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Oracle SCM Functional Interview Questions & Answers - Inventory Module

Part I
Refer: http://learnoraclecsbscm.blogspot.com
1. Operating Unit 1 (OU1) has 3 Inventory orgs say M1, M2 & M3 and Operating Unit 2 (OU2)
has 3 Inventory orgs say S1, S2 and S3. OU1 & OU2 has different Set of Books (SOB) and
Legal Entity (LE). Now is it Possible to change the Operating Unit (OU) for Inventory Org S3
from OU2 to OU1. If Possible, what are the Inventory Setup requirement needed? Also, what
are all the financial impacts?
No, its not possible to change an inventory org from one OU to another.
2. Please explain the concept of 'Genealogy' in Inventory Management?
Genealogy is the maintained for all Lot controlled and Serial controlled items. Lot Genealogy
tracks the relationship between lots and provides lot traceability that result from inventory
transactions.
Serial genealogy tracks the transaction and multilevel composition history of any serialcontrolled item from receipt through work in process and inventory to your customer sale.
The composition genealogy is captured through material transactions in Oracle Work in
Process.
3. During closure of inventory period, system throws an error stating pending transaction exist
for this period? How to resolve this and close the Inventory period?
Navigate to inventory accounting period, click on the pending task and identify the nature of
the task which is pending and resolve as per issue.
4. What is concept of Multi-org? What is the purpose of running concurrent request Replicate
Seed Data?
Multi-org means single installation of Oracle Applications will support multiple organizations
with the use of different Set of Books. Multi-org supports any number of Legal Entities.

Replicate seed data is a concurrent program used to replicate the generic data attributes such
as Supplier, customer header information across OUs. This program is typically run after
creation of new OUs.
5. Whats the difference between Cycle counting and Physical inventory?
Cycle counting is recurring and more often phenomena compared to Physical inventory. Cycle
counting typically happens for A class items on periodic interval say every quarter.
Physical inventory is done on an annual basis for all items in the inventory.
6. What transactions would be available in Item Supply/Demand form?
Demand such as Sales order booking
Supply such as Purchase orders, requisitions etc.
7. Which report should I run for viewing item on hand quantity across organization?
Multi-organization Quantity Report
8. What are types of managers in Oracle?

Cost Manager

Lot Move transaction Manager

Move Manager

Material manager

9. Whats the difference between nettable and non-nettable sub inventories?


Nettable sub inventories are the only sub inventories which are used by MRP/ASCP engines
for identification of any supply for an item
Non Nettable sub inventories are not considered by planning engines as sources of supply.
10. What transactions would be available in Transaction Open interface?

Transaction Open interface is a key interface through which user can submit transactions.
Transaction open interface can process different transactions to do on hand conversions from
legacy systems and do other transactions like sub inventory transfer, account alias issue /
receipts etc.
The transactions could involve Lot and /or serial controlled items.
11. What is the difference between Intra-class and Inter-class UOM conversions?
UOM conversions that happen within the same UOM class (Quantity, Weight) are known as
Intra-class UOM conversions. (Kg to Pounds)
UOM conversions that happen across UOM class are known as inter-class UOM conversions.
12. In Shipping Networks, whats the role of field FOB?
Receipt: The shipping organization owns the shipment until the destination
Organization receives it.
Shipment: The destination organization owns the shipment when the from
Organization ships it (and while the shipment is in transit).
In EBS, Free on Board is specified in shipping network for the system to recognize the costing
impact of inter-organization transaction. If FOB is set as Shipment then costing of transaction
would happen during sale order shipment. If FOB is set as Receiving then costing of
transaction would happen during Receipt of item in the requesting organization.
13. What is the purpose of Organization Access?
Organization Access is used to restrict responsibilities to organization. Once this mapping is
set up, a user logging into an Oracle Manufacturing product is restricted to the organizations
mapped to the responsibility chosen.
14. Client doesnt have business practice of issuing transactions that would drive inventory to
have negative balances, how would you setup this requirement in EBS?
In organization parameters form, ensure the Allow negative balance checkbox is not checked.

15. Can I perform Sub-inventory transfer to transfer items across organizations?


Sub inventory transfer can be used to transfer items from one sub inventory to another within
a single inventory organization.
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