Tuesday, June 14, 2011

Oracle 11i Order Management Interview Questions - Part I

What are the steps involved in implementing Order Transaction Types in Order Management?
Create a Line Transaction Types for Order Lines
Create Order Transaction Types
Assign Line Flows to Order Transaction Types
Create document sequence for Orders
Assign Order transaction types to the document sequence

When a line is at fulfilled step and the workflow is at applying Pre-Payment, how can we progress the line to close?
Go to the order lines showing Fulfilled à right click à Select Progress Order.
This will interface the order to Accounts Receivable for Invoice Interface.

What are the steps to define an order type and what are the mandatory requirements?
In the Order Management à Setup à Transaction Types
Transaction type Window Opens.
Mandatory requirements:
1. Operating Unit / Organization must already been defined.
2. Defaulting Rules
3. Price Rules
4. Freight Carriers
5. Most important is already we must have defined OM Line Transaction Type so that we can assign this Line Transaction Type to OM Order Transaction Type.
6. Credit Check Rules.
7. Invoicing Rules & Accounting Rules.
8. Currency

When scheduling, the line got error "ATP Error Scheduling failed". How will you resolve?
This error may be due to Item setup in Inventory & Order Transaction Type Setup Order management.
Ensure the Below Setups
1) Inventory à Items à Organization Items à Order Management à Check ATP should be none.
2) Order Management à Setup à Transaction Types à Define. In 'Shipping' sub-tab uncheck 'Auto Schedule' check box.
3) Profile Option 'OM: Auto Schedule' should be 'No'.

What are the possible reasons for Interface trip stop to complete with Error?
Few reasons may be
1) Order is on Hold
2) Tax is not applied properly
3) On-Hand qty is not available in the Inventory
4) Inventory Period is not open
5) Make sure Schedule Ship Date or Requested Date is within the range of order Date

Explain the setup involved in Drop Shipment Process?
Drop Shipment is a process where the customer places a purchase order on a company and the company instructs its supplier to directly ship the items to the customer.
Drop Shipment Process Steps
Create a Sales Order with line where the line source is External
Book and Schedule the Sales Order
Run workflow background Process
Now the line status will be in Awaiting Receipt
Login to the Receiving Organization (Purchasing) who has been setup as an Approver
Run Requisition Import Process
Auto create to Create Purchase Order
Approve the PO
Receive against the purchase Order
Run Auto Invoice
Verify Invoice in Sales Order
Oracle Order Management uses purchase orders to outside suppliers that are automatically generated from sales orders for goods supplied directly from the supplier. The external supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice (ASN).

What are the different statuses for a drop ship order?
Entered à Booked à Awaiting Receipt à Closed

Explain Internal Sales Order
Internal Sales Orders are used to transfer material from one inventory organization to other inventory or warehouse organization with the same company.
Flow of Internal Sales Order
Internal requisition in PO/INV à Requisition Approval à Run Create Internal Sales Order Concurrent Program à Run Order Import Concurrent Program in OM à Pick Item in INV thru OM à Ship Confirm à Receive Internal Order in INV / PO
Select Order Source as Internal while importing Orders.
Shipping Network (Intransit or Direct) to be defined between two organizations (Source and Destination)
Destination (requesting) Organization should be defined as Internal Customer with a Ship to address in Order Management.
An Internal Sales Order does not generate Accounts Receivable Invoice

Explain Back to Back Order or Procure to Order Processing
Customer order products from you company, you place the order with third party supplier. The supplier ships the product to you and you ship the product to Customer.

What are the Inventory Set ups required for Back to Back Order Processing?
Order Management Tab: Customer Orderable, Assemble to Order (ATO)
Purchasing Tab: Purchasable
WIP Tab: Build in WIP
General Planning Tab: Buy

What is the difference between a credit memo and an invoice?
Credit Memo – A document that partially or fully reverses an original invoice amount.
Invoice – A document you create in Oracle Receivables that lists amounts owed for the purchases of goods or services. This document may list any tax and freight charges.
A summarized list of charges including payment terms, invoice item information, and other information that is sent to a customer for payment.


  1. Excellent!! Thank you very much. If possible, would you please post step by step snapshots for Drop shipments and Internal sales orders.

  2. Hi,
    Thanks a lot. Have a look at the below posts



  3. Great explanations! Could you perhaps elaborate on the Oracle Quoting and Quote To Cash processes? Thanks

  4. You can refer to the below posts



  5. Thank you so much Pavithara Rathinavel for your wonderful posting on OM.
    It would be very helpful to me.

  6. Its a excellent and wonderful posting to learn OM Functional! Thanks a lot!.
    If possible, Could you provide Financial function questions as well please?

  7. Thank u very much its very helfull