Oracle Purchasing Interview Questions & Answers

Oracle Purchasing Interview Questions

Experienced in Oracle Purchasing? Oracle Purchasing is the tool where the buyers can fill in the list of items to be purchased and place the order. The orders can be planned or blanket or contract purchases. Oracle Purchasing will automate the routine tasks and makes the buyer to be more productive in the process. This helps in improving the supply base management. Even though many other jobs are present, Oracle Purchasing job is unique. Good hands on knowledge on these concepts will put you ahead in interview. Every where we can find job opportunities for this position. Wisdomjobs has interview questions which are exclusively designed for employees to assist them in clearing interviews. Oracle Purchasing interview questions are useful for employees who are good at Oracle technology.


Oracle Purchasing Interview Questions And Answers

Oracle Purchasing Interview Questions
    1. Question 1. What Is A Purchase Requisition And Define Various Requisitions?

      Answer :

      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.

    2. Question 2. What Are The Base Tables For A Purchase Requisition?

      Answer :

      PO_REQUISITION_HEADERS_ALL (SEGMENT1 column in this table represents the requisition number):

      This table stores Header information of a Purchase Requisition.

      Important columns of this table:

      REQUISITION_HEADER_ID:It is a unique system generated Requisition identifier

      PREPARER_ID:It is a unique identifier of the employee who prepared  the requisition

      SEGMENT1:It is the Requisition number

      AUTHORIZATION_STATUS:Authorization status type

      TYPE_LOOKUP_CODE:Requisition type

      ORG_ID:Unique Operating unit unique identifier


      This table stores information about Requisition lines in a Purchase Requisition. This table stores information related to the line number, item number, item category, item description, item quantities, units, prices, need-by date, deliver-to location, requestor, notes, and suggested supplier information for the requisition line.

      Important columns of this table:

      REQUISITION_HEADER_ID:It is a unique system generated Requisition identifier


      LINE_NUM:Indicates the Line number

      LINE_TYPE_ID:Indicates the Line type

      CATEGORY_ID:Unique Item category identifier

      ITEM_DESCRIPTION:Description of the Item

      QUANTITY NUMBER:Quantity ordered


      This table stores information about the accounting distributions of a requisition line. Each requisition line must have at least one accounting distribution. Each row includes the Accounting Flexfield ID and Requisition line quantity.

      Important columns of this table:

      DISTRIBUTION_ID:Unique Requisition distribution identifier

      REQUISITION_LINE_ID:Unique Requisition line identifier

      CODE_COMBINATION_ID:Unique General Ledger charge account identifier

       DISTRIBUTION_NUM:Distribution number

    3. Question 3. What Is A Requisition Import Program?

      Answer :

      It is a concurrent program, which is used to import requisition from Oracle or Non-Oracle system.

      Data is first loaded in PO_REQUISITION_ALL table. The RIP can then be run, to import the records from the interface table as requisition in Oracle Processing.

      RIP creates a requisition line and one or more requisition distribution for each row it finds in the interface table. It then groups these lines on Requisitions according to parameters defined

    4. Question 4. What Tables Are Affected When You Run Requisition Import Program?

      Answer :


    5. Question 5. What Are The Reports Associated With Requisition Import Process?

      Answer :

      Requisition Import Run Report: We can view the number of requisitions created and the number of records that showed an error

      Requisition Import Exceptions Report: In this report we can see all the rows that fail validation.

    6. Question 6. When Will You Use A Requisition Template?

      Answer :

      Requisition templates can be used to help you quickly create requisitions. A requisition template contains much of the information needed to create a requisition, thus reducing the amount of data entry required to create a new requisition. If you find yourself repeatedly creating similar requisitions for your group or department, you should consider creating and saving requisition templates as a time-saver.

      If the data of requisition remain the same for repeated purchase of an item, the information can be copied to a template and the same can be copied to the Requisition as many number of times as required.

    7. Question 7. What Is The Purpose Of Choosing A Category When Creating A Requisition?

      Answer :

      The Category box is a required field and is used to define goods and services at a summary or detailed level.

    8. Question 8. What Does The Status Pre-approved Mean?

      Answer :

      Pre-Approved is the status of a requisition when an authorized approver has approved the requisition and has forwarded the requisition to another individual to review.

    9. Question 9. What Is The Difference Between A Rejected And A Returned Requisition?

      Answer :

      Only an approver or a reviewer can reject requisition. Only a buyer can return a requisition. A buyer will return a requisition to the preparer for incomplete or inaccurate information.

    10. Question 10. What Is Rfq And Differentiate The Types Of Rfq’s?

      Answer :

      A Request for Quotation (RFQ) is a formal request sent to the suppliers to find the pricing and other information for an item or items. Based on the information supplied, the supplier quotes a quotation against the RFQ form.
      In general, RFQ’s are created before purchasing any item to actually know the price quotes from one or more suppliers.
      In Oracle EBS, RFQ’s can be auto created from an existing Purchase Requisition or can be a fresh RFQ.

      There are three types of quotations and RFQs that come with Purchasing by default:

      Catalog: Used for high-volume items or items for which your supplier sends you information regularly. A Catalog quotation or RFQ also includes price breaks at different quantity levels.

      Standard: Used for items you’ll need only once or not very often, but not necessarily for a specific, fixed quantity, location, and date. For example, you could use a Catalog quotation or RFQ for office supplies, but use a Standard quotation or RFQ for a special type of pen you don’t order very often. A Standard quotation or RFQ also includes price breaks at different quantity levels.

      Bid: Used for a specific, fixed quantity, location, and date. For example, a Bid would be used for a large or expensive piece of equipment that you’ve never ordered before, or for an item that incurs transportation or other special costs. You cannot specify price breaks for a Bid quotation or RFQ.

    11. Question 11. What Is A Quotation, What Are The Different Types Of Quotations Available And Describe The Quote Analysis?

      Answer :

      A quotation is a supplier’s response to RFQ.
      Quote analysis is the process of reviewing the quotations given by the suppliers. The best quotation will be selected by analyzing certain factors like price, quality, delivery time etc.

    12. Question 12. What Is A Purchase Order And Explain The Different Types Of Po’s Available?

      Answer :

      A Purchase order is a commercial document and first official order issued by the buyer to the supplier, indicating types, quantities, and agreed prices for products or services the supplier will provide to the buyer.

      Basically, there are four types of Purchase Orders

      Standard Purchase Order:

      Used for One-time purchases for goods and services. Here you know the item, price, payment terms an delivery schedule

      Planned Purchase Order:

      Created when you have long-term agreement with the supplier. You must specify the details of goods and services, payment terms and the tentative delivery schedule

      Blanket Purchase Agreement:

      Created when the details of items and services, payment terms are known but not specific about the delivery schedule

      Contract Purchase Agreement:

      Created when the terms and conditions of a purchase are known but specific goods and services are not.

    13. Question 13. What Are The Base Tables That Are Affected When You Create A P.o?

      Answer :

      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.

    14. Question 14. What Is 2-way, 3-way, 4-way Matching?

      Answer :

      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.

    15. Question 15. Explain The P2p Process Flow?

      Answer :

      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

    16. Question 16. What Is An Approval Hierarchy?

      Answer :

      Approval hierarchies let you automatically route documents for approval.

      There are two kinds of approval hierarchies in Purchasing:

      • position hierarchy
      • employee/supervisor relationships.

    17. Question 17. What Are The Documents That Use Po_headers_all?

      Answer :

      The following are the documents that use PO_HEADERS_ALL RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order, Blanket Purchase Order and Contracts.

    18. Question 18. Can The Original Purchase Order Be Viewed In Any Way Without Resorting To Sql, For A Revised Purchase Order?

      Answer :

      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.

    19. Question 19. Can We Automatically ‘close’ The Purchase Order Without Receiving The Full Quantity?

      Answer :

      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.

    20. Question 20. When Does A Purchase Order Line Get The Status ‘closed For Receiving’?

      Answer :

      Goods have been received on the system against this line but an invoice has not been matched to the order.

    21. Question 21. Can We Match An Invoice Against A Line Even When It Is ‘closed For Invoicing’?

      Answer :

      The Close for invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt.

    22. Question 22. What Does Create Internal Order Conc Request Do?

      Answer :

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

    23. Question 23. Explain The Receipt Routing?

      Answer :

      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.

    24. Question 24. What Are The Different Purchasing Modes In Receiving?

      Answer :

      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.

    25. Question 25. Which Tables Are Updated When You Save A Received Data In A Form?

      Answer :

      RCV_SHIPMENT_HEADERS:It contains supplier shipment header data like Shipment date, supplier Name

      RCV_TRANSACTIONS_INTERFACE:It contains received data like Item name, quantity, and receiving location


    26. Question 26. What Are The Major Transactions In Receiving?

      Answer :

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

    27. Question 27. What Is Pay On Receipt Autoinvoice Program?

      Answer :

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

    28. Question 28. What Is Invoice Validation Process?

      Answer :

      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.

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