Oracle Fusion SCM Interview Questions and Answers [ TOP & MOST ASKED ]

Oracle Fusion SCM Interview Questions and Answers [ TOP & MOST ASKED ]

Last updated on 18th Nov 2021, Blog, Interview Questions

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Smita Jhingran (SCM Process Specialist II )

Smita Jhingran has expertise in Sage X3, Oracle ERP Cloud, SAP S/4HANA, and Microsoft D365 ERP processes. She has worked with ERP, CRM, SCM, BPR, NetSuite ERP, Odoo, Sage Intacct, MRP, and BPM for more than 6 years.

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If you are preparing for Oracle Fusion SCM Interview, then you are at the right place. Today, we will cover some mostly asked Oracle Fusion SCM Interview Questions, which will boost your confidence. It unifies end-to-end business processes considering the changing supply chain needs of modern enterprises. Therefore, Oracle Fusion SCM professionals need to encounter interview questions on Oracle Fusion SCM for different enterprise Oracle Fusion SCM job roles. The following discussion offers an overview of different categories of interview questions related to Oracle Fusion SCM to help aspiring enterprise Oracle Fusion SCM Professionals.

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    1. How do you calculate the Total annual cost?


      use Total Annual Cost equation:

      • TC = DC + (D/Q)*S + (Q/2)*H
      • TC = Total annual cost
      • D = Demand
      • C = Cost per unit
      • Q = Order quantity
      • S = Cost of placing an order or setup cost
      • H = Annual holding and storage cost per unit of inventory

    2. Have you used economic order quantity [EOQ]?


      It’s a quantitative inventory model that I have used to find the most economic quantity to order based on cost and demand factors.

        If C=Carrying cost per unit per year; F=Fixed cost per order; D=Demand in units per year; Formula for Economic Order Quantity= ((2 × F × D)/C) (½)

    3. How will you calculate the total length of the supply chain?


        Total length of the supply chain = DRM + DWIP + DFG

    4. How to calculate Supply Chain Working Capital Productivity Ratio?


      • SWC (Supply Chain Working Capital) = INV+ AR-AP
      • Where:
      • SWCP (SWC productivity) = NS/SWC

    5. What is the difference between a purchased and purchasable flag for an item?


      Purchasable flag
      The purchased flag denotes that the item will be received if it is already in approved order.The purchasable flag is a status attribute flag that is used to control transactions on an item. If this flag is enabled,users can order this item in a purchase order.

    6. How to calculate exponential smoothing?


      It’s used in forecasting procedure:

        F (t) = Ft-1 + a ((At-1) – (Ft-1))

    7. How to calculate flow time?


      The Global Trade Item Number is a 14-digit item number used in the item identification system for products.

      It’s a standard number used in RFID and electronic commerce.

    8. How to use a PKI system in the supply chain?


      I have used Public Key Infrastructure for Securing E-Business across the Supply Chain.

    • Public Key Infrastructure (PKI) offers a strong linkage between business identities and transactions throughout the supply chain.
    • In a PKI system, each user has two keys: a public key and a private key.
    • These keys can be used for encrypting and decrypting information, for electronically signing electronic information, and for verifying the authenticity of their owner.

    9. Explain your experience with the Cost analysis?


      Cost analysis=Review of the potential provider’s cost elements to determine their appropriateness and reasonableness.

      I have conducted the Cost analysis as a review of:

      Need for categories of personnel & reasonableness of personnel work time proposed indirect cost, base to which rates are applied.

      Compare estimated costs with prior actual costs.

    10. What does the oracle fusion SCM application environment look like?


    oracle fusion SCM application environment
    oracle fusion SCM application environment

    11. Explain your experience with supply chain performance indicators?


      Consists of four types of indicators:

      Quality, time, financial, and productivity.

      Cp a measure of process capability that compares the specification width with the process width- not adjusted for lack of process centering.

      Cpk a measure of process capability that compares the specification width with the process width- adjusted for lack of process centering.

    12. How do you forecast?


      I can use Market research and Historical analogy to forecast.

    13. Explain your experience with the product’s life cycle?


      There are five stages of a product’s life cycle:

    • Extraction
    • Production
    • Packaging and Transport
    • Usage
    • Disposal

    14. When a process is considered to be of six sigma quality?


      When there are no more than 3.4 nonconformities per million opportunities.

    15. What is an item category and category set?


      Item category
      Category set
      An item can be assigned to a category for each category set. The category information is stored in the MTL_CATEGORIES_B table, and the category set information is stored in the MTL_CATEGORY_SETS_B.Items of similar characteristics will be assigned to a logical classification called category. A category set is a grouping of several categories.

    16. Have you performed marketing functions?


      Yes, I have performed these marketing functions of the supply chain:

    • Buying
    • Selling
    • Storing
    • Transporting
    • Sorting
    • Financing
    • Information Gathering
    • Risk Taking

    17. Explain your experience with Material management?


      I have worked in the material management department, which had the authority and responsibility of all activities, concerned with the flow of materials in the organization.

      My responsibilities were:

    • Efficient use of the working capital.
    • Responding to the market changes related to any product.
    • Ensuring the cooperation of all departments.
    • Providing best services to the customer.
    • Analyzing materials and supply to reduce cost.
    • Improve quality and ensure supplier performance.
    • Maintain minimum inventory levels

    18. How do the purchasing departments establish and maintain policies and procedures for the acquisition and payment of goods and services?


      It authorizes the delegation of purchasing authority and establishes and maintains policies and procedures for the acquisition and payment of goods and services.

    19. A supplier partnership focuses on which relationship?


      It focuses on cooperative rather than adversarial relationships with suppliers.

    20. Describe an oracle fusion SCM architecture?


    oracle fusion SCM architecture
    oracle fusion SCM architecture

    21. What are the responsibilities allocated to the production environment?


      1 . Product fabrication

      2. Work schedules

    22. What you suggest for optimizing purchasing and production departments?


      I suggest these responsibilities can be shared by both:

      1. Product fabrication

      2. Lead time for delivery of material

      3. Work schedules

      4. Selection of sources of supply

    23. What are different planning methods in Inventory?


      There are 5 different planning methods in oracle Inventory:

    • Subinv Replenishment Planning
    • Min Max Planning
    • Reorder point planning
    • Kanban Planning
    • Periodic Automatic Replenishment

    24. What is a Debit Memo Invoice?


      Negative amount invoice which is created and sent to a supplier to notify the Supplier of a credit you are recording.

    25. What are the main tables involved in Inter-Organization Transfer?


      check is carried out to see if the transaction date is in an open period as specified in the profile option (INV: Transaction Date Validation). The column is acct_period, the table is ORG_ACCT_PERIODS:

      The organizations set, cost information, etc, are derived from:

      • [HR_ORGANIZATION_INFORMATION – for rel 11I].
      • The transaction information is derived from MTL_TRX_TYPES_VIEW for inter-org transactions where transaction_source_type_id=13.

    26. How are Lot and Serial Numbers handled in Inter-Organization Transfers?


      When the source organization uses controls and the destination organization does not, the control numbers are recorded as being issued from the source organization. Lot/serial transactions are recorded for the destination organization.

    27. What are the steps to perform Inter-Organization Transfer?


      Setup Shipping Network: This information describes the relationships and accounting information that exists between a from (shipping) organization and a to (distribution) organization.

      Navigation path:

      a. Choose the Inventory Manager’s responsibility.

      b. Setup/Organizations – Make sure that there is an entry for from/to organization (between the organizations you intend to perform the transfer). When you click on this form, you will get a LOV with orgs.

    28. Tell the differences between ‘Accrue On Receipt’ and ‘Accrue at Period End’?


      Accrue on receipt
      Accrue at Period end
      Accrue On Receipt’, also known as online accruals, will record the transactions to the general ledger immediately when a receipt is saved.‘Accrue at Period End’ means that the transactions are not immediately saved to the general ledger. Instead, these accounting entries will be generated and sent at the end of the month.

    29. What are the minimum setups required for Items that we use for Internal Sales orders?


      The items which we use for Internal Sales Order must be Inventory enabled, internally orderable and stackable, shippable, and Order Management transactable for the source organizations. Under Inventory, you need to select the Inventory Item, Transactable, and Stackable options. Under Order Management, you need to select the Internal Ordered, Internal Orders Enabled, OE Transactable, and Shippable options.

    30. What is oracle fusion cloud integration?


    oracle fusion cloud integration
    oracle fusion cloud integration

    31. How does batch picking help save cost?


      It is essentially a method in which the total inventory is divided into small classes or batches. The cost is measured on a batch rather than on individual products, and the shipper can save up to a good extent.

    32. How does the identification of the delivered goods do?


      This is usually achieved with the aid of compliance stickers, which generally contain barcodes, with the help of which this mission can easily be accomplished. A lot of other valuable knowledge on the distribution can also be learned from this.

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    33. Are the applications of SCM limited to controlling and managing of goods only? If not, what other tasks it can manage on behalf of an organization?


      SCM is a strong solution to this. If used effectively, it can easily be used to carry out a medical mission.Organizations can also make use of the same during emergency situations as during relief operations in the event of any disaster within the organisation. Issue diagnosis can easily be made without needing more and more people.

    34. Can Supply chain management help to improve the financial position of an organization? If so, how?


      Yeah, SCM will make a lot of contributions to this matter. This is primarily because supply chain management simply helps companies to reduce the cost of the supply chain and to have greater control over it. SCM is also capable of minimising spending in fixed assets, and the positive thing is that companies will simply raise their net income. In addition, improved cash flow may also simply be guaranteed

    35. How can you say that total supply chain cost can be reduced through Oracle Fusion SCM?


      Both retailers and suppliers are increasingly dependent on design networks when it comes to achieving the customer satisfaction and service objectives. If supply chain management is efficient, which can be accomplished by Oracle Fusion, companies can still reduce competition on the market to a very high degree.

    36. Give anyone any benefit that retailers can have from an SCM?


      Well, retailers should still make sure they no longer need to store costly items with them. This is because they are shipped very quickly to customers and no storage is needed in the true sense of the term.

    37. Explain about the blind shipment?


      When buyers do not know anything about the seller of the shipment it is called blind shipment.That means the seller details are not shared with the buyer. Buyers may not show much interest to go with a blind shipment, which might result in fewer chances for purchase.

    38. Explain the item master organization?


      The items in an organization are defined using a logical entity called item master organization. When you define an item, you can assign many other organizations to it. However, you won’t be able to copy items across item master organizations.

    39. How can customers benefit from an organization with strong Supply Chain Management?


      Customers should still ensure that the best product is produced without compromising on quality. All the appropriate items can be made available to the consumers at the place they really want them to be. In addition, consumers will still ensure better service after sales, which are in reality, one of the greatest factors that can lead to the success of almost any modern company at the present time.

    40. Difference between oracle fusion middleware and oracle fusion application?


    oracle fusion middleware and oracle fusion application
    oracle fusion middleware and oracle fusion application

    41. What exactly do you mean by Deadweight tonnage?


      It demonstrates the variation in between weight of the loaded vehicle and the weight of the unloaded vehicle used for the shipment. Since shipments are often in bulk, it is very difficult for companies and the shipping company to weigh all of them individually. In certain cases, the bulk weight of all shipments shall be considered.

    42. Which tables contain sub inventory related information for an item?


      The subinventory related information for an item will get stored in,



    43. What is the document against acceptance?


      It is simply a contract signed by the customer specifying that he/she is liable to pay the full cost of the product. It is usually signed prior to the transfer of possession of the shipment. Generally, it is signed in electronic mode as buyers may have different locations. This paper informs the shipper that the commodity can be transferred or delivered.

    44. What are the activities that are performed at the operational level in the logistics?


      Here are the basic activities that are generally performed at the operational level in the logistics:

    • Picking the order
    • Check the goods and receipt
    • Stock update
    • Information about bulk storage
    • Concerned documents
    • Scheduling of load

    45. What are the setups for different planning method (Min-Max)?


      Planning method- min
      Planning method-max
      Setup the item in master-org and assign the item to the org for which Min-Max planning is used.IF Use ASL has been enabled, then Requisition will populate the supplier data from the ASL setup which is assigned to the item.
      Attributes, Inv Planning method: Min-MaxSourcing rules can be defined for this
      Min-Max Qty should have been defined safety Stock method should be non-MRP Planned.Then need to assign a sourcing rule to the item

    46. What is the concurrent program for the planning?


      Min Max planning report under planning menu in Inventory responsibility

    47. What are the setups for expense items?


      Should not be Inventory Item:

    • No Stackable
    • No Transactable
    • No Costing, Inv Asset

    48. How many key flex fields are there in Inventory?


      Seven KFF are there in Inventory:

    • Account Alias
    • Item
    • Item Category
    • Item Catalogues
    • Stock Locators
    • Sales Order
    • Service Items

    49. What is the use of sales order KFF?


      1. This is used during the material transaction when the source is Sales Order

      2. Segments are Sales order Numbers. Sales Order Type.Sales Order Source

    50. Define oracle fusion SCM overview?


    oracle fusion SCM overview
    oracle fusion SCM overview

    51. How can we 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.

    52. Where is Oracle inventory location?


      The Oracle Inventory directory is the central inventory location for all Oracle software installed on a server. By default, the location of the Oracle Inventory directory is C:\Program Files\Oracle\Inventory .

    53. What all setups you have done in inventory organization implementation?


    • Location
    • Calendar
    • Organization
    • Parameter
    • Cost Group
    • . Sub inventory
    • Stock Locator
    • Receiving Options
    • Shipping Networks
    • Intercompany Transaction flows
    • Cost Sub Elements

    54. 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 in-transit 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 the 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.

    55. 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.

    56. What is 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

    57. What are the major receiving tables involved?



    58. How many Transaction Types exist?


      Receive – Receive the items into Receiving Dock.

      Deliver – Deliver the items into expense or inventory destination.

      Return to Vendor – Return the received items directly to vendors.

      Return to Receiving – Return the delivered items to the Receiving Dock or inspection.

      Accept – Accept items following an inspection.

      Reject – Reject items following an inspection.

      Transfer – Transfer items between locations.

      Correct – Enter a positive or negative adjustment to a receiving or delivery transaction.

      Match – Match unordered receipts to purchase orders.

      Unordered – Receive items without purchase orders

    59. What can Receiving Routing be used for and how does it default?


      Direct Delivery – Perform Receive and Delivery on Receipts Screen at the same time.

      • 3-way matching.
      • Standard Receipt – Perform Receive on Receipts screen.
      • Perform Delivery on Receiving Transactions screen.
      • 3-way matching.
      • Inspection Required – The inspection is required after Receiving and before Delivery.
      • 4-way matching.

      You can override the Receiving Routing on the Receipts screen only if the Profile RCV: Allow Routing Override is set to ‘Yes’.

      The Receiving Routing on the receipts screen has defaulted as follows:

      • Purchase Order shipment
      • if 1 is null, then Item Attribute
      • if 2 is null, then Vendor Attribute
      • if 3 is null, then Receiving Option

    60. Decline an image oracle fusion SCM enterprise structure?


    oracle fusion SCM enterprise structure

    61. What should I do if the Purchase Document Open Interface (PDOI) process fails?


      The first thing is to check for the error message and examine the description from the po_interface_errors table for the given interface_header_id. The description would be self-explanatory. Accordingly check for the data in the po_headers_interface, po_lines_interface tables and correct them and run the PDOI again with the corrected data.

    62. When the charge account field is non updateable?


    • In the following cases the charge account field is not updateable:

    • If the destination type code is INVENTORY or SHOP FLOOR.
    • If the distribution is already encumbered.
    • If the PO is created from an encumbered Requisition
    • If the destination type code is Expense and
    • If the project is entered and the profile option PA_ALLOW_FLEXBUILDER_OVERRIDES is set to NO
    • If the expense accrual code= RECEIPT

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    63. What are the Prerequisites to use an Account Generator?


      Before using the Account Generator you must:

    • Define your Accounting flexfield structure for each set of books.
    • Define flexfield segment values and validation rules.
    • Set up Oracle Workflow.
    • Decide whether you want to use the Account Generator processes as seeded in Oracle Purchasing, or you need to customize them to meet your accounting needs.

    64. What does the Account Generator process do?


      The Account Generator process builds charge, budget, accrual, and variance accounts for each purchase order, release, and requisition distribution based on the distribution’s destination type. It is a synchronous Workflow process.

    65. Why is there no category displayed or list of values for the category field in the purchase order you are creating?


      You must also create category codes for your items. Then create a Category set for Purchasing controlled at the master level. Assign your items to a category code and the Purchasing category set you have created. Confirm that in Default Category Sets the Purchasing application points to the Purchasing Category set. This will populate the category and description when the item number is selected at the PO line level.

    66. Does autocratic add to an existing PO shipment that has been encumbered?


      Purchasing does not add to an existing purchase order shipment if that shipment has been encumbered even though all the grouping columns necessary to combine shipping information are there.

    67. What are Reminder notifications?


      Once an approver doesn’t respond to approval notification for quite some time, then a reminder notification can be sent out to the approver. You can send up to two reminders to an approver using the Timeout feature. You can also specify that after a certain period of time, the document be forwarded automatically to the next approver in the hierarchy. This feature has to be set up by you by changing the PO and/or Requisition approval workflow in Oracle Workflow Builder.

    68. Can the original Purchase Order can be viewed in any way, for a revised Purchase Order?


      The original version of a revised PO cannot be viewed from the PO form or PO summary form. Information on the original PO is stored in the PO_HEADERS_ARCHIVE and PO_LINES_ARCHIVE tables, and can be obtained through SQL, using the PO_HEADER_ID column as a common reference.

    69. Create a Purchase Order. Input the Header and Line information and find that the Shipments button at the bottom of the form is grayed out?


      Setup the Receiving Options to enable the Shipment Button in the Purchase Order form. Navigation: Setup –> Organizations –> Receiving Options. Once set up these options for your Organization you will have the Shipments button enabled. Ensure that the Purchasing Options and Financial Options are defined for your organization.

    70. What is secure oracle fusion SCM?


    secure oracle fusion SCM
    secure oracle fusion SCM

    71. What is Pay On Receipt?


      Pay on Receipt (also known as ERS (Evaluated Receipt Settlement) or Self-Billing) is an Oracle Purchasing’s concurrent program, which automatically creates invoices in Oracle Payables and matches them with PO’s automatically for the received amount. The short name for the program is POPOV.

    72. What is the significance of the Ageing Period (R11i)?


      The parameter Aging period determines the transactions on the receipt that can be considered for invoice creation. Forex if the aging period is given as 1, then all the transactions that have a transaction date less than or equal to the (sysdate-1) are considered for invoice creation. The aging period can be set through the profile option PO: ERS Aging period.

    73. What are some of the supported and non-supported features of the Receiving Open Interface?


      The non-supported features include:

    • Lot number transactions
    • Serial number transactions
    • Dynamic locator control
    • Replace transactions
    • Separate RECEIVE and DELIVER transactions

    74. I am delegating the approval of a PO to someone who doesn’t have access to open this PO. Would he be able to approve it?


      Since he has been ‘delegated’ the approval authority from you, his approval actions would be judged as if you were taking those actions on this document. However, the document would remain inaccessible to him. This is because by ‘Delegating’, you are only allowing him to act on approval decisions on your behalf, rather than also delegating him the access authority.

    75. What is the diff in Lot and Serial


      Lot control is to control a whole batch of items. For example, in the drug industry, we have batch numbers that can be controlled using a 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.

    76. What is the move order in OM?


      Move orders generated as part of Pick Wave are the ones from the Sales order.

    77. How a MO is diff from Subinv transfer?


      MO generally is the request of movement of items in one organization. It may be from 3 sources, MO requisition, Replenish MO, Pick Wave MO. MO can be MO Issue that will issue the item from the location and MO transfer which ll transfer the item to another location.

    78. What is nettable in Subinventory setup?


      This will determine whether to consider the hands of the sub inventory as available for planning tasks.

    79. What are the status attributes in Item and how many of them?


      We can define a 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
    • Invoice
    • Purchasable
    • Stackable
    • Transactable

    80. How getting started with oracle management?


    getting started with oracle management
    getting started with oracle management

    81. What is the use of the status attribute?


      We can define a different status for an item combination of these attributes as per the business need

    82. Why master-org is required?


      So that we can have an item maintained at the master level with common attributes and then we can use the same item across multiple organizations instead of defining it again and again.

    83. Why Inventory Master org is mandatory?


      Yes. If you will not create any specific master-org, then the system will consider the same inv org as its master org.

    84. What are the Lot control setups?


      Lot control can be set up at item attributes at the organization level.

      Either No Control or Full Control

    85. How lot number generates?


      You can generate new Lot numbers during transactions.

    86. What is the difference between MO Issue and MO Transfer


      MO issue
      MO Transfer
      MO Issue will move out the stock from inventory against an account.MO transfer will move the stock from one subinventory to another.

    87. 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 the Order Management tab.

    88. What are the criteria in Cycle count


    • Depending on the requirement, we can trigger a cycle count.
    • We can define a regular cycle count of high value items.
    • If back-ordered or pick denied, we can trigger cycle count for those items.

    89. 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:

      Note: 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 sub inventory during the transaction

      Dynamic Entry: Either you can select any locator during a transaction or you can create a new combination

      Item Level: This will take the locator which has been defined at the item attribute level

    90. How to install an oracle fusion SCM application in a step by step guide?


    oracle fusion SCM application
    oracle fusion SCM application

    91. What is serial controlled and what are the setups?


      Serial control can be set up at item attributes at the organization level.

    92. How serial numbers are generated?


      Serial control can be set up at item attributes at the organization level. No Control, At Receipt, At Sales Order issue, Predefined

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    93. What are the transaction managers?


      The transaction manager is the interface managers which carry out all transaction once submitted by the users

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