1. Question 35. What Is An Item?

Answer :
o An item is a part or services where you can Purchase, Sell, Plan,
Manufacture, Stock, Distribute and Prototype.
o Items can also be containers for items as well as components you build
into other items.

1. Question 42. What Are The Basic Steps Involved In Defining An Item?
Answer :
o Create an item in the item master form.
o Copy the template from the tools menu to assign specific attributes to
the item and save it.
o Assign the item to a category from tools menu and save your work.
o Select organization assignment from tools menu and assign the item to
different inventory organizations by ticking the checkbox next to the
inventory organizations.

Question 43. What Are Item Attributes?

Answer :
Item attributes are the collection of information about an item. These are used to
store specific characteristics of an item, such as item status, unit of measure,
revision control, etc. these can be controlled at either the master or the organization
level. 

1. Question 4. What Are The Setups For Expense Item?

Answer :
o Should not be Inventory Item
o No Stackable
o No Transactable
o No Costing, Inv Asset
Go to Inventory responsibility
Navigation > Inventory > Items > Mater Items

In the Item Definition UI enter

1. Item Name
2. Description

 Main Tab - Select UOM.

 Inventory Tab - Don’t Select any Attribute in Inventory tab
 Purchasing Tab – Select
 Purchasable
o Enter Default Buyer Details
o Default Buyer
o Expense Account
  Receiving Tab – Enter
o Receipt Date Control Attribute

1. Question 5. How Many Key Flex Fields Are There In Inventory?

Answer :
Seven KFF are there in Inventory: 
o Account Alias
o Item
o Item Category
o Item Catalogues
o Stock Locators
o Sales Order
o Service Items
2. Question 8. What All Setups You Have Done In Inventory Organization
Implementation?
Answer :
o Location
o Calendar
o Organization
o Parameter
o Cost Group
o Sub inventory
o Stock Locator
o Receiving Options
o Shipping Networks
o Intercompany Transaction flows
o Cost Sub elements

1. Question 9. What Is The Difference Between Purchased And Purchasable Flag

For An Item?
 Answer :
o Purchasable is a status attribute flag, so based on this flag, certain
transactions can be controlled for an item.
o Purchased flag decides whether to purchase and receive this item.
o Purchasable flag decides whether to order this item in a purchase order.
o If purchasable is enabled, item can be ordered in a purchase order, if not,
new purchase orders can’t be created and approved for the items.
o If purchased is enabled, item can be received if already present in an
approved purchase order.
2. Purchasable Flag is a status attribute flag which can control certain transactions of an
item.
3. The purchased flag determines whether to purchase and receive an item.
4. Purchasable flat determines in case of order this item in the purchase order.
5. If the purchasable flag is enabled, the item could be ordered in the purchase order.
Otherwise, the new purchase order cannot be created and except for the items.
6. In case if purchased is enabled, the item received the item already present in the
approved purchase order.

Question 10. What Is The Valuation Accounts Used In Inventory?

Answer :
o Material: An asset account that tracks material cost. For average costing,
this account holds your inventory and in transit values. Once you perform
transactions, you cannot change this account.
o Material Overhead: An asset account that tracks material overhead cost.
o Resource:  An asset account that tracks resource cost.
o Overhead: An asset account that tracks resource and outside processing
overheads.
o Outside processing: An asset account that tracks outside processing cost.
o Expense:  The expense account used when tracking a non-asset item.

1. Question 11. What Is Abc Analysis And Why It Is Being Used?

Answer :
o BC Analysis is an Inventory categorization method to categorize items
into 3 different classes A being the most valuable and C being the least
valuable ones.
o Using this Analysis, it will be easy to monitor and keep on track of the
valuable items like frequently doing cycle counts on A class items, etc.
1.
Question 13. What Is The Different In Mo Issue And Mo Transfer?
Answer :
 o MO Issue will move out the stock from inventory against an account.
o MO transfer will move the stock from one sub inventory to other.
2. Question 16. What Are The Diff In Lot And Serial?
Answer :
o Lot control is to control a whole batch of items. for example in drug
industry we have batch number which can be controlled using lot
where we can track the complete batch using specific data.
o Serial control is to monitor and track every single qty of an item like
electronic devices where we track by serial number.

1. Question 17. What Is Move Order In Om?

Answer :
Move orders generated as part of Pick Wave are the ones from Sales order.

1. Question 18. How a Mo Is Diff From Subinv Transfer?

Answer :
MO generally is the request of movement of items in one organization. It may be
of from 3 sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO
Issue which will issue the item from the location and MO transfer which ll transfer
the item to another location.

1. Question 22. Why Master Org Is Required?

Answer :
So that we can have an item maintained at master level with common attributes
and then we can use the same item across multiple organizations instead of
defining it again and again.

1. Question 23. Inventory Master Org Is Mandatory?

Answer :
Yes. If you will not create any specific master org, then system will consider the
same inv org as its master org.

1. Question 24. What Are The Lot Control Setups?

Answer :
Lot control can be setup at item attributes at organization level.
Either No Control or Full Control.

1. Question 25. How Lot Number Generates?

Answer :
You can generate new Lot numbers during transactions.
1. Question 26. What Is Serial Controlled And What Are The Setups?
Answer :
Serial control can be setup at item attributes at organization level.

1. Question 27. How Serial Numbers Are Generated?

Answer :
Serial control can be setup at item attributes at organization level.
No Control, At Receipt, At Sales Order issue, Predefined.

1. Question 28. What Is The Predefined Locator In Sub Inventory And How It Works
In Business?
Answer :
We can setup locator control in 4 diff ways for each sub inventory:
None:  There will not be any locator information required during any transaction.
Prespecified: System will ask you to select locator combinations which already
been defined in the sub inventory during the transaction.
Dynamic Entry: Either you can select any locator during transaction or you can
create a new combination.
Item Level: This will take the locator which has been defined at item attribute
level.

1. Question 30. Can We Change The Item Name After It Created?

Answer :
Yes we can change the name in master level.
1. Answer :
It is a facility which will enable you to store and transact the items. It can be a
manufacturing unit, ware house, distribution center etc.

1. Question 40. What Is A Stock Locator?

Answer :
Locators are structures within sub inventories. Locators are the third level in the
enterprise structuring scheme of Oracle Inventory. Locators may represent rows,
racks, or bins in warehouses. You can transact items into and out of locators. You
can restrict the life of locators, establish capacity of a specific locator in weight or
units, as well as specify dimensions which define a locator’s capacity by volume.

2. Question 38. What Is A Sub Inventory?

Answer :
 o Subinventiries are unique physical or logical separations of material
inventory. These can be raw material, finished goods or defective
material sub inventory. You must define at least one sub inventory. Sub
inventories are of two types: storage and receiving.
o Storage sub inventories are intermediate or final put away locations for
material. Material that resides in a storage sub inventory appears in on
hand quantity, and is tracked by the system. The system can book
orders against, and use manufacturing processes on material that
resides in a storage sub inventory. You must define at least one storage
sub inventory for your implementation.
o Receiving type sub inventory is only used for receiving items. Items in
this sub inventories cannot be on-hand or reserved.

1. Question 36. Explain Item Master Organization?

Answer :
An item master organization is a logical entity where you define the item. After
you define an item in the item master, you can assign it to any number of other
organizations.

1. Question 41. What Are The Key Flex Fields In Oracle Inventory?
Answer :
Oracle Inventory provides the following flex fields:
o System Items
o Item Catalogs
o Item Categories
o Stock Locators
o Account Alias 
o Sales Order

1. Question 44. What Is The Use Of Item Template?

Answer :
An Item template is a set of attributes that enable the user to quickly create an
Item. You can use the existing templates are you can create your custom
template.
2. Question 45. What Is An Item Category And Category Set?
Answer :
A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of multiple categories.
An item can belong to any number of category sets. We can assign item to one
category within each category set. 
1. Question 46. Explain Unit Of Measure (uom) And Uom Class?
Answer :
The unit of measure (UOM) helps us count the number of items involved in a
transaction or the number of items that are stored in a sub inventory or a locator.
UOM classes let you group different UMO’s into one category. Eg, quantity could
be UOM classes under which each, dozen, lot etc are separate UOM’s.
2. Question 47. Explain Shipping Method?
Answer :
Shipping methods are the way you ship material. When you create a shipping
method, you must enable it before you can use it in a shipping network. If you
disable a shipping method, it cannot be used in a shipping network.
Question 50. What Is Revision Control In Oracle Inventory?
Answer :
A revision is a particular version of an item, bill of material, or routing. Revision
control is normally enabled for identifying a modified item. Item can be placed under
revision control by checking the box `Revision control` in Inventory tab while defining
new item or for existing item.

1. Question 52. What Are The Different Inventory Transactions?

Answer :
A transaction is an item movement within, into or out of inventory. A transaction
changes the quantity and location of an item.
The following are the different inventory transactions:
o Receive an item into an organization from GL account number.
o Issue an item from an organization into a GL account number.
o Transfer items from one sub inventory to other in the same organization.
o Transfer of items between various inventory organizations.
o Reservation of items.
2. Question 53. Describe Various Inventory Transaction Types?
Answer :
Miscellaneous transaction: This transaction is used to do adjustments in stock
due to damage, obsolescence, issuing items for R & D or issuing track able
expense items.
Sub inventory transfer: This transaction is used to transfer goods from one sub
inventory to another within the same inventory organization.
InterORG transfer: This transaction is used to transfer goods from one inventory
organization to another.
Receiving transaction: This transaction is used to move goods from receiving
dock to specified sub inventory and locator.
Sales issue: This transaction is used to move goods from pick sub inventory to
staged sub inventory.
WIP issue: This transaction is used to issue materials against production orders.
1. Question 54. What Is The Difference Between A Sub Inventory Transfer And A
Move Order?
Answer :
Both these transactions are used for the movement of items from one sub
inventory to the other. The difference is that move order generates a pick slip and
a sub inventory transfer doesn’t.
Move order requires ‘approval’. Also, move orders create allocations. So you can
place hold on the material with the intention of picking it up a little later. In sub
inventory transfer, there is no reservation / allocation.

1. Question 56. What Is A Transaction Source Type?

Answer :
A Transaction Source Type is defined as an entity against which Oracle Inventory
charges a transaction.
The following transaction source types come seeded with Oracle Inventory:
o Purchase Order
o Account Alias
o Move Order
o Internal Order
o Standard Cost Update
o Internal Requisition
o Sales Order
o Cycle Count
o Periodic Cost Update
o Physical Inventory
o Account
o RMA (Return Material Authorization)
o Inventory
o Job or Schedule
2. Question 57. What Is A Transaction Type?
Answer :
A transaction type is a combination of a transaction source type and a transaction
action. It is used to classify a particular transaction for reporting and querying
purposes.
Ex: Sales order issue (txn type) + issue from stores (txn action) = sales order (txn
source type).
Move order transfer (txn type) + sub inventory transfer (txn action) = move order
(txn source type).
3. Question 58. Name Any Four Purposes Where Miscellaneous Transaction Can
Be Used?
Answer :
 Cycle count adjustment, Physical inventory adjustment, adjusting inventory
quantity within an inventory organization and decrementing on-hand balances
from a subinvemtory.
1. Question 63. What Is Consignment Inventory?
Answer :
Consignment Inventory is inventory that is in the possession of the customer, but
is still owned by the supplier. In other words, the supplier places some of his
inventory in his customer’s possession (in their store or warehouse) and allows
them to sell or consume directly from his stock. The customer purchases the
inventory only after he has resold or consumed it. The key benefit to the customer
should be obvious; he does not have to tie up his capital in inventory. This does
not mean that there are no inventory carrying costs for the customer; he does still
incur costs related to storing and managing the inventory.
1. Question 66. Explain Re-order Point Planning?
Answer :
Reorder point planning uses demand forecasts to decide when to order a new
quantity to replenish inventory. Reorder point planning suggests a new order for
an item when the available quantity (on-hand quantity plus planned receipts)
drops below the item’s safety stock level plus forecast demand for the item
during its replenishment lead-time. The suggested order quantity is an economic
order quantity that minimizes the total cost of ordering and carrying inventory.
Oracle Inventory can automatically generate requisitions to inform your
purchasing department that a replenishment order is required to supply your
organization.
If the forecast is correct and the order arrives on time, the inventory level should
be right at the safety stock level at the time of receipt. In cases where the desired
safety stock level changes during the order lead time, Oracle Inventory uses the
largest safety stock quantity during the lead-time.
When an order is triggered, the EOQ is the size of the triggered order.
EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost percent
X Unit cost)]
Oracle Inventory calculates annual demand as the current demand rate
annualized by multiplying the current period demand forecast by the number of
periods per year (12 or 13).
Reorder point planning can be performed at the organization level only.
2. Question 67. Explain Min-max Planning Technique?
Answer :
Min-Max planning is a tool for planning inventory that looks at user-defined
minimum and maximum inventory levels. It does not consider lead times.
We can perform this technique at org level or sub inventory level.
3. Question 68. Define Cycle Counting And Explain Its Use In Oracle Inventory?
 Answer :
Cycle Counting is a process of periodic counting of individual item / all the items
throughout the course of the year to ensure the accuracy of inventory quantities
and values.
We can do the cycle counting at Organization / Sub Inventory Level.
Cycle count is used to:
To reconcile system on-hand balances with actual counts in inventory.
Maintain control over the items that have higher value.
4. Question 69. When Do You Perform Physical Inventory And Explain The Steps
Involved In It?
Answer :
Physical inventory can be performed, whenever there is a need to verify the
accuracy of system on-hand quantities. This can be done for entire organization
or can be confined to a specific sub inventory.
Steps to perform physical inventory:
o Define physical inventory
o Take a snapshot of system on-hand quantities
o Generate physical inventory tags
o Enter counts
o Do physical inventory adjustments by approving or rejecting
o Post adjustments
o Purge physical inventory information
5. Question 70. When Can You See Such Scenario, Item Available To Qty Is 0 But
Available To Transact More Than 0?
Answer :
o If item is not resolvable
o If Sub inventory Allow reservation is not allowed
o If Item is lot controlled and lot is expired

What are different control options in inventory?

 Locator control
 Serial control
 Revision control
 Lot control

What is the Inventory Organization?

Inventory Organization is a logical entity where we used to define the specific item. Once if you
finished with defining the item to the item master, now you can authorize it to various other
organizations.
What is a FlexField?

This is a kind of field associated with oracle apps that are used for capturing
information related with the organization.

What is the concurrent program?

Concurrent programs are instances that need to be executed along with

incompatibles and parameters.

What is the menu?

Menu can be defined as a hierarchical arrangement associated with functions of the

system.

What is Function?

Function is the smaller part of the application and that is defined inside menu.

What is a value set?

Value set is used for the purpose of containing the values. In the case of a value set
getting associated with report parameters, a list containing values are sent to the
user for accepting one among the values in the form of parameter values.

Define Template?

Template is a kind of form that is very much required before the creation of any
other type of forms. It is a kind of form that incorporates attachments that are
platform independent and associated with a particular library.

Define about Key Flexfiled ?

Key flexfiled is a unique identifier and is usually stored inside segment, and there
are two different attributes associated with this which are flexfiled qualifier and
segment qualifier.

Define uses of Key Flexfield ?

This is a unique identifier for the purpose of storing information related with key. It
also helps in entering as well as displaying information related with key.

Define Descriptive FlexField ?

This is a kind of flexfield that is mainly used for the purpose of capturing additional
information, and it is stored in the form of attributes. Descriptive flexfield is context
sensitive.

List some uses of DFF (Descriptive Flex Field) ?

This is a kind of flexfield that is mainly used for gathering extra information and also
for providing space for you to form and get expanded.

Define MRC ( Multiple Reporting Currency)?

Multiple – Reporting Currency is a kind of feature that is associated with oracle

application and helps in reporting as well as maintaining records that are associated
with the transaction level in various forms of functional currency.

Define about Profile Option?

Profile option comprises of set of options that are helpful in defining the
appearance as well as behavior of the application.

Define Request Group ?

Request group is assigned with a set of responsibilities.

What is 2 way matching?

The PO and Invoice quantities must match.

What is 3 way matching?

The receipt and Invoice information must match.

What is 4 way matching?

The Acceptance documents and Invoice information must match.

Difference between expense item and inventory item

Those items that need to maintain the stocks and the trackings are inventory
Items. Creating unique Item coding for each SKU’s

Non-Stock able Items that are direct IN & OUT, are expense items. For such
items no needs to create Item code for all. Only a few codes can be created and
in PR & PO description can be change

For example
Inventory items: The inventory items are Machine parts, Raw Materials, Any
Trading Items, etc
Expenses Items: The expense items are Assets, services, Projects, consumables
(Office Stationery), etc.
You cannot define an item as an expense and an inventory at the same time. But
you can define the items as inventory items.

And when you want to use the items as an expense, you have to simply move it
to an expense subinventory.

We need to uncheck the attributes “Asset Subinventory” in the specified

subinventory.

You should uncheck the asset flag (Asset flag means it is an asset and the value
of the items that will show in your inventory valuation.)for that subinventory.
Make sure that the subinventory accounts are all set up correctly.

Define the item as inventory one and in the costing tab, disable the
“Costing Enable” and “Inventory Asset Value” flag.

Difference between expense item and inventory item in

Oracle.
Expense Item:

 Captive consumption of the organization 

 it will not be transferred (Stockable & Transactable ) to the inventory and
 hence will not hit the inventory valuation account.

Inventory Item:

 it will hit the inventory as well as inventory valuation account and

 it will be used in production of finished goods. 

Difference between expense item and inventory item

Those Item that needs to maintain stock and tracking are inventory Items. Creating
unique Item coding for each SKU's

Non-Stock able Items that is direct IN & OUT, are expense items. For such items no
need to create Item code for all. Only few codes can be created and in PR & PO
description can be change

For example

Inventory items: Machine parts, Raw Materials, Any Trading Items etc

Expenses Items: Assets, services, Projects, consumables (Office Stationery) etc.

You cannot define an item as expense and inventoried at the same time. But you can
define the item as inventory item.
And when you want to use it as expense, move it to an expense subinventory.

We need to uncheck the attribute "Asset Subinventory" in the specified subinventory.

You should uncheck the asset flag for that subinventory. Make sure that the
subinventory accounts are setup correctly.

The terminology of items is rather confusing from an Purchasing/Inventory point

of view:

For easy understanding these will be referred below points.

These Expense Items have attributes checked

a - Purchasable
b - Purchased

These Inventory Expense Items have the following attributes checked

a - inventory item = YES
b - stockable
c - transactable
d - Inventory Asset Value = NO
e - Costing Enabled = No

These Inventory Asset Items have the following attributes checked

a - inventory item = YES
b - stockable.
c - transactable
d - Inventory Asset Value = YES
e - Costing Enabled = YES

As you know "procure to pay" Business Flow start Purchasing requisition till paying to vendors and
most important, in all the case the purchase is made for basic element called Items.

As you know there are three types of items:

 Inventory Expense Item

 Inventory Asset Item
 Expense item
Definition of above Items used in Purchasing can be best understood as:
 Asset flag means means it is an asset and the items value will show in your inventory
valuation.
Can You Change Customer Name After You Save It?

Yes, you can change it if you have set the profile option INV: Updatable Customer
Item to Yes respectively.

Can you delete UOM?

Yes you can delete UOM if it is not set up as base unit and no conversions defined.

If Purchasable flag is not enabled in an inventory item what will happen?

If purchasable is enabled, item can be ordered in a purchase order, if not, new purchase

orders cant be created and approved for the items.

If purchased flag is not enabled in an inventory item what will happen?

If purchased is enabled, item can be received if already present in an approved purchase order.

How will you inactivate the Inventory locations?

By giving Inactive date in the Location form

What is the use of sales order KFF? What are the SO KFF

 This is used during material transaction when source is Sales Order

 Segments are Sales order Number.Sales Order Type.Sales Order Source

What is the use of status attribute in item master?

We can define different status for an item combination these attributes as per the business need

What is the predefined locator in Subinventory and how it works in business

Prespecified: System will ask you to select locator combinations which already been defined in
the subinventory during the transaction

What is use of Dynamic Entry in locator control?

Either you can select any locator during transaction or you can create a new combination

What is the use of item template?

An Item template is a set of attributes that enable the user to quickly create
an Item. You can use the existing templates are you can create your
custom template.
In a Master org
a) You cannot perform transactions
b) You are not supposed to perform transactions
Answer : b

Which is true ?
a) If an item is Serial Controlled…it cannot be Lot Controlled
b) If an item is Serial Controlled…it can be Lot Controlled

Answer : b

What should be the steps after approving the PO if we want to change

the qty or price
If the PO is approved then we can change the qty or price but it will go for re approval

What you mean by lot geneology

The Lot Genealogy offers lot traceability obtained from inventory transactions.

What is the difference between Blanket Purchase Agreement and

Contract Purchase Agreement?
With Blanket purchase agreements, you get details of the goods or services you plan to
buy from a specific supplier in a particular time. However, it doesn’t specify the details of
your delivery schedule. On the other hand, you can create contract purchase agreements
with your suppliers to agree on specific conditions. However, you don’t need to specify
the goods and services that you will be buying.
Blanket purchase agreements are created to specify negotiated prices for your items
prior to buying them. With Contract Purchase, you can issue standard purchase orders
with reference to your contracts later.

What are the ways you can track uom for an item?

Primary

Primary and Secondary

How many ways you can control shelf life for an item.

No control

User defined

Shelf life days

How many ways you can control locator for an item.

No control

Predefined

Dynamic entry

What is the need for Restrict sub inventories and Restrict locators item attributes?

What is the difference between default lot status and default material status item
attributes?

What is the necessary for Lot Divisible attribute ?

How you can enable costing for an item?

Once you have assigned an item to one organisation, is it possible to unassign ?

What is the difference between list price and market price?

What you mean by the lead time and what is Preprocessing, processing and post
processing?
What is the difference between primary UOM and Secondary UOM?

Is it possible to give a reason for the miscellaneous transactions?

From where you can find Lot origination date?

Difference between MO issue and MO transfer?

Can you enter price in move order?

Can you open any requisition which is approved

What is the default Destination type for a purchase requisition? Expense

What you mean by Incomplete status of a PO?

What you mean by Requires Reapproval status of a PO?

Can we have Routing control for Releases?

How can you control releases for a blanket PO?

You have created a PR it has been approved, you are going to convert it to PO so in
auto create option you have entered that PR no. and you clicked find but it is saying no
data found. What can be the reason?

How you can create receipt for one release?

How you will enter the qty in PO correction?

How many types of PO return?