Top 32 Oracle Order Management Interview Questions You Must Prepare 06.Dec.2023

AutoInvoice is a concurrent program in Oracle Receivables that performs invoice processing at both the order and line levels. Once an order or line or set of lines is eligible for invoicing, the Invoice Interface workflow activity interfaces the data to Receivables.

Oracle Order Management inserts records into the following interface tables:


ASN stands for Advanced Shipment Notice. ASN is trmitted via Electronic Data Interchange (EDI) from a supplier to let the receiving organization know that a shipment is coming. The ASN contains details including shipment date, time, and identification number, packing slip data, freight information, and item detail including cumulative received quantities, purchase order number, and returnable container information.

Advance Invoice and Arrears Invoice

There are three types of drop shipments:

Full Drop Shipment:

The seller sends the purchase order to the supplier for the full quantity that the customer had ordered

Normal Shipments and Full Drop Shipment:

The seller ships some goods from inventory to the customer, and the other goods are always shipped from an external source (supplier)

Normal Shipments and Partial Drop Shipment:

If the seller has only part of the quantity available for shipping to the customer, then that quantity is shipped.

The user looks at the availability for the order qty by using the ATP check and if the whole qty is not available the balance qty is fulfilled using the drop ship process.

A purchase order is created for the remaining quantity which the seller was not able to fulfill.

A standard item is a finished good that is not an assembled or configured item, a service or a component.

In the Order Management ->Setup -> Traction Types

Traction 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 Traction Type so that we can assign this Line Traction Type to OM Order Traction Type.
  6. Credit Check Rules.
  7. Invoicing Rules & Accounting Rules.
  8. Currency

After you enter an order, the items on the order are validated in Oracle Inventory; a price is calculated for the items using the pricing engine; the availability of the items are checked and may be reserved; the items are then pick released and shipped to the customer.

Processing Constraints are a security framework where you can define rules in Oracle Order Management that validate back-end operations such as Create, Update, Delete and Cancel.


You cannot change the Order Type in the order header once the order is Booked.

You cannot delete the line in an order once the Order Status is Closed (if the order is ship confirmed or invoice interfaced).

Modifiers are discount, surcharge or special charge that may be applied to the base price and may alter the value of the item. It can be applied either at order level or at the line level.

A qualifier helps you define who is eligible for a price list or modifier. A qualifier can be a customer name, a customer class, an order type, or an order amount that can span orders.

  • 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).

Defaulting Rules enable you to speed up data entry by passing values in the window based on some key values you have entered.


In the order header, Ship-To Address and Bill-To Address values default in the window once you enter the customer name or number.

If you enter an item number, the Unit of Measure and Item Description automatically default on the order line.

This error may be due to Item setup in Inventory & Order Traction Type Setup Order management.

Ensure the Below Setups

  1. Inventory -> Items -> Organization Items -> Order Management ->Check ATP should be none.
  2. Order Management -> Setup -> Traction Types ->Define. In 'Shipping' sub-tab uncheck 'Auto Schedule' check box.
  3. Profile Option 'OM: Auto Schedule' should be 'No'.

  1. Create a Line Traction Types for Order Lines
  2. Create Order Traction Types
  3. Assign Line Flows to Order Traction Types
  4. Create document sequence for Orders
  5. Assign Order traction types to the document sequence

The one-step process consists of selecting the Auto Allocate box on the Inventory tab and the Auto Pick Confirm box on the Inventory tab when you run Pick Release, which me that the Pick Recommendation is automatically created and Pick Confirmed without any manual intervention.

Order Management Tab: Customer Orderable, Assemble to Order (ATO)

Purchasing Tab: Purchasable

WIP Tab: Build in WIP

General Planning Tab: Buy

A Sales Agreement is a supplier’s representation of an agreement with a customer for the supplier to sell and the customer to buy goods or services.

Drop shipments are used due to the following reasons:

  • Customer requires an item that is not normally stocked
  •  Customer requires a large quantity of the item which is not available with you
  • It is more economical when the supplier ships directly to the customer.

Drop shipments are created as sales orders in Order Management, indicated as drop shipments when their Source Type is entered as External.

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

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.

The two-step process consists of selecting Auto Allocate (not Auto Pick Confirm), which creates a move order that is automatically detailed.  It enables you to view the Pick Recommendation and provides the opportunity to change quantity, location, and subinventory. You can report a missing quantity at the Pick Confirmation step in the Tract Move Orders window. Once you have made your changes, you can tract the move order to Pick Confirm the inventory.

Release Sales Orders Window

Using a Concurrent Program

SRS – Pick Selection List Generation – SRS.

Release Rule Name need to be specified to proceed with the pick release when using the concurrent program or SRS.

Ship Confirm indicate that the items are loaded onto the carrier from staging location.

Internal Sales Orders are used to trfer 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 ->Requisition Approval -> Run Create Internal Sales Order Concurrent Program ->Run Order Import Concurrent Program in OM -> Pick Item in INV thru OM -> Ship Confirm ->Receive Internal Order in INV / PO
  • Select Order Source as Internal while importing Orders.
  • Shipping Network (Intrit 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

Go to the order lines showing Fulfilled ->right click -> Select Progress Order.

This will interface the order to Accounts Receivable for Invoice Interface.

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.

The Invoice Interface workflow activity will complete with a status of On Hold and the order details will not be interfaced to Receivables.

The three-step process consists of selecting neither the Auto Allocate or Auto Pick Confirm check boxes. This creates a move order whose details you can enter manually or automatically in the Tract Move Orders window. After the details are entered, you can tract the move order to pick confirm the traction.

Credit Checking feature is the process by which orders are validated and released against your credit checking business rules.