Top 41 Oracle Procure Pay Interview Questions You Must Prepare 25.Apr.2024

Navigate: RFQ and Quotations > Quote Analysis.

Navigation: Management > Manage Buyer Workload

Select the field ‘Action’ > Review

Enter the other required search criteria and press FIND

In the popup window we see the following details:

Buyer Assigned   Urgent Late Needed   Open Pos

  • If the item revision, Subinventory and locator is not available & the entered destination is final. (Revision, Subinventory & Locator are not obtainable as a default from the item definition.)
  • If the early / late receipt date tolerance is exceeded & the exception control is set to Reject.
  • If Lot / Serial information is required.
  • If Ship-to- location is not available & the destination is Receiving.
  • If the location is not available for Expense destination type & the destination is final destination.
  • If PO Supplier & Receipt Header Supplier do not match.
  • If other receipts are pending for the specified shipment.

The mode of numbering of RFQs, Quotations and PO (Automatic or Manual and if Automatic, what should be the starting number) should be defined in the Purchasing Options.

The original version of a revised PO cannot be viewed from the PO form or PO summary form. Information on the original PO can be obtained from the PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables using the PO_HEADER_ID column as a common reference using SQL only.

Receipt Routing is of three types:

Direct, Standard and Inspection

  • In Direct once the goods arrive at the destination, we directly move them to a specific Sub-Inv
  • In Standard once the goods are at the destination, we receive it at the receiving point first and then move them to the Sub-Inv.
  • In Inspection once the goods are at the destination, we receive it at the receiving point and then we perform inspection and accordingly we either accept it or reject them.

Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received.

Two–Way: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Three–Way: Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Four–Way: Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

While approving the Quotation, select the ‘Shipment Approved Type’ as Requisition so that the Quotation information could be used only for Requisitions.

The other Types are All Orders (can be used in POs and Requisitions), Purchase Agreements and Standard Pos.

Set the Purchasing Option ‘Enforce Buyer Name’ to Yes.

Yes. A supplier Hold doesn’t prevent from receiving and invoicing Pos placed earlier to the Hold.

Procure to pay (p2p) is a process of requesting, purchasing, receiving, paying for and accounting for goods and services.  Procure to Pay Lifecycle is one of the important business Process in Oracle Applications. It’s the flow that gets the goods required to do business.  It involves the tractional flow of data that is sent to a supplier as well as the data that surrounds the fulfillment of the actual order and payment for the product or service.

Create a requisition>> create RFQ>> create a quotation from quote analysis>> generate a PO>>receipt of material>> create Invoice in payables>> trfer to GL

If the status is to be seen for a specific document, go to the respective document-defining window and see the current status at the Status region.

If the status of any document is to be found out, go either to the ‘Notification window or the Action history window (Navigation: Special > View Action History).

Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.

By running this program, we can automatically create an invoice for a PO when we enter a receipt for the respective PO.

Requisition Preferences are used to enter information that are to be defaulted in a Requisition. When multiple requisitions are to be created with many data the same, all those data can be entered as a Requisition Preference. The preferences defined will be defaulted in all new Requisition Lines as long as the user is exiting the Application. The defined preferences are not saved to the database.

Corporate: This is an exchange rate, generally a standard market rule, determined by the senior financial management of an organization, which will be used throughout the organization.

Spot: An exchange rate entered to perform conversions based on the rate on a specific date. It applies to the immediate delivery of a currency.

User Defined: An exchange rate that is specified when a foreign currency journal entry is made, that does not have a daily exchange rate.

The following are the documents that use PO_HEADERS_ALL

RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order, Blanket Purchase Order and Contracts

The values that are defaulted from the Requisition or PO will be used by the system to query the default source options.

Set the profile option ‘RCV: Routing Override’ to No.

(But in our instance I am getting the profile option named as ‘RCV: Allow Routing Override’ and the Default value and user value field are grayed out, I am not able to fill any thing at user value also. why?)

EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund trfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for trfering funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is a RTGS i.e. real time gross settlement system of making the fund trfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.

  • Purchase Order Receipts
  • Internal Requisition Receipts
  • Inventory Inter-Org Trfer Receipts
  • Customer Return Receipts

Provided that the Sourcing Rule is defined as Global, it will be available in all organizations.

Create internal order request will trfer the IR info to OM interface tables.

No. The supplier can’t be changed after approving the PO. If such situations arise, cancel the PO & create a new PO with the new supplier.

The Accounts Payable application component records and manages accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors. The system automatically triggers postings in response to the operative tractions. In the same way, the system supplies the Cash Management application component with figures from invoices in order to optimize liquidity planning.

The following fields will be printed on a purchase order:

item description, unit of measure, quantity, unit price and total, supplier name and address, need by date, requestor name, deliver-to location and notes to supplier.

Enter the required line type in the field, ‘Line type’ in the Purchasing option.

While approving the Quotation, enter an ‘Effective To’ date, so that the Quotation will not be available for reference after the entered date.

No. PO can’t be created from Internal Requisition.

The planning process to create Purchase Requisition for Buy items & Internal Requisitions for Make Items uses a Sourcing Rule.

  • PO Approval
  • Sourcing
  • Schedule Confirmation
  • Manufacture Link To Distributor

Standard Purchase Order: You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

Planned PO : A planned purchase order is a long-term agreement committing to buy it

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.

EX: Buying goods for Christmas from a specific dealer.

Contract PO : You create contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you use encumbrance accounting.

Blanket PO: You create blanket purchase agreements when you know the detail of 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.

A Blanket Purchase Agreement is a sort of contract between the you and ur supplier about the price at which you will purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items worth a fixed amount against the contract.

There are three modes:

Online: Receipts are processed online. If there are any errors, they are shown on the FORM itself, and don’t let you IGNORE and PROCEED.

Immediate: Receipts are processed immediately, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.

Batch: Receipts are processed in batch, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.

Note: In all the above two cases, it requires Receiving Traction Processor to be run periodically.

PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)

This table stores header information of a Purchasing Document. You need one row for each document you create.

PO_LINES_ALL:

This table stores the line information of a Purchasing Document

PO_LINE_LOCATIONS_ALL:

This table contains the information related to purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.

PO_DISTRIBUTIONS_ALL:

This table contains the information related to accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment

VENDORS_ALL:

This table stores the general information about the suppliers

PO_VENDOR_SITES_ALL:

This table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.

PO_RELEASES_ALL:

This table stores information related to planned and blanket Purchase Order releases. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

PO_VENDOR_CONTACTS:

This table stores information about contacts related to Supplier site. Each row includes contact name and site.

PO_ACTION_HISTORY:

This table stores information about the approval and control history of a Purchasing Document. This table stores one record for each approval or control action an employee takes on a purchase order, purchase agreement, release or requisition.

Query for the required PO and choose Acceptances from Special Menu. The type acceptance can be defined in Quick Codes (All Terms Accepted, Partially accepted etc.)

Before you can pay or create accounting entries for any invoice, the Invoice Validation process must validate the invoice.

Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances.

Process flow for Procure to pay will go through two departmentsv(Commercial & Finance)

Procure – Commercial Department The following steps involve to procure any item

  • Received Requisition from concern Department
  • Request for Quotation from Suppliers at least three
  • Finalize the best Quotation by keeping in mind about our companies standard
  • Check the Budget for the same
  • Negotiate with supplier for more economic pricing and finalize the payment terms
  • Process the PO and forward to the supplier to supply the goods and services

Pay Cycle – Finance Department

The following steps need to be fulfil

  • Invoice should be match with PO
  • Invoice should has all the supporting documents such as PO copy,Delivery note duly signed by receiver (our staff who authorized to received goods / store keeper)
  • If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval
  • Even if it not the services invoice, it should forwarded to the concern person’s approval who -request the PO for the same
  • Finance can reject the invoice if it is not budgeted and ask for the reasons.
  • After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells you if the PO already used or cancel)

It is a formal request intended to procure/buy something that is needed by the organization. It is created and approved by the department requiring the goods and services.
A purchase requisition typically contains the description and quantity of the goods or services to be purchased, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included.

Basically, requisitions are of two types:

Internal requisition and purchase requisition

  • Internal Requisitions are created if the Items are to be obtained from one Inventory location to another location within the same organization. Here the source of the requisition would be INVENTORY. There is no approval process for internal requisition.
  • Purchase Requisitions are created if the goods are obtained from external suppliers. Here the source of the requisition would be SUPPLIERS. The purchase requisitions are sent for approvals.

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.