Oracle Order Management can be configured to support quick order entry and walk-in customers at a retail shop. Workflows can be set up for simple bill and ship orders, and generic customers defined for walk-ins. Alternate items allow ordering substitutions if original items are unavailable. Delivery grouping and auto-delivery across orders ensure single deliveries for a customer's orders. Back-to-back orders trigger purchase requisitions and purchase orders to source unavailable ordered items. Assemble-to-order and pick-to-order items are built or picked based on configurations. Lines can backorder due to inventory unavailability, period closure, or holds. Trips and stops define carrier routes and deliveries. Holds and credit checks

1. Oracle R12 SCM Functional Interview Questions - Order Management
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1. Client operates in a retail shop environment where most of the goods sold are to the walk-
in customers and wants to use Oracle Order Management. What are the configurations to
be done to support such businesses where quick order entry, entering existing or new
customers with ease, no elaborate picking and shipping process is required?
Workflow of type ‘Bill and Ship only’ depending on client’s requirement. Quick Sales order form
can be used to facilitate order details entry. Generic customer can be defined to account for walk-
in customers.
2. What is the use of specifying alternate items in Order Management?
System facilitates order entry user to choose between items which are set as Alternates based on
attributes such as ATP etc. Hence alternate items can be booked if original item is not available as
per customer timelines.
3. Client requires a single delivery for all orders of a customer, what setups needs to be done
for such a requirement?
In Shipping Parameter, set delivery grouping parameter to Customer and Auto create Delivery
criteria as ‘Across Orders’.
4. What are Back-to-Back orders and what are the setups involved?
Back to Back orders are orders for which items booked in Sale order is not available in Inventory
and system creates a purchase requisition and tracks the item through creation of Purchase order
from the requisition and finally when PO receipt is made for the item, the receipt quantity is
reserved against the sale order.
Setups include definition of item with attributes such as ‘Built in WIP’ and ‘Assemble to order’ set
to Yes. Sourcing rule needs to be defined for the item and sourcing rule should be mapped to MRP:
Assignment set.
5. What are ATO and PTO items?
ATO and PTO are types of Item which are used in OM and Configurator mainly.
ATO or Assemble to Order items are typically items that are built as per the customer’s
requirement. Hence ATO model is entered in Sales order and end items are chosen from the
configurator window. The workflow of the item creates a Discrete job and chosen item is built in
WIP. Once the Discrete job is complete, the item is available in OM for picking and shipping.
PTO or Pick to order items are items which are picked from inventory based on customer
requirements and then picked and shipped.
6. What are the typical reasons for a line to get backordered during Pick Release?

2. Primary reasons for line to be backordered are
1. Item is not available in inventory
2. Inventory period is closed
3. Holds are placed against the order or order line.
7. What is the purpose of Trips and Stops?
A trip is an instance of a specific freight carrier departing from a particular location containing
deliveries. A trip is carrier specific and contains at least two stops such as a stop to pick up goods
and another stop to drop off goods, and may include intermediate stops.
8. Client wants to ensure that a particular item when placed in a Sale order is not processed
until Inspection happens and approval is given, how to setup such a requirement?
Create a Hold Source and specify Hold criteria as Item and criteria value as the item name.
9. How to setup Drop shipment cycle in OM?
Oracle Order Management and Oracle Purchasing integrate to provide Drop Shipments. Drop
Shipments are orders for items that your supplier ships directly to the customer either because
you don't stock or currently don't have the items in inventory, or because it's more cost effective
for the supplier to ship the item to the customer directly.
In the sale order, specify the Source type as External. Purchase Release program should be run
and post this program, requisition import program should be run.
10. What is the purpose of Interface Trip Stop?
Interface Trip Stop creates the sales order issue transaction and thereby depletes the inventory
to the sale order shipped quantity. As part of ITS, COGS account gets generated.
11. What is RMA and what are the scenarios when RMA cycle would be used?
If I have shipped an order via Order Management to a wrong customer or the wrong
item/quantity has been shipped, then I will do an RMA transaction in Inventory to bring the item
back. This will generate a credit memo in AR.
If the customer finds that item is faulty or defective, then he returns the shipment to us. In this
case too, we will create an RMA in Inventory and receive the item back. This again creates a
credit memo.
12. How to setup credit hold in Order Management?
Credit hold setups include setting up
Customer site level – Credit check must be enabled, Amount and currency must be specified
Payment term – Credit check must be enabled
Credit check rule – Credit check rule must be defined.

3. Order type – Credit check Rule must be mapped as required
13. How to setup quantity discounts in Price lists?
Quantity discounts are handled by specifying Price breaks by giving quantity and corresponding
price applicable.
14. What is the purpose of scheduling a sale order?
Scheduling a sales order ensures that line is available for Picking and further transactions
applicable. Also, Scheduling looks at sourcing rules to determine the source of the item specified
in order line. Scheduling honors Promise date and Latest Acceptable date whichever is applicable
as per setups.
15. What are processing constraints in OM?
Processing constraints ensure that user doesn’t violate any business process or system defined
process by putting checks on various actions performed by user.
Typically actions such as cancelling orders are governed by processing constraints.
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