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Searching for an Oracle Procure Pay job? If you are an expert in Oracle Procure Pay then this is for you. Do not worry, we’ve a right answer for your job interview preparation. If you are preparing for Oracle Procure Pay job interview, we will help you in clearing the interview through Wisdomjobs interview questions and answers page. Oracle Procure Pay is a process where the goods are purchased at a vendor and Paying the supplier with the required funds. Using the materials bought, products are manufactured out of it. Data can be stored in cloud thus reducing the manual efforts in making the records on paper. Below are the Oracle Procure Pay interview questions and answers which makes you comfortable to face the interviews:
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 transactions. In the same way, the system supplies the Cash Management application component with figures from invoices in order to optimize liquidity planning.
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.
Process flow for Procure to pay will go through two departmentsv(Commercial & Finance)
Procure – Commercial Department The following steps involve to procure any item
Pay Cycle – Finance Department
The following steps need to be fulfil
EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for transfering 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 transfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.
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.
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 transactional 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>> transfer to GL
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
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.
This table stores the line information of a Purchasing Document
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.
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
This table stores the general information about the suppliers
This table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.
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.
This table stores information about contacts related to Supplier site. Each row includes contact name and site.
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.
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.
By running this program, we can automatically create an invoice for a PO when we enter a receipt for the respective PO.
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.
Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies in Purchasing: position hierarchy and employee/supervisor relationships.
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 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.
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.
Goods have been received on the system against this line but an invoice has not been matched to the order.
The Close for invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt.
Create internal order request will transfer the IR info to OM interface tables.
Receipt Routing is of three types:
Direct, Standard and Inspection
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 Transaction Processor to be run periodically.
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.
No. PO can’t be created from Internal Requisition.
Sourcing : Internal or Supplier
Make / Buy : Make or Buy
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.)
Navigate: RFQ and Quotations > Quote Analysis.
While approving the Quotation, enter an ‘Effective To’ date, so that the Quotation will not be available for reference after the entered date.
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.
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.
If the numbering method selected for the document being created is manual, we can enter the document number in the ‘Manual’ mode. More over, we can decide which Requisition lines we want to combine and where we want them to appear on the document.
No. The Price Break window will be available only for Catalog Quotation Class.
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.
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?)
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.
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 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).
The planning process to create Purchase Requisition for Buy items & Internal Requisitions for Make Items uses a Sourcing Rule.
Provided that the Sourcing Rule is defined as Global, it will be available in all organizations.
No. Nobody can access it through the Entry window.
The values that are defaulted from the Requisition or PO will be used by the system to query the default source options.
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.
Enter the required line type in the field, ‘Line type’ in the Purchasing option.
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.
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