purchising interview questions-p

7/27/2019 Purchising Interview Questions-p

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Re: What are the matching Po options in AP Invoice Workbench and what is the different

b\w them?

There are 2 ways, 3 ways and 4 ways matching for PO.

In 2-way: what ever you have ordered for the PO you will make the payment for the suppliers in2- way i.e we will compare two documents PO and Invoice.2-way matching verifies that Purchase order and invoice information match within yourtolerances:Quantity billed


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if ur defining internal and customer bank accounts u need to define payament format.Steps-----setup>payment>format1. Payment format describes in which method u want to make payment to the supplier2. How many invoices are to printed in a cheque.3. How the cheque has to be printed after defing this save ur work.

Step 2------setup>payment>bank1. Enter ur bank name & branch name.2. Click on bank accounts3. Select internal4. Give gl accounts cash & cash clearing5. Click on payables document6. Define name of doc & attach your payment format which we defined in step one.7. Give the numbering from where to start.This are the mandatory setup's

Re: What are the types of Invoices, what is prepayment & steps to apply it to an Invoice ?

Invoices can be of many types viz. standard , debit memo credit memo, prepayment , employessexpense report, mixed invoices and so on...Prepayment is liek an advance payment to supplier...in normal parlance prepayment means youhave made payment for somethin even though you havent enjoyed the benefit of the same. Frstyou have to create a prepaymnet invoce and then make the payment for the saem. when you llcreate an invoice for the same supplier a pop up will come which will provide you with theinformation that one prepayment can be apllied to this invoice. Go to "actions" then "Apply orunapply prepayment" A form will open where in you will have to check the box inthe applied section. You can apply the enitre amount in one invoice or multiple

invoice.The amounts can be changed as per your requirement. in payables 11 types of Invoicesare therethat is1. Standard Invoice2. Debit memo3. Credit memo4. Expencess report5. Mixed Invoice6. Prepayment7. PO defualt8. With holding tax

9. Reccuring Invoice10.Interest Invoice11.Quick match

prepayment : advance payment you make to a suppliers oremployee. If you enter Temporary for the Prepayment type field, then you can later applyprepayment to an invoice two types of prepayments are there, namely, temporary and


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permanent. In case of earlier one. it is treated as advance to the supplier and will be adjustedagainest any invoice on or after the settlement date but in case of later one, it is treated as depositwith the supplier.

Re: What are the Accounting Entries in P2P.in Oracle Financial terminology ?

he Accounting Entries in P2P cycle when we receive the goods.A.Inventory Item:-----------------

1. When we receive the goods(for staging areas)Receiving Inventory A/c DrInventory AP Accural A/c Cr

2.When we transfer the goods (to sub-inventory)

Inventory A/c DrReceiving Inventory A/c Cr

3. When We create AP Invoice matched to Purchase OrderInventory AP Accrual A/c DrLiability A/c Cr

4. (a)When we make the payment and follows Reconciliation...Liability A/c DrCash Clearing A/c Cr

(b)When payment is cleared....Cash Clearing A/c DrCash A/c Cr

OR4. When we make the payment and we are not following

Reconciliation.......Liability A/c Dr

Cash A/c Cr

And the Final When issued to Dept........Expencse A/c DrInvemtory A/c Cr

=================================================B.Expense Item:---------------1.When we receive the goods(for staging areas)Receiving Inventory A/c DrInventory AP Accural A/c Cr

2.When we transfer the goods (to sub-inventory)Expense A/c DrReceiving Inventory A/c Cr3.When We create AP Invoice matched to Purchase OrderInventory AP Accrual A/c DrLiability A/c Cr4.(a)When we make the payment and follows Reconciliation...Liability A/c DrCash Clearing A/c Cr


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(b)When payment is cleared....Cash Clearing A/c DrCash A/c Cr

OR4. When we make the payment and we are not following

Reconciliation.......Liability A/c DrCash A/c Cr

Re: What is meant by RFQ?

RFQ terms is widely used in purchasing context, it means request for quotation . This is preparedto request supplier to send his quotation for mentioned items and quantities. Supplier send itsquotation to buyer, which buyer enters into application. there are three types of rfq

Standard rfq--- one time purchaseBid rfq --- when the items are less & cost is more ex- diamondcatalog rfq --- when the items are more & cost is less ex- nuts ,bolts, ect if we enable rfq at thesite level we cant riase a qfq from that site.

Re: what is meant by accrual report? it consist of ?They are two Accrual methods1 Accrue on Receipt2 Accrue at period endAccrue on receipt means that when a receipt is saved, accrual transactions are immeditelyrecorded and sent to gl interface. This is also known as "online" accruals. Accrue at periond endmeans that when a receipt is saved, the accrual transactions are not immediately recorded andsent to gl; instead the accounting entries are generated and sent at the end of the month byrunning the Receipt Accrual-Period End process

Re: How to make an Item as a Stock Item but not for Sale.

Change the Item Attributes to Y for InventoryItem/Stock able (Inventory Tab) and N for CustomerOrdered/Customer Orders Enabled (Order Management Tab)

Re: define the difference between cycle counting and physical inventory?

Cycle Count: Periodic counting of inventory items at regular intervalsPhysical Inventory: Counting is done once / twice a yearCycle Count: We can schedule the countPhysical Inventory: We cannot schedule this.Cycle Count: We cannot have a snap shotPhysical Inventory: We can have a snap shot

Cycle Count: We can view the qty in the systemPhysical Inventory: We can not view the qty in systemCycle Count: We cane select the items using ABC analysis.Physical Inventory: It is done for all the items.Cycle Count: We need not to freeze inventory transactions.Physical Inventory: Need to freeze inventory transactions.Cycle Count: Recount is possiblePhysical Inventory: Recount is not possible.Cycle Count : We can maintain recount history.


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Physical Inventory : No recount, hence no history.Cycle Count : Adjustments can be procesed on approval.Physical Inventory : Can be done using adjustment concurrent

A physical inventory is done once a year to check and correct the accuracy of your inventory.Often used by banks to audit their investment into your company or to simply reset your stocklevels so that inventory is correct and customer service is not impacted by wrong information.A cycle counts purpose is to find systemic problems, it is NOT intended to ensure your inventoryaccuracy or fix your on hand quantities. Those are mere bi-products of a cycle count.All inventories will have different classification of products called A,B,C,D classification. Theseclasses are defined by the criticalness and movement of a product where an A item is high dollar/ high mover, and a D item is something that is identified by the dust it has on the shelf.A cycle count filters through your inventory over a course of a year. A company may choose tocount all their A items 4 times a year, B items 3 times a year, C items twice, and D once.

The theory behind the Cycle Count is to monitor your systems (processes and proceedures). Areyou pulling parts correctly, are they marked correctly, is paperwork being processed, is thereceiving dept. counting items on the inbound, are product bar coded correctly, is a bill ofmaterial correct, theft, and a hundred other things that could possibly cause your inventory to go

out of balance. A cycle count finds those flaws and offers you a chance to correct them.The reason an A item is counted more often than a D is not because of Value $$, yet because it issubjected to your processes a lot more. Assuming you have a very solid system/process, youconstantly test it (via Cycle Counts), and you apply that same exact process to an A item as youdo a D, there is a very high probablility that your inventory accuracy on the D item will be asaccurate as your A, even though you only counted it once in a years span. Lastly, a good cyclecount has a Hit of Miss criteria.

There are always going to be acceptable levels of tolerance. Simply put, do we really care if weare off by1 or 2 pcs. of a $0.01 part that we stock THOUSANDS of? NO! So we identify those tolerances.

If your counts fall with in those tolerances, you have a HIT (good thing). IF they fall outside ofthe tolerance you have a MISS (badthing).Misses are investigated. Problems researched and solutions secured. THEN as a final measureyou would schedule the MISS for a future cycle count, say in a couple of weeks to ensure the fixworked, the process is functioning and the system is good.

Basic idea behind conducting Stock Count thru Cycle Count (CC)or Physical Inventory (PI)remains the same of streamlining your inventory. Now it is not mandatory to conduct the CC orPI yearly once or once in six months or 3 months so on and so forth, this is purely the decision ofthe business (client).

Conducting the stock count process remains same in CC or PI on abroader level.Both processes;1.select the items for the count2.system snapshot3.printing report of system snapshot without item qty4.entering physical stock qty5.printing report for the qty variation between physical and system qty6.recounting the item quantities in case of variation above tolerance


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level (optional)7.approving the qty varaitions8.posting the adjustment with appropriate transaction type and transaction accountDifferences in CC and PI:CC - It is stock count method where you select item or list of items which have to becounted.Now you can select the items either by manually selecting for each CC or by creatingitem groups using ABC analysis. By performing ABC Analysis you group the items and performthe CC for each group or collectively.You execute the CC programs and take the systemsnapshot as on date. Later you either manually enter the physical qty or import the physical qtyusing interface program.PI - It is stock count method where you select items in an inventory org orsubinventory/subinventories. Then you execute the generate tags program to create unique tagno. for each item in the list and subsequently take system snapshot. Then you manually enter thephysical qty against each item and find the variance and finally pass the adjustment on approval.

Re: what is the purpose of item master organisations? can we define more than one item

master?

In IMO we can define and Maintain items. The organization that contains your master list ofitems. Yes, One IMO is Must, and We can define more than One (IMO)Item master Org Item

master organization is virtual originations where no transaction will be carried out.Used only todefine items. Yes it is possible to have multiple IMOs but not recommended. It may lead toconfusions.

Re: Wanted to send the Notification to the Supplier by e-mail.

At supplier site, mention the email id or on the PO when you click on 'Approve' Button, a formopens, enable the email check box and enter the Supplier mail id. Ensure that the length of theemail id is less than 50 characters as per 11.5.9 version.

In addition to above You can send the PO after creation or approval by -Use the PO Summary>Tool>Communicate functionality to send the PO to any one by Email

Address. You can also have supplier role setup in iSupplier through which you can send theemails to supplier without any customization in Oracle Workflow

Re: What is the different between 11i and R12 in oracle ?

Multi-Org Access ControlLedger and Ledger SetsSub ledger AccountingTax EngineIntercompanyBank Model

Re: How do i generate Taxes when i'm doing Return to Vendor Transaction?There is one option in the supplier for automatic credit memo when we reverse the grn

Re: What is meant by Position Hierarchy and Supervisor Hierarchy????

* Position Hierarchy:X can see the position below him in the hierarchy. He can also see the reporting positions.Y has a second assignment for a different position. Because assignment-level security isdisabled, X can see this assignment. X cannot see the positions below the position for Y secondassignment.


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** Supervisor Hierarchy:This means that when manager logs on to Oracle HRMS, the application uses assignment orsupervisor attributes to build a person tree with the manager at the top level. The person treeshows the direct reports for the manager and also any direct reports at lower levels of thehierarchy to which the manager has access. The structure of the person tree depends on whetheryou are using an assignment-based or person-based supervisor security profile

Re: Can i assign a supplier type of bank account to more than one supplier ?

Yes..we can assign the supplier bank account to more than one supplier. For this, we have toenable the "allow assignment to multiple suppliers" option at bank account level. In R12 thebank model is totally changed.

> Centralized bank model.> Banks are at LE level unlike OU level in 11i> There is no concept of supplier or customer. Instead called as "Trading Partner" (namingconvention).>A Trading Partner can be a Seller (supplier) or a buyer (customer) for the organization.> A bank can be used for both AP and AR or any of these modules. Hope this brief points canhelp you.

Re: Which interface tables are used for Invoice Import , give the important columns?

Interface Tables are:AP_INVOICES_INTERFACEImportant Columns are:INVOICE_ID, GL_DATE, INVOICE_AMOUNT, INVOICE_DATE,INVOICE_NUM, INVOICE_TYPE_LOOKUP_CODE, ORG_ID, TERMS_ID,VENDOR_ID, VENDOR_SITE_ID, ACCTS_PAY_CODE_COMBINATION_IDAP_INVOICE_LINES_INTERFACEImportant Columns are:INVOICE_ID, INVOICE_LINE_ID, LINE_TYPE_LOOKUP_CODE,

LINE_NUMBER, AMOUNT, ACCOUNTING_DATE,DIST_CODE_COMBINATION_ID, ORG_ID

Re: Payment Methods?

Batches.Electronic--- organization makes payment through e-commerce gateway. They send file to bankand bank makes the payment to the supplier.Wire---A payment method where you pay invoices outside of Payables by notifying your bankthat you want to debit your account and credit your supplier's account with appropriate funds.

Re: I paid 10,000 Rs in advance to the employee for meeting his expenses. The employee

met only 5000 expenses and the remaining 5000 he has to return to the company. How willyou define it?

Employer is defined as Supplier in expenses so we need to create Credit memo for thatremaining 5000 amount.

Re: What is meant by pay on receipt auto invoice?

Pay on Receipt- You can enter this if the supplier site is a purchasing site.If you want to use the Pay on Receipt Auto Invoice Program to automatically create invoicesbased on receipts you enter for this supplier site, enter Receipt.


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Navigation: Payables->Supplier->Supplier Sites->Purchasing->Self Billing [DFF].

When option is enabled, Invoice will be created automatically at the time of receivinggoods/receipt creation. This is a feature of AP to PO cycle.

Re: What is the difference between Operating ID and Org. ID. Org_id: to represent

Operating Unit Organization_id : to represent Inventory Org confirm Re: difference

between manual payment and quick payment?

Manual payment is used to pay the invoices manually using out checks, whereas quick paymentsare made thru EDI/EFT or inside clearing or bank transfers in a batch

Re: Why should we run Expense report import programme in AP..where are we importing

from??

To import the expense invoice details from 'Expense report' window to 'Invoice' workbench.Once we enter the expense details in expense window we need to generate one standard invoicebased on the expense information. Unless we can't convert the expense report as std invoice wecan't pay to the emp. As it's a std application feature , without invoice we can't make a singlepayment in application. Expense report is also just like another source (internal),

to create std invoice from expense report we need to run the 'Payable invoice import program'(parameter source as 'Expense report').

Re: What is meant by void payments?

Void means useless. u can use void function after payment of invoice, so when u void a paymentpayables automatically reverses the accounting.Void payments restrictions--------------------------1. When payment paid by third party.2. When payment got clearance from bank3. When the related invoices has prepayment to it.

4. Partially paid

In adjustment period what type of adjustment we will do?

Interest on income will come in adjusting period Once Calendar is set for 12 months we cannotchange it. If you change one "C" you will have problem in SOB.

Re: different phases of aim methodology

DIFINATION PHASEOPERATION ANALYSISSOLUTION DESIGNBUILD

TRANSITIONPRODUCTION

Re: purchasing and payables done at what level? Means operating unit level or SOB level?

The modules like po, ap,ar are come under operating level this modules are also called multiorgmodules because this modules table have column ord_id and have multipleorganization information. _all is last we can identify is multiorg table

Re: purchasing and payables done at what level? Means operating unit level or SOB level?


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HR - Business Group levelGL, FA - Legal Entity LevelAP, AR, Purchasing - Operating Unit LevelInventory - Inventory Unit Level

Re: What is Interest Invoice and how it can be created?

Created automatically by payables, for the amount of interest calculated on the overdue amountof an original invoice, for the overdue period. these types of invoice cannot be manually created.

Re: What are the different types of Value sets (or) Validation types?

The Validation types are 8 types1. Independent2. Dependent3. None4. Special5. Table6. Pair7. Translatable Independent8. Translatable dependent

Re: What is the purpose of MO: Security Option profile option?

MO: Operating Unit Profile Option is used to Link Responsibility with Operating unit.MO: Security Profile option is used to enable "MOAC" - Multi-Org Access Control.Example Case: Payment manager wants to pay for 2 different OUs.

In 11i:

--------* We should have 2 different responsibilities. ie. OU1_payables manager & OU2_Payablesmanager.* These responsibilities has to be assigned to that particular user (Payment manager)

* That particular user (Payment manager) will login to the OU1_payables manager responsibilityand does the payment.*Similarly, will login to the OU2_payables manager responsibility and does the payment.

In R12:

-------* Create only one responsibility. say, Payables manager responsibility.* Assign this responsibility to the user (payment manager)* Define a 'security profile' in HR in which you will attach the OUs that needs MOAC (Multi-Org Access Control)* Now go into the " MO: Security Profile" option and attach that 'security profile' at

responsibility level.* Now the user can access two different OUs and make payments, sitting at a singleresponsibility without changing the responsibility. I hope it will help you.

Re: How to transfer the funds between internal banks

In Cash Management Module u can transfer funds between internal banksIn R12 Cash Management module, This can be done. There is an option called BankAccountTransfers", through which you can do fund transfer between two internal banks.To Do:


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1. Cash Management > Bank Account Transfers2. Click on 'Create' button.3. Give details of transfer date & transfer amount4. Enter the Source Bank account Number5. Enter the Destination Bank Account Number6. Apply.

Re: Why Retained Earning Account is necessary for the set of book creation while

implementing oracle new business.

HI, RETAINED EARNING IS AN ACCOUNT WHICH BELONGS TO FUNDBALANCE QUALIFIER.AT THE TIME OF YEAR END CLOSING WE NEED TOTRANSFER THE DIFFERENCE BETWEEN REVENUE AND EXPENDITURE TORETAINED EARNING ACCOUNTThen where the difference of Earning and expenditure will go. This account is also called asProfit and Loss account (P&L). As the balance in this account reflect the Profit and loss ofcompany.

Re: What all elements is set for the Responsibilities?

Data group

Request groupMenu

Re: Can I find out which invoices are matched to a PO?

To find Invoices (more than one) to a particular PO going by screen would be tedious.This can be done by a simple SQL on AP_INVOICES_LINES_ALL. where po_header_id isequal to the PO in question. This should list all the invoice lines.

Re: What are the mandatory setups in AP?

There are nearly 7 to 8 setups which are mandatory financial options ---- where we define themandatory accounts

1. Liability2. Discount taken3. Prepaymentif u r not using INVENTORY OR IF THE OR IS NOT HAVING MULTI ORG STRUCTURETHIS IS OPTIONALPayables option,Supplier & bank.Control payables periods.Bank format.Payment termsDistribution are also optional u can carry work without defining.

There are several mandatory steps in AP1. Set up Payables Options2. Bank3. Supplier (Site level information)4. Open payables Period5. Payment Terms6. Payment Method7. Distribution Set


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Re: What difference between position hierarchy and Employee Hierarchy?

in Oracle there are 2 types of approval hierarchies which are as follows:

1. Employee or Supervisor relationships. If you choose to use employee/supervisor relationships,you define your approval routing structures as you enter employees using the Enter Personwindow. In this case, Purchasing does not require that you set up positions. For example whenyou enter an employee in HR you will also enter his supervisor. Now in PO if the employee is abuyer then approver will be his supervisor.

2. Position HierarchyIf you choose to use position hierarchies, you must set up both jobs and positions. Whilepositions and position hierarchies require more initial effort to set up, they are easy to maintainand allow you to define approval routing structures that remain stable regardless of howfrequently individual employees leave your organization or relocate within it.

1. Position Approval hierarchyPosition Hierarchies are hierarchies that have a position relationship. By position, we meanposition that are attached to employees. Purchasing utilizes positions as a roadmap to determine

how and where documents will be routed once the approval process has been initiated. It is firstnecessary to have created all positions that are going to be used in the system. Once all positionshave been created, it is necessary to build the position hierarchy. Each position has approvallimits, so when a purchase order exceeds the limits of the position, the purchase order isforwarded onto the next position in the Hierarchy.

2. Employee/Supervisor approval hierarchyEmployee/Supervisor approval hierarchy uses the employee supervisor relationships.To implement this form of approval routing, you need only to define jobs. The job will thenserve as the tie to the Approval group, and based on the approval limits from the ApprovalGroup, the Document will either be Approved orForwarded to the Employees Supervisor. If no

Supervisor is able to be located and the job assigned to the employee does not have ApprovalAuthority, then the Approving employee must enter a Forward-to person, or the Document willbe returned to an Incomplete status and a notification will be sent to the Approving employee,stating - 'No Approver Found'

Re: What is Zero-Payment in AP

There are certain circumstances wherein we record a debit memo to reduce the liability, (Whatever may be the reason) though the payable balance decreases, the invoice still shows theoriginal amount to be paid, to correct this position we make a zero payment and account isnullified. In order to do this we need to enable Zero payments Check box at Bank AccountDefinition. Site, payment batch will pick up standard invoices as well as debit memos created for

the same supplier site. It may happen that invoice amount is exactly equal to the debit memoamount so at the time of payment confirmation there will not be any amount to pay but still itwill be registered as a zero payment to track the accounting entries in the payable accounting. Atthe time of GL transfer it will also get reflected for that specific liability account. Enable AllowZero Payment checkbox at the bank account level first.

Re: Can anybody tell me, what is the Implementation Process?

Implementations process as follows:


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1. Definitions phasein this phase the project team plan the implementations project and the project team organized.kick of meeting between super user, key user and Imp team. it is just introductions phase.

5. Operations and Analysis PhaseAS IS STUDY AND TO BE STUDY DO DONE and GAP is defined BP40,BP80, RD10, RD20,RD50 AIM's Docs prepare.

3. Solutions design.

High Gap level find out and full fill the GAP to done Workaround and Customizations. BusinessRequirements Map to Applications. BR10, BR30, MD50, MD70 to be prepared.

4. Build Phase

Develop the development instance and Test instance such as BR100, TE20, and TE50 to beprepared

5. Transitions

Testing done in test Instance CRP will done. UAT will do.

6. Productions.Successful done in UAT, it goes to LIVE Find data migrations. Support to Post Productions forparticular period.(as per customer discussion)

Re: What in Invoice Variance in A.P.

What is Invoice Variance in Accounts Payable?Invoice Variance is the difference between the Supplier Invoice and a mix of PO and GRN.What does it mean is that when a supplier's invoice is recorded in the system, systemautomatically compares it with the Price of PO and the Quantity of GRN? Any differencebetween the purchase price in PO and Price in Supplier's Invoice, plus the difference between the

GRN Qty. and the Invoice Qty. toh=gether makes Invoice Variance.

Re: what is a flex field qualifier?

A flex field is made of segments and oracle identifies if particular segment in the accounting flexfield is an account segment or a company segment, based on some predefined values called asflex field qualifiers which are assigned to the segments to look meaningful for defining theaccounting flex field. Eg: Account segment uses Natural Account segment and the companysegment uses balancing segment are mandatory for defining the accounting flex field. Othervalues are Cost center segment, Intercompany segment, secondary tracking segment.

Hi All

In Release R12, There are 6 Flex filed Qualifier.They are:-1. Cost Center Segment2. Natural Account Segment3. Balancing Segment4. Intercompany Segment5. Management Segment6. Secondary Tracking Segment


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Re: What Transactions are captured in Operating unit level and what at Inventory org

level?

OU level:

1) AR & AP invoices2) PO3) Sales Order

Inventory Level:

1) Material Transactions2) Receiving Transactions

Re: Please explain: Automation of Accounts Payable activities (Evaluated Receipt

settlement)

Pay on Receipt (also known as ERS (Evaluated Receipt Settlement) or Self-Billing) is an OraclePurchasing concurrent program, which automatically creates invoices in Oracle Payables andmatches them with PO's automatically for the received amount. The short name for the programis POXPOIV. The Concurrent program Name is : Pay On Receipt Auto Invoice

Re: What is the use of Cost Center?

Cost center is useful to determine the total cost of a particular dept/biz center, for a given period

[may be monthly, quarterly or annually] in order to analyze the past trend and to use forbudgeting/forecasting purpose for a particular center

Re: What is the use of pay group in AP?

Pay group used to payment to selected supplier. for example : company have one Pay group(Employee)for Salary , company will attached Employee Pay Group with all Employee, whenAccounts will pay claims etc TO employee Then Account Will Select only Employee Pay groupsthen System will Selects all Validate Invoice of Employee for Payments

Re: Is Operating unit having branches in different location. I.e. same operating unit have

one branch at Delhi and another one at Mumbai.

An operating unit can have "n" number of braches but the question is at what level do you wantto segregate the sub ledgers data?If both Delhi and Mumbai branches are within one operating unit, then the AP Accountantsitting at Mumbai can access the data pertaining to Delhi Suppliers and Invoices and vice-versa.If this is not a constraint and ok with the business, then one operating unit can be used for boththe branches. But, if the business wants to segregate the data and have a control on the same,then they have to go for two separate operating units. So, though it is possible to have as manybranches as required within the same operating unit, it the business requirement which decides asto whether to go or not to go with a single operating unit for multiple branches.

Re: what is MD050 & what specifications are included in it

MD050 is functional document. Whenever customization requires or any new updates comingfor interact with 3rd party applications then only you need to prepare MD050 document. orMD50 technical consultant will prepare MD70MD50 -------> MD70

Re: What is PO rate variance Gain/Loss?

This account is used to record exchange rate variance gain/loss for your inventory items. thisvariance is calculated between the invoice and either the purchase order or the receipt, dependingon how you matched the invoice Payables uses these accounts to record the exchange rate


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variance gains/losses for your inventory items. The variance is calculated between the invoiceand either the purchase order or the receipt, depending on how you matched the invoice. Theseaccounts are not used to record variances for your expense items. Any exchange rate variance foryour expense items is recorded to the charge account of the purchase order. Payables calculatethese amounts during Payables Invoice Validation.

Re: What is a Hold? Explain the types of Hold

Hold is term payable manually applied. to prevent invoices from payment.There are 3 types of holds.

1. Invoice Hold.- you can manually apply one or more holds on invoice name by using theinvoice hold tab on invoice work bench

2. Schedule payment Hold- you can hold payment on invoices by placing holds on one ormore schedule payments.

3. supplier Hold - In supplier site you can default the following holdsa)Hold all invoices- It holds all invoices relating to the supplier name where this option isdefaulted.

b) Hold Unmatched invoices- It holds the unmatched invoices i,e if the invoices do not match POOr PO receipts the invoice is prevented from payment.

c) Invoice Amt Limit- If the amount exceeds the invoice amount limit. Then the invoice isprevented from payments.

d)Invoice Invalidated- Its prevents the payments for invalidated invoices, Invalidated are thoseinvoices in which the distribution amount does not match with the amount entered on workbench, or If the tax amount does not match.

Re: What is meant by receipt routing?

Means how the material will receive by the Organization. Receipt routing are of three types1. Direct delivery2. Standard receipt3. Inspection required1. Direct deliveryThe material direct come to sub-inv.2. Here 1st come to staging then inv3. Inspection required1st it will inspect then store in sub-inv

Re: Can you hold the partial payment if yes then how?

Yes we can Hold Partial payment. Hold on Partial payment can be applied using "Schedulepayment" Split the payment into two. This way one line can place hold the other one madepayment.

Re: What are all the standard interfaces in the GL, AP, AR, PO, OM and INV?

What are Interface table in AP, AR, GL? AP INTERFACE TABLE:1). AP_INTERFACE_CONTROLS.2). AP_INTERFACE_REJECTIONS


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3). AP_INVOICE_INTERFACE4). AP_INVOICE_LINES_INTERFACE.AR INTERFACE TABLE:1). AR_PAYMENTS_INTERFACE_ALL2). AR_TAX_INTERFACE3). HZ_PARTY_INTERFACE4). HZ_PARTY_INTERFACE_ERRORS5). RA_CUSTOMERS_INTERFACE_ALL6). RA_INTERFACE_DISTRIBUTIONS_ALL7). RA_INTERFACE_ERRORS_ALL8). RA_INTERFACE_LINES_ALL9). RA_INTERFACE_SALESCREDITS_ALLGLINTERFACE TABLE:1). GL_BUDGET_INTERFACE2). GL_DAILY_RATES_INTERFACE3). GL_IEA_INTERFACE4). GL_interface5). GL_INTERFACE_CONTROL6). GL_INTERFACE_HISTORY

Re: On what basis you will define accounting structure

The accounting structure is defined considering different parameters.The two major parameters are :The level at which balance sheet is prepared.The levels at which profitability has to be trackedthis could be provisional as well as net.

Re: whichever documents prepared by the FUNCTIONAL CONSULTANT while

implementing project by using AIM

First Preparing the RD-20 DocumentRD-20: Business Requirement gathering (Like this Document Questioner)

MD-50 This Module Design Document.BR-30 Mapping DocumentTE-40 Test Cases (Unit Testing, Integrating Testing.......BR-100 Setup Document

Re: Why should we run "Replicate seed data" program??

If we run replicate seed data program all the seeded information will be reported to newoperating unit. Seeded information means default information in oracle applications.

Re: what is the difference between balances, account, none (automatic offset methods)?

Automatic offset method:If you enter invoices for expenses or Asset purchases for more than one balancing segment, youmight want to use automatic offset method to keep your payables transactions accounting entriesbalances.

Balance: The liability account for balancing segment value take from invoice distribution & restsegment values will take from invoice headerAccount: The liability account for account segment value taken from invoice header & restsegment values will take from invoice distribution.


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None: The liability account for all segment values take from invoice header.

1) If you enable "Balance": It will replace the Balancing Segment level only while generating anaccounting entry for distributing the invoice. For example, you have raised an invoice topurchase stationary for company two (02) and your default liability account is 01.000.000.1241where is 1241 is a liability account. Now in distribution line you have given the accounting codecombination as 02.111.111.1300 where 1300 is an expenditure account. Now an entry will begenerated in GL as follows: 02.111.111.1300 Dr. 02.000.000.1241 Cr. That means this optionwill automatically offset the Balancing segment from the default segment 01 to 02 in yourliability account.

2) If you enable "Account" the entry will be as follows for the above example: 02.111.111.1300Dr.02.111.111.1241 Cr. That means this option will automatically offset the all other segmentsalong with the balancing segment in the accounting code combination without affecting theaccount head.

3) If you enable "None" then the accounting entry for the above example will be as follows:02.111.111.1300 Dr. 01.000.000.1241 Cr that means nothing will be offsite at any segment in the

accounting code combination. Then this will be an inter-company transaction.

Re: What is meant by quotation and quotation analysis?

Quotation = is a statement consisting of current price of the commodity which the supplier willbe sending to the organization, when we place RFQ

Quotation analysis = after getting the quotation from different suppliers we select the bestquotation, the process of selecting the best is known as quotation analysis.

Re: In Accounts Payable credit memo and debit memo are entered with -ve amount but in

Accounts Receivable why credit memo has -ve amount and debit memo + ve?In Oracle terms credit memo and debit memo decrease the liability and they are applied againstan invoice.The only difference is credit memo is initiated from supplier end Debit memo is initiated fromour end. If we want to increase the liability in payables either you have to create a separateinvoice or do some workaround to achieve it through DM/CM.

IN Receivables the concept is pretty clear as credit memo has -ve amount and debit memo is +ve.In Payable we are receiving the material from supplier. so we have to pay the amount to thesupplier. in case supplier has send the good more than what we order at the point of we have toreturn the goods reduce the accounting balance. we send a memo to the supplier is called as debit

memo or supplier send a memo is called as credit memo. Both of the reducing our liability. InAR module.

We are selling the product to the customer. Either we may forget to add a freight charges orsome other thing. So we have to increase the balance of the customer. So we add debit memoIn case we charge more than the product value so we have reduce the amount.

Re: What is Profile?


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Profile is an option which will change the way of application running we can set the profile valueat 4 levels1. Site level2. Responsibility level3. Application level4. User level

User level is top most level1. SITE : If we set the profile at site level that will applicable all the user2. RESPONSIBILITY: If we set the profile value as responsibility that will applicable to

the users who are having access to the specific responsibility. If user having access tosite, application and responsibility then responsibility will overwrite the site andapplication

3. APPLICATION : If we set the profile value as application to the user who are havingaccess to that specific application if user having both access to site and application levelthen application overwrite site level 4.USER : User is a top most level. If we set profilevalue if user having access to site, application, responsibility and user then user will

overwrite site, application and responsibility

Re: What reports should I run before closing the period?

BEFORE CLOSING A PERIOD IN PAYABLES U NEED TO RUN THEFALLOWING REPORTS,INVOIVE VALIDATION REPORT---> IT VALIDATES ALL THE INVOICESINVOICE ON HOLD--->IT WILL SHOW ANY HOLDS, SO THAT U CAN REMOVE THE HOLDS ANDDO REVALIDATION.IF ANY FUTURE PAYMENTS ARE THERE?

---------------------------------RUN UPDATE MATURED FUTURE PAYMENT ----->THIS WILL CHANGETHE STATUS TO Negotiable.SUBMITT PAYABLES ACCOUNTING PROCESS-----> THIS REPORT LISTSTRANSACTION WITH ERRORS.CHECKS FOR PAYMENT BATCHES ---> RUN FINAL PAYMENTREGISTER, IT LISTS AL THE PAYMENTS.DO THE RECONCILIATION PROCESS ---> WITH CASH MANAGEMENTTRANSFER TO GL --> TRANSFER TO GLCLOSE THE PERIOD AND OPEN FOR NEXT PERIOD

Re: What is difference between match and quick match?

PO Default:Enter PO Default as the invoice type if you know the purchase order you want to match to, butyou do not know to which purchase order shipments or distributions you want to match. Whenyou enter a PO Default invoice in the Invoice Workbench, Payables prompts you to enter thepurchase order number and automatically enters the supplier name, supplier number, suppliersite, and the purchase order currency for the invoice currency. When you choose the Match


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button, Payables will retrieve all purchase order shipments associated with the specified purchaseorder. You can then match to any shipment or distribution.

Quick Match:

Enter Quick Match as the invoice type if you want to match an invoice to all shipments on apurchase order. When you enter a Quick Match invoice in the Invoice Workbench, Payablesprompts you to enter the purchase order number and automatically enters the supplier name,supplier number, supplier site, and the purchase order currency for the invoice currency. Whenyou choose the Match button, Payables automatically matches to each shipment. You can chooseto complete the match or override the matching information.

Re: What is the difference between Electronic fund transfer and wire?

Wire transfers and Electronic Funds Transfer (EFT)

Systems are similar in many ways, and yet differ greatly in terms of their uses and evolution.While wire transfers have long been and continue to be a reliable and popular means fortransmitting large sums of money, EFTSystems have grown so large that they permeate nearly all aspects of modern business andemployment. EFT has become so popular that even the IRS now accepts electronic payments

online for both individual and business taxes.

Wire Transfers

A wire transfer is simply a transfer of money between two banks through a secure system such asFed wire for banks within the Federal Reserve System, or Clearing House Interbank PaymentsSystem (CHIPS), which is owned jointly by its members. Traditionally, for an individual (orbusiness entity) to conduct a wire transfer, he must furnish his bank with the receivinginformation of the recipient's bank in order to initiate the transaction. Generally the sending andreceiving banks must hold reciprocal accounts with each other, but the use of a third bank (andthus the payment of additional fees) that holds an account with both may be used. There are,however, several consumer-oriented wire transfer services that will allow you to transmit money

over great distances without holding an account with any bank, often at higher fee rates. Themost popular example of this type of service is Western Union.

Electronic Funds Transfers

EFT systems simply take the traditional paper check transaction cycle and bring it into theDigital Age. Instead of the receiver's bank using a paper check to initiate a transfer from thesender's bank, a digital signal is generated upon the execution of a transaction and sent throughan intermediary known as a clearinghouse.Read more: Wire Transfer vs. EFT | eHow.comhttp://www.ehow.com/about_5412170_wire-transfer-vseft.html#ixzz0wKPKLH75

Re: When the Internal Requisition will get generate if I define an OSP operation in

sequence 30. 10 & 20 will be other than OSP operations.

It all depends on how u set the Requisition Creation Time parameter in WIP Parameters' OutsideProcessing Tab.1. at Job/ Schedule Release2. at Operation3. Manual


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Re: What are the master data in manufacturing process of Oracle Apps???- Organizations- Sub inventory- Locators- Items- Suppliers- Optional BPA- Sourcing Rules- ASLs- Department- Resources (Man, Machine, etc)- BOM & Routing

Re: User is trying to post a journal but the "POST" button is grayed out. What could be

the problem?

We need to enable the journal approval button after approval of general then button will beenable System admin might have not given him the right to post a journal. He might have onlygiven him the right to enter journals.

Re: In R12 how many key attributes and other attributes are there????In R12 Total 10 Item Attributes, where as in 11i it was 8 item attributes.1. Invoice enabled.2. Internal order enabled.3. Transactable.4. Build in WIP.5. BOM allowed.6. Customer order enabled.7. Purchasable.8. Stockable.9. Process execution enabled

10. Receipt enabled

Re: What do u means by item category, item catalogue & item type?

Item Category is grouping of items.

Item catalogue- List of items available for purchase.Item type- Describes the nature of the item being displayed.

Re: What is the difference between expense item and inventory item?

Expense item- It is the item which is not for sale. (Inventory - It is a Go down where material isstored) Inventory item- It is the item which is available in inventory.

Re: What is the manufacturing part number??????

A manufacturing part number is a unique identifier of a part manufactured in an industry.Ex: - bar code (ex:"100-440-0.750-3434-A")

Re: What is the item relationship and item cross relationship? What is the purpose of it?

Item Relationship- Allows you to search for items through these relationships.


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Item cross Relationship- It is the relationship you establish between an item and some entitylike old item numbers, supplier item numbers.Purpose- These relationships are for inquiry and reporting purposes only.

Can we maintain 2 sob's for one company, how?

Yes we can .if your company is in different location then your set of books is going to different.let us suppose your organization location is in INDIA and in US then your financial calendar isgoing to be different then u have to create 2 set of books for this .accounting flex field in oraclefinancials have multiple structures.

Re: If I want to map a organization structure, where I have 1 operating unit that is looking

after only purchasing and payables activities, whereas another operating unit is looking

after OM as well as receivables. I have one more warehouse or say plant, where I am

manufacturing & dispatching the goods. Will it be solved by setting up purchasing at one

OU and OM at another OU? Do I need to perform any additional setups? Please Suggest.

I could not get the reason for having diff OU for Purchasing and OM separately. Anyway if thisis required, then this can be created as separate OUs e.g. A for PO, AP and B for OM, ARrespectively. Also MFG & dispatching warehouse can be setup as inventory organization in B

OU (OM, AR) and internal sales order setup has to be done between OU A and OU B to transferthe raw material required for manufacturing. Then dispatching can be done from B OU (mfgwarehouse)

Re: What are the Inventory Key flex fields?

Account alias,Item catalogs,Item categories,Sales orders,Stock locators,System items and oracle service item flex field

Re: How do you identify model Type and Option Type BOM in Bill of Material Pages?

You define this in Inventory while defining item master and not in BOM

Re: Types of Calendar? Where we are defining it?

Prorate calendar in FAAccounting cal in GLTransaction cal in GLWorkday cal in INVAccounting Calendar &Transaction Calendar is in GL. Workday Calendar in Inventory Module.

Re: What is difference between Sub inventory Transfer and Move order Transfer?For Sub inventory there is no Approval is required In Move order Transfer we can transferMaterial in steps that we cant in Sub inventory Transfer.Correct, sub inventory transfers are unregulated. Where as a move order requires and approvaldepending on the set up that we provide during inventory organization set up.However, there is an option that if a particular move order request is not approved within aspecific limit, then it should be approved automatically.Sub inventory transfer:->we can transfer material between sub inventories


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->we can't cancel the SI transfer->we can't track the transaction move order transfer:->we can cancel move order->we can track the M O->we can set approval processIn Mo transactions we should follow three steps1. Approve the transaction2. Allocate the quantity and3. Transact the quantityBut sub inventory transaction doesn't have these steps

Re: How many type of BOM are available?

1) Model2) Option class3) Planning4) Standard5) Product family

Re: I have around 10 organizations in our instance. How we can restrict organizations

access to users. Out of 10 he has to access /can see only 4

Use Organization access functionality in Inventory Module. This functionality will restrict theresponsibility at organization levelIn Release 12, Oracle Apps introduces concept of Multi Org Access Control (MOAC). Makinguse of it you can restrict org access to a particular user.

Re: what is an attribute from which we can distinguish an organization and master item

organization?

In Organization Parameters, Under Inventory Parameters tab, Column 'Item Master Organization'should have the same value as the Organization itself. Then this will be the Master Organization.For other Organizations, the Org Code and Item Master Org are different.

Re: Cycle Count?Cycle counting is the periodic counting of individual items in your inventory throughout the yearbased on their ranging.Count items of higher value more frequently than items of lower value.You can perform cycle counting instead of performing physical inventory, or you can use bothtechniques to verify the accuracy of on-hand quantities and values.Cycle Count is divided into two primary functions:ABC Analysis and Defining a Cycle Count.

ABC Analysis:ABC analysis is a method of determining the value of items in your inventory, ranking your

items according to a criterion and then grouping items into classes. "ABC" refers to the rankingsyou assign your items as a result of this analysis, where "A" items are more valuable than "B"items and so on.

Re: what setups are done in BOM?

There are 19 setups available in the BOM. But only 4 isMandatory those are:1) Profile Option2) Workday Calendar


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3) Workday Calendar assign to Organization4) Define parameter (BOM parameter)1. Set Profile Options (Required)2. Define Exception Templates (Optional)3. Define and Build your Workday Calendar (Required)4. Assign Workday Calendar to organization (Required)5. Define Bills of Material Parameters (Required)6. Define Department Classes (Optional)7. Define Resources (Optional)8. Define Resources Groups (Optional)9. Define Simulation Sets (Optional)10. Define Locations (Optional)11. Define Departments (Optional)12. Assign Resources and Resource Shifts to Departments (Optional)13. Define Overheads (Optional)14. Associate Overheads with Departments (Optional)15. Define Alternates (Optional)16. Define Bills of Material Components (Optional)17. Define Standard Instructions (Optional)

18. Define Change Order Types (Optional)19. Define Delete Constraints (Optional)

Re: What is Reorder point and Reorder quantity? And what is its significance?

Recorder Point is a minimum level of the on-hand inventory stock; when the on hand stockreaches this point, an automatic requisition is generated. Reorder quantity is the governed bymultiple factors like - safety stock or maximum quantity; supplier BOD; Lead time, minimumorder quantity etc.The significance is to ensure handling of shortages which enables smooth manufacturing.Reorder Point = Safety stock + planned receipts during lead time.Reorder Qty = How much quantity to be ordered when stock reached below reorder point.

Significance- There is used in reorder planning.

Re: What is accounting class and where is it defined in WIP?

Accounting classes are assigned and used when jobs, work orders, and repetive assembliesassociated with production lines are defined.Generally standard discrete, asset non-standard discrete and expense non-standard discrete.We need to assign an accounting class all your discrete jobs.

Standard Discrete

Standard discrete accounting classes can be used to group job costs. For example, if youbuild subassemblies and finished goods, you can define your accounting classes so that

you can separately value and report the costs associated with subassembly and finishedgoods production. Standard discrete accounting classes can be automatically defaultedwhen you create discrete jobs.

Non-Standard Discrete

Non-standard discrete accounting classes can be used to group and report various typesof non-standard production costs, such as field service repair or engineering projects.For example to track recurring expensesmachine maintenance or engineering projects- with non-standard jobs, you can define and assign an accounting class with a type of


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expense non-standard to these jobs. Repetitive Accounting Classes Repetitive accounting classesare used to group production costs and must be assigned to each repetitive line/assemblyassociation that is created. Every schedule for that assembly on that line uses these accounts. Theaccounts are charged whenever you transact against the line/assembly association. Repetitiveaccounting classes can be automatically defaulted when you associate repetitive assemblies withproduction lines

Navigation is -Work in process-->setup-->Wip accounting classes

Re: What are the master data in manufacturing process of Oracle Apps???

Organizations- Sub inventory- Locators- Items- Suppliers- Optional BPA- Sourcing Rules- ASLs- Department

- Resources (Man, Machine, etc)- BOM & Routing

Re: what is difference between to manufacturing lead-time and total lead time and total

cumulative lead time?

Cumulative Manufacturing Lead Time: The total time required to make an item if you had allraw materials in stock but had to make all subassemblies level by level.Cumulative Total Lead TimeThe total time required to make an item if no inventory existed and you had to order all the rawmaterials and make all subassemblies level by level.

Re: What are phetom item? How are they user in business case?It is the non-stock able item .phantom items are treated just like assemblies except that thephantom item itself does not show up when an assembly is exploded. The child items of thephantom are blown through and appear as children of the parent item to the phantom.For example, I have an assembly called 5887M which contains a phantom item called 445-0001.When I add the 5887M to a work order and explode the 5887M, the 445-0001 will not appear inthe pick list, but its children will appear.ERP handles phantom items in work orders in the following way. A phantom item will beexploded so that all its child items will be in the work order. After the work order is exploded,you will notice that the phantom item will not appear in the exploded BOM of the work order.Open this post find you well.

Phantom means that which has only an apparent existence.Type Assembly (Phantom) = Type + Flapper + Rim + tubeBut you never buy it, only Type + Flapper + Rim + tube are bought. Only get it prepared on theshop floor for the faster production. When it will be exploded in the WIP Job, the 4 item willappear and will be consumed not this phantom assembly.As a manufactured item, a BOM (Bill of Material) and Routing exist, but for productionefficiency this item has been chosen to be built as part of the parent process, and therefore no


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longer stocked and issued. This eliminates unnecessary work orders, stocking and issuing,streamlines the production process and reduces costly labor hours.

Re: If any person asks what you know about AIM? How briefly we can explain b'coz we

cont explain AIM in short time.

AIM methodology consists of 6 phasesDefinitionOperation AnalysisSolution DesignBuildTransition, AndProduction

Re: What setups are done in WIP?

Below is general WIP set up.1. Define WIP parameters (Req.)2. Define WIP Accounting Classes (Req.)3. Set WIP Profile Options (Req.)4. Define Production Lines (Optional)

5. Define Repetitive assembly (Optional)6. Define Schedule Groups (Optional)7. Define Employees (Optional)8. Define Employee Labor Rates (Optional)9. Define Shop Floor Statuses (Optional)11. Define Job/Schedule Docs (Optional)12. Define Operation Documents (Optional)

There are some many settings are there but 4settings are required for making any transitions1) wip parameter setting2) wip profile setting

3) Wip account alias settings - very imp while running OSP cycle

Re: What is work order less Transaction in WIP?

Work order less completion in WIP helps us to complete the job manually without creating a jobexample.Suppose client wants to continue a job creation function in other ERP like PeopleSoft, SAP butthey wants to track inventory in Oracle apps at that we used to go for Work order lesscompletion.You can do all of the following on the Work Order-lessCompletions window: -Complete unscheduled or scheduled assemblies to Inventory -Returnunscheduled or scheduled assemblies from Inventory -Scrap assemblies from and return

scrapped assemblies to any operation-Explode the assembly's bill of material and add, delete, and change components-and reviewitems under lot and serial number control-Specify lot, serial, and lot and serial information for assemblies and components.-Create material reservations for assemblies that are linked to sales orders-Replenish production kanbans

Re: How do you ensure on and availability are daily base for min max planning?

Schedule Min-max planning report daily basis


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Re: how CAN we define by Product in Discrete Mfg?

By Product can be defined as item in the item master and the same is assigned to the respectiveBOM with negative quantity.

Re: What you about Mutually Exclusive in BOM?

Mutually Exclusive is applied to the Option Class. This means that only one option under theoption class can be selected.

Re: What are step included to make a final assembly?

Define all items in inventory.Define the resources, which are going to work on it.Define the Departments.Define the Standard operations.Define the Routing.Define the Bill.In WIP, define the parameters and Discrete Job. Then in Move transaction, complete the job, thisabove process make your final assembly to complete.

Re: Explain the OSP cycle?Let me complete this answer: -

1) Create Item and enable the Outside Processing attribute under Purchasing Tab and apply thePurchasing Template on it and assign the item to manufacturing Organization.

2) Go to BOM-->Routings-->Resources: Create Resource withFollowing attributes: -Resource Name: Item created in step 1 (recommended but not mandatory)Resource Type: PersonCharge Type: PO Receipt

Outside Processing: Enable itItem = Item Created in step 1Make cost enabled and enter the OSP account.

3) Create Department but remember: -a) Naming like CM (Contract Manufacturingonly recommended)b) Location (Mandatory) otherwise WIP will have problem.c) Go to Resource (Button) enter resource created in step 2.d) Enter Shift (this is related to the calendar for this mfg org). If the resource if 24 hoursavailable, then not required.

4) Create Operations:

a) Name (like OSP)b) Department (created in step 3)c) You can enter the resource(s) required at this operation (created at step 2, but optional). ifentered, will default at your routing. You can enter the usage here or at routing level also.

5) Create Routing (normal process, assembly code. Remember this is not the item created in step1) and add the Operation where you need osp service. Please note that you can attach this OSPOperation at Master routing or can create another routing with an alternate. Generally alternate isrecommended.


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6) Create BOM and enter routing created at step 5.Note that if the routing is on alternate, then,try to have the BOM also on alternate. This will be your OSP BOM.

7) WIP-->Discrete-->Create Job and enter the assembly at operation 6.Release the Job, if the ASL is created and Blanket is available, requisition and release will becreated automatically after the job is released. If the ASL and Blanket is not available then onlyrequisition, provided in item, use only ASL flag is unchecked.

Re: What is yield point?

It is nothing but how much output we can get from the input

Re: What do you mean by Planning Item?

A planning item can represent a product family or demand channel. Its bill of material facilitatesmaster scheduling and/or material planning. The total component planning percentages on aplanning bill can exceed 100%. Oracle Order Management does not allow ordering of PlanningBills

Re: What to mean by Multi Org? What are all the multi org setups?

It uses a Single installation to support any number of organizations, even if those organizationsuse different set of books.

Setup:1) Business Group2) Set of Books3) Legal Entity post to a set of books4) Operating unit is part of a Legal Entity5) Inventory Org are part of an Operating unit

Re: What all different type of supply type are three and what are their use?

There are following supply types:1. Operation Pull2. Assembly Pull

3. Push4. Supplier5. Bulk6. Phantom7. Based On Bill

The purpose of putting a supply type is how you want system to consume the material is right asdescribed by Navdeepinder above.As if you give PUSH type supply the material will consumed and reduced from sub inventory assoon as u release the job.For Operation pull, material will be consumed as soon as you do first operation on the job while

doing the MOVE TXN.For assembly pull the material will be consumed when you will complete the assembly.Bulk is issued in bulk and they are low value item like nuts, Bolts etc.

Phantom: Always used against Phantom Items.

Based On Bill: The supply type defaults to Based on Bill. This supply type indicates thatcomponent requirements are supplied based upon their individual supply types. You can overridethis default by choosing one of the following


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supply types: Push, Assembly Pull, Operation Pull, Bulk, or Supplier

Re: What is an ATP and what are their rules?

Re: how to give a decimal and fraction quantity in transaction like 1.25, 3.5, 1.999.

We can enter a decimal / fractional quantity on sales order by ensuring 'OM indivisible' flagchecked in the item definition (Physical attributes tab)

Re: What is the difference between std job and non std job?

Standard Job (WO): For manifesting a fresh product on the shop floor. Mandatory to haverouting, BOM etc. You sell this product to customer using OM.Non Standard: When product is returned by the customer for some defects, it is receivedthrough RMA and a WO (Repair Work Order) is created to repair it. This time the Job is NonStandard Job.Standard Job: This is used for the manufacturing or Processing of regular Assemblies.Non-Standard Job: This is used for Rework, Service Item or Expense Item.

Re: What all different type of resources is there?

A Resource is anything required to perform, schedule or cost an operation for example anemployee or machine. A resource and usage rate for all scheduled activities is required in arouting. Scheduled resources can include queue, setup, run, and move time.Different types of resource can be created to reflect the actual staging or manufacturing resourcebeing planned.A resource type can be a person (e.g. technician, specialist, etc.), a machine or physical space.Other types are available (amount, currency, miscellaneous) but only the prior ones will be usedat this point.

Re: you have created a purchase order, it is approved also. Now you want to change in the

purchase order, how can you do that?

Once approve the purchase order u can change amount or quantity. This is called Revision of thepurchase order. Once you revision the purchase order purchase order number will go like this"1201-1". You need again sent for approval of this purchase order.

Re: you have received excess money from the customer. now you want to refund the excess

money. What is the set up for that?

In Oracle Apps 11i,

1st create a credit memo against the customer invoice and apply the credit memo with thisinvoice. Then create the customer as a supplier in AP and create a invoice and do the payment.

In Oracle Apps R12,1st create 1 Refund activity called "Customer Refund". Then query the receipt in receiptwindow, and click on the apply button, select the "Refund" in apply to column and click theRefund attribute button. Enter the required field in the new window, and save the record. As yousave the record "Refund Status" button will visible on the screen. Click on "Refund Status"button, system automatically create a AP invoice against the trading partner.

Re: MIN and MAX number of segments in Chart of accounts?

You can have min 2 if you are not implementing Assets/Project. (Balancing & natural Account)


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If you are implementing Assets. Projects then u have to have 3 minimum segments. (Balancing,Cost Center & natural Account)

Re: If balancing account is not assigned to company & is assigned to department what will

be the effects

Then the accounts have to balance at dept level, and not at company level in most cases which isdesirable to balance account at company level.

Re: What's the difference between cross validation rules and security rules?

a. Cross Validation rules Rules that restrict the user from entering invalid key-flex fieldsegment value combinations while data entry. E.g. you may set up a cross validation rule thatdisallows using department segments with balance sheet accounts

b. Security RulesA rule that allows restriction on segment values or ranges of segment valuesfor a specific user responsibility

Re: What is the Mandatory profile options used in Multi Org?

Five profile options are mandatory

1. HR: Security Profile2. MO: Security Profile3. GL Set of books name4. MO: Operating Unit5. HR: User type

Re: What is the order in setting up GL? Which comes first - COA, Calendar & Currency?

I feel there is no specific order in which u has to define them. They are independent and can bedefined in any order.

Re: Define the Multi Org? What is difference between 11i and 12i Multi Org Structure?

The multiorg architecture is meant to allow multiple companies or subsidiaries to store theirrecords within a single database. The multiple Organization architecture allows this bypartitioning data through views in the APPS schema. Multiorg also allows you to maintainmultiple sets of books. Implementation of multiorg generally includes defining more than oneBusiness Group.Basically the different entities in multi-org are: Business Group (BG) Sets of Books (SOB) Legal entities (LE) Operating units (OU) Inventory organizations (IO)

Hi,If the org has more than an operating unit (least level) then the org structure can be called asmulti-org. The difference in multi-org in 11i & R12i is "MOAC" concept(Multi-Org AccessControl) MOAC provided the role based access, shared services, to perform multiple tasks acrossdifferent operation units from within single application responsibility.It is controlled by MO: Security profile.FYI:R12 Architecture itself completely different and changed from 11i.


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Re: WHAT IS MONDATORY STEPS FOR PAYABLE MODULE BEFORE ENTERING

TRANSACTION?

1, Choose Set of Book2, Financial Option3, Payables Option4, Bank Setup5, Supplier Setup6, Payment TermsThese are the main mandatory set-ups which we need to follow before entering any transactions

Re: How to determine that multi org is already implemented?

Run the following query connected to SQL* plus as the apps userSql> select Milti_org_flag from fnd_product_groups;If this query returns 'y' then multi org is implemented. If this query returns 'n' then multi org isnot implemented

Re: What are the types of receipts?

THERE ARE THREE TYPE OF RECEIPTS in receiving

i) UNORDERED Receiptii) substitute receiptiii) Blind Receipt

There are two types of receipts in purchasing1) Express2) Cascade

Re: How many views are generated when compiling flex field structure ?

Two views are generates will compiling flex field one is user defined and another is systemdefinedGL_CODE_COMBINATION_KFV (KEY FLEXFIELD VIEW)

Re: dear gurus i would like to know about Flex field qualifiers

it describes the nature of the individual segments.. Two qualifiers are mandatory..

1 natural accounting FF qualifier: for the account segment, we cant enter any journals withoutthese accounts, means proper account is must for any entry..

2 balancing FF qualifier: for company segment, so we need to track all the reports undercompany level only and most important is journals are balanced at balancing segment, meansdebit = credits.

Re: What are the mandatory accounts that need to be setup in Set of Books?The first mandatory account is Retained Earnings Account. But based on other Standard Optionsselected, the other mandatory accounts are,a. Suspense Accountb. Rounding Differences Accountc. Cumulative Translation Adjustment Accountd. Reserve for Encumbrance Accounte. Net Income Account


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Re: What is the different type of Special calendars?Four type of Special calendars in payables1. Reccuring calendar2. Withholding Tax calendar3. Payment term calendar4. Key indicator calendar

Re: Can I Change the Value set once it attach to MY COA and can i post the journal

entries with assigning the value sets it the COA

YA U CAN CHANGE THE VALUE SET EVEN AFTER ATACHING IT TO ACOA,PROVIDED U HAVE NOT MAKE ANY TRANSACTION WITH THIS COA.JUST UNFREEDGE THE ACCOUNTING FLEXFILD AND U WILL ABLE TOCHANGE THE VALUE SET.AFTER CHANGINH RECOMPILE THE A/CFLEXFIELD.BUT U IF CHANGE THE VALUE SET AFTER MAKING TRANSACTION INTHE COA.IT WILL CREATE DATA INCONSISSTENT PROBLEM.

Re: Is Operating unit having branches in different location. I.e. same operating unit have

one branch at Delhi and another one at Mumbai.

An operating unit can have "n" number of braches but the question is at what level do you wantto segregate the sub ledgers data?If both Delhi and Mumbai branches are within one operating unit, then the AP Accountant sittingat Mumbai can access the data pertaining to Delhi Suppliers and Invoices and vice-versa. If thisis not a constraint and ok with the business, then one operating unit can be used for both thebranches. But, if the business wants to segregate the data and have a control on the same, thenthey have to go for two separate operating units. So, though it is possible to have as manybranches as required within the same operating unit, it the business requirement which decides asto whether to go or not to go with a single operating unit for multiple branches.

Re: What in Invoice Variance in A.P.

What is Invoice Variance in Accounts Payable?Invoice Variance is the difference between the Supplier Invoice and a mix of PO and GRN.What does it mean is that when a supplier's invoice is recorded in the system, systemautomatically compares it with the Price of PO and the Quantity of GRN? Any differencebetween the purchase price in PO and Price in Supplier's Invoice, plus the difference between theGRN Qty. and the Invoice Qty. toh=gether makesInvoice Variance.

Re: Can somebody provide me the various or at least most frequent issues a support

consultant deal with?

t all depends on the nature of the project that u handle in support.

Some Issues are:1) Holds on AP Invoices2) Partial Accounted Invoices3) Partial accounted Payments4) Unaccounted Invoices5) Reporting Issues6) Month end closing issues


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Re: Can anyone tell me why in some tables in AR, AP, GL modules they r using int_all

after every table

_all will represent the multiorg tables

Re: why we create diff calendars for each module

In Payables we define Special Calendars for controlling the transaction, like payment terms,withholding tax etc. In Assets we define calendar for to calculate deprecations for the assets.

Re: what is withholding tax

The amount which is deducted from the supplier invoice and withheld with the company for thepurpose of paying that amount to the tax authority on behalf of the supplier is called withholdingtax.

SETUP1. Create a Special Calendar for withholding tax2. Create a supplier of Type Tax Authority3. Create Tax CodeGive the Tax Code name and Select the type as withholding Tax.Give the GL Account for withholding tax.

Provide the withholding tax details: Select the Tax Authority, site and the withholding specialcalendar Rate Structure like flat rate /amount ranges / period limit Select the Tax type : Standard/ Penalty And give the rate.

4. Create a withholding tax groupNow allow the withholding tax for the suppliers to whom you want to withhold the amount fortax. This is achieved by enabling the allow withholding while supplier creation step. So,whenever you create an invoice the withholding tax will be applicable for that supplier.

Re: What is Reoccurring Invoice? What is the default invoice date for recurring invoices ?

When you are raising an invoice in each month for same supplier and same amount. you can

create recurring invoice setup for accounts payable module. for this we need to create specialcalendar.

Re: Is it possible to change the functional currency during the mid of financial year ?

Rule of thumb is once the ledger is created (whenever), you cannot change the functionalcurrency. Only Choice will be to create the new ledger ..I may wrong though..Oracle 12allows secondary ledger where you can change all 3 c..but I dont think you can changefunctional currency after the ledger creation..In Release 12 no more 3'cs that is 4c's1. Chart of account2. Currency

3. Calendar4. Accounting method/Accounting convention (New)

Re: Can a Flex field Qualifies be changed after it has been created?

Yes. You can change it, subject to there is no journal entry is posted, and at the initial stage of setups. But, not recommended if the transactions are stored for the said accounting flex field. Oraclewill stop supporting then.


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Re: Why are expenses items typically accrued at period end, and why are inventory items

always accrued on receipt?

As per Matching Concept all costs which are applicable to the revenue of the period should becharged against that revenue in order to determine net income of the business. Inventory itemsare always accrued at receipt because you cannot book liability without receiving the asset.

Re: What is terms date basis?

Terms Date Basis is to calculate due date.Due date is calculated 4way.Eg: payment term is 30daysDue date = Sysdate + 30daysDue date = Invoice date + 30daysDue date = Goods Receive Date + 30daysDue date = Invoice Received date + 30days

Terms Date Basis. Date from which Payables calculates a scheduled payment for a supplier.The default is one of the following Payables options you defined for Terms Date Basis.o System. When you enter invoices, Payables defaults the system date as the terms date.o Goods Received. When you enter invoices, Payables prompts you to enter the date you

received the goods that are included on the invoice as the terms date.o Invoice. When you enter invoices, Payables defaults the invoice date as the terms date.o Invoice Received. When you enter invoices, Payables prompts you to enter the date youreceived an invoice as the terms date.

Re: What is the difference between Rollup Groups and Summary Accounts? What is the

use of those?

Rollup group & summary group they go together, and are not different functionalities. If we havehuge accounting structure with many child account and parent during the process of trial balancegeneration it is faster if summary accounts are created. Summary Accounts get updatedinstantaneously; where as in the normal course oracle needs calculate all the balances.

Define a Parent Value For a child range Define a Rollup group Assign a Rollup group to ParentValue Define Summary Accounts and call the Rollup group.

Re: Tell me steps for Period closing Process in AP?

1. Complete All Transactions for the Period Being Closed2. Run the Payables Approval Process (Invoice Validation Program in 11i) for AllInvoices/Invoice Batches.3. Review and Resolve Amounts to Post to the General Ledger.4. If there is any Hold on the Invoice it will not accounted. So we need to remove all the holds onthe invoices.5. Review the Payables Accounting Entries Report

6. Review the Unaccounted Transactions Report7. Confirm all Payment Batches8. Reconcile Payments to Bank Statement Activity for the Period9. Transfer All Approved Invoices and Payments to the General Ledger.10. Review the Payables to General Ledger Posting process After Completion.11. Payables Accounting Process Report?(to review accounting entries created by payableaccounting process)12. Submit the Unaccounted Transactions Sweep Program.


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13. Close the accounting period by using the Control Payables Periods window to set the PeriodStatus to Closed.

Re: Can I increase/Decrease the size of value set?

You can increase the size of the value set but you cannot decrease the size of the value set.

Re: What does the Unaccounted Transaction Sweep Report do?

The Unaccounted Transactions Sweep Program transfers unaccounted transactions from oneaccounting period to another. The program rebates all accounting dates of all unaccountedtransactions to the first day of the open period you specify.

Re: How to transfer funds between your internal banks?

Inter Bank transfers can be handled in two ways.1. By using the Cash Management functionality.OR2. You need to create a supplier and a customer in the name of your company. These should beused only for fund transfers (with fund transfer sites) You can raise a standard invoice in AP onthe Supplier ( Your Co. as supplier ) then make the payment selecting the bank account fromwhich u are transferring funds. Now in AR you can create a Debit Memo on your company's

name (Customer) and book a receipt selecting the bank in which the funds are to be transferredand apply the DM to the receipt.Finally at the month end you can pass a manual JV in gl and clear off the balance remaining inthese accounts.

Re: As Supplier Header Information can share from another operating unit. Not Sites and

other information...... but for a supplier if one OU (1) has made a prepayment..and other

OU(2) of the same balancing segment has to make a payment to the same supplier. .the

prepayment available with that supplier is overlooked or not considered.is it true

The question is not quite clear but from the above statements i infer that supplier site

informations will not be shared between operating units. Payables are at a operating unit level.While making prepayment to a supplier the pay site has to be selected to where the prepaymenthas to be made. Hence when the same supplier want to apply an invoice in another OU to theprepayment in this OU it will not permit. Yes it is true payables in apps is at operating unit level.So applying prepayments between OU's is not considered.