PO Interview Questions

1. If Purchase Invoice amount sent by the supplier is more than the PO amount and Invoice has to be passed by invoice amount only. How this can be achieved.

Ans: Manually Release the hold by going into the invoice hold option. Thus how we do it in Purchasing module of oracle applications.

2. How you will hide the button Site on the Supplier master form.

Ans: A restricted list of functions a user can perform. For example, two responsibilities may have access to the same window, but one responsibility’s window may have additional function buttons that the other responsibility’s window does not have.

3. When can you make payment for the supplier invoice weather at the time of receipt of material or after receiving
Ans: Invoice only.

4. Payment due days if 30 days means will it be from invoice date or material receiving date.

Ans: Due days calculation is based on what you set up in the PAYMENT tab window of Supplier Master form.

It has Four options:
1. Goods Received
2. Invoice
3. Invoice received
4. System

5. Where do you define matching option for purchasing.

Ans: This is also defined in the supplier master form under tab ‘Control’ window.Two options are given as Purchase Order or Receipts.
In receiving tab define whether it is 2 way, 3 way, 4 way match.

6. What is security type and Cross-validation rules.

Ans: There are two ways security can be defined. One at individual segment level and One for the entire code combination.
Security type with hierarchical security / non-hierarchical / no security is defined in the value set going to be attached with the individual segment. Here you exclude the segment value which user will not see at time of transaction capturing. Where are Security rule is defined including and excluding the entire code combination which will be seen at the time of transaction and if excluded combination is selected then user define message will appear. In both the case security rule is required to be defined.
Security defined for segment is assigned to your application and responsibilities.
Security rule defined for application, structure and flexfield title with inclusion and exclusion.

7. How many types of Purchase Order are there.

Ans: Following are types
i. Standard
ii. Blanket
iii. Contract
iv. Planned

8. What do you mean by planned purchase order.

Ans: A planned purchase order is a long-term agreement committing to buy 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.

9. What do you mean by blanket purchase order.

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

10. Once these two purchase orders are prepared what is the next step.

Ans:You issue scheduled release and blanket release against a planned purchase order to place the actual orders.

11. What is approval hierarchy for Purchase Order.
Ans: Position and Employee. If HR Module is not installed then only employee option is used Set up hierarchy for Purchasing
1. Organization.
2. Financial and Payable.
3. Payment document or supplier site for payment accounting entries.
4. Supplier and Supplier Site.

Payment terms as per supplier site or purchase order if both are there then finally takes from purchase order.

12. Where do you define matching option for purchasing.

Ans: This is also defined in the supplier master form under tab ‘Control’ window.Two options are given as Purchase Order or Receipts.
In receiving tab define whether it is 2 way, 3 way, 4 way match.

13. What happen if price is varying in PO and Invoice how you will resolve it.

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14. What posting is done at time of Receipts of material or Purchase Order match directly with Invoice without the receipt consideration.

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15. Where you will define Matching options. Is it required to define for all the suppliers or it comes as default. From where it default the setting.

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16. In purchasing Receipts of the inventory is stored at what level in Multi Org setup.

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17. Can you match invoice directly with the purchase order without matching with receipts.

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