Saturday, November 29, 2008

Defining Purchasing Options

Defining Purchasing Options

Purchasing Options window is used to define default values and controls for functions in Oracle Purchasing. You can often override purchasing options when you are creating documents. Defining Purchasing Option is required step to use Orale Purhasing.

Purchasing Responsibility=> Setup=> Organization=>Purchasing Options

There are 6 tabs in purchasing options as below:

1. Receipt Accounting (Accrual Options)
2. Control
3. Default
4. Internal Requisition
5. Numbering
6. Tax Default

Each option tab would be explained in next posts

Thursday, November 27, 2008

Line Status in Order Management

Oracle Order Management and Shipping Execution provides line status to best reflect the stage of the process for the order line and delivery line.

Line statuses can be seen in the 'status' field of the 'Line Items' Main tab in the Sales Order form. It can also be noted from the Shipping transaction form. Below are the most commonly observed line statuses and what they mean:

Awaiting Shipping: Order is booked but lines are not yet picked

Ready to Release: Order line is booked and passed to Shipping Execution. It is now a delivery line that is eligible for Pick Release

Released to Warehouse: Pick Release has started but not completed. Either no allocations were created or allocations have not been Pick Confirmed

Backordered: The delivery line is pick released but no allocations were created. As an example, if a delivery line has a quantity of
100, and at pick release only 25 are available for allocation, the original delivery line splits to create a new line (quantity of 75) for the unallocated portion with a status of Backordered

Staged/Pick Confirmed: The delivery line is successfully pick released. It occurs after pick confirm to indicate subinventory transfer from source location to staging location is complete

Shipped: This line status indicates that the delivery associated with the delivery line(s) is ship confirmed

Picked: Pick release has completed normally (both allocation and pick confirm). The delivery associated with the delivery line(s) may have also been Ship Confirmed but the Delivery may not be set in transit and the Trip may not be closed

Interfaced: If delivery was sourced from Oracle OM, the delivery line is shipped and the OM Interface and Inventory Interface concurrent processes have completed. If delivery was sourced from an Oracle Application other than OM, the delivery line is shipped and the Inventory Interface concurrent process has completed.

Awaiting Fulfillment: Not all shippable lines in a fulfillment set are fulfilled

Fulfilled: All lines in a fulfillment set are fulfilled

Closed: Closed indicates that the line is closed. It does not necessarily indicate that the line is interfaced to Accounts Receivable (AR).

Canceled: Indicates that the line has been completely canceled. No further processing will occur for this line

Saturday, November 22, 2008

Serial Controlled Items

Serial Controlled Items

A Serial Number is a unique number assigned to each discrete unit of an item that is stored in inventory. A serial number can also be defined as a set of characters that uniquely identifies a single unit and can be used for traceability and warranty purposes.

Serial numbers are valuable in quality control, as once a defect is found in the production of a particular batch of product, the serial number will quickly identify which units are affected. Serial numbers are also used as a deterrent against theft and counterfeit products in that serial numbers can be recorded, and stolen or otherwise irregular goods can be identified.

Oracle Inventory provides complete serial number support for inventory transactions. Serial number control can be enabled for specific items in inventory. For items under serial number control, a unique serial numbers is assigned to each individual unit and thereafter the same serial numbers is referenced each time a material transaction is performed.

Serial Number Uniqueness

A Serial Number must be unique so that it can be tracked. Uniqueness of Serial Numbers can be enforced at various levels. This is defined at the inventory organization level.

Within Inventory Items
Once a serial number is assigned to a particular item, it cannot be assigned to the same item regardless of the inventory organization. For example if serial number SN100 is assigned to item A, serial number SN100 cannot be assigned to any other instance of item A in any other inventory organization.

Within Organizations
In addition to the restrictions Within Inventory Items control, the same serial number cannot exist twice within the same organization. For example if serial number SN100 is assigned to item A, it cannot be assigned to Item B in the same inventory organization. However, SN100 can be assigned to item B in any other organization.

Across Organizations
In addition to the restrictions Within Organizations, once a serial number is assigned to an item, it cannot be assigned to any other item regardless of organization. For example if serial number SN100 is assigned to item A, it cannot be assigned to item B in any organization. If uniqueness Across Organization is assigned to to any organization it restricts the serial numbers in all other organizations. If one organization dictates Across Organizations, all other organizations must do so too

Tuesday, November 18, 2008

Accrual Basis vs Cash Basis Accounting for Non Accountants

Accrual Basis vs Cash Basis Accounting for Non Accountants

There are two basic accounting methods available in business - Cash or Accrual.

With the cash method of accounting, income is recorded only when you receive cash from your customers. You record an expense only when you write the check to the vendor.

With the accrual method, income is recorded when the sale occurs, whether it be the delivery of a product or the rendering of a service on your part, regardless of when you get paid. On the other hand, you record an expense when you receive goods or services, even though you may not pay for them until later.

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Sunday, November 16, 2008

Oracle Purchasing - Setup checklist

Oracle Purchasing Setup Checklist

Please refer to above setup checklist which show the steps out of which some are Required and some are Optional. Required Step With Defaults means that the setup functionality comes with seeded default values; however, you should review those defaults and decide whether to change them to suit your business needs.

For more details, it is recommended to refer Oracle Purchasing User guide

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Saturday, November 15, 2008

Oracle General Ledger (OGL)

Oracle General Ledger (OGL)

Oracle Financial comprises of the following core Finance Modules:

1) General Ledger
2) Accounts Payable
3) Accounts Receivables
4) Fixed Assets
5) Cash Management

Oracle General Ledger (OGL) is accounting back bone for Oracle Financial Modules. It is the central repository of all financial transactions and can be called as the heart of the accounting system. OGL is a tool for integrating sub-ledger activity, consolidating group-wide accounts and releasing statutory/analytical financial reports.

Defining the Set of books (SOB) is the key setup task in Oracle General Ledger. Set of books has 3 key components - Chart of accounts, Currency and Calender (popularly called as 3Cs)

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Member of the Month - November 2008

Member of the Month - November 2008

Please to announce that Saravanan Rajamanickam is our 'member of the month' for November 2008. Saravanan is a Chemical Engineer and completed his MBA from UK.

With core expertise in Oracle Supply Chain modules, his contribution to applearn community has been very helpful. Saravanan likes to read history, especially about great leaders; likes to watch & play cricket. You can find him in some park or a beach during his free time. Wish you all the best and looking forward for your contribution at applearn.

Wednesday, November 12, 2008

Oracle Purchasing - Interview Questions

Oracle Purchasing - Interview Questions

1. Can we automatically 'Close' the Purchase order without receiving the full quantity?

2. When does a Purchase Order line get the Status 'Closed for Receiving'?

3. What is the difference between the control actions 'On Hold' and 'Freeze' for a Purchase order?

4. What are the different document statuses used in Oracle Purchasing?

5. If a Purchase Order/Requisition is cancelled accidentally, can we revert it back?

6. Can we receive a shipment even when it is "Closed for Receiving"?

7. Can we re-open a Closed and Finally Closed Purchase Order?

8. Can we match an Invoice against a line even when it is 'Closed for Invoicing'?

9. How do I change the Supplier on a approved PO?

10. When a user enters a new PO, the Preparer (user) is always defaulted as the buyer. User is not able to change it too. How do we allow the user to change this?

Already know the answers? Please post them using the comments option below this post on

First one to answer all questions correctly might be the "member of the month" at applearn

Tuesday, November 11, 2008

PO approval hierarchy

Did you know that Oracle Purchasing also has to choose the approver to whom it has to forward the approval notification?

If Position Hierarchy is used and two employees are attached to a particular position, then the application will select the forward-to person based on alphabetical name order.

Below is an example for better understanding.

Albert Christopher (Clerk) and couple of more clearks report to position Manager (Materials). James Bond and Bob Smith have the position Manager (Materials) attached.

In the above scenario, when Albert (Clerk) chooses the Approve button without entering a forward-to person, and the next position above the clerk is the Manager (Materials), the document would be routed to James Bond.
James Bond is selected by the system because the system will choose the employee assigned to the position in alphabetical order, and since Bond comes before Smith, James Bond is selected. Therefore, unless the clerk selects a specific person to forward the document to, the document will always be routed to the first person alphabetically assigned to the position.

How does it work when multiple logins tied to One Employee?

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Saturday, November 8, 2008

WIP Parameters - Lot Selection Method

WIP Parameters - Lot Selection Method

Lot Selection Method appears under the backflush default parameter and affect backflush transactions. Determines how lot controlled Assembly Pull and Component Pull component items are selected during backflush transactions.

User can select from any of the below options:

1. Expiration Date
2. Manual
3. Receipt Date
4. Transaction History

This parameter does not apply to components that are under both lot and serial control. When you backflush a component under both lot and serial control, you must enter both the lot and the serial number.

When does the "Alternate Lot Selection Method" option become functional? How does it work?

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Thursday, November 6, 2008

Physical Inventory Adjustments for Reserved Items

Physical Inventory Adjustments for Reserved Items

While performing Physical Inventory activities using Oracle Inventory, user performs the following steps:

1. Physical Inventory setup to define tolerances, subinventories etc.
2. Physical Inventory snapshot
3. Tag generation
4. Tag count entry
5. Approve Physical Inventory
6. Post Physical Inventory adjustments

While approving the physical inventory, user might face a message "You are trying to perform Physical Inventory Adjustment for material that has reservations"

This is an intended functionality. Inventory cannot be adjusted so that these adjustments take quantity from reservations. Users need to unreserve the demand and perform adjustment. The System does not know which Reservations are genuine now

For any questions, please use the comments on this post on

Sunday, November 2, 2008

Oracle WIP - Questions

Oracle WIP - Questions

1. Client wants to put the WIP job on hold whenever the related Sales Order demand is cancelled. How to achieve this?

2. What is assembly pull and operation pull?

3. Where do we define the supply subinventory/locator for backflushing?

4. Client wants to backflush all the lot controlled items based on FIFO (First in, First Out). How to meet this requirement?

5. Client wants to backflush all the lot and serial controlled items based on FIFO (First in, First Out). Is this possible using standard oracle functionality?

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