33 Most Important Oracle Fusion Procurement Interview Questions

33 Most Important Oracle Fusion Procurement Interview Questions

Question 1:

How many types of purchase Orders in Oracle Fusion ?

In Oracle fusion , We have four types of Purchase orders.

1. Blanket Purchase Orders

2. Planned Purchase Orders

3. Standard Purchase Orders

4. Contractual Purchase Orders

Contractual Purchase Orders:

Contractual Purchase Orders we creates with the Supplier , to agrees on the Specific terms and Conditions but not mentioning any Purchase Item or Service we will be use from that supplier but later on we creates the Standard Purchase Order to that Supplier giving  reference to the Contractual Purchase Orders number and then mentions Purchase Order Items and Prices also.

Planned Purchase Orders: -

Standard Purchase Orders & Planned Purchase Order are quite same but the only difference is this Standard Purchase we do create for single time commitments but Planned Purchase Order for the Long time commitment with the Suppliers. We enter PO items and its quantity and its Purchase Price also. We also provided tentative delivery schedule for the PO Items also.

Standard:

Standard Purchase Order is the most common Type in Oracle apps. We create this type of PO when we want to send One Time Purchase Request to the Supplier. This is the Single Time commitment with the Supplier. We enters the Standard Purchase Order with the Item Detail its Quantity, Item Price , and the need by Need by Date when we want this Item in our Company.

Blanket Purchase Orders:

Blanket Purchase Orders, we create when we are creating the Long Time Purchase Agreement with the Supplier. This Means, We are doing contract with the Supplier only for the PO Item Price that in future we will create Purchase Request for this Item with this Same price.

33 Most Important Oracle Fusion Procurement Interview Questions

Question 2:

Types of Purchase Requisition in Oracle Fusion?

Purchase Requisition is a kind of material request to purchase/buy or some time from internal stores. In purchase Requisition , we do specify which items we need to procure , what’s the quantity we need and which org or department need this material.

There are types of Purchase Requisition in Oracle Fusion

1.Internal 

2.External

Internal Requisition: Internal Requisition, is a kind of request of material within the organization. In Internal Requisition we don’t procure or buy material from outside org but in this we have material inside our org in inventory store in different location and we request to transfer this material or item from store to that location.

External Requisition: In External Requisition, We do procure or buy material from outside organization. In this we mentioned our material request to procure and based on that purchase team purchase this material from external vendors.

Question 3:

What is ERS in Procurement?

ERS is the Payment on receipt program. This program helps to create the Payables Invoices automatically from Purchase order receipts. ERS or Pay on Receipt program is also one of the standard methods which helps to create the Payables invoices automatically from the Purchase Order Receipts. So, it means whenever we will do the Receiving against the Purchase Order then after that Pay on Receipt program will automatically create the Payable Invoices for that Purchase Receipt. Pay on receipt program will create the Invoices amount on the basis of Quantity received and price of the Item mentioned in the Purchase Order.

The lines of the Ap Invoice will depend upon the number of Items received in the Purchase Receipt.

The amount on the invoice is determined by multiplying the Quantity received by the Purchase Order Item Unit Price. The Payment Terms on the invoice default from the purchase order payment terms. The Payment Currency defaults from the supplier site. Sales Tax is calculated based on the Tax Codes on each Purchase Order Line.

If the Alternate Pay Site is populated for the Supplier Site used on the Purchase Order, the invoice created is for the Alternate Pay Site, otherwise the Supplier Site on the Purchase Order is used. The Supplier Site used for the invoice must be defined as a Pay Site

Question 4:

What is PO matching and what are the types of PO matching available in oracle fusion purchase orders?

In Purchase orders, we define the matching ways and based on that we match the purchase order with the given supplier invoices in oracle fusion. These PO matching ways plays an very important roles in Supplier invoices and its matching with the given purchase order.

3 PO matching Options in Oracle Fusion Purchase Orders.

1.2-Way

2.3-Way

3.4-Way

In 2-Way Matching , We do match the Supplier Invoice directly with the Purchase Orders. In this, Supplier Invoice qty should match with the supplier purchase order qty.

In 3-way Matching, We do match the supplier Invoices with the Purchase order Receipts. In this, Supplier Invoice qty should match with the Purchase Order receipt qty and with supplier purchase order qty too.

In 4-Way Matching, We do match the supplier Invoices with the Purchase order Receipts accepted qty after inspection. In this, Supplier Invoice qty should match with the Purchase Order receipt accepted qty and with supplier purchase order qty too.

Question 5:

What is the use of Sourcing rule in Oracle fusion Procurement?

Sourcing rule is one of the key process in planning. In sourcing rule , we define Inventory items will be purchased from which suppliers and what’s the percentage of the purchase from each supplier so when we will run the planning in system, system automatically creates the Purchase requisition for the Inventory items to that suppliers based on the sourcing rule. 

Question 6:

How many types of approval hierarchy we have in Oracle Procurement?

We can create three types of approval hierarchy for Purchase Order and Purchase Requisitions.

1.Employee supervisor Hierarchy.

2.Employe Position Hierarchy.

3.AME

In Employee supervisor Hierarchy, PO and PR approval works based on the supervisor hierarchy.

In Position Hierarchy, we design the approval based on the Positions.

In AME, we can design any type of approval based on our requirement.

Question 7:

What is Purchase Order Revision in Oracle fusion Procurement?

After Purchase Order approval in Oracle Fusion system, if we will make the changes in the approved purchase order then system will create the new revision of that PO and this PO will again unapproved. We need to send this purchase order for approval again. 

We have the setups In Oracle fusion Procurement based on that we can control in which changes in the approved purchase order system will create the new revision.

Question 8:

What is the action step to stop receiving the specific purchase order line?

If we want that, the specific po line should not be approve, we can cancel that PO line. Cancelled line never shows for receiving.

Question 9:

Which user can create the Purchase order in Oracle fusion?

To create the purchase order, user should have the employee access in system. User employee should have created as buyer in oracle fusion.

Question 10:

What is the difference between need by date and the Promised date in Fusion purchase order?

We do define the need by date and the Promised date in Fusion purchase order. 

Need by Date means, the date in which we require the material from the supplier to our location. Need by Date provided by Organization to supplier.

Ship by date means, The Max date in which supplier will deliver the material to our location. Ship by dat provided by the Supplier to Organization.

Question 11:

Which two job roles can access the Procurement Dashboard?

A. Buyer

B. Procurement Manager

C. Procurement Preparer

D. Procurement Requester

E. Category Manager

Answer: B & D

Answer Explanation:  Procurement professional responsible managing a group of buyers in an organization. We need any one role from Procurement Manager & Procurement Requester to access the Procurement Dashboard.

Question 12:

You gave the Procurement Catalog Administrator role to a buyer of the business unit "BU1"

but when the buyer is trying to define a catalog in "Select and define catalog", the buyer is unable to

find "BU1" in the "Procurement BU" list of values.

Identify the reason for this ?

A. The "Manage Catalog content" action is not enabled for the buyer in the Procurement

Agent page.

B. The "Procurement Catalog Administrator BU1" data role is not assigned to the buyer.

C. The "Local Catalog administrator BU1" data role is not assigned to the buyer.

D. The "Catalog Management" business function is not enabled for BU1.

Answer: B & D

Answer Explanation: First thing is the data role which we need to confirm which provides access to BU and the second thing we should check is Catalog Management" business function.

Question 13:

During an implementation, the Buyers will like to access the OTBI reports that are available in the Cloud Purchasing application. Identify the way to provide them easy access to Purchasing related OTBI reports? 

Options:

A. Train the buyers to navigate to 'Functional Setup Manager' to access the reports 

B. Ask the buyer to run Scheduled Process to run the OTBI reports for Purchasing 

C. Train the users to navigate to Business Intelligence applications to access the reports 

D. Enable the OTBI reports in Purchasing work area 

Answer: D

Question 14:

What is ASL in Oracle Fusion procurement?

ASL means the approved supplier list in oracle fusion. Approved supplier list helps to create the automatic PO creating in oracle apps r12. Oracle system automatically select the supplier list from approved supplier list based on the purchased item for creating purchase orders

Question 15:

During a Procurement Contract implementation, a customer would like to set up approvals for procurement contract documents. The customer has four departments and any contract needs to be approved by all the four department users. Identify the configuration to fulfill this requirement ?

Options:

A. Set up employee supervisor hierarchy for all four department users and add them to an approval group. 

B. Set up one approval group and include the four department users with voting regime as first responder wins. 

C. Set up user group for the four departments and set up individual rules for the four department users. D. Set up one approval group and include the four department users with voting regime as consensus. 

Answer: D 

Answer Explanation: Preapproval Header Consensus Approvals are routed in parallel for this participant. This participant is more commonly used in conjunction with approval groups. This participant requires approval from all approvers.

Question 16:

Identify the three business benefits provided by the Manage Approval Rules user interface ?

Quick information search

Support for common business requirements to route approvals based on aggregated information

Ease of ordering items

Question 17:

Which are the key features of the two stage Request For Quotation (RFQ) available in Oracle Sourcing Cloud?

The two-stage RFQ process involves the submission by the suppliers of a technical quote and a commercial quote. The technical quotes are opened and evaluated first to determine a list of qualified suppliers, and only then are the commercial quotes of the qualified suppliers opened and evaluated. TWO STAGE RFQ Ensure impartial judgment of supplier responses in markets that require technical and commercial evaluation of proposals to be done independently. While suppliers submit their responses as a single bid package, category managers first analyze the technical merits of the proposal while the commercial aspects of the bid remain sealed. Commercial details of bids that pass the technical evaluation are disclosed in the second evaluation phase, while the details of failed bids remain sealed. Category managers enter surrogate responses on behalf of suppliers by submitting the technical terms of the proposal during the first stage of the negotiation, and only entering the commercial terms if the first stage evaluation is successful.

Question 18:

In Define Requisition Configuration, which four options are available for the 'Group Requisition Import By' field?

To group Requisitions while Import these four fields Location, Supplier, Item & Category helps to group the requisition lines while creating the requisitions.

Question 19:

Can we change the Supplier Name from the Approved Purchase Order?

No, we cannot change the Purchase order from the approved PO. Once the PO got approved, we cannot the supplier name.  We need to cancel the PO and create the new po to use the new supplier.

Question 20:

How we can enforce the buyer name to Purchase Order?

We need to set the Purchasing Option ‘Enforce Buyer Name’ to Yes.

Question 21:

Is it possible to receive and invoice items supplied by a supplier on Hold?

Yes. A supplier Hold doesn’t prevent from receiving and invoicing placed earlier to the Hold.

Question 22:

Is it possible to receive and invoice items supplied by a supplier on Hold?

Yes. A supplier Hold doesn’t prevent from receiving and invoicing placed earlier to the Hold.

Question 23:

Types of Supplier Holds in Oracle Fusion?

In Oracle Fusion, we have two types of supplier holds in oracle fusion.

1.Purchasing holds

2.payments Holds.

Question 24:

How to apply the Purchasing holds for Suppliers in Oracle Fusion ?

We can put the purchasing holds at supplier site, this helps to stop creating the new purchase orders for that supplier. We can put the purchasing hold for supplier sites as below.

Question 25:

How to apply the Payment holds for Suppliers in Oracle Fusion ?

We can put the payments holds at supplier site, this helps to stop creating the supplier payments for supplier invoices. We can put the payment hold for supplier sites as below.

Question 26:

What is receipt routing in Oracle Fusion?

Receipt routing method helps to receive the purchase order items into our organization. Based on the receipt routing, these purchase order items deliver to our inventory in organization.

Question 27:

How many types of receipt routing method in oracle fusion?

There are three types of Receipt routing method in oracle fusion.

1.Direct

2.Standard

3.Inspection

Direct: - In direct Routing method, Purchase order material will be directly delivered to Store/SubInventory. There is only one action step ‘Deliver’

Standard: - In Standard Routing method, Purchase order material will be receive first and then delivered to Store/SubInventory so there two action steps Receive & Deliver.

Inspection: - In Inspection Routing method, Purchase order material will be receive first and then inspect and after inspection, it will be delivered to store. There are three action steps, Receive, Inspect & Deliver.

Question 28:

What are the Key Objects of Supplier Creating in Oracle fusion ?

1.Supplier Header

2.Supplier addresses

3.Supplier Sites

4.Supplier sites Assignments.

Question 29:

Can we assign one Supplier Site to multiple BU’s?

No, we cannot assign one Supplier site to multiple BU’s. We need to create different site for each BU’s and then assign to each Business Unit.

Question 30:

What are the Suppliers Procurement Tables in Oracle Fusion?

1. POZ_SUPPLIERS

2. POZ_ALL_CONTACTS_V

3. 2.POZ_SUPPLIERS_V

4. 3.POZ_SUPPLIER_SITES_ALL_M

Question 31:

What are PO Tables in Oracle Fusion?

1. PO_HEADERS_ALL

2. PO_HEADER_LINES_ALL

3. PO_LINES_ALL

4. PO_LINE_LOCATIONS_ALL

5. PO_DISTRIBUTIONS_ALL

6. PO_ACTION_HISTORY

33 Most Important Oracle Fusion Procurement Interview Questions