Top 25 Oracle Fusion Procurement Questions You Must Know for Your Interview
If you're preparing for an Oracle Fusion Procurement interview, it's essential to understand the core concepts, configurations, and real-world use cases. Here's a detailed guide to help you with the top Oracle Fusion Cloud Procurement interview questions, along with their answers.
What is Oracle Fusion Procurement? Explain its key features.
Answer:
Oracle Fusion Procurement is a module within Oracle Fusion Applications that helps organizations manage their procurement processes efficiently. Key features include:
Supplier Qualification Management for vetting suppliers.
Procurement Contracts for managing agreements.
Self-Service Procurement for user-friendly requisitioning.
Sourcing for optimizing supplier selection.
Procure-to-Pay lifecycle for seamless purchasing.
What are the primary components of Oracle Fusion Procurement?
Answer:
Purchasing: Handles purchase orders and agreements.
Self-Service Procurement: Enables end-users to request items/services.
Sourcing: Manages supplier negotiations and RFQs.
Supplier Portal: Encourages cooperation between suppliers and purchasers.
Supplier Qualification Management (SQM): Managing supplier and risk profiles.
Procurement Contracts: Helps draft and manage contracts.
What other Fusion modules does Oracle Fusion Procurement integrate with?
Answer:
Oracle Fusion Procurement integrates seamlessly with:
Oracle Fusion Financials: For accounts payable, payments, and budgeting.
Oracle Fusion Inventory: To ensure stock availability and track material receipts.
Oracle Fusion Projects: To allocate procurement expenses to specific projects.
Explain a procurement business unit (BU).
Answer:
A Procurement BU is an organizational unit responsible for managing procurement transactions. It defines procurement processes such as requisitioning, purchasing, and supplier negotiation, ensuring segregation of duties across different units.
What is the role of Procurement Categories in Oracle Fusion?
Answer:
Procurement Categories classify goods and services for streamlined procurement processes. They allow better control over spending and compliance with corporate policies. The management of catalogs is linked to hierarchical categories.
Which kinds of purchase agreements are available in Oracle Fusion Procurement?
Answer:
Blanket Purchase Agreement: Used for recurring purchases with fixed pricing.
Contract Purchase Agreement: Used when the exact quantity and schedule are unknown.
Standard Purchase Order: For one-time procurement.
What is the difference between Smart Forms and Catalogs in Oracle Procurement?
Answer:
Smart Forms: Templates for creating requisitions for non-catalog items.
Catalogs: Predefined item collections from approved suppliers for guided buying.
Briefly describe Oracle Fusion Procurement's Procure-to-Pay (P2P) cycle.
Answer:
The P2P cycle involves the following steps:
Requisitioning: Creating and submitting requisitions.
Approvals: Routing requisitions for approvals.
Purchase Order Creation: Generating and sending POs to suppliers.
Receiving: Confirming receipt of goods/services.
Invoice Processing: Comparing invoices to receipts and purchase orders.
Payments: Completing the payment to the supplier.
What is Supplier Qualification Management (SQM)?
Answer:
SQM is a feature that assesses and manages supplier qualifications, risk profiles, and compliance to ensure suppliers meet organizational standards.
How does Oracle Fusion handle supplier collaboration?
Answer:
Suppliers can use Portal to:
Respond to RFQs.
Acknowledge and confirm purchase orders.
Submit invoices.
View payment statuses.
What is the purpose of Document Styles in Oracle Procurement?
Answer:
Document Styles determine the layout, numbering, and behavior of procurement documents like purchase orders and agreements, ensuring consistency across the organization.
What are Procurement Contract Templates?
Answer:
Templates provide a pre-configured structure for procurement contracts, including clauses, terms, and conditions. This lowers manual labor while guaranteeing compliance.
How does Oracle Fusion Procurement support approvals?
Answer:
It uses Approval Management Extensions (AMX), allowing for configurable approval rules based on roles, thresholds, and other parameters.
What are the benefits of Self-Service Procurement?
Answer:
Simplified requisitioning for end-users.
Reduced dependency on procurement teams.
Guided buying experience with catalogs.
How does Oracle Fusion Sourcing work, and what are its advantages?
Answer:
Oracle Fusion Sourcing manages supplier negotiations and bids, enabling organizations to select the best suppliers based on cost, quality, and delivery terms.
Which are the most important reports that Oracle Fusion Procurement offers?
Answer:
Purchase Order Summary Report.
Supplier Performance Report.
Spend Analysis Report.
How do Oracle Fusion Procurement Agents function?
Answer:
Procurement Agents are responsible for executing procurement tasks like creating purchase orders, managing agreements, and collaborating with suppliers.
What are the different procurement roles in Oracle Fusion?
Answer:
Buyer: Manages sourcing and purchasing activities.
Requester: Creates and submits requisitions.
Supplier Manager: Handles supplier profiles and performance.
How does Oracle Fusion Procurement handle compliance?
Answer:
Compliance is ensured through contract management, audit trails, and enforcing procurement policies via business rules.
What are Procurement Approval Groups?
Answer:
Approval Groups define approval hierarchies based on requisition amounts, item categories, and locations.
What is the importance of Procurement Policies in Oracle Fusion?
Answer:
They assist in enforcing compliance, standardizing procurement procedures, and managing expenditures.
How do you set up Procurement Categories?
Answer:
Procurement Categories are set up in the Procurement Catalog, where you define a hierarchy, items, and associated suppliers.
What does a blanket purchase agreement serve to accomplish?
Answer:
A BPA is a long-term agreement with a supplier for frequently purchased items, ensuring consistent pricing and terms.
What is the role of Purchasing Attributes in Fusion Procurement?
Answer:
Purchasing Attributes define default values for items, such as tax codes, payment terms, and shipping methods, streamlining the PO process.
How does Oracle Procurement manage audits?
Answer:
Audit capabilities track changes in procurement documents, ensuring transparency and accountability.
