Oracle Inventory Interview Questions & Answers

Question 1. Which Are Required Steps In Inventory Module Set Up?

Answer :

1. All the 6 key flex fields i.e. Items, Item Catalog, Account Alias, Sales Order, Locator and Item Category 
2. Organizations
3. Change Organizations
4. Intercompany Relations
5. Unit of Measure Classes
6. Sub inventories
7. Item Attribute Controls, Categories
8. Default Category set
9. Item Statuses
10. Cost types
11. Profile Options
12. Inventory Accounting Periods

Question 2. What Is Item Master Organization?

Answer :

An item master organization is a logical entity that you use to define items. After you define an item in the item master, you can assign it to any number of other organizations. You should also define one item master organization per implementation. When you define an item, Oracle automatically changes your current organization to the master organization.

Question 3. What Is An Inventory Organization?

Answer :

Inventory Organization is a facility where you store and transact items. It can be a manufacturing unit, warehouse, distribution centre, item master organization (logical entity), etc.

Question 4. Can You Change Customer Item Name Or Item After You Save It?

Answer :

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

Question 5. What Is Item Status? Name The Related Table?

Answer :

INVENTORY_ITEM_STATUS_CODE is the Colum in table MTL_ITEM_STATUS will tell you the different status for item while you defining the item in item master form (INVIDITM). You can have different status as shown in below, also u can define your own custom status in status code form in item setups (INV DOIS)like “easyapps”.

Active, Inactive, Engineer, Obsolete, Phase-Out, Prototype, OPM, Lease, Production, Concept, Design, DEM_Status, Pending.

Question 6. Define The Difference Between Cycle Counting And Physical Inventory?

Answer :

1. Cycle counting is the periodic counting of individual items throughout the course of the year to ensure the accuracy of item. Physical Inv. counts the entire inventory once a year Physical Inv. takes a snapshot of inv.'s on-hand quantity at the beginning of the process. All adjustments are made against snapshot quantity.
2. In cycle counting fewer items are counted each day so less disruption to normal production or distribution In PI all items are counted once a year so a lot of disruption.

Question 7. Different Type Of Inventory Planning?

Answer :

There are 4 inventory Planning methods as mentioned below:

1. Min-max planning
2. Re-order point planning
3. Kanban planning 
4. Periodic Automatic Replenishment(PAR)

Question 8. What Are The Flex Fields In Inventory?

Answer :

• System Item
• Item Catalog
• Item Categories
• Stock Locator
• Account Aliases

Question 9. What Is The Use Of Item Templates?

Answer :

There are two types of templates:

Predefined and Custom Template.

Predefined templates are planning item, purchased, outside processing item, lease item. So that once you assign any template, to new item then all default characters are assign to new item.

Question 10. In Which Table Sub Inventory Related Information For Item Is Stored?

Answer :

MTL_ITEM_SUB_INVENTORIES.

Question 11. What Are The Prerequisite Set Ups For Inter Organization Transaction?

Answer :

Prerequisites:

Define an inventory item that is common to both organizations. Define at least two organizations, one of which is valid to receive material from the other. Set up inter–organization relationships and their corresponding accounts. Like Shipping Network.  For direct transfers, if the item to transfer is under serial number control, the item must have the same unit of measure in each organization. 

Question 12. What Is The Difference Between Category And Category Set?

Answer :

Categories and Category Sets can be used to group the items for various reports and programs.

A category is a logical classification of items that have similar characteristics. A category set is a distinct grouping scheme and consists of categories.

Question 13. Which Is The Table For Storing Organization Information?

Answer :

mtl_parameters

Question 14. Where To Define Inter Organization Transaction Charges And What Are The Different Options?

Answer :

Depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges.

Question 15. What Is The Difference Between Organization_id And Org_id?

Answer :

Org Id is a unique ID for the Operating Unit. Organization Id: The Organization Id is an ID for the Inventory Organization which is under an Operating Unit.

Question 16. Can You Apply Material Overheads To Average Costing Organization?

Answer :

No, you can not apply it to Average Costing Organization. However you can apply it to Standard Costing Organization.

Question 17. What Is A Transaction Action?

Answer :

A transaction action is a predefined method of changing the quantity and/or location and/or cost of an item. It is used in Transaction Type form.

Question 18. Can You Do Inventory Transactions In Prior Periods?

Answer :

Yes, you can do by setting the profile option INV: Transaction Date validation to Provide warning when date in past period or Allow date in any open period. It allows entry of a past date.

Question 19. What Does Inventory Interface Do?

Answer :

Inventory Interface Program populates the interface tables with transactions submitted through Confirm shipment forms. It updates order lines with shipped quantities and updates inventory.

Question 20. Explain Uom And Uom Class?

Answer :

Unit of measure classes represent groups of units of measure with similar characteristics. For example, quantity is a unit of measure class and each, dozen, and gross are examples of units of measure within the class.