalguy.blogspot.com/

 

1.      Tell something about you, your professional experience/ background, past assignment, Interests.

Ans: I was in Manhindra and Mahindra, Nashik for some days as a Trainee Engineer. After Engineering I joined Valley Gauges in Pune. In 2005 I joined Symbiosis for doing full time MBA in IT. After MBA I joined Zensar Technologies, Pune. In Zensar I am working as a Oracle Apps Associate Consultant. The project I am working in has only one Functional person and that’s me, so I need to handle all the issues irrespective of the module or domain. I am getting very wide exposure to the system in this project.

2.      If any professional want to become functional consultant (either in manufacturing or financials), how she/he should take it and go ahead?

Ans: Anybody who wants to be a functional consultant in any domain has to have the knowledge of the processes followed in that particular domain. For example a Finance consultant has to know the accounting entries, details of P/L, Balance sheet etc and a Manufacturing consultant must know how material flows on the shop floor, how material is managed, classified, located, controlled as well as process to fulfill the order etc. The list of things one must know is unlimited but to start one shall know the basic standard processes followed in the particular functional area.

3.      Give some commonly used Functional Concepts/ Questions in Oracle Applications’ Manufacturing Modules.

Ans: I do not a great experience of taking / giving interviews, still I can try list down some points. But the questions definitely flow on the basis of past experience and the requirement of the client.

·        Types of transactions, actions associated with the transaction.

o       E.g. Sub-inventory transfer, Sales order issue, PO receipt, etc

o       Actions associated will the accounting entries, change in on-hand, sub-inventory valuation, etc.

·        Order-to-cash cycle

·        Organization structure

·        What are the various intra-operation steps?

o       Queue, run, to move, reject, scrap

·        What are the different types of Bill of Material?

o       Standard, Model, Option class, Planning, Product Family

·        What are the item attributes for an item to enter the sales order?

o       Customer ordered, Customer order enabled, OE transactable.

·        What is a modifier?

o       Modifiers enable you to set up price adjustments (for example, discounts and surcharges), benefits (for example, free goods, coupons) and freight and special charges that the pricing engine applies immediately to pricing requests or accrues for later disbursement.

·        MRP, MPS, MDS

·        Use of Bill of Material.

I will try to list down more questions modules / process wise at add it to my blog i.e. http://functionalguy.blogspot.com/

4.      What Oracle Configurator module does what the general feature and how it used in Oracle Applications.

Ans:  Oracle Configurator is the product from Oracle which gives you the flexibility to configure the BOM at the time of entering as order as per the customer requirement. You don’t need to defined deferent combination of your offerings prior the order. It saves times, maintenance cost etc. To use this in Oracle Apps you need to do some setups which are summarized at http://functionalguy.blogspot.com/2008/04/setup-for-oracle-configurator.html if one needs to use complex logic to define the dependencies of the option selected then he/she can go for Oracle Configurator Developer for the complex logic.

5.      What is Kanban method, how it used and implement in Oracle Inventory. What are the other related concepts with kanban and oracle inventory?

Ans: Kanban is a material control / management system, which is a part of Lean manufacturing. In this kanban cards are used to show status (Empty / Full) of the bin carries components. Once the bin become empty the process to fulfill it starts. For more details please visit http://functionalguy.blogspot.com/2007/04/kanban-introduction-and-benefits.html

6.      Your advice/ Suggestion for Oracle Technical and Functional Professions

Ans: I can’t give suggestions just like that. Improvement comes with time and combination of success and failure.

7.      Your feedback on Knoworacle.wordpress.com

Ans: I really appreciate your efforts towards this blog. It is well manages and in the easy language to understand. You are also planning to start free on-demand training through your blog is appreciable. One more thing which I liked is you are coming-up with the T-shirt with your blog’s logo and name. Great work, please keep-up and let me know in case I can help you.

here you can find his contribution here– click here

Thanks – Shivmohan Purohit ( knoworacle.wordpress.com )