Prashant Oracle Procurement Operations

WHAT IS THE INVENTORY KEY FLEX FIELDS?

1. Items Flexfield

2. Item Categories Flexfield

3. Item Catalog Group Flexfield

4. Stock Locators Flexfield

5. Account Aliases Flexfield

6. Sales Orders Flexfield

WHAT IS PHANTOM ITEM? HOW IS THEY USER IN BUSINESS CASE?

We can say that Phantom Items are non-stockable item or just have an apparent existence. Normally, Phantom items are treated like assemblies except that the phantom item itself does not show up when an assembly is exploded. Instead the child items of the phantom are blown through and appear as children of the parent item to the phantom.

For example, I have an assembly called ‘A’ which contains a phantom item called ‘B’. When I add ‘A’ to a work order and explode the ‘A’, the ‘B’ will not appear in the pick list, but its children will appear.

A phantom item will be exploded so that all its child items will be in the work order. After the work order is exploded, we will notice that the phantom item will not appear in the exploded BOM of the work order.

Tyre Assembly (Phantom) = Type + Flapper + Rim + tube. When it will be exploded in the WIP Job, the 4 item will appear and will be consumed and not this phantom assembly.

Sometimes we hear Phantoms referred to as “Blow Through” bills. This is because when a phantom is encountered, the system effectively blows through it to the components below.

We can see there is a very narrow use for Phantoms. It is very common to see them misused and it is not a feature to reduce work orders. Sometimes it is used for logical breaks in the assembly to make the bill easier to understand, even if there is no intension to build subassemblies from them.

When using phantoms, consideration must be made for resource costing. The routing of a Phantom is NOT considered in assembly.

How to choose the Hierarchy?

Again this depends on the organization's requirements. The position hierarchy is initially a bit harder to setup, but easier to maintain in the long-run. The employee-Supervisor hierarchy is easier to setup but hard to maintain.

Position Hierarchy

In Position hierarchy, The PO is routed as per the positions defined for the organization. If we use position hierarchies, you must set up both jobs and positions. The position hierarchy is initially a bit harder to setup, but easier to maintain in the long-run regardless of how frequently individual employees leave our organization or relocate within it.

Employee/Supervisor approval hierarchy

In employee/supervisor hierarchy, the Purchase Order is always routed to the buyer's supervisor. To implement employee/supervisor hierarchy, we need only to define jobs. The employee-Supervisor hierarchy is easier to setup but hard to maintain.

Difference between Job and Positions

A JOB is a generic role and is meant to describe the duties someone performs whereas POSITION is specific to its role and responsibilities and is meant to describe the specific instances of that job for example, for Eg: JOB is MANAGER (generic term) whereas POSITON: Finance Manager or HR Manager is specific to the role to be played.

1. In the organizations, Jobs can be defined as Engineer, Executive, Manager, Senior Manager, General Manager, Vice-president, President, Director etc.

Now, not all the jobs are required by an organization. An organization can decide that jobs upto Manager is enough for them or they can go upto Director, President etc. is depending on its size and business needs.

Again, each of these jobs will have a pre-defined expectation on what they are responsible and accountable for the activities under them. For example, a Manager is responsible for

· Managing the day to day activities of the department in which he is working on.

· Mentoring his sub-ordinates.

· Plan for improvements in his area.

· co-ordinate with other divisions/departments etc.,

The above can be considered as an example of the job description. These activities would be common for all the Managers within the organization. This expectation would be slightly tailored to match different positions which are explained below.

The necessity for the positions can be understood from the below requirement.

The organizations are mostly grouped based on the functions like Purchasing, Engineering, R&D, Manufacturing, Finance, Sales and Marketing, HR, QA, Stores, Warehouse etc.

Each of these functions may require a position like Purchase Manager, HR Manager, Finance Manager, Sales Manager, Manufacturing Manager etc., For example, we can take 2 positions to explain the position's job requirement.

Purchase Manager:

· Managing the day to day activities of the department in which he is working on.

· Mentoring his sub-ordinates.

· Plan for improvements in his area.

· co-ordinate with other divisions/departments etc.,

Likewise, each function may require a position like Purchasing Engineer, Manufacturing Engineer, Sales Engineer, HR Executive, Finance Executive etc.

As you are well aware that if we have multiple people assigned to same position then during approval of PO the alphabetical order of the name comes into picture and approval goes to the person appearing firsts in alphabetical order.

Scenario is this: We have 3 managers in purchasing department: All at same Position and Names: Ricky, Amit& San. All three have 3-4 members under them as procurement teams. If any of those team member submits the PO document for approval it always goes to "Amit" as his name appears first in alphabetic order.

Answer: 2 standard options

1. Create unique position for each manager

2. If the client is in 12.1.3 then use AME

Otherwise WF customization

Major Activities of Functional Consultants in Implementation Project

· Preparation of Business Process Study Document.

· Preparation of Business Process Mapping Document

· Perform Configuration Setups using BR100s

· Identify Gaps and finalized Workarounds/Customization

· Preparation of Functional Specification for Customizations

· Help Technical Team to prepare Technical Specification & Test developed code for Customization (Forms, Reports, Interface)

· Collect Business Scenarios from Client

· Perform Testing

The Functional Lead works with the business community to ensure that the application supports required business processes. He is Responsible for:

1. Functional Design phase

2. Functional System Test phase

3. Integration Test phase

4. Regression Test phase

5. Communication and status reporting of relevant phases

6. Quality management in the relevant phases

7. Stakeholder of Project Plan

8. Excellent communication skills.

9. Understand technology on a Macro level

10. Strong Team Player

11. Organized and process oriented

12. Strong analytically sense and organization skills

13. Good sense of people qualities and fit

14. Real go-getter attitude, eagerness to learn

15. Excellent time Management

The Technical Lead is responsible for:

1. Shaping, reviewing and modifying the technical architecture as appropriate;

2. Ensuring that design and technical issues are resolved efficiently and accurately;

3. Ensuring the occurrence of proper component testing;

4. Following applicable design standards;

5. Ensuring that all designs are technically sound;

6. Ensuring that proper configuration management procedures are followed.

7. Stakeholder of Project Plan

The Functional / Technical Developer seek to understand business requirements and develop Functional / Technical Designs and are responsible for:

1. Providing business analysis for problems identified in peer review.

2. Working with Functional / Technical Lead to develop Designs.

3. Generating Functional / Technical Design documentation for components to be delivered

4. Configure, build, assemble and test the application for Technical Architecture components

5. Conducting Functional / Technical Design show n’ tells

6. FD / TD Peer Review and sign-off

7. Status reporting

1. Strengths :

o I am very reliable and I also try to finish my work on time

o My dependability. You can depend on me to be on time. You can depend on me to get my work finish on time and you can depend on me to professional.

o It’s my quick thinking and decision making. Under pressure , I need to take lots of decision

2. Weakness:

o I have difficulty in saying No so I often work overtime sometime I forget my company working time.

o I am working on my project management activities and Need more experience on that

What to Ask at the End of an Interview

· We just have a quite compressive interview. Is there anything else that u need to know about me

· How can I make your job easier and what can I do to help you to reach your goal easier?

· What’s the biggest challenge you have right now that I will able to help you with if I am selected for this position?

· How do you measure the performance and success for person on this position

· Is there anything else that perhaps I can do to let u know how passionately I feel about this position

AIM – Application Implementation Method

1. Definition: The various activities that are necessary for start-up of the Implementation project is documented here that is goals, quality, timeline and team is defined.

2. Operation Analysis: The various business processes and customer requirements are studied in this phase. Actually, the requirements phase of the project mainly involved two main steps, one is requirements analysis, and 2nd is map and gap analysis. During the requirements analysis, we mainly focused on understanding and documenting the client’s business and their processes.

At the same time, the client was able to understand the business processes supported by Oracle Applications and in certain areas adapt its business processes to the software.

During the map and gap analysis, we mapped the client’s requirements to what Oracle Applications could deliver “out of the box” either by a customization or by altering the client’s business processes and prepares a “Map and Gap” document. Once this document is signed by Client, we will start with next Design Phase.

3. Solution Design: The conceptual designs, detailed functional specifications, feasibility analysis and plan for data conversion are performed here.

The design phase of the project mainly involved 3 main steps, version verification, setup design, and the conference room pilot (CRP).

During version verification, a “demo” environment was setup to ensure that the current version of Oracle Applications and patch sets are working fine on the hardware and OS versions.

The applications were setup only to the extent necessary to confirm basic operation, not necessarily according to final business requirements. During the setup design, we translated the client requirements, along with the application requirements, into “setups”. These setups describe configuration option decisions that must be made in order for the system to operate.

These setups were performed in a “test” instance, documented, reviewed, and approved by the client. This test instance was used for both CRP and System Test. During the CRP, we worked with key users from the client to setup the system and execute various key business scenarios so the client could better understand how the system would meet their requirements.

4. Build: The actual implementation takes place here through configuration setups, conversion process and documentation of the implementation guide. The build phase of the project involved mainly 2 steps, custom development and system testing.

During custom development, our technical team performed the following: legacy data conversions, system interface development, custom report development, and business logic customization, specifically alerts and extensions.

During system testing, which occurred after all of the customizations were complete, we thoroughly tested the fully integrated solution that would be part of the final production system. Typically, a fresh install would be used for system testing, and it would be done step by step, from setups to conversions to interfaces, exactly the way it would be done in production.

5. Transition: The detailed testing and optimization of the implemented process takes place here along with PROD migration.

6. Handover and PGLS: The project hand-off occurs with Customer training and post go live support.

PURCHASE ORDERS FOR GOODS – INVENTORY DESTINATION

Inventory Item => Online Accrual ON RECEIPT

· Accrue on receipt = Y

· Destination type = Inventory

· Item = Inventory Item

	Debit	Credit
Requisitions	No Entries
PO IS RESERVED	No Entries (1000)è Budget a/c DR @ PO price è(GL_BC_PACKETS) (Encumbrance)
At Receipt Receiving against the PO (at the plant gate) Material is received against a Purchase Order into receiving Inventory zone. The accounting for the receiving transaction is	RECEIVING INVENTORY Account 10 *100=1000	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT (Receipt is not yet generated. It is just a nature of liability account. We haven’t book the supplier invoice) (1000)
Delivery (inside the inventory) Delivery against PO (at the warehouse) Later on to deliver the item from that location to the requestor in an inventory location. The accounting for the delivery transaction is:	Inventory Materials Valuation Account (Asset) (1000)	RECEIVING INVENTORY Account (1000)
Final entry during Receipt	Inventory Materials Valuation Account (Asset) (1000)	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT
AP
Match (Receipt)	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT TAX (Got the invoice receipt) (1000)	AP Liability Account (1000)
At the time of payment	AP Liability Account (1000)	Cash Clearing Account (1000)
At the time of reconsiliation	Cash Clearing Account (1000)	Bank A/c (1000)
Final Entry in AP
Payables to Bank	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT TAX (Got the invoice receipt) (1000)	Bank A/c (1000)
Final Entry TILL AP	Inventory Materials Valuation Account (Asset) (1000)	Bank A/c (1000)

Returns from receiving / Inspection against PO	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT (Receipt is not yet generated. It is just a nature of liability account. We haven’t book the supplier invoice) (1000)	RECEIVING INVENTORY ACCOUNT (1000)

Returns from Delivery (warehouse to gate)	RECEIVING INVENTORY ACCOUNT (1000)	Inventory Materials Valuation Account (Asset) (1000)

Debit Memo creation	AP Liability Account (1000)	Inventory AP Accrual Account / UNINVOICED RECEIPTS ACCOUNT TAX (Got the invoice receipt) (1000)

WIP ASSETS

Supplier Invoice against a Purchase Orders for Goods – Expense destination – Accrue on Receipt

PO->AP

· Accrue on receipt = Y

· Destination type = Expense

· Item = expense Item

	Debit	Credit
Requisitions	No Entries
PO IS RESERVED	No Entries (1000) Budget a/c DR @ PO price	(GL_BC_PACKETS) (Encumbrance)
At Receipt Receiving against the PO (at the plant gate) The accounting for the receiving transaction is	Receiving Account (asset) for quantity received @ PO unit price	Expense AP Accrual Account (1000)/Supplier Accrual Account (Receipt is not yet generated. It is just a nature of liability account. We haven’t book the supplier invoice) (1000) Supplier Accrual Account (liability)
Later on to deliver the item from that location to the requestor in an expense location. Delivery against PO (at the warehouse) The accounting for the delivery transaction is:	Charge Account (expense) for quantity delivered @ PO unit price	Receiving Account (asset) Budget a/c CR @ PO price (Encumbrance)
Final entry during Receipt	Charge Account (expense) for quantity delivered @ PO unit price	Expense AP Accrual Account (1000)/Supplier Accrual Account (Receipt is not yet generated. It is just a nature of liability account. We haven’t book the supplier invoice) (1000) Supplier Accrual Account (liability)
AP
Match (Receipt) The accounting for the invoice accounting is:`	Expense AP Accrual Account (1000)/Supplier Accrual Account for quantity invoices Debit Supplier Accrual Account (liability) for quantity Invoiced @ PO unit price Debit Price Variance Account (expense) for quantity received @ unit IPV	AP Liability Account supplier liability account (liability)
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry
Payables to Bank	Expense AP Accrual Account	Bank A/c
Final Entry TILL AP	Charge Account (expense) for quantity delivered @ PO unit price	Bank A/c (1000)

PO->AP

PO Match

	Debit	Credit
PO	No Entries
AP
Match (PO)	Charge Account (expense) for quantity delivered @ PO unit price	AP Liability Account
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry
Payables to Bank	Charge Account (expense) for quantity delivered @ PO unit price	Bank A/c

Purchase Orders for Goods – Expense Destination – Accrue on Period End

CASE-1

· Accrue on receipt = N

· Destination type = Expense

· Item = expense Item

Sequence of actions:

· Create, Approve, Reserve PO

· Receive and Deliver the PO

· Invoice Validation after matching

· Create Accounting for invoice

· Run the Period End Program

If Accrual on Receipt flag is unchecked (N) and the matching option is Receipt then no entries are generated while doing the receiving transaction at PO.

When we are trying to close the current open purchasing period then we run the program Period End accrual process, it will change the Accrual on Receipt flag to yes and entries are generated. We transfer these entries to GL.

When we try to open the next purchasing period, it will perform some reverse entries in GL and change the Accrual on Receipt flag to No again

	Debit	Credit
Requisitions	No Entries
PO IS RESERVED	No Entries (1000) Budget a/c DR @ PO price	(GL_BC_PACKETS) (Encumbrance)
At Receipt Receiving against the PO (at the plant gate) The accounting for the receiving transaction is	No Accounting Transactions	No Accounting Transactions
Later on to deliver the item from that location to the requestor in an expense location. Delivery(inside the inventory) Delivery against PO (at the warehouse) The accounting for the delivery transaction is:	No Accounting Transactions	No Accounting Transactions
Final entry during Receipt	No Accounting Transactions	No Accounting Transactions
AP
Match (Receipt) The accounting for the invoice accounting is:	Charge Account (expense) for quantity delivered @ PO unit price	AP Liability Account supplier liability account (liability)
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry TILL AP	Charge Account (expense) for quantity delivered @ PO unit price	Bank A/c (1000)
Run the Period end program	No Accounting Transactions	No Accounting Transactions
Manual Reversal of journal entry	Not Required since there are no accrual entries	Not Required since there are no accrual entries

When we try to open the next purchasing period, it will perform some reverse entries in GL and change the Accrual on Receipt flag to No again

CASE-2

· Accrue on receipt = N

· Destination type = Expense

· Item = expense Item

Sequence of actions:

· Create, Approve, Reserve PO

· Receive and Deliver the PO

· Run the Period End Program

· Invoice Validation after matching

· Create Accounting for invoice

	Debit	Credit
Requisitions	No Entries
PO IS RESERVED	No Entries (1000) Budget a/c DR @ PO price	(GL_BC_PACKETS) (Encumbrance)
Receiving against the PO (at the plant gate)	No Accounting Transactions	No Accounting Transactions
Delivery against PO (at the warehouse)	No Accounting Transactions	No Accounting Transactions
Final entry during Receipt	No Accounting Transactions	No Accounting Transactions
Run the Period end program	Charge Account (expense) for quantity delivered @ PO unit price	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c CR @ PO price
Manual Reversal of journal entry (Both actual and encumbrance)	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c DR @ PO price	Charge Account (expense) for quantity delivered @ PO unit price

AP
Match (Receipt) The accounting for the invoice accounting is:	Charge Account (expense) for quantity delivered @ PO unit price	AP Liability Account supplier liability account (liability)
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry TILL AP	Charge Account (expense) for quantity delivered @ PO unit price	Bank A/c (1000)

CASE-3

· Accrue on receipt = N

· Destination type = Expense

· Item = expense Item

Sequence of actions:

· Create, Approve, Reserve PO

· Receive the PO AND Run the Period End Program

· Deliver the PO AND Run the Period End Program

· Invoice Validation after matching

· Create Accounting for invoice

	Debit	Credit
Requisitions	No Entries
PO IS RESERVED	No Entries (1000) Budget a/c DR @ PO price	(GL_BC_PACKETS) (Encumbrance)
Receiving against the PO (at the plant gate)	No Accounting Transactions	No Accounting Transactions
Run the Period end program	Charge Account (expense) for quantity delivered @ PO unit price	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c CR @ PO price
Manual Reversal of journal entry (Both actual and encumbrance)	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c DR @ PO price	Charge Account (expense) for quantity delivered @ PO unit price
Delivery against PO (at the warehouse)	No Accounting Transactions	No Accounting Transactions
Run the Period end program	Charge Account (expense) for quantity delivered @ PO unit price	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c CR @ PO price
Manual Reversal of journal entry (Both actual and encumbrance)	Expense AP Accrual Account Supplier Accrual Account (liability) Budget a/c DR @ PO price	Charge Account (expense) for quantity delivered @ PO unit price

AP
Match (Receipt) The accounting for the invoice accounting is:	Charge Account (expense) for quantity delivered @ PO unit price	AP Liability Account supplier liability account (liability)
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry TILL AP	Charge Account (expense) for quantity delivered @ PO unit price	Bank A/c (1000)

Purchase Orders for Goods – Expense Destination – Accrue on Receipt

Receipt
PO->AP->FA ->GL

	Debit	Credit
Requisitions	No Entries
PO	No Entries (1000)
Receiving	Receiving Inspection Account (1000)	Expense AP Accrual Account (1000) (Receipt is not yet generated. It is just a nature of liability account. We haven’t book the supplier invoice) (1000)
Delivery	Asset Clearing Account / PO Charge Account (1000)	Receiving Inspection Account (1000)
AP
Match (Receipt)	Expense AP Accrual Account	AP Liability Account
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconciliiation	Cash Clearing Account	Bank A/c
Final Entry
Payables to Bank	Expense AP Accrual Account	Bank A/c
Create Mass Additions at AP
FA (Asset Capital)	Asset Cost Account	Asset Clearing Account
Gl	Asset Cost Account	Bank

PO->AP->FA ->GL

PO (Shipment) PO

	Debit	Credit
PO	No Entries (1000)
AP
Match (PO)	Asset Clearing Account	AP Liability Account
At the time of payment	AP Liability Account	Cash Clearing Account
At the time of reconsiliation	Cash Clearing Account	Bank A/c
Final Entry
Payables to Bank	Asset Clearing Account	Bank A/c
Mass Additions
FA	Asset Cost Account	Asset Clearing Account
Gl	Asset Cost Account	Bank A/c

1> PREPAYMENT

	Debit	Credit
PO	No Entries 1000
Prepayment Invoice Unpaid	Prepayment A/c 100	Prepayment Payable A/c 100
Prepayment Invoice paid	Prepayment Payable A/c 100	Bank A/c 100
AP
Match (PO)	CWIP Cost Account 1000	AP Liability Account 900
		Prepayment A/c 100
At the time of payment	AP Liability Account 900	Cash Clearing Account 900
At the time of reconsiliation	Cash Clearing Account 900	Bank A/c 900
Final Entry
Payables to Bank	CWIP Cost Account 1000	Bank A/c 900
Projects (Capitalization)	Asset Clearing Account 1000	CWIP Cost Account 1000
Asset (Mass Addition (New))	Asset Cost Account 1000	Asset Clearing Account 1000
Final Entry	Asset Cost Account 1000	Bank A/c 1000

2> Receivables

Invoice Level	Receivables Account	Revenue Account
Receipt Level	Cash Account	Receivables Account

Bills in Arreas

Contract project revenue is the amount recognized as income to be received for work performed on a project.

Oracle Projects Billing fully integrates with Oracle Receivables to process your invoices and track customer payments. Oracle Projects generates draft invoices and uses Oracle Receivables to collect payments for the project invoices and create accounting in Oracle Subledger Accounting. You transfer the final accounting for the invoices from Oracle Subledger Accounting to Oracle General Ledger. When you transfer invoices to Oracle Receivables,

Oracle Projects also maintains project balances of unbilled receivables and unearned revenue and creates accounting transactions for these amounts.

Retention is a provision in a contract to hold back a portion of the invoiced amounts.

	Debit	Credit
If Revenue is created before Invoice and When Revenue Interfaced to GL	Unbilled Receivables (UBR)	Revenue
Then Invoice Interfaced to AR	Receivables	Unbilled Receivables (UBR)

Bills in Advances

	Debit	Credit
If Revenue is created after Invoice When Invoice Interfaced to AR	Receivables	Unearned Revenue (UER)
Then Revenue Interfaced to GL	Unearned Revenue (UER)	Revenue

Inventory Items can ONLY be accrued at

a) On Receipt

Expense items can be accrued at

a) Period-end

b) On Receipt

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