Oracle Purchasing – Purchase Order FAQ

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


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?
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?
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?
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?
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?
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?
The navigation path for GUI is:
Setup --> Organizations --> Purchasing Options, Numbering alternate region

Oracle Application – General Interview (Technical – Functional Questions)

Oracle Applications / Financials – General Questions for interview or to increase overall awareness on some of the concepts you already aware and worked upon. this is terms as refreshing some of those.

Oracle Application – General Interview (Technical – Functional Questions)

What are different period types?
You use accounting period types to define your accounting calendar. Different Accounting Periods are-
  • General Ledger Periods (attached to Set of Books),
  • Purchasing Periods (Operating Unit Specific),
  • Cost Periods (Inventory Organization Specific),
  • AP Periods, and
  • AR Periods

If it is accounting period types, you can define your own period types to use in addition to the General Ledger standard period types Month, Quarter and Year. You use these period types when you define the accounting calendar for your organization. However the year type should be either Calendar or Fiscal. We have different Period types-

1) 13 Month (13 Month Calendar with An Adjusting Period).

2) Annual.

3) Monthly.

4) Quarterly.

5) Semi Monthly.

6) Weekly.

What types of invoices are there in AP and AR?

Types of Invoices are:

Credit Memo
Debit Memo
Expenses Report

AWT (Automatic Withholding Tax Invoice)

Interest Invoice

PO Default

Quick Match


Recurring Invoice

Arrears Invoice

Advance Invoice


Charge Back


What is the difference between cross-validation rules and security-rules?

Cross validation rules prevent all the responsibilities/users entering invalid account combinations. Security rules are attached to specific responsibilities to prevent using few of the segment values for a segment. Cross Validation Rule: Rules that define valid combinations of segment values a user can enter in an account. Cross-validation rules restrict users from entering invalid combinations of account segment values. Security Rule: It determines the accounting transaction user can view at different levels of hierarchy, such as at Site Level –>Application Level –> Responsibility Level –> User level. Cross Validation Rule applies across the chart of account where Security Rule is applicable at Responsibility Level or User Level. Cross Validation Rules are meant for defining the set of combinations that are excluded from the global set whereas Security Rules are to restrict Users/Responsibilities. Cross-Validation Rules are to control the certain code combinations. Security Rules are to control the certain segment values.

How many ways can you enter a journal in GL?

1. Manual entry 2. Subledger Entry 3. Spreadsheet Entry 4. Recurring Entry 5. Mass Allocation

What is a recurring invoice?

Recurring Invoice is a type of invoice which occurs at definite intervals of time. The best example for a recurring invoice is Rent paid to the Owner.

What are the general setup steps for AP, AR, and GL?

For GL:

1. Define Chart of Accounts2. Define Calendar
3. Define Currency
4. Create Set of Books
For AP:
1. Define Suppliers (Creditors)

2. Invoice

3. Look up codes

4. Selection of Set of Books

5. Payment Terms

6. Financial & Payable Options

7. Define Banks

For AR:

1. Flexifield

2. System Options

3. Payment Terms

4. Open period

5. Auto Accounting

6. Transaction Type

7. Transaction Source

How do we integrate AP or AR to GL ?

There is a program in payables to transfer AP to GL is “payables transfer to general ledger” GL is like AR->GL<-AP, AR and AP both transfer the data in GL. AR Contains all Invoices/Receipts /CM/DM and same way AP also have AP Vouchers. Yes, there is a clear Integration of AP/AR with GL.

The integration is like this: all the accounting created in subledgers (AP/AR) are transferred to Gl. The journal created from AP/AR are clearly identified in GL according to their batch names and journal names.
What is the difference between GL date and GL posted date in GL ?
GL date is the date used to determine the correct accounting period for your transactions where as the GL posting date is the date when the journal entry is posted the GL. GL date is the date used to determine the correct accounting period for your transactions where as the GL posting date is the date when the journal entry is posted the GL, also Called Transaction Date & Posted Date.

In GL there is no org id. So how can we differentiate the data different operating units when no other modules are given ?

HR data is at business group level. GL Data is differentiated based on set of books id. AP and AR data is mostly at operating unit level. Inventory, BOM, WIP data is at inventory organization level. In the gl_sets_of_books we have the set_of_books_id column. This column is enough to differentiate between one operating unit with the other. If you see the multiorg structure of Oracle Apps modules, we’ll see that GL is setup at set of books level. Now you generally won’t get data at OU level. OU data sums up at a higher SOB level. Please follow the below structure if you want more clarification top->bottom HR org->SOB->OU->inventory org

At what stage, the subledger data is posted to GL?

When Transactions are completed in subledgers data may be posted to GL Basically after entering the transactions, report will be taken to verify the transactions. In case, if approval is needed, it is approved after verifying the transactions. Once you are sure that the transactions are correct, the same can be posted to GL. Once it is posted, most of the information for the posted transaction can not be modified in the subledger. In case of any wrong entry, you need to follow the reversal procedure. Practically, the verification of transactions are done only during the initial stages after implementation. Once the system becomes stable, it is not followed strictly. Note: Make sure that GL period is open for the transaction GL date. Close all the periods in subledger after you reconciled all your transactions. Once you close the period, sweep program will run and all the un-posted and future entries will be transferred to next open period. Once this is done run the GL Transfer program and Journal import programs to complete the transaction transfer process. Once this is done you will find un-posted journal entries in GL you can post the same or reverse the same if you find something is missing. GL periods should also been opened and the GL period should be closed at the last.

Why cant interest rates are set uniquely supplier wise in payables module, whereas interest rate is applied to all suppliers the same rate?

Terms and conditions differ with each supplier.

What is FSG and its use?

Financial Statement Generator is a powerful report building tool for Oracle GL. FSG is used by the management for the decision making in the financial sector of the firm or an enterprise.

Uses of FSG :1. Generate financial reports such as income statements and balance based upon the data in your GL.
Note: If you have average balance processing enabled in your set of books, you can report on functional, foreign–entered, or translated average balances.
2. Define your reports with reusable report objects, making it easy to create new reports from the components of reports you’ve already defined. 3. Design custom financial reports to meet specific business needs.
4. Print as many reports as you need simultaneously.
5. Print the same report for multiple companies, cost centers, departments in the same report request.

6. Schedule reports to run automatically.

7. Produce ad-hoc reports whenever you need them.

8. Print reports to tab-delimited files for easy import into client-based spreadsheet programs. In addition, you can use the Report Wizard feature of Applications Desktop Integrator to design and submit your financial reports, as well as view the results, directly from a spreadsheet. 9. Define segment value security rules to restrict financial information contained in FSG report output generated by specific users and responsibilities. Note: To apply segment value security rules, the profile option FSG: Enforce Segment Value Security must be enabled

Explain ADI and its features?

ADI means application desktop integrator. It is a excel file which allows you to transfer the data pertaining to General Ledger, Fixed Assets and Budget to oracle apps and allows to run a request. ADI functionality provides an alternative to users who prefer to load information directly from Microsoft Excel rather than using the Oracle user interface. It should read Oracle Interface Programs (batch jobs) rather than Oracle User Interfaces. Broadly following are the feature / elements of ADI

1. Journal Wizard

2. Budget Wizard

3. Report Wizard.

4. Account Hierarchy Editor.

5. Analysis Wizard.

6. Request Center

ADI allows users take advantage of many of the data-entry shortcuts of a spreadsheet, such as copying and pasting cells, dragging and dropping ranges of cells and using formulas to calculate journal line amounts. ADI validates the data entered against the accounts, security rules and reference information that are defined in the General Ledger (GL).

What is EDI and its functions?

EDI – Electronic Data Interchange, to send the data to another server/destination via EDI server.E-Commerce Gate Way is the one of the Module in Oracle Apps. EDI (Electronic Data Interchange) is way of exchanging the Business documents like Sales Order, Invoice, PO etc., between two business entities in agreed standard format like ASCII X12 format. In oracle application, business documents may be referred as 850POI (purchase order Inbound), 810INO (Invoice Outbound) etc.. There are several third party sources are available which may be use in mapping of several documents from Oracle Format to X12 and vice versa. Some of them like Sterling Commerce, Klein Schmidt…. EDI is a toll where in whenever the customer is sending the PO it gets saved in this toll, again when the supplier after supplying the material will send an invoice through EDI, wherein the EDI of the customer will match the PO with the invoice and the invoice will get processed automatically, in case if it is not matching it will be in the error sheet

Shivmohan Purohit