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May 19, 2014

Oracle SCM Functional Interview Questions: Purchasing

bishnupc / / 5


Q. What are the approval hierarchy

Q. What approval hierarchy you use in your implementation?

Q. How to check what is the approval hierarchy used in your system?
Ans: If Use Approval Hierarchy option is enabled in the Financial Options form, it will use the position based hierarchy. If it is disabled then it will use the supervisor based hierarchy.

Q. How to send the PO to a person before even approval who has that approval limit not through workflow hierarchy

Q. Where to do the setup for specific approval limit for a person?

Q: What is Charge Account?
A: Charge account in PO distribution is used as a debit account during the PO delivery process(the account to charge for the cost of the item).
If PO is for an inventory item, then mostly the charge account will be defaulted from the subinventory or organization material account.
If it is for an expense item, then the account will be defaulted from the subinventory or organization item expense account

Q: How Charge Acount default?
A: PO Charge account, in fact all purchasing accounts will be derived from the Account generator workflow items

Q: Can a PO be created without Item?
A: Yes you can create a purchase order without an item.
in purchase order, you can create different line type as per the types of product or services you want to buy.
Either this can be an inventory item or this can be a consulting service or labor
Ref doc: http://docs.oracle.com/cd/A60725_05/html/comnls/us/po/linety01.htm

Q: Differences between Internal Sales Orders and Inter-Organization transfer
A:  Explore more here
  • IR-ISO has approval process whereas there is no approval process for Inter-Org transfer
  • The IR cycle useful for more tracking, control (IR, SO), approvals and generating pick slips whereas Inter-Org transfer is a one step transaction, simple flow, more user friendly and no interfaces involved
  • RMA is possible in Internal Sales Order whereas in Inter-Org transfer there is no functionality to Cancel, delete or Return or not receive an In-transit Shipment
Q: When Internal Sales Order and Internal Requisition will be picked up by Inter-Company invoicing process?
A: Internal sales order and Internal requisitions will be picked by Inter-company invoice process on the following conditions:
  • In shipping method, transfer type should be Intransit
  • Profile Option INV:Inter-company Invoice for Internal Orders value is Yes on site level. This will be used for creating Account Payable in the Intercompany Invoice process.
Explore more here

Q: What validations happen for Create Release program for creating a BPA release for a requisition?

  1. Sourcing rule exists or not for the item
  2. Whether ASL defined or not
  3. BPA and Line details mentioned in ASL or not
  4. BPA should be approved
  5. Corresponding BPA line should not be cancelled
  6. BPA terms effective dates should satisfy the date on release creation
  7. BPA agreement for qty or amount should satisfy the release qty
  8. Rel qty should satisfy the BPA min release qty

Questions will be Answered soon if not answered already. Meanwhile you can post more questions in the comment also you can answer to above questions in the comment.
Please help here to rectify if any of the answers are not correct.


  1. 1.What are the approval hierarchy
    Ans:- There are 2 approval hierarchy's in 11i
    1. Position hierarchy
    2.Employee supervisor hierarchy
    But there are new hierarchy that was implemented in R12 that is nothing but
    AME:- Application Management Engine... This hierarchy is used only for requisition approval.

  2. What approval hierarchy you use in your implementation?
    Ans:- Mostly in most of the Organization... Position hierarchy is used.

  3. 3.How to send the PO to a person before even approval who has that approval limit not through workflow hierarchy?
    Ans:- See basically the PO which is created by the buyer will be sent for approval... the PO will be following the hierarchy which is set In position hierarchy...
    Now consider a PO which is having a limit of 10,000, and there are 2 position for in hierarchy names A1 and A2.... A1 is having a limit of 5000 and A2 is having a limit of 10,000... Now as per the question the PO should directly route to A2 as he is having a limit of 10000... basically in documents type setup there is an option called follow "Hirarchy" and "Direct".... If we select the option as hierarchy then the PO will go to A1 and then to A2 and A2 will approve.... And if you select "Direct" then the PO will directly route to the person who is having that limit which is nothing but A2.. So the answer for the above question is THERE IS A SETUP IN DOCUMENT TYPES FOLLOW "DIRECT".

  4. Where to do the setup for specific approval limit for a person?
    Ans:- First in order to create a position hierarchy.... we need to create an employee and make sure that.. the employee is having job and position once the job and position is created we will attach this job and position to that employee.. So now the employee is having a job and a position and now assigning him to the organization... Now the employee is having a job position and assigned to the organization... Now in approval groups we will set up the limit of the position with keeping as "DOCUMENT TOTAL"....

  5. Thanking you for valuable information.For More on Oracle SCM Apps Functional Knowledge I have seen ppt below is the link.

    Helpful for Interview.


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