Oracle Inventory Functional Questions and

Answers
Oracle Inventory is the core module of entire Oracle EBS.
With Oracle Inventory Management you can improve inventory visibility, reduce
inventory levels and control inventory operations. All of your material in each line of
business and stage of the inventory lifecycle can be tracked in a single system.
Increased transparency will reduce the need for local buffer stocks, and inventory will be
located where it previously wasn’t known to exist.
Oracle Inventory Management is part of the Oracle Value Chain Execution solution and
integrates seamlessly with other Supply Chain Management applications, including
Oracle Warehouse Management, Oracle Mobile Supply Chain Applications, Oracle
Order Management, Oracle Purchasing, Oracle Discrete Manufacturing, Oracle Process
Manufacturing, and Oracle Cost Management.
An inventory organization is a facility where you store and transact items. Before you
can use Oracle Inventory, you must define one or more inventory organizations.
Inventory organizations represent distinct entities in your enterprise and can be one of
the following:
 A physical entity such as a manufacturing facility, warehouse, or distribution centre.
 A logical entity such as an item master organization, which you use to define items.
 An inventory organization can have its own location, ledger, costing method, workday
calendar, and items
 An inventory organization can share one or more of these characteristics with other
organizations.

Some FAQ’s on Oracle Inventory

1. What is an item?
2. Explain Item Master Organization?
3. Define Inventory Organization?
4. What is a subinventory?
5. In which table does the subinventory related information for an item is stored?
6. What is a stock locator?
7. What are the Key flex fields in oracle Inventory?
8. What are the basic steps involved in defining an item?
9. What are item attributes?
10. What is the use of item template?
11. What is an item category and category set?
12. Explain unit of measure (UOM) and UOM class?
13. Explain shipping method?
14. Describe Interorganization Shipping Networks
15. In which tables are the transactional details are stored?
16. What is revision control in Oracle Inventory?
17. What is Picking Order of Subinventory or Locator? Where will you define the
order?
18. What are the different inventory transactions?
19. Describe various inventory transactions?
20. What is the difference between a subinventory transfer and a move order?
21. What are the Components used in Customizing a Transaction?
22. What is a Transaction source type?
23. What is a transaction type?
24. Name any four purposes where miscellaneous transaction can be used?
25. Explain inventory control?
26. What are the objectives of inventory control?
27. What are the factors that affect inventory control?
28. Define ABC analysis?
29. What is consignment inventory?
30. What are the different planning methods available in Oracle?
31. When should the material be ordered?
32. Explain re-order point planning?
33. Explain min-max planning technique?
34. Define cycle counting and explain its use in oracle inventory?
35. When do you perform physical inventory and explain the steps involved in it?
1. What is an item?
An item is a part or services where you can Purchase, Sell, Plan, Manufacture, Stock,
Distribute and Prototype.
Items can also be containers for items as well as components you build into other items.
2. Explain Item Master Organization?
An item master organization is a logical entity where you define the item. After you
define an item in the item master, you can assign it to any number of other
organizations.
3. Define Inventory Organization?
It is a facility which will enable you to store and transact the items. It can be a
manufacturing unit, ware house, distribution center etc.
4. What is a subinventory?
Subinventiries are unique physical or logical separations of material inventory. These
can be raw material, finished goods or defective material subinventory. You must define
at least one subinventory. Subinventories are of two types: storage and receiving
Storage subinventories are intermediate or final put away locations for material.
Material that resides in a storage subinventory appears in on hand quantity, and is
tracked by the system. The system can book orders against, and use manufacturing
processes on material that resides in a storage subinventory. You must define at least
one storage subinventory for your implementation.
Receiving type subinventory is only used for receiving items. Items in this
subinventories cannot be on-hand or reserved
5. In which table does the subinventory related information for an item is stored?
MTL_ITEM_SUB_INVENTORIES
6. What is a stock locator?
Locators are structures within subinventories. Locators are the third level in the
enterprise structuring scheme of Oracle Inventory. Locators may represent rows, racks,
or bins in warehouses. You can transact items into and out of locators. You can restrict
the life of locators, establish capacity of a specific locator in weight or units, as well as
specify dimensions which define a locator’s capacity by volume.
7. What are the Key flex fields in oracle Inventory?
Oracle Inventory provides the following flexfields:
System Items, Item Catalogs, Item Categories, Stock Locators, Account Alias and Sales
Order
8. What are the basic steps involved in defining an item?
Create an item in the item master form
Copy the template from the tools menu to assign specific attributes to the item and save
it.
Assign the item to a category from tools menu and save your work
Select organization assignment from tools menu and assign the item to different
inventory organizations by ticking the checkbox next to the inventory organizations.
9. What are item attributes?
Item attributes are the collection of information about an item. These are used to store
specific characteristics of an item, such as item status, unit of measure, revision control,
etc. these can be controlled at either the master or the organization level. These
attributes are stored in a table namedMTL_ITEM_ATTRIBUTES
10. What is the use of item template?
An Item template is a set of attributes that enable the user to quickly create an Item.
You can use the existing templates are you can create your custom template.
11. What is an item category and category set?
A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of multiple categories. An
item can belong to any number of category sets. We can assign item to one category
within each category set. The categories can be retrieved from the table
‘MTL_CATEGORIES_B‘ and item category set from‘MTL_CATEGORY_SETS_B’.
12. Explain unit of measure (UOM) and UOM class?
The unit of measure (UOM) helps us count the number of items involved in a
transaction or the number of items that are stored in a subinventory or a locator.
UOM classes let you group different UMO’s into one category. Eg, quantitycould be a
UOM class under which each, dozen, lot etc are separate UOM’s.
13. Explain shipping method?
Shipping methods are the way you ship material. When you create a shipping method,
you must enable it before you can use it in a shipping network. If you disable a shipping
method, it cannot be used in a shipping network.
14. Describe Interorganization Shipping Networks
An inter-organization shipping network describes the relationships and accounting
information between a shipping organization and a destination organization. You must
define a shipping network between two organizations before you can transfer material
between organizations. When you set up a shipping network you must select a transfer
type:Intransit or Direct.
Intransit: Oracle Inventory moves material to an intermediary state before it reaches
the destination organization. After the material arrives at the destination organization,
you will need a receipt transaction to retrieve it. If intransit is selected, you can define:
Shipping Methods, GL Accounts to use in transit, Material ownership during transfer,
Planning lead times and Transfer Charges
Direct: Oracle Inventory moves the material directly to the destination organization.
However, for both      transfer types, you can determine default receipt routing and
whether internal orders are required to transfer material
15. In which tables are the transactional details are stored?
MTL_MATERIAL_TRANSACTIONS
MTL_TRANSACTIONS_INTERFACE
MTL_MATERIAL_TRANSACTIONS_TEMP
MTL_TRANSACTION_ACCOUNTS
16. What is revision control in Oracle Inventory?
A revision is a particular version of an item, bill of material, or routing. Revision control is
normally enabled for identifying a modified item. Item can be placed under revision
control by checking the box `Revision control` in Inventory tab while defining new item
or for existing item. Base table for Item Revision is MTL_ITEM_REVISIONS.
17. What is Picking Order of Subinventory or Locator? Where will you define the
order?
The value indicates the priority with which we pick items from subinventory or Locator,
relative to another subinventory or locator, where a given item resides. A picking order
of 1 means that order entry functions pick items from the subinventory or locator before
others with a higher number (such as 2,3 and so on).
The subinventory order is defined in the subinventory definition and the locator order is
defined in the locator definition. The default order for both the subinventory and the
locator are defined in the organization.
18. What are the different inventory transactions?
A transaction is an item movement within, into or out of inventory. A transaction
changes the quantity and location of an item
The following are the different inventory transactions:
Receive an item into an organization from GL account number
Issue an item from an organization into a GL account number
Transfer items from one subinventory to other in the same organization.
Transfer of items between various inventory organizations
Reservation of items
19. Describe various inventory transaction types?
Miscellaneous transaction: This transaction is used to do adjustments in stock due to
damage, obsolescence, issuing items for R & D or issuing track able expense items.
Subinventory transfer: This transaction is used to transfer goods from one
subinventory to another within the same inventory organization.
InterORG transfer: This transaction is used to transfer goods from one inventory
organization to another.
Receiving transaction: This transaction is used to move goods from receiving dock to
specified subinventory and locator.
 Sales issue: This transaction is used to move goods from pick subinventory to staged
subinventory.
WIP issue: This transaction is used to issue materials against production orders
20. What is the difference between a subinventory transfer and a move order?
Both these transactions are used for the movement of items from one subinventory to
the other. The difference is that move order generates a pick slip and a subinventory
transfer doesn’t.
Move order requires ‘approval’. Also, move orders create allocations. So you can place
hold on the material with the intention of picking it up a little later. In subinventory
transfer, there is no reservation / allocation.
21. What are the Components used in Customizing a
Transaction?
The following are the three components used in a transaction
 Transaction Source Type
 Transaction Action
 Transaction Type
A Transaction Source Type and a Transaction Action come together to form
a Transaction Type.
22. What is a Transaction source type?
A Transaction Source Type is defined as an entity against which Oracle Inventory
charges a transaction. The following transaction source types come seeded with Oracle
Inventory:
 Purchase Order
 Account Alias
 Move Order
 Internal Order
 Standard Cost Update
 Internal Requisition
 Sales Order
 Cycle Count
 Periodic Cost Update
 Physical Inventory
 Account
 RMA (Return Material Authorization)
 Inventory
 Job or Schedule
23. What is a transaction type?
A transaction type is a combination of a transaction source type and a transaction
action. It is used to classify a particular transaction for reporting and querying purposes.
Ex:
Sales order issue (txn type) + issue from stores (txn action) = sales order (txn source
type)
Move order transfer (txn type) + subinventory transfer (txn action) = move order (txn
source type)
24. Name any four purposes where miscellaneous transaction can be used?
Cycle count adjustment, Physical inventory adjustment, adjusting inventory quantity
within an inventory organization and decrementing on-hand balances from a
subinvemtory
25. Explain inventory control?
Inventory Control is the process by which inventory is measured and regulated
according to predetermined norms such as economic lot size for order or production,
safety stock, minimum level, maximum level, order level etc.
26. What are the objectives of inventory control?
 To meet unforeseen future demand due to variation in forecast figures and actual
figures.
 To average out demand fluctuations due to seasonal or cyclic variations.
 To meet the customer requirement timely, effectively, efficiently, smoothly and
satisfactorily.
 To smoothen the production process.
 To facilitate intermittent production of several products on the same facility.
 To gain economy of production or purchase in lots.
 To reduce loss due to changes in prices of inventory items.
 To meet the time lag for transportation of goods.
 To meet the technological constraints of production/process.
27. What are the factors that affect inventory control?
 Type of product
 Type of manufacture
 Volume of production
 28. Define ABC analysis?
ABC analysis determines the relative value of a group of inventory items based on a
user specified valuation criterion.
This technique divides inventory into three categories A, B & C based on their annual
consumption value.
It is also known as Selective Inventory Control Method (SIM)
29. What is consignment inventory?
Consignment Inventory is inventory that is in the possession of the customer, but is still
owned by the supplier. In other words, the supplier places some of his inventory in his
customer’s possession (in their store or warehouse) and allows them to sell or consume
directly from his stock. The customer purchases the inventory only after he has resold
or consumed it. The key benefit to the customer should be obvious; he does not have to
tie up his capital in inventory. This does not mean that there are no inventory carrying
costs for the customer; he does still incur costs related to storing and managing the
inventory
30. What are the different planning methods available in Oracle?
 Re-order point planning
 Min-Max planning
 Kanban cards
 Subinventory replenishment planning
31. When should the material be ordered?
When on-hand quantity + supply – demand is less than safety stock (safety stock is
nothing but minimum inventory level)
[On-hand quantity] + [supply] – [demand] < [min inventory level]
32. Explain re-order point planning?
Reorder point planning uses demand forecasts to decide when to order a new quantity
to replenish inventory. Reorder point planning suggests a new order for an item when
the available quantity (on-hand quantity plus planned receipts) drops below the item’s
safety stock level plus forecast demand for the item during its replenishment lead-time.
The suggested order quantity is an economic order quantity that minimizes the total cost
of ordering and carrying inventory. Oracle Inventory can automatically generate
requisitions to inform your purchasing department that a replenishment order is required
to supply your organization.
If the forecast is correct and the order arrives on time, the inventory level should be right
at the safety stock level at the time of receipt. In cases where the desired safety stock
 level changes during the order lead time, Oracle Inventory uses the largest safety stock
quantity during the lead-time.
When an order is triggered, the EOQ is the size of the triggered order.
EOQ = square root of: [(2 X annual demand X order cost) / (carrying cost percent X Unit
cost)]
Oracle Inventory calculates annual demand as the current demand rate annualized by
multiplying the current period demand forecast by the number of periods per year (12 or
13).
Reorder point planning can be performed at the organization level only.
33. Explain min-max planning technique?
Min-Max planning is a tool for planning inventory that looks at user-defined minimum
and maximum inventory levels. It does not consider lead times.
We can perform this technique at org level or subinventory level
34. Define cycle counting and explain its use in oracle inventory?
Cycle Counting is a process of periodic counting of individual item / all the items
throughout the course of the year to ensure the accuracy of inventory quantities and
values.
We can do the cycle counting at Organization / Sub Inventory Level.
Cycle count is used to:
To reconcile system on-hand balances with actual counts in inventory
Maintain control over the items that have higher value
35. When do you perform physical inventory and explain the steps involved in it?
Physical inventory can be performed, whenever there is a need to verify the accuracy of
system on-hand quantities. This can be done for entire organization or can be confined
to a specific subinventory.
Steps to perform physical inventory:
 Define physical inventory
 Take a snapshot of system on-hand quantities
 Generate physical inventory tags
 Enter counts
 Do physical inventory adjustments by approving or rejecting
 Post adjustments
 Purge physical inventory information
Inventory
 1.       What are different planning methods in Inventory
There are 5 different planning methods in oracle Inventory
         Subinv Replenishment Planning
         Min Max Planning
         Re-order point planning
         Kanban Planning
         Periodic Automatic Replenishment         
2.       What are the setups for different planning method (Min-Max)
         Setup the item in master org and assign the item to the org for which Min-Max planning is used
         Attributes, Inv Planning method: Min-Max
         Min-Max Qty should have been defined
         Safety Stock method should be non MRP Planned
         Determine what should be the status of the Requisitions created for the planning
Do this with profile option INV: Minmax Reorder Approval
         IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL
setup which is assigned to the item
Sourcing rules can be defined for this
Then need to assign sourcing rule to the item
         In Inventory responsibility, under Planning run the Min Max planning report with required
parameter
3.       What is the concurrent program for the planning
         Min Max planning report under planning menu in Inventory responsibility
4.       What are the setups for expense item?
         Should not be Inventory Item
         No Stockable
         No Transactable
         No Costing, Inv Asset
5.       How many key flexfields are there in Inventory?
Seven KFF are there in Inventory
         Account Alias
         Item
         Item Category
         Item Catalogues
         Stock Locators
         Sales Order
         Service Items
6.       What is the use of sales order KFF?
         This is used during material transaction when source is Sales Order
         Segments are Sales order Number.Sales Order Type.Sales Order Source
7.       How we can have the item key flexfield with 2 segments, is it possible, if yes then how, if
no then why?
         This can be modified using Flexfield>Key> Segments
         Query the System Items, then you can modify the existing structure, or you can add a new one.
8.       How will you inactivate the Inventory locations
         By giving Inactive date in the Location form
9.       What all setups you have done in inventory organization implementation
         Location
         Calendar
         Organization
         Parameter
         Cost Group
         Subinventory
         Stock Locator
         Receiving Options
         Shipping Networks
         Intercompany Transaction flows
         Cost Subelements

1.        What are the valuation accounts used in Inventory

          Material      An asset account that tracks material cost. For average costing, this account
holds your inventory and intransit values. Once you perform transactions, you cannot change
this account.
          Material Overhead An asset account that tracks material overhead cost.
          Resource     An asset account that tracks resource cost.
          Overhead    An asset account that tracks resource and outside processing overheads.
          Outside processing An asset account that tracks outside processing cost.
          Expense       The expense account used when tracking a non-asset item
Other Accounts

          Sales             The profit and loss (income statement) account that tracks the default
revenue account.
          Cost of Goods Sold The profit and loss (income statement) account that tracks the default
cost of goods sold account.
          Purchase Price Variance       The variance account used to record differences between
purchase order price and standard cost. This account is not used with the average cost
method.
          Inventory A/P Accrual           The liability account that represents all inventory purchase
order receipts not matched in Accounts Payable, such as the uninvoiced receipts account.
          Invoice Price Variance           The variance account used to record differences between
purchase order price and invoice price. This account is used by Accounts Payable to record
invoice price variance.
          Encumbrance            An expense account used to recognize the reservation of funds when
a purchase order is approved.
          Average Cost Variance          Under average costing with negative quantity balances, this
account represents the inventory valuation error caused by issuing your inventory before your
receipts.

2.        What is ABC Analysis and why it is being used

           ABC Analysis is an Inventory categorization method to categorize items into 3 different
classes A being the most valuable and C being the least valuable ones.
          Using this Analysis, it will be easy to monitor and keep on track of the valuable items like
frequently doing cycle counts on A class items, etc.
3.        What are the process of cycle count
          Create a cycle count header with required data
          Assign the items to be counted
          Then run the required cycle count report
          Using the report do the cycle counts
          Then go and Approve the cycle count
4.        What is the different in MO Issue and MO Transfer
          MO Issue will move out the stock from inventory against an account
          MO transfer will move the stock from one subinventory to other
5.        What is the Picking rule in Inventory
          Picking Rule is used to determine the list of items for sales order/ shipping based on the
revision, Lot, Subinventory and Locator.
          Assign the required Picking Rule to the item in Order Management tab.
6.        What are the criteria in Cycle count
           Depending on the requirement, we can trigger cycle count.
           We can define regular cycle count of high values items.
           If back ordered or pick denied, we can trigger cycle count for those items. 
6.        What are the diff in Lot and Serial
          Lot control is to control a whole batch of items. for example in drug industry we have batch
number which           can be controlled using lot where we can track the complete batch using
specific data.
          Serial control is to monitor and track every single qty of an item like electronic devices where
we track by           serial number.
6.        What are the material status in a subinventory
7.        What is Physical Inventory

1. What is move order in OM

Move orders generated as part of Pick Wave are the ones from Sales order
2. How a MO is diff from Subinv transfer
Ans: MO generally are the request of movement of items in one organization. It may be of from 3
sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue which will issue the
item from the location and MO transfer which ll transfer the item to another location.
3. What is nettable in Subinventory setup
This will detrrmine whether to consider the onhands of the subinventory as available for planning
tasks.
4. What are the status attributes in Item and how many of them
We can define different status for an item combination these attributes as per the business need
Following are the attributes
BOM Enabled
Build in WIP
Customer order enabled
Internal Order enabled
Invoicable
Purchasable
Stockable
Transactable 
5. What is the use of status attribute
We can define different status for an item combination these attributes as per the business need
6. Why master org is required
So that we can have an item maintained at master level with common attributes and then we can
use the same item across multiple organization instead of defining it again and again. 
7. Inventory Master org is mandatory?
Yes. If you will not create any specific master org, then system will consider the same inv org as its
master org.
8. What are the Lot control setups
Lot control can be setup at item attributes at organization level.
Either No Control or Full Control
9. How lot number generates
You can generate new Lot numbers during transactions
10. What is serial controlled and what are the setups
Serial control can be setup at item attributes at organization level.
11. How serial numbers are generated
Serial control can be setup at item attributes at organization level.
No Control, At Receipt, At Sales Order issue, Predefined
12. What is the predefined locator in Subinventory and how it works in business
We can setup locator control in 4 diff ways for each subinventory
None: There will not be any locator information required during any transaction
Prespecified: System will ask you to select locator combinations which already been defined in the
subinventory during the transaction
Dynamic Entry: Either you can select any locator during transaction or you can create a new
combination
Item Level: This will take the locator which has been defined at item attribute level
13. What are the transaction managers
Transaction manager is the inetrface managers which carry out all transaction once submitted by the
users
14. Can we change the item name after it created?
Ans: Yes we can change the name in master level.

1. How WMS is helpful compared to Inventory

Ans: Warehouse Management (WMS) enables companies to maximize their utilization of labor,
space and equipment investments by coordinating and optimizing resource usage and material
flows. Specifically designed to support the needs of distribution, manufacturing, asset-intensive, and
service businesses, Oracle WMS provides a single-platform across your entire global supply chain.
2. What functionality in inventory uses the calendar
3. What is the diff in inv and wms from accounting perspective
4. What is the use of WMS Rules Workbench
Ans: The Rules workbench enables you to assign strategies, rules and cost group values directly to
any number of objects in an assignment matrix
5. Why strategy used
Ans: After you define your rules, you must set up a strategy and then associate the applicable rules.
After you assign rules to a strategy, the rules engine can execute the strategies on any objects to
which the strategy applies. The rules engine executes each subsequent rule in your strategy until an
allocation is completely filled.
6. How many types of bar codes are there
Ans: Mainly 2 types Linear (1 dimensional) and Matrix (2D)

---------------------
Q. What is the difference between Operating Unit and Inventory Organization?
Operating Unit :- An Organization that uses  Oracle Cash management, Order
management and Shipping Execution, Oracle Payables, Oracle Purchasing, and Oracle
Receivables. It may be a sales Office, a division, or a dept. An operating unit is associated
with a legal entity. Information is secured by operating unit for these applications. Each
user sees information only for their operating unit. To run any of these applications, you
choose a responsibility associated with an organization classified as an operating unit.
An organization for which you track inventory transactions and balances, and/or an
organization that manufactures or distributes products. Examples, include (but are not
limited to) manufacturing plants, warehouses, distribution centers, and sales offices. The
following applications secure information by inventory organization: Oracle inventory, Bills
of Material, Engineering, and Work in Process, Master Scheduling/MRP, Capacity, and
Purchasing receiving functions. To run any of these applications, you must choose an
organization that has been classified as an inventory organization.

Q. What is Set of Books?

A financial reporting entity that uses a particular chart of accounts, functional currency,
And accounting calendar. Oracle General Ledger secures transaction information (such as
journal entries and balances) by set of books. When you use Oracle General Ledger, you
choose a responsibility that specifies a set of books. You then see information for that set of
books only.

Q. What is Item Validation Organization?

The organization that contains your master list of items. You define it by setting the OM:
Item Validation Organization parameter. You must define all items and bills in your Item
Validation Organization, but you also need to maintain your items and bills in separate
organizations if you want to ship them from other warehouses.
OE_System_Parameters  master item organization  contains the item validation org

Q. Mention the table or views where Inventory Org, Items, Set of Books, GL
Code Combinations, Operating Unit, Location, Customers, Vendors, and Invoices
are stored in Apps.
          Inventory Org: - MTL_PARAMETERS/ORG_ORGANIZATION_DEFINITIONS
          Items: - MTL_SYSTEM_ITEMS_B
          Set of Books: - GL_SETS_OF_BOOKS
          GL Code Combinations: - GL_CODE_COMBINATIONS
          Operating Unit: - HR_ALL_OPERATING_UNITS
          Location: - MTL_ITEM_LOCATIONS
          Customers: - RA_CUSTOMERS
          Vendors: - PO_VENDOR_CONTACTS
          Invoices: - AP_INVOICES_ALL

Q. What is the profile to be read to find out what Inventory Organization and
Operating Unit are you on?
Help  Diagonistics  Examine  $PROFILES$(org_id is the Operating Unit)
                                                                    (organization_id is the Inventory Org)

Q. What is Inventory Master Organization?

Items are defined in an Inventory Master Organization

--------------------------
 FLEX FIELD

What is the difference between key flexfield and Descriptive flexfield?

Key Flexfield is used to describe unique identifiers that will have a better meaning than using number IDs. e.g a part
number, a cost centre etc
Desc Flex is used to just capture extra information. 
Key Flexfields have qualifiers whereas Desc Flexfields do not.
Desc Flexfields can have context sensitive segments while Key flexfields cannot.
And one more differenct that KFF displays like text item but DFF displays like [ ] .

Which procedure should be called to enable a DFF in a form?

FND_DESCR_FLEX.DEFINE
(BLOCK                                 => 'BLOCK_NAME'
                ,FIELD                                    => 'FORM_FIELD_NAME'
               ,APPL_SHORT_NAME      => 'APP_NAME'
               ,DESC_FLEX_NAME         => 'DFF_NAME'
               );

In Brief,
We need to follow the following steps in your form: 
a) Create a displayed field to hold your concatenated segment values (the [ ] field).
b) Create fields (normally hidden) for each of the flexfield columns in your table (the
      one used for your flex).
c) In the form-level WHEN-NEW-FORM-INSTANCE,
call FND_DESCR_FLEX.DEFINE,
setting BLOCK parameter to the name of the block containing your [ ] field,
the FIELD parameter to the name of your [ ] field,
the APPL_SHORT_NAME parameter to the short name of your application and the DESC_FLEX_NAME
parameter to the name of your descriptive flex.

In the form-level WHEN-NEW-ITEM-INSTANCE,

WHEN-VALIDATE-ITEM,
PRE-INSERT,
PRE-UPDATE,
POST-QUERY and
PRE-QUERY triggers place a call to FND_FLEX.EVENT as follows:
         FND_FLEX.EVENT ( 'TRIGGER_NAME');
where TRIGGER_NAME is the name of the trigger,
e.g. in the PRE-QUERY trigger .... FND_FLEX.EVENT('PRE-QUERY');
Which procedure should be used to make the DFF read only at run time?
FND_DESCR_FLEX.UPDATE_DEFINITION()

What is the difference between flexfield qualifier and segment qualifier?

Flexfiled qualifier identifies segement in a flexfield and segment qualifier identifies value in a segment.
There are four types of flexfiled qualifier
1)     Balancing segment qualifier
2)     cost center
3)     natural account and
4)     intercompnay
segemtn qualifier :-
1)     allow budgeting
2)     allow posting
3)     account type
4)     contral account and
5)     reconciliation flag

What are the components of DFF (like structure, segment)?

Howmany Key flexfiels are there in Inventory?
What is Value Set?
Value Sets define and store the valid items of data, which may be entered into a field. Key Flexfields,
Descriptive Flexfields and many standard fields use Value Sets. Oracle already comes with hundreds of
Value Sets. We define additional Value Sets to support our own user-defined Key and Descriptive
Flexfields (although we may use any existing standard Value Sets if they suit our purpose). In defining a
new Value Set, we are defining the physical format of valid data, which can reside in that Value Set.  Data
in a Value Set can be of several types: 

  Independently loaded into a Value Set (through a standard form). 

  Resident in a table (to which we direct the Value Set definition). 
  There could be No Validation (any data can go into the field, but still subject to the
formatting rules.) 
  Dependent on the value of data in a preceding Independent segment (loaded through a
standard form). 

Ex: For Supplies & Accessories CC in ATP, we define GEMS_GPO_ASSIGN_SET value set for the
assignment set associated with that OU.

What is an Item?
Item is a part or service you Purchase, Sell, Buy, Plan, Manufacture, Stock, Distribute and a
Prototype. It can also be the containers and the components you build into other items.
What is Item Master Organization?
An item master organization is a logical entity that you use to define items. After you define an
item in the item master, you can assign it to any number of other organizations. You should also
define one item master organization per implementation. When you define an item, Oracle
automatically changes your current organization to the master organization.
What is an Inventory Organization?
Inventory Organization is a facility where you store and transact items. It can be a
manufacturing unit, warehouse, distribution centre, item master organization (logical entity),
etc.
What is subinventory?
Subinventories are unique physical or logical separations of material inventory, such as raw
inventory, finished goods, or defective material. All material within an Inventory Structure
organization is held in a subinventory therefore, you must define at least one subinventory.
What is Locator?
Locators are structures within Subinventories. Locators are the third level in the enterprise
structuring schema of Oracle Inventory. Locators may be a row, bin, aisles in a warehouse.
Stock locators are used to identify physical areas where you store inventory items. Item
quantities can be tracked by locator. Items can also be restricted to specific locators.
Can you copy inventory org structure?
Yes. But can copy only organizations within the same operating unit.
What is Shipping Network?
An inter-organization shipping network describes the relationships and accounting information
between a shipping organization and a destination organization. You must define a shipping
network between two organizations before you can transfer material between organizations.
When you setup a shipping network you must select a transfer type as Intransit or direct.
Explain Intransit and Direct Transfers?
In Intransit transfer, Oracle Inventory moves material to an intermediary state before it reaches
the destination organization, and a receipt transaction is required in the destination
organization once the material arrives in order to retrieve it.
In Direct transfer, Oracle Inventory moves the material directly to the destination organization.
Explain UOM and UOM class?
Unit of measure classes represent groups of units of measure with similar characteristics. For
example, quantity is a unit of measure class and each, dozen, and gross are examples of units of
measure within the class.
What is the difference between category and category set?
Categories and Category Sets can be used to group the items for various reports and programs.
A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of categories.
How do you assign items to item categories?
1. Navigate to the Category Set window.
2. Enter a category set.
3. Choose Assign. The Item Assignment window appears.
4. Select the item from the current organization to assign to the category.
5. Select a category.
The list of values contains categories with the same flexfield structure as the category set you
selected in the Category Set window. If Enforce the list of valid categories is selected the list is
limited to those categories.
6. Save your work.
(Or)
1. Navigate to the Master Items Summary or Organization Items Summary window.
2. Select an item.
3. Choose Categories from the Tools menu.
The item you selected appears at the top of the Category Assignment window.
4. Select a category set
5. Select a category.
The list of values contains categories with the same flexfield structure as the category set you
selected. If Enforce the list of valid categories is selected the list is limited to those categories.
6. Save your work.
How do you load / import items?
Navigate to Items  Import Items
Items can be imported using Open Item Interface.
You can import and update items, and their category assignments from any source into Oracle
Inventory and Oracle Engineering using the Item Interface.
With this interface, you can convert inventory items from another inventory system, migrate
assembly and component items from a legacy manufacturing system, convert purchased items
from a custom purchasing system, and import new items from a Product Data Management
package.
 Where do you establish a Serial Number Control for an Item?
Serial number control for an inventory item can be established when you define it on the Item
Master. The Drop down has the following options
         No control,
         Predefined,
         At inventory receipt, or
         At sales order issue
How do you generate serial numbers?
1.      Navigate to Generate Serial Numbers window
2.      Enter Serial Number Generation in the Name field. The Parameters window opens
3.      Enter an Item that is under serial number control
4.      Enter a quantity of serial numbers to define and reserve for the item. The quantity must be a
positive integer.
5.      Click Submit to launch the process.
Whether two items can have the same serial number?
No
Can serial numbers and lot numbers co-exist for an item?
Yes
How do you assign a Serial Number to an Item at Issue or Receipt?
1. Click the Lot/Serial button from a transaction window. The Serial Number Entry window
appears displaying the item and transaction information.
The Serial Entry window displays the item, revision, lot, subinventory, locator, UOM, quantity,
and quantity entered. The Quantity field displays the total transaction quantity, and the
Quantity Entered field displays the item quantity you have assigned to serial numbers.
2. Indicate whether to enter a range of serial numbers, or individual serial numbers for each
item or lot quantity. If you select a range of serial numbers, the system assigns each item in the
line item or lot quantity to a serial number within the range.
3. Enter a serial number for an individual item, or a beginning serial number for the range.
4.  If you are using a serial number range, enter an ending serial number for the range.
 5. If you selected Individual for the serial number entry mode, enter the desired serial numbers.
6. Click Done to return to the Transaction Lines window.
Explain the use of material status
Material Status control restricts the movement and usage of portions of on-hand inventory.
Using material status control enables you to control whether you can pick or ship an internal
order or sales order, or issue material for a work order. You can also specify whether material
needs to be quarantined until you inspect it. In addition, you can determine whether products
with a particular status can be reserved, included in available to promise calculations, or netted
in production planning.
Material statuses can be assigned at four levels:
         Subinventory,
         Locator,
         Lot, and
         Serial
List some of the seeded material transaction types
Some of the seeded material transaction types are Active, Hold, Immature, Almost Mature

Status Active Hold Immature Almost Mature

Allowed Everything Subinventory Picking and Picking for
transfers Shipping for Customers
Internal
Customers
Disallowed Nothing Picking, Shipping Picking and Shipping for
and Production Shipping for Customers
External
Customers

What are transaction source types?

A transaction source type is the type of entity against which Oracle Inventory charges a
transaction.
Eg: Account, Internal Requisition, Internal Order, Sales Order, Move Order, Purchase Order,
RMA, Cycle Count, etc.,
What are the Control Options and Restriction for Inventory Transactions?
1.      Locator Control
2.      Lot Control
3.      Serial Number Control
4.      Revision Quantity Control
5.      Subinventory and Locator Restrictions
6.      Defaulting Subinventories and Locators
7.      Converting UOM
What is a Transaction Action?
A transaction action is a generic type of material movement or cost update with no specificity
regarding the source of the transaction.
Eg: Issue from Stores, Subinventory Transfer, Direct Organization transfer, Intransit Receipt,
Intransit Shipment, Receipt into Stores, Assembly Completion, Assembly Return, Staging
Transfer, Ownership Transfer, Negative Component Issue and Return, etc.,
What is a Transaction Type?
A transaction type is the combination of a transaction source type and a transaction action. It is
used to classify a particular transaction for reporting and querying purposes.
Few Examples:
Sales order Issue (Txn Type) + Issue from stores (Txn Action) = Sales Order (Txn Source Type)
Move Order Transfer (Txn Type) + Subinventory Transfer (Txn Action) = Move Order (Txn Source
Type)
RMA Receipt (Txn Type) + Receipt into Stores (Txn Action) = RMA
Miscellaneous Receipt (Txn Type) + Receipt into Stores (Txn Action) = Inventory
What is a Miscellaneous Transaction?
Miscellaneous transaction allows you to issue material to or receive material from general
ledger accounts in your current organization. This allows you to issue material to groups that
are not inventory, receiving, or work in process such as a research and development group or
an accounting department. Manual adjustments can also be made to the general ledger by
receiving material from one account to inventory, and then issuing that material from inventory
to another account.
 What do you mean by Item Reservation?
A reservation creates a permanent data link between a supply source and a demand source,
and represents a guaranteed allotment of material to a specified demand source.
What are the two types of Item reservation in Inventory Supply?
There are two types of reservations,
1.      High level reservations, and
2.      Low level reservations
High level reservations contain information about the item and the organization.
Low level reservations contain more detailed information about the item such as revision, lot,
subinventory, serial, and locator.
What do you mean by Crossdocking?
At supply receipt, the system directs you to move the material to appropriate staging lane
instead of to a storage location to fulfill an order.
What is the difference between move order and subinventory transfer?
1. Move orders require approvals on the transaction from the warehouse manager while
subinventory transfer does not require any approvals.
2. Move orders create allocations. So Hold can be placed on the material with the intention of
picking it up a little later while in subinventory transfer, there is no reservation / allocation.
3. Move Order can generate Pick Slip while Subinventory transfer doesn't create Pick Slip.