Oracle EBS R12 Inventory and Order Management Fundamentals

Question - 45 Maximum mark : - 90

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Oracle EBS R12 Inventory and Order Management Fundamentals

Your client has two inventory organizations (INV ORG 1 and INV ORG 2). The organizations have different business requirements for stock locator control:
INV ORG 1:
Locators must have:
Building identified
Stockroom designated
Row
Rack
Bin
INV ORG 2:
Locators must have: Row
Rack
Bin
Position within Bin
Which solution would meet both organizations' requirements?

Establish stock locator flexfields as five segments. INV ORG 2 can use the first segment as Row. ✘ Establish stock locator flexfields as four segments. INV ORG 2 can use DFF for Position within Bin. ✘ Establish stock locator flexfields as five segments. INV ORG 2 can leave the fifth segment with a defaultvalue. ✘ Establish stock locator flexfields as four segments. INV ORG 1 can create DFF and use that as Buildingidentifier. ✔ Establish stock locator flexfields as six segments. INV ORG 1 can create locators where the sixth segmentcan be a default value. ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

Company ABC is using serialization in all organizations that manage inventory. It wants each organization to determine the proper levels of serial control. The products in each organization are completely different, so
having the same serial numbers on different products is acceptable.The only global requirement is that serial numbers be generated in advance, to prevent incorrect serial number types from being created. Using the table
below, choose the cell that represents the correct parameter and attribute combination to meet Company ABC's needs.

B ✘ C ✘ F ✘ H ✔ K ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

A customer is in the process of setting up a warehouse in the Oracle system. The customer wants the whole warehouse to be a subinventory with the following requirements:
1) Have bins in the warehouse to store material.
2) Track some high-dollar items by quantity and the bin in which they reside.
3) Track low-dollar parts, such as nuts and bolts, by quantity, but the customer does not want the overhead of
specifying the bin in which they should reside.
What would you do to meet this requirement?

Set up the subinventory with Locator Control set to Prespecified. ✘ Set up the subinventory with Locator Control set to Dynamic Entry. ✘ Set up the subinventory with Locator Control set to Item Level control; for items that should be tracked bybin, set Locator Control to None. ✘ Set up the subinventory with Locator Control set to Item Level control; for items that should be tracked bybin, set Locator Control to Dynamic Entry. ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

You are working on setting up subinventories for the client's organization. The client wants to call the subinventory DAYTONS-20STOCKROOM. The system does not let you create this subinventory. What is the problem?

The subinventory name cannot have the - sign. ✘ The subinventory name cannot have numbers in it. ✘ The subinventory name cannot have an apostrophe. ✘ The subinventory name cannot be longer than 10 characters. ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

You are defining the staging subinventory for your sales order pick release rulE. Which flag should be enabled (checked) for the rule to work properly?

Nettable ✘ Depreciable ✘ Locator Alias ✘ Asset Subinventory ✔ Allow Reservations ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

Your client wants approvals for Move Orders to occur after 30 days.Based on the Move Order approval workflow, how would you enter the values for Move Order Timeout Period and Move Order Timeout Action?

Timeout Period = 15, Action = Approve Automatically ✘ Timeout Period = 15, Action = Reject Automatically ✘ Timeout Period = 0, Action = Approve Automatically ✘ Timeout Period = 30, Action = Approve Automatically ✔ Timeout Period = 10, Action = Approve Automatically ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

There is a region called Inter-Organization Transfer Accounts in the Organization Parameters form, on the Inter-Organization tab. What is the meaning of the "Payables" field in this region?

The default general ledger account that is used to collect transfer charges when this organization is the
shipping organization. This is usually an expense account. ✘ The default general ledger account that is used to hold intransit inventory value. This is usually an assetaccount. For average cost organizations, this account is the default material account. ✘ The default general ledger account that is used to collect the purchase price variance for interorganizationreceipts into standard cost organizations. This is usually an expense account. ✘ The default general ledger account that is used as an interorganization clearing account when thisorganization is the shipping organization. This is usually an asset account. ✔ The default general ledger account that is used as an interorganization clearing account when ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

Company X has a single Inventory Organization. It wants to monitor aged material. Specifically, it needs to ensure that its products have the most current calibration.Profile Option INV: FIFO for Original Receipt Date has two selections. Which selection is correct?

INV: FIFO for Original Receipt Date = No. Original receipt date is lost upon issue. ✘ INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is pickedfor shipping. ✘ INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is issuedout of inventory. ✘ INV: FIFO for Original Receipt Date = No. Original receipt date is retained until new inventory is positionedin the same locator. ✔ INV: FIFO for Original Receipt Date = Yes. Original receipt date would be retained until material is moved tononnettable subinventory. ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

Evaluate the settings below:
From To Transfer Type FOB Receipt Routing
Org 1 Org 2 Intransit Receipt Direct
Org 2 Org 1 Intransit Shipment Standard
At what point would ownership transfers occur during shipments between the organizations?

As soon as Org 1 performs Ship Confirm, ownership is transferred to Org 2 immediately. ✘ Both organizations own the material upon receipt only because Transit Type is Intransit. ✘ When shipping from Org 1 to Org 2, Org 1 owns the material until Org 2 processes a receipt againstshipment number. ✘ When shipping from Org 2 to Org 1, ownership changes, and Org 2 owns the material until Org 1 processesa receipt against shipment number. ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

10.

Review the organization structure regarding the inventory organizations (IO) and sales organizations (SO).The
company has defined shipping networks based on these policies:
Inventory Organizations within an Operating Unit (OU) can perform shipments to the Sales Organizations only
within the same OU. An Inventory Organization can ship to any other Inventory Organization in the company.
The only exception to the rule is China, which can ship to any US organization. Which sites can IO 3 ship to?

IO 2, IO 4, IO 5, SO 3 ✘ IO 1, IO 2, IO 3, IO 4, IO 5 ✘ IO 1, IO 2, IO 4, IO 5, SO 3 ✘ IO 2, IO 3, IO 4, IO 5, SO 3 ✔ IO 1, IO 2, IO 4, IO 5, SO 1, SO 2, SO 3 ✔

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Answer & Solution

Answer: Option B

Solution:

It provides fallback for IE8.

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Oracle EBS R12 Inventory and Order Management Fundamentals

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