1z0-1077-23 Sample Questions Answers

The back-to-back fulfillment process is one in which specific sales order demand triggers supply creation, and a link is established between the sales order and the supply.

http://docs.oracle.com/cloud/latest/scmcs_gs/FAIMS/FAIMS1796462.htm#FAIMS2605728

Needs to be run manually for Inventory MINMAX

The drop ship flow is a variation of the order-to-cash flow, where ordered items are sourced from a supplier1. A revision on a drop ship sales order line to increase the quantity will be accepted only if the requisition is created from the drop ship sales order but the purchase order is yet to be created. This is because once the purchase order is created, the quantity on the sales order line cannot be changed2. If the purchase order is partially or fully shipped by the supplier, the sales order line is also partially or fully fulfilled and cannot be revised.

References:

• How Drop Ship Works in Order Management
• How Order-to-Cash Works in Order Management

The “Lead Time” mode is one of the two promising modes that Oracle Order Management Cloud Order to Cash supports. In this mode, the order promising engine uses predefined lead times to promise sales orders without considering the actual supply availability or demand1. The following statements apply to this mode:

• The order promising engine does not generate any pegging. Pegging is the process of linking the supply and demand elements to show the relationship between them. In the “Lead Time” mode, there is no pegging because the order promising engine does not search for available supply or allocate it to the demand2.
• The item is promised on the requested date irrespective of availability. The order promising engine promises the item on the requested date as long as it is within the lead time window. The lead time window is the period between the current date and the latest possible date to promise the item based on the lead time. The order promising engine does not check the actual availability of the item in the inventory or the supply chain1.
• Lead time can be specified in multiple ways. The order promising engine can use different types of lead times to promise the sales orders, such as transit lead time, processing lead time, user-defined lead time, and cumulative manufacturing lead time. The lead time can also vary depending on the item, the source location, the destination location, and other factors3.
• No supply availability search is performed. The order promising engine does not perform any supply availability search in the “Lead Time” mode. It only uses the predefined lead times to promise the sales orders. This mode is suitable for scenarios where the supply availability is not a constraint or the supply chain is stable and predictable1.

References:

• How the Lead Time Based Promising Mode Determines Promising
• Overview of Pegging
• How Order-to-Cash Works in Order Management

Supplier Channel Management is a feature of Oracle Order Management Cloud Order to Cash that enables you to manage your supplier relationships and programs. Supplier Channel Management supports the importing of supplier invoices from a CSV file to determine available rebate accruals. This function allows you to do the following1:

• Track supplier rebate accruals in the supplier program checkbook and on a claim. You can view the supplier rebate accruals that are calculated based on the imported invoices in the supplier program checkbook. You can also create and submit claims for the supplier rebate accruals.
• View supplier program performance in the program checkbook based on the purchase order, item, and bill-to and ship-to locations. You can monitor the performance of your supplier programs in the program checkbook. You can filter the data by various criteria, such as purchase order, item, and bill-to and ship-to locations.
• Dynamically create supplier part number relationships to internal item numbers. You can create and maintain the mapping between the supplier part numbers and the internal item numbers. This enables you to match the imported invoices with the corresponding items in your inventory.

However, this function does not allow you to create and approve adjustments to a supplier rebate accrual. Adjustments are manual changes that you can make to the supplier rebate accruals in the supplier program checkbook. You can create adjustments for various reasons, such as errors, disputes, or corrections. You can also approve or reject the adjustments that are submitted by other users2. To create and approve adjustments, you need to use the Manage Supplier Program Checkbook task in the Supplier Channel Management work area, not the import function.

References:

• Import Supplier Invoices
• Create and Approve Adjustments

Min-Max planning replenishing a purchase request is the task that requires manual execution of the Process Supply Chain Orchestration Interface process so that a supply order gets created. Min-Max planning is a method of inventory replenishment that maintains a minimum and maximum quantity of each item in a warehouse or subinventory. When the quantity of an item falls below the minimum level, a purchase request is generated to replenish the item to the maximum level1. The purchase request is then sent to the Supply Chain Orchestration Interface table, where it waits for the Process Supply Chain Orchestration Interface scheduled process to run. This process creates a supply order based on the purchase request and sends it to the supplier2. You must run this process manually or schedule it to run periodically3.

References:

• Min-Max Planning
• Process Supply Chain Orchestration Interface
• Orchestrate Supply Requests from Replenishment Planning

http://www.oracle.com/technetwork/fusion-apps/orderorchestrationguide-e22707-01-1514572.pdf

The number of demand lines scheduled on time is a metric that measures the percentage of adherence to the customer’s originally negotiated delivery request date against the actual shipment. This metric indicates how well the order fulfillment process meets the customer’s expectations and requirements. The number of demand lines scheduled on time is calculated as follows1:

Number of demand lines scheduled on time = (Number of demand lines shipped on or before the requested date / Total number of demand lines) * 100

References:

• How Order-to-Cash Works in Order Management

Oracle Contract Manufacturing is a feature of Oracle Order Management Cloud Order to Cash that enables you to outsource your manufacturing operations to a third-party supplier. Oracle Contract Manufacturing supports two types of flows: Plan-to-Produce and Back-to-Back fulfillment1. In the Back-to-Back fulfillment flow, the supplier creates the supply based on the customer’s demand, without any prior planning. The Back-to-Back fulfillment flow involves three documents: Work Order, Purchase Order, and Sales Order2. These documents are kept in sync as a parameter setting for the Back-to-Back flow. This means that any changes or updates to one document are automatically reflected in the other documents, ensuring data consistency and accuracy3.

References:

• Overview of Contract Manufacturing
• Overview of Back-to-Back Fulfillment
• Back-to-Back Supply Creation Flows

A tier-based discount list is a pricing strategy that applies a different discount percentage based on the quantity of the item ordered. A tier-based discount list enables you to define the tier basis type, the aggregation method, the adjustment type, the adjustment basis, the application method, and the tiered pricing rules for the discount1. By creating a tier-based discount list using the given parameters, the client can achieve the requirement of offering 10%, 15%, and 20% discounts for different quantity ranges of the older-model tablets.

References:

• How Pricing Works with Tiered Pricing

The Orders in Jeopardy dashboard is an Order Management Oracle Transactional Business Intelligence (OTBI) dashboard that can be used to get all possible root causes for orders that are not fulfilled on time. This dashboard provides real-time visibility into the order fulfillment performance and the potential issues that may affect the on-time delivery of the orders. The dashboard includes various reports and charts that show the number and value of the orders that are in jeopardy, the reasons for the jeopardy, the actions that can be taken to resolve the jeopardy, and the impact of the jeopardy on the customer satisfaction and revenue1.

References:

• Orders in Jeopardy Dashboard

http://download.oracle.com/ocomdocs/global/fusion_r11/scm/Pricing_Administration/Pricing_Administration.doc

Rule conditions are the Oracle Business Rule component that determines the specific rule that will be used to transform the imported orders. Oracle Business Rules are a set of logic statements that define the behavior of an application or a process, such as order transformation, order orchestration, or order approval1. A rule consists of two parts: a condition and an action. A rule condition is a statement that evaluates to true or false based on the input data, such as order attributes, order lines, or order status. A rule action is a statement that performs a specific task or operation when the rule condition is true, such as updating order attributes, creating order lines, or changing order status2. You can use the Manage Order Transformation Rules task to define the rule conditions and actions for transforming the imported orders from a legacy system into Oracle Order Management Cloud3.

References:

• Overview of Using Business Rules with Order Management
• Oracle Business Rules
• Manage Order Transformation Rules

“Configurator models are imported from items maintained in Oracle Fusion Product Hub (which is accessed by the Product Information Management work area) that have a Structure Type of Model. Only the optional structure and attributes of the product item are imported, because the required elements of the product item cannot be configured by an end user. The option classes and optional standard items for each model item are also imported.”“Configurator models are versioned objects. A model can go through multiple drafts before being released in a series of versions.There can be multiple drafts of the same model being modified at the same time, but they must be in different workspaces. A message notifies you if you add a model to a workspace when another draft exists in another workspace. There can only be a single released version of a model with the same effective start date.”

Profitable-to-promise (PTP) is a Global Order Promising mode that allows you to override the normally used source by considering the item cost in your organization, transfer-cost between internal organization, and inbound transit cost from a supplier. PTP selects the most profitable fulfillment location that meets the customer’s needs, by comparing the total cost and revenue of each potential source. PTP can also factor in the impact of discounts, taxes, and currency conversions on the profitability of each source.

References:

• Global Order Promising Data Sheet
• Oracle Fusion Cloud Order Management Global Order Promising Solution Brief
• 4 Stages of Oracle Global Order Promising (GOP) in Make-to-Order Production Systems

In Oracle Order Management Cloud Order to Cash, you can set up pricing for products based on different units of measure (UOM). In this case, you would create two price list lines: one for the individual thumb drive priced at $15 each, and another for a box of thumb drives priced at $60 per box. The primary UOM check box should be selected on both lines to indicate that these are the primary units of measure for pricing12.

References:

• Quick Start for Setting Up Order-to-Cash
• How Order-to-Cash Works in Order Management

To create a purchase request for sales orders that will be fulfilled by a drop ship supplier, you need to perform the following mandatory setups1:

• Select the Customer Sales Order Fulfillment check box under the Procurement offering. This enables the drop ship functionality in Procurement, which allows you to create purchase orders from sales orders and send them to the supplier who will ship the goods directly to the customer2.
• Define a sourcing rule of type Buy with a supplier and supplier site. This enables Global Order Promising to determine the best supplier and supplier site to fulfill the sales order based on the sourcing rules. You need to specify the item, the supplier, the supplier site, the allocation percentage, and the priority for the sourcing rule3.
• Select the “Use Customer sales order” check box in the Group Requisitions section in the blanket purchase agreement. This enables Procurement to group the requisition lines by the customer sales order number when creating the purchase order. This ensures that the purchase order contains the same information as the sales order, such as the customer name, address, and contact details4.

References:

• How Drop Ship Works in Order Management
• Set Up Drop Ship in Order Management
• Define Sourcing Rules
• Create Blanket Purchase Agreements

A record set is a group of records that are bound by common attribute values for the purpose of constraint evaluation. You can define conditions and specify a record set to be validated for a given condition as defined by the validation template.

Make the changes in the Configurator Modeling Environment on the Item Attributes tab of the model’s details.

You can make the changes in the Configurator Modeling Environment on the Item Attributes tab of the model’s details, prior to releasing, to resolve the issue of incorrect minimum for one of your component attributes. Item attributes are user-defined attributes that you can add to an item-based model or its components to capture additional information or to control the configuration process1. You can modify the item attributes in the Configurator Modeling Environment after importing the item-based model structure from the Product Hub2. You can change the minimum value of the component attribute on the Item Attributes tab of the model’s details3.

References:

• Item Attributes
• Import Item-Based Models into Configurator
• Modify Item Attributes

This function cannot be combined with other methods

This function cannot be combined with other methods because it is a standalone settlement method that closes the original invoice and creates a chargeback for the value of the claim. A chargeback is a negative invoice that reduces the amount owed by the customer and is applied to the original invoice1. This function is used to settle invalid invoice deductions, such as short payments, discounts, or disputes2. Other settlement methods, such as credit memo or debit memo, are used to settle valid invoice deductions, such as allowances, rebates, or promotions3.

References:

• Chargeback
• Oracle Accounts Receivable Deductions Settlement User Guide
• Settle Claims Using Credit Memo or Debit Memo

• A is correct because cost method is the way of valuing inventory and cost of goods sold. Cost method can be defined at different levels of granularity, such as item category, item, or lot. This allows for more flexibility and accuracy in cost accounting1
• B is incorrect because a cost organization must have a primary cost book associated with the primary ledger. A cost book is a set of cost accounting policies and valuation structures that determine how inventory transactions are accounted for. A cost organization can have multiple cost books, but one of them must be primary2
• C is correct because Supply Chain Orchestration is the application that coordinates and executes the fulfillment of sales orders across multiple sources and systems. Supply Chain Orchestration automatically selects the appropriate orchestration process based on user-defined subledger accounting rules when a supply creation is initiated. Subledger accounting rules define how transactions are accounted for in the general ledger3
• D is correct because Landed Cost Management is the application that enables organizations to capture, track, and allocate the actual costs associated with acquiring items from suppliers. Landed cost includes not only the purchase price, but also other charges such as freight, insurance, taxes, and duties. Landed Cost Management gives organizations financial visibility into their extended supply chain costs and helps them optimize their sourcing and pricing decisions.
• E is incorrect because Receipt Accounting is not the application that performs the accrual accounting for all types of receipts. Receipt Accounting is the application that performs the accrual accounting for purchase order receipts, return to supplier transactions, and inventory adjustments. Other types of receipts, such as sales order receipts, are accounted for by other applications, such as Receivables.

References:

1: Cost Methods 2: Cost Organizations and Cost Books 3: Supply Chain Orchestration : Landed Cost Management : Receipt Accounting

Setting up the External Interface Layer in Oracle Order Management Cloud Order to Cash involves managing the integration with Oracle Fusion Order Management, managing external interface transformation style sheets, managing external interface routing rules, and managing external interface web service details1. However, managing business event trigger points is not directly involved in setting up the External Interface Layer1.

References:

• Integrate Order Management with Source Systems

Supplier Rebates and Supplier Annual Rebates are both part of Oracle’s Supplier Channel Management. While both types of rebates are incentives offered by suppliers to encourage purchases, they differ in how they are accumulated. Supplier Rebates are typically tied to specific purchases or transactions1. On the other hand, Supplier Annual Rebates are accumulated across multiple orders over a specified time period, often a year21. This allows organizations to track and manage cumulative purchasing volumes over the effectivity of a program2.

References:

• Oracle Documentation: Supplier Rebates
• Oracle Documentation: How Supplier Rebate Works

A shipment comprises a set of shipment lines, grouped by certain common shipping attributes, that are scheduled to be shipped to a customer's ship-to location on a specific date and time. You can include items from different sales orders in a shipment. You can either manually or automatically group shipment lines to create a shipment. The shipment lines are grouped by the mandatory default criteria: ship-from location and ship-to location. However, you may also include additional grouping criteria, such as customer, freight terms, FOB (Free on board), and shipping method.

Create social conversations only for conversations that the Order Entry Specialist manually initiates for each sales order. It is strongly recommended that you choose Manual.

Verify that the Snapshot status is “Updates not in workspace” and F. Use the “Add Updated Item Snapshots for Models” command on the Workspace page to add the updated snapshots to the model’s workspace.

These are the two steps that you should perform to verify and update your model to have the most current updates. A snapshot is a copy of the item-based model structure that you import from the Product Information Management work area into the Configurator Models work area1. The snapshot status indicates whether the snapshot has any changes that are not yet reflected in the model’s workspace2. If the snapshot status is “Updates not in workspace”, it means that there are changes made to the item structure in the Product Information Management work area that are not yet imported into the Configurator Models work area. You can use the “Add Updated Item Snapshots for Models” command on the Workspace page to add the updated snapshots to the model’s workspace. This command updates the model structure with the latest changes from the Product Information Management work area3.

References:

• Import Item-Based Models into Configurator
• Snapshot Status
• Add Updated Item Snapshots for Models