PURCHASING INTERVIEW QUESTIONS

1. If Purchase Invoice amount sent by the supplier is more than the PO amount and
Invoice has to be passed by invoice amount only. How this can be achieved.

Ans: Manually Release the hold by going into the invoice hold option. Thus how we do it
in Purchasing module of oracle applications.

2. How you will hide the button Site on the Supplier master form.

Ans: A restricted list of functions a user can perform. For example, two responsibilities
may have access to the same window, but one responsibility’s window may have
additional function buttons that the other responsibility’s window does not have.

3. When can you make payment for the supplier invoice weather at the time of receipt of
material or after receiving
Ans: Invoice only.

4. Payment due days if 30 days means will it be from invoice date or material receiving
date.

Ans: Due days calculation is based on what you set up in the PAYMENT tab window of
Supplier Master form.

It has Four options:

1. Goods Received
2. Invoice
3. Invoice received
4. System

5. Where do you define matching option for purchasing.

Ans: This is also defined in the supplier master form under tab ‘Control’ window.Two
options are given as Purchase Order or Receipts.
In receiving tab define whether it is 2 way, 3 way, 4 way match.

6. What is security type and Cross-validation rules.

Ans: There are two ways security can be defined. One at individual segment level and
One for the entire code combination.
Security type with hierarchical security / non-hierarchical / no security is defined in the
value set going to be attached with the individual segment. Here you exclude the
segment value which user will not see at time of transaction capturing. Where are
Security rule is defined including and excluding the entire code combination which will be
seen at the time of transaction and if excluded combination is selected then user define
message will appear. In both the case security rule is required to be defined.
Security defined for segment is assigned to your application and responsibilities.
Security rule defined for application, structure and flexfield title with inclusion and
exclusion.
7. How many types of Purchase Order are there.

Ans: Following are types

i. Standard
ii. Blanket
iii. Contract
iv. Planned

8. What do you mean by planned purchase order.

Ans: A planned purchase order is a long-term agreement committing to buy items or

services from a single source. You must specify tentative delivery schedules and all
details for goods or services that you want to buy, including charge account, quantities,
and estimated cost.

9. What do you mean by blanket purchase order.

Ans: You create blanket purchase agreements when you know the detail of the goods or
services you plan to buy from a specific supplier in a period, but you do not yet know the
detail of your delivery schedules. You can use blanket purchase agreements to specify
negotiated prices for your items before actually purchasing them.

10. Once these two purchase orders are prepared what is the next step.

Ans:You issue scheduled release and blanket release against a planned purchase order
to place the actual orders.

11. What is approval hierarchy for Purchase Order.

Ans: Position and Employee. If HR Module is not installed then only employee option is
used Set up hierarchy for Purchasing
1. Organization.
2. Financial and Payable.
3. Payment document or supplier site for payment accounting entries.
4. Supplier and Supplier Site.

Payment terms as per supplier site or purchase order if both are there then finally takes
from purchase order.

12. Where do you define matching option for purchasing.

Ans: This is also defined in the supplier master form under tab ‘Control’ window.Two
options are given as Purchase Order or Receipts.
In receiving tab define whether it is 2 way, 3 way, 4 way match.

13. What happen if price is varying in PO and Invoice how you will resolve it.

Ans: ====================================

14. What posting is done at time of Receipts of material or Purchase Order match directly
with Invoice without the receipt consideration.
Ans: ======================================

15. Where you will define Matching options. Is it required to define for all the suppliers or
it comes as default. From where it default the setting.

Ans: ===========================================

16. In purchasing Receipts of the inventory is stored at what level in Multi Org setup.

Ans: ===========================================

17. Can you match invoice directly with the purchase order without matching with
receipts.

Ans: ===========================================

Hi All,,,
Here are answers to these questions:

1. Can we automatically 'Close' the Purchase order without receiving the full quantity?
Ans. The Receipt Close Tolerance lets you specify a quantity percentage within which
Purchasing closes a partially received shipment. For example, if your Receipt Close Tolerance
is 5% and you receive 96% of an expected shipment, Purchasing automatically closes this
shipment for receiving.

2. When does a Purchase Order line get the Status 'Closed for Receiving'?
Ans. Goods have been received on the system against this line but an invoice has not been
matched to the order.

3. What is the difference between the control actions 'On Hold' and 'Freeze' for a Purchase
order?
Ans. You can place a Purchase order 'On hold' only at the header level. This unapproves the
purchase order while preventing printing, receiving, invoicing, and future approval until you
remove the hold. You can 'Freeze' only at the header and release level. You freeze a Purchase
order when you want to prevent any future modifications to the Purchase order. When you
freeze a Purchase order, you can still receive and pay for goods you already ordered.

4. What are the different document statuses used in Oracle Purchasing?

Ans. Delete, Cancel, Final Close, Freeze, Hold, Firm, Close, Close for receiving, Close for
invoicing, Open, open forreceiving, Open for invoicing, Unfreeze.

5. If a Purchase Order/Requisition is cancelled accidentally, can we revert it back?

Ans. No. The cancellation is a non-reversible process. Once the document is cancelled we
cannot revert it back.

6. Can we receive a shipment even when it is "Closed for Receiving"?

Ans. Yes, it does not prevent you from receiving.
 7. Can we re-open a Closed and Finally Closed Purchase Order?
Ans. You can Open a Closed purchase order but you cannot take any control action on Finally
Closed PO.

8. Can we match an Invoice against a line even when it is 'Closed for Invoicing'?
Ans. The Close for Invoicing status does not prevent you from matching an invoice to a
purchase order or to a receipt.

1. In which table is Purchase order number stored?

Ans: po_headers_all

2. How many types of purchasing matching option are there?

Ans: 3

3. Types of purchasing matching options?

Ans: 2 way, 3 way, 4 way

4. 4. How many types of purchase orders are present in Oracle?

Ans: 4

5. 5. The purchase order which consists of Supplier, Item and Cost but doesn’t know
the delivery schedules
Ans: Blanket purchase Agreement

6. Which purchase order is a long-term agreement committing to buy items

or services from a single source having tentative delivery schedules and all details
for goods or services that you want to buy, including charge account, quantities, and
estimated cost.
Ans: Planned purchase order

7. How many types of Approval Hierarchies are used in purchasing?

Ans: 2

8. What are the types of Approval Hierarchies used in purchasing?

Ans: Employee-Supervisor Hierarchy and Position Hierarchy

9. Purchasing performs matching to verify that purchase order and invoice

information Match within tolerance this is called as
Ans: 2 way
10. Purchasing performs matching to verify the purchase order, receipt, and invoice
information match within tolerance this is called as
Ans: 3 way

11. Purchasing performs matching to verify the purchase order, receipt, inspection, and
invoice information match within tolerance this is called as
Ans: 4 way

12. A statement of the price, terms, and conditions of sale a supplier offers you for and
item or items is called as
Ans: Quotation

13. A document you use to solicit supplier quotations for goods or services you need is
called as
Ans: Request for quotation (RFQ)