Oracle R12 SCM Functional Interview Questions - Order Management

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1. What are the Key flex fields owned by Order Management
No. Oracle Order Management does not own any key flex fields.
2. What is Item Validation Organization in Order Management
In Order Management, the Item Validation Organization parameter indicates the Oracle
Manufacturing organization against which items are validated.
Item Validation Organization parameter to be set in the Parameters window, and can only set the
value to the operating unit associated with current sign on responsibility. All transactable items are to
be assigned in this organization.
3. What is the Navigation to set up Item Validation Organization.
Order Management > Setup > System Parameters > Values
4. What is the purpose of setting up OM System Parameters?
Setting up parameters enable to Validate the items, to enable customer relationships and to provide
operating unit defaults.
New parameters can be defined and values to those parameters can be defined using different sources
like SQL and Constant values.
5. What is the navigation to Define OM System Parameters
Order Management > Setup > System Parameters > Define
6. What are the possible Value sets that can be associated with the OM System Parameters
None or Table.
For seeded parameters make sure that you use a value set that begins with ONT.
7. Which look up type controls the OM Sys Parameters category
OM_PARAMETER_CATEGORY.
To create a new category, add the lookup code in the lookup type OM_PARAMETER_CATEGORY and
then enter that lookup type in your parameter definition window.
8. In which level OM System Parameter values are set?
Parameter values are set at the operating unit level
9. What are the seeded System parameter categories provided by Oracle
Parameter Categories Parameters
Approval Parameters:
1) No Response from the Approver
Default Value: Reject
Alternative Value: Continue
Note: If the approver is the final approver on the list and does not respond, the transaction will be
rejected regardless of the parameter value.
Copy Parameters
1) Call line DFF extension API in COPY
Default value for Action- Copy Complete Configuration
Generic Parameters
1) Audit Trail

2) Customer Relation Ships

3) Default Hint for Pricing and Availability
4) Enable Freight Ratings
5) Enable Ship Method
6) Item Validation Organization
7) Margin Calculation
8) OM: Configuration Date Effectively
Payment parameters
1) Allow Multiple Payments
Yes: Allows multiple payments per order AND to use the full/partial down payment feature. Enables
navigation to the Payments window from the Sale Order form using the Payments Action.
2) Authorize first installment only
Retro billing Type
1) Default Order Type
2) Enable Retro billing
3) Retro Bill Reason Code
Scheduling Parameters
1) Allow Partial Reservations
2) Firm Demand Events
3) Latest Acceptable Date
4) Promise Date Setup
5) Reschedule with request Date change
6) Reschedule with Ship method change
10. What are the Tax Related Processing Constraints
Through the use of seeded processing constraints, Order Management does not allow a user to:
Enter / Change Tax Code on Order Line if the profile option Tax: Allow Override of Tax Code is set
to NO.
Enter / Change Tax Handling, Tax Exemption Number and Tax Exemption Reason when the profile
option Tax: Allow Override of Customer Exemptions is set to NO.
Update Tax Exempt Number, Reason, or any other tax related. Fields once an invoice has
been generated.
If your business process allows tax information to be updated after an invoice has been created, you
must modify the seeded processing constraints that affect updating tax information.
11. At what stages tax calculation can occur in OM
Entry, Booking Or Invoicing
Tax calculation for the above events can only be controlled at the order level (not at the order line
level). You specify when to calculate the tax for an entire order when you create Order Types within
the Order Management transaction Types window.
Tax Calculation at Entry
With tax calculation at Entry, tax is calculated as each order line is entered. This tax calculation is used,
for example, in businesses that requires the user performing order entry to view the total of the order,
including tax, so it can be quoted to a customer. To include tax in Commitment Applied Amount, set
the tax event to Entry.
Tax Calculation at Booking
When tax calculation occurs at Booking, tax is calculated on each of the booked order lines. This tax
calculation option is used, for example, in business that require tax visibility for booked orders, but
who want to increase order entry input times by not calculating tax at entry.
Tax Calculation at Invoicing

When tax calculation occurs at Invoicing, no tax calculations will occur within Order Management. Tax
calculation will occur in Oracle Receivables when the order or order line is invoiced.
12. How you will calculate tax for an order while entering sales order?
To calculate tax at any time, select Calculate Tax from the Actions button menu within the Sales Order
or Order Organizer windows.
13. What are OM Tax security options
Order Management enables you to update the tax security information on an order or return by
setting the Tax: Allow Override of Customer Exemption profile option. This profile option controls the
modification of the Tax Handling Status, Reason & Certificate .fields at the order header and order line
levels. Standard tax calculations can be overridden by setting the profile option to Yes. The Tax: Allow
Override of Tax Code profile option determines whether the defaulted tax code on an order line can
be updated.
14. What are various set ups for which we can create Quick Codes
Cancellation Codes
Credit Cards
Freight Terms
Hold Types
Note Usage Formats
Release Reasons
Sales Channels
Shipment Priorities, etc.
15. What is the navigation to define Quick codes
Order Management > Setup > Quick Codes > Order Management.
16. What is document sequence:
A document sequence is a range of numbers that can be used for an order type and is defined by a
numbering method (automatic, manual or gapless) and the beginning order number.
17. Can you assign a Single document sequence to all your Sales documents
Yes
18. Can sales documents contain alphabetic characters
No
19. What are various types of Document sequence numbering methods
Automatic: The system automatically increment document numbers. Automatic sequences do not
guarantee contiguous numbering.
Gapless: The system guarantees that the numbers returned are contiguous. Order Management
prevents deletion of orders that have been numbered using the gapless numbering sequence.
Manual: The user must specify a unique document number.
20. Which profile option should be considered while implementing Document Sequence Numbering
Set the profile option Sequential Numbering to Always Used at the Order Management
Application level.
21. What is the navigation to define Document sequence
Order Management > Setup > Documents > Define.

22. What Document sequence category?

A document category is a specific type of document such as a sales order or a purchase order. These
are used in many Oracle applications for key entities. In Order Management when you create an order
transaction type the system automatically creates a document category with the same name. This is
used to assign the numbering sequence to the order type.
23. What is the navigation to assign Document sequence to Order Transaction Type
To assign your order type to a document sequence navigate to Setup > Documents > Assign.
24. Can you change the Document sequence assignment for an order type
No. you cannot change the assignment for an order type and set of books. To change the assignment
you must assign an end date to the existing assignment and create a new one for the new assignment.
You cannot have more than one assignment for the same date range, document type and set of books.
25. What is transaction type?
The transaction types determine what workflow the order and line will have and also it acts a source
for defaulting and to establish processing controls. For each order type, you can assign a default price
list, defaulting rules, order lines, return lines, line types, workflow assignments, payment terms, and
freight terms, etc.
It also controls order numbering, credit check rules and workflow of header and line
Main: Document Agreement type, whether agreement required, PO required
Default return line type, default order line type
Pricing - Enforce Price list, Default price list, and minimum margin percentage
Credit Check rule Ordering, Picking, Picking/Purchase release, Shipping
Shipping: None of the fields in the shipping tab are applicable to BSAs
Warehouse, Shipment Priority, FOB, Demand Class, Inspection Required, Line Shipping method,
freight terms, Shipping source type, Scheduling Level, Auto Schedule, and Fulfillment set
Finance: None of the fields in the Finance tab are applicable to BSAs
Rule: Invoicing Rule, Accounting Rule
Source: Invoice Source, Non Delivery Invoice Source
Credit Method for: Invoice with Rules, Split Term Invoices Receivable Transaction type, Tax event,
COGS Account, Currency, Conversion type
26. Assignment of line flows are required for Quotes
No.
27. Can you change the existing line flow assigned to an order type
No. Once you have created a document using an order type you cannot change the existing line
workflow Assignments. Instead, enter an end date for the existing assignment and enter a new
Assignment for the new workflow.
28. What is defaulting rules
Defaulting rules enables to define rules to determine the source and prioritization for defaulting order
information to reduce the amount of information you must enter manually in the Sales Orders window
For most fields, you can assign one or more defaulting sources in a priority sequence, or, if the default
is always the same, you can define a constant value.
29. Which program to be run after updating defaulting rules?
Defaulting Generator concurrent program must be run to generate new defaulting packages. This can
be run from Tools menu while updating parameters

30. What is the navigation to define Defaulting rules?

Order Management > Set Up > Rules > Defaulting
31. What do u mean by Entity in Defaulting rules
The Entity field displays the name of the object for which defaulting rules and conditions are being
defined such as the order line.
Entity means a group of related attributes that correspond to a table or forms in Order Management.
Examples of Entities: Line Payment, Order Header, Order Line, Order Payment,
An Attribute is a field or column that belongs to that entity. Fox example: Ordered Quantity UOM is
an attribute of Order Line Entity
32. Can you create new record in Attribute Region
No. You are not allowed to enter new record
33. What is defaulting source and mention those sources
A defaulting rule source is the location from which you obtain a defaulting value; Defaulting sources:
Constant Value, Application Profile (Profile Options), Same record, Related record, System Variable,
PL/SQL API, WAD Attribute, WAD Object Attribute
34. Defaulting are set at which responsibility?
Defaulting rules are defined at Application Level.
35. How the credit checking is implemented?
To implement credit checking, set the following
Use the Profile classes, Payment Terms that are checked credit check box and
Assign the credit-checking rule in OM Transaction type
36. What are Credit checking rules?
Order Management credit check rules enable you to determine what credit checking criteria is used
when determining credit exposure during the credit checking process.
Credit check rules defines the following:
Credit check level - whether Sales Order level or Sales line level
Credit hold Level - whether Sales Order level or Sales line level
Whether to include tax and freight charges, whether to include un invoiced Orders, etc.
Order Management transaction types determine when credit checking actually occurs, and when used
in conjunction with credit checking rules.
37. What is credit profile?
Organization Credit Profiles are a set of criteria that define an operating units credit policy for credit
control and order credit checking. Credit Profiles include the credit limit and pertinent data needed to
determine total credit exposure for orders undergoing credit checking.
Credit usage rules are assigned to Credit profiles.
38. What is the navigation for defining credit profiles?
Order Management > Set Up > Credit > Define Credit Profiles
39. What are Credit Usage Rules?
Credit Usage Rule Sets define the set of currencies that will share a predefined credit limit during the
credit checking process, and enable the grouping of currencies for global credit checking.
Navigation: Order Management > Set Up > Credit > Define Credit Usage Rules

40. What are various Credit Profile types and what is their Hierarchy when performing credit checking?
Customer: Enables you to define credit limits by currency for Customers.
Customer Site: Enables you to define credit limits by currency for Customer Sites.
Operating Unit Default: Enables you to set credit limits and terms, by currency, within a
given operating unit
Credit Profile Limits Hierarchy when performing credit checking:
Customer Site Profile
Customer Credit Profile
Operating Unit Default Credit Profile
41. What is the purpose of Credit Profile Window?
The Credit Profile window enables users to create and maintain credit information for Operating Units
and Item Categories and assigning credit usage rules to that profile.
You cannot define Credit Profiles for Customer or Customer Site by directly navigating to the Credit
Profile window. Credit Profiles for Customer and Customer Sites are initially defined when entering
credit information in the Credit section of the Profile-Transactions tab of the Customer and Customer
Site windows. You must then assign a Credit Usage Rule to your Customer or Customer Site if you want
to enable multi-currency credit check.
42. What are the methods to deactivate Credit Checking
There are three ways to deactivate Credit Checking on an order:
Use an order type that does not have an assigned credit rule
Define the Customer Profile so that the Credit Check box is not checked
Use payment terms for which the Credit Check box is not checked
Deactivating Credit Checking does not automatically release orders previously on credit hold.
However, the next time you attempt to Book, Pick Release or Purchase Release (for drop shipments),
Pack, or Ship Confirm an order which utilizes an Order Management Transaction type that enables
credit checking to occur at the specified order points, or you perform an order change that trigger
credit checking in the Sales Orders window, Order Management will releases the credit check hold if
the order or line meets the requirements for successful credit check
43. Which hold will be applied while checking credit
Credit check failure hold will be automatically applied when he credit check evaluation fail on orders
set up to be credit checked.
44. What are holds?
When you prevent further processing on an order through an exception, you are placing a hold on the
order.
For each hold, you can specify hold security by responsibility to control which responsibilities have
authority to apply and/or remove the holds you define. Holds can be defined to be specific to pick,
pack, ship, or invoice interface activities. Order Management Hold database tables are striped by
organization ID. Therefore, you will need to define holds for each operating unit within your enterprise
structure. However, hold type quick codes only need to be defined once.
45. Which profile options enables to modify seeded hold attributes.
OM: Modify Seeded Holds : This profile enables you to modify seeded hold attributes. Options are
Yes or No. The default is No or Null.
46. How many ways you can create holds?

You can create holds based on a combination of two criteria, such as customer and item, or item and
warehouse.
47. Can Generic Hold applied at line level?
No. Generic hold can be applied at header level only.
48. What are various profile options that are to be considered while setting up holds
OM: Prevent Booking for Line Generic Holds : This profile controls whether a transaction will fail
booking if a generic hold has been applied.
OM: Schedule Line on Hold This profile controls whether scheduling should attempt to schedule lines
that are on hold. The default is set to No.
OM: Promotion Limit Violation Action : This profile controls how and where holds are placed on order
lines and headers when promotion limits are exceeded in Advanced Pricing or Trade Management.
Available options are: Place holds where violated, place order on hold when any violation occurs, or
no holds applied. No holds applied is the default.
OM: Schedule Line on Hold This profile controls whether scheduling should attempt to schedule lines
that are on hold.
OM: Modify Seeded Holds This profile, when set to yes, allows a user to modify seeded hold
attributes. Use caution when activating this profile as other system parameters may interact with the
seeded hold values.
49. What is hold source
A hold source allows you to apply a particular hold to a group of existing orders, returns or lines and
to new orders and lines meeting your hold criteria. Hold Sources are created to hold all current and
future orders for an item, customer, order, warehouse or customer site (Bill to or Ship To locations),
Blanket Sales Agreement No or a combination two attributes.
To define a hold source, navigate to (N) Order Management > Orders, Returns > Order Organizer.
Select the Tools menu, and choose Create Hold Source.
Order Management supports Hold Sources with up to two entities. The combinations of two
supported entities are as follows:
Item > Customer Item > Ship To Site : Item > Bill To Site
Item > Warehouse Item > Blanket Number Warehouse > Customer
Warehouse > Ship To Site Warehouse > Bill To Site
Blanket Number > Ship To Site Blanket Number > Bill To Site
Blanket Number > Warehouse Blanket Number > Ship To Site
Blanket Line Number
50. What is the navigation to create attachments?
Order Management: Setup > Orders> Attachments >Documents
51. Defining Attachment Addition Rules
Using standard Oracle Attachment functionality, you can specify rules for automatically attaching of
all types of documents to orders and order lines. You can specify that documents be applied to orders
or lines for a certain Customer, Bill To customer, Ship To customer, item, order type, and/or purchase
order.
For Order Management, you can specify attachment addition rules at the order level for the following
attributes for orders, quotes, or returns:
Customer Customer PO Invoice To Order Category Order Type Ship To
At the order line level, you can specify your attachment addition rules by specifying values for the
following attributes on the order, order line, quote line, or return line:
Customer Inventory Item Invoice To Line Category Line Type Purchase Order Ship To

52. How you will enable automatic attachments to Sales Orders?

By setting the profile option OM: Apply Automatic Attachments: to Yes
53. What is Workflow?
Workflow technology supports routing information of any type according to user defined business
rules. Business transactions, such as order placements or purchase requests, which involve various
controls, routings, and approvals, can be managed more efficiently by leveraging Workflow
technology.
An order and each of its lines can follow different workflow processes,
Different lines on an order can follow different line flows,
Order Management provides you with seeded workflows with functional activities and sub processes.
Using the Workflow Builder, you can define new function activities and notifications.
The product comes seeded with several order and line flows. If these seeded flows do not meet your
requirements you can define your own. You can use these for processing your orders and lines, by
assigning them to order and line transaction types.
Line level workflow processes are assigned based on an order type, line type, and item type combination.
54. What are setups for using workflow in Order Management
Set up: Here are the things you need to do before using Workflow with Order Management:
Setup Order Management WF Administrator Workflow item attribute
You need to assign a responsibility (role) to the Order Management Workflow item attribute
Order Management WF Administrator for unexpected error handling. . Whenever an unexpected
error occurs, a notification is sent to the responsibility assigned to Order Management WF
administrator item attribute.
You can set this item attribute via the WF builder.
Review seeded OM WF data and define Workflow processes via the Workflow builder: Review the
seeded flows, activities, notifications, etc. Check whether the seeded data meets your business needs.
2. Create custom activities, notifications, and any other components needed to build flow processes
to meet your specific business requirements. 3. Use the seeded runnable flows as examples to create
your own flows, using seeded and/or custom sub-processes/activities. OR Copy a seeded workflow
process to create a new workflow process and modify this newly, copied workflow process according
to your business requirements.
Setup approval notifications and OM: Notification Approver
Setup Workflow assignments for order/line transaction types
Both order and line types are setup using the Transaction Types form.. When you define an order type,
you need to assign a header workflow to it. Line level workflow processes are assigned based on an
order type, line type, and item type combination.
Setup the WF background Engine
The Workflow Background Engine processes deferred activities, wait activities and timed out activities.
You need to schedule the Workflow Background Process concurrent program to re-submit
periodically. When scheduling the concurrent program, please specify Order Management work item
types as parameter so that it only picks up activities specific to Order Management work items.
55. What is workflow Builder
Oracle Workflow Builder is used to define new workflow processes.
56. What is workflow Engine
The Oracle Workflow component that implements a workflow process definition. The Workflow
Engine manages the state of all activities for an item, automatically executes functions and sends
notifications, maintains a history of completed activities, and detects error conditions and starts error

processes. The Workflow Engine is implemented in server PL/SQL and activated when a call to an
engine API is made.
57. What is Purchase release?
The seeded Purchase Release sub-process interfaces information to Purchasing when order lines need
to be drop-shipped.
58. How you will see the workflow status in Order Management
To view processes for specific orders within Oracle Order Management, complete the following steps:
Open the desired order in Oracle Order Management.
Navigate to the Tools menu and select Workflow Status.
A new window opens and displays the workflow status as an activities list.
From the Activities List window you can select the order header workflow Process or the order line
workflow processes associated with the order. Selecting an order line workflow process opens a new
activities list for that process.
Select View Diagram under the activities list to view the actual workflow diagram.
59. What are various work flow item types
Order Management (OM) comes seeded with the following workflow item types:
1) OM Order Header (OEOH) - All Order Header level activities and sub-processes, are seeded under
this WF Item type. Header flows are started using this item type, with the header ID as the Item Key.
An order flow is started when an order header is created and saved.
2) OM Order Line (OEOL) - All order line level activities and sub-processes, are seeded under this WF
item type. Line flows are started using this item type, with the line ID as the item key. An order line
flow is started when an order line is created and saved.
3) OM Standard (OESTD) - Common functions and lookups are seeded under this item type. No flows
are started using this item type.
4) OM Change Order (OECHGORD) - Change Order Notification flows are started using this item type.
60. What are workflows associated with OM Order Header Item Type
Order Flow Generic
Order Flow - Generic with Header Level Invoice Interface
Order Flow - Return with Approval
61. What is Order Flow Generic
Order Flow - Generic workflow process is the most often used workflow in Oracle Order
Management. This process includes activities that book and close the order header. This can be used
with any line flow for any item type with outbound lines and return lines
Sub Process: Book Order Manual, Close Order
62. What is Order Flow Generic with Header level Invoice Interface
This work flow is used when business requires that all lines on the order invoice together at the header
level. Order Flow Generic with Header Level Invoice Interface first ensures that the order is booked
before generating the invoice. After booking is complete, the process interfaces with Oracle
Receivables to generate an invoice for the order. Upon completion of the invoice interface, the process
closes the order.
This process must be used in conjunction with Line Flow - Generic with Header Level Invoice Interface.
Sub Processes: Book Order Manual, Header Level Invoice Interface, Close
63. What is Order Flow- Return with Approval
This workflow is used when all lines on the order are returns and header level approval is required.

64. What are various item types for which line flows can be assigned
1) ATO Models, Classes, Options, Items
2) Configured Item
3) Kits
4) Included Items
5) PTO Models, Classes, Options
6) Standard Items
7) Service Items
If the item type code is left blank, the specified workflow assignment applies to all item types for which
there is no specific assignment. Specify an assignment for the configured item type if you plan to use
the line type for ATO configurations.
65. What are seeded line item flows associated with OM Order Line Type.
The Oracle seeded processes associated with OM Order Line include the following:
Generic Processes:
1) Line Flow Generic
2) Line Flow - Generic with Header Level Invoice Interface
3) Line Flow - Generic, With Export Compliance
4) Line Flow - Generic, Bill Only
5) Line Flow - Generic, Bill Only with Inventory Interface
6) Line Flow - Generic, Ship Only
Assemble To Order (ATO) Processes:
1) Line Flow - ATO Item 2) Line Flow - ATO Model 3) Line Flow Configuration
Oracle Release Management Processes:
1) Line Flow Generic with Authorize to Ship (RLM)
Inbound or Return Processes:
1) Line Flow - Return for Credit Only
2) Line Flow - Return for Credit Only with Approval
3) Line Flow - Return for Credit with Receipt
4) Line Flow - Return for Credit with Receipt and Approval
Service Item Processes:
1) Line Flow - Standard Service
66. What is Order header flow and Line flow
Header flow consists of information about customer such as price lists, shipping parameters, Ship
Methods, Warehouses etc., and these values can be used as default information for line flows.
Line flow consists of information about items, quantities ordered, price, request date, schedule ship
date, schedule arrival date, source, etc.,
67. Explain various line level Generic processes:
1) Line Flow Generic
Use this process for all items except for service items, including assemble-to-order (ATO) items, ATO
models, kits, and pick-to-order (PTO) models. If, however, you are a high volume ATO user, specific
Assemble to Order (ATO) Processes can improve performance.
Sub Processes: Enter Line, Schedule - Line, Create Supply Order Line Manual, Ship Line, Manual,
Invoice Interface Line,. Close-Line.
2) Line Flow - Generic with Header Level Invoice Interface:
Use this process when all order lines must invoice simultaneously. Invoice is controlled by the Auto
Invoice concurrent program. Set up grouping rules in Oracle Receivables if only one invoice for the

order is necessary. This process must be used in conjunction with Order Flow - Generic with Header
Level Invoice Interface.
Sub Processes: Enter Line, Schedule - Line, Create Supply Order Line Manual, Ship Line, Manual,
Header Level Invoice Interface-Line, Deferred, Close-Line.
3) Line Flow - Generic, With Export Compliance
Select this process when products exported to a denied party must be checked. This process is
commonly used in the defense industry,
Sub Processes: Enter Line, Schedule - Line, Export Compliance Screening-Line, Create Supply Order
Line Manual, Ship Line, Manual, Invoice Interface Line,. Close-Line.
4) Line Flow - Generic, Bill Only
Use this process when scheduling and shipping are not necessary for an ordered item. This process
fulfills the order line, then proceeds with invoice interface. For example, this process might be used if
an invoice was incorrect and an adjustment must be made visible in Oracle Order Management
Sub Processes: Enter Line, Invoice Interface- Line, Deferred
5) Line Flow - Generic, Bill Only with Inventory Interface
Use this flow when products are not shipped but inventory decrement is required. For example, some
distributors have customers who pick up products in person. The inventory transaction must be
accounted for, so the process line moves to invoice interface. The product is picked up, so shipping is
not necessary.
Sub Processes: Enter Line, Invoice Interface- Line, Deferred
6) Line Flow - Generic, Ship Only
Use this process if you must ship a product but an invoice is not necessary. This flow decrements
inventory. For example, this process Selecting Workflows could be used when shipping free samples
for a new product, or for shipping a non-billable toolset to repair a previously invoiced item.
Sub Processes: Enter Line, Schedule Line, Create Supply Order Line. Manual, Ship Line, Manual,
Close-Line
68. Explain various line level processes used for inbound or return processes:
The following line level workflow processes are used for returns or inbound lines:
1) Line Flow - Return for Credit Only
This process is used only for incoming lines. The process runs an activity that issues credit without
waiting for a receipt of goods or an approval. This flow could be used, for example, if you give credit
for a product shipped on a CD, but you do not want the CD to be returned.
2) Line Flow - Return for Credit Only with Approval
This processes is used only for incoming lines that requires approval. This process could be used, for
example, when a return must be approved by a manager or a customer service representative before
credit is issued.
3) Line Flow - Return for Credit with Receipt
This process is used only for incoming order lines that require receipt of goods before credit can be
issued. Once the returned items are received by Oracle Purchasing, the process continues through
invoicing and credit is issued. This process is useful when the returned items are expensive; credit
should not be issued until the items are received.
4) Line Flow - Return for Credit with Receipt and Approval
This process is the most restrictive for incoming lines. The process requires both receipt of goods and
an approval. This process is commonly used when items such as modems are returned. The modem is
received then inspected to ensure that no mistreatment or neglect of the item occurred. Once
inspected and approved, credit is issued.
69. Which line flow is used for service and support items
Line Flow - Standard Service Use this process for service items such as support. Once the line is
fulfilled, invoice interfacing occurs.

70. What is ATO Item

It is an item you make in response to a customer order. Also known as Assemble to Order
71. What is ATO Model
A configuration you create for customer order that includes optional items.
72. What do you mean by Available to Promise (ATP)
ATP (Available to Promise) typically refers to the ability to promise finished goods availability based
on a statement of current and planned material supply.
The quantity of on-hand stock, outstanding receipts and planned production which are not committed
through a reservation or placing demand. In Oracle Inventory, you define the types of supply and
demand that should be included in your ATP calculation.
73. What is the difference between Item and Model
Model: An item whose bill of material lists options and option classes available when you place an
order for the model item.
74. What is standard Order process?
A Standard Sales order can contain the following process steps:
Order Entry:
Order Booking:
Pick Release:
Ship Confirm
Invoicing
Closing
These are dependent upon Order type and Line type that are associated with appropriate work flow
process
75. What do you mean Booking of Order in OM
Booking a sales order indicates that the order entry process is complete and that the customer has
committed to the order. Booking is required before the order or return can advance to the next
workflow activity.
76. What is schedule arrive date
Schedule arrival date means the date returned by the system on which your customer can receive the
products.
77. What is scheduling
Order scheduling includes assigning demand or reservations, warehouses, shipment dates, and lots or
subinventories to an order line. This will cause the demand to be planned in Material Planning
Systems.
78. What is schedule date
For Order Management, it is considered the date the order line should be ready to ship, the date
communicated from Order Management to Inventory as the required date any time you reserve or
place demand for an order line.
79. Various Terms
Ship to contact: This is the person that Customer Service and Shipping Personal should be contacting
to make delivery appointments and pass rescheduling notifications.

80. What is Internal Sales Order

A request within your company for goods or services. An internal sales order originates from an
employee or from another process as a requisition, such as inventory or manufacturing, and becomes
an internal sales order when the information is transferred from Purchasing to Order Management.
81. What is Picking
The process of withdrawing items from inventory to be shipped to a customer.
82. What is pick release rule
A user-defined set of criteria to define what order lines should be selected during pick release.
83. What is pick release sequence rule?
Release sequence rules can be defined to specify the order in which eligible picking lines are
allocated to Inventory during pick release. You can release the picking lines by:

Order number

Outstanding Invoice Value

Scheduled Date

Departure Date

Shipment Priority
84. What is pick slip
Internal shipping document used by pickers to locate items to ship for an order.
85. What is pick slip grouping rules?
Criterion for grouping together various types of pick slips. The rule dictates how the Pick Slip Report
program groups released lines into different pick slips.
86. What is RMA
Return Materials Authorization: Permission for a customer to return item,
87. What is back order and back ordered lines
Back Order: An unfulfilled customer order or commitment.
Backordered lines: Unfulfilled order line details which have failed to be released at least once by Pick
Release or have been backordered by Ship Confirm.
88. What is delivery
A set of order lines to be shipped to a customers ship-to location on a given date in a given vehicle.
Multiple deliveries can be grouped into a single departure. A single delivery may include items from
different sales orders and may include back orders as well as regular orders.
89. What is delivery line
Delivery line means a shippable and booked line
90. What is drop shipment
A method of fulfilling sales orders by selling products without handling, stocking, or delivering them.
The selling company buys a product from a supplier and has the supplier ship the product directly to
customers.
91. What is fulfillment set
Items in a fulfillment set will be available for scheduling and shipping only when all the items are
available and ready to be scheduled/shipped.

92. What is Outbound and Inbound Lines

In the Oracle Order Management, lines on a header are either outbound (sales order lines in which
material on the header is leaving the warehouse to go to a customer) or inbound (return lines in which
material on the header is arriving at the warehouse to be credited back to the customer). In Order
Management, headers can be Return (all inbound), Order (all outbound), or Mixed (both inbound and
outbound lines).
93. What is scheduling
Order scheduling includes assigning demand or reservations, warehouses, shipment dates, and lots or
sub inventories to an order line.
94. What is ship confirm
A process in Shipping Execution which allows you to identify shipped quantities, assign inventory
control information for released lines, assign freight charges, and specify whether or not to back order
unfulfilled quantities of released line items.
95. What are the general activities involved in Ship confirm?
Preparing the orders for shipment
Includes the packing the items
Includes the weighing the shipment
After the Quality Inspector finishes with her/his inspection: Confirm the delivery in Oracle Includes
additions of any special charges After shipment documents print, after labels to containers or pallets
Seal Containers
Release shipments to Carrier
Submit request for Bill of Lading copy
Forward copy of Bill of Lading to accounts payable for reconciliation of carrier invoices
File Shipping documents
96. Define various Shipping terms
Ship Set:
A group of order lines, linked by a common number, for which you want the full quantity to ship all
together.
Shippable lines:
The lines that have pick released and are now eligible for Ship Confirm.
Ship Method:
It is the combines of carrier, mode, and level of service.
Shipping documents:
Shipping related reports, such as the Bill of Lading, Commercial Invoice, Mailing Label, Pack Slip,
Vehicle Load Sheet Summary, and Waybill.
Shipping instructions:
Notes that print on the pick slip. These instructions are intended for internal use.
Sold to contact:
This is the person that the Customer service representative will contact at the Customer Site in the
event of Ordering queries.
Sub inventory:
Subdivision of an organization, representing either a physical area or a logical grouping of items, such
as a storeroom or receiving dock.
Locator:
Physical area within a sub inventory where you store material, such as a row, aisle, bin, or shelf.
Serial number control:

A manufacturing technique for enforcing use of serial numbers during a material transaction.
Waybill:
A document containing a list of goods and shipping instructions relative to a shipment.
97. What is Revenue Recognition ?
The schedule for which revenue for a particular transaction is recorded in your general ledger.
98. What is Sales group
Sales Group represents a managerial unit for sales resources and can be defined as a team of sales
people. Sales groups make up enterprise sales organizations.
99. What is sales tax structure
The collection of taxing bodies that you will use to determine your tax authority. State. County. City
is an example of a Sales Tax Structure.
100. What is invoicing rules
Rules that Oracle Receivables uses to determine when you bill your invoices. You can bill In Advance
or In Arrears.
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