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Accounting Flow in Drop-Ship (Oracle Fusion Order Management)

  Accounting Flow in Drop-Ship (Oracle Fusion Order Management) 1. Sales Order Booking No accounting entry at this stage because no financial transaction happens yet. The order is just recorded in the system. 2. Purchase Order Creation to Supplier PO is created automatically from the drop-ship sales order line. No accounting entries yet, since it’s just a commitment to buy. 3. Supplier Ships to Customer (Receipt of Shipment Confirmation) Shipment confirmation is received from the supplier, indicating goods have been shipped directly to the customer. Inventory is not impacted since goods never enter company stock. 4. Invoice Creation (Accounts Receivable) At this point, revenue is recognized. Accounting Entry: Dr. Accounts Receivable (Customer invoice amount) Cr. Revenue (Sales revenue account) Cr. Taxes Payable (if applicable) 5. Supplier Invoice (Accounts Payable) Supplier invoice is received and matched with the PO. Accou...
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Oracle Fusion Order Management – Drop-Ship Interview Questions & Answers

Oracle Fusion Order Management – Drop-Ship Interview Questions & Answers 1. What is Drop-Ship in Oracle Fusion Order Management? Answer: Drop-Ship is a fulfillment method where the supplier ships the product directly to the customer instead of going through the company’s own warehouse. The sales order triggers a purchase order to the supplier, who then ships the item directly to the customer. 2. How do you enable Drop-Ship in Oracle Fusion? Answer: Navigate to the Order Management Parameters and enable the drop-ship option. Define a Drop-Ship Business Unit that represents the supplier or supplier location. Associate suppliers with the drop-ship business unit and link items that are drop-ship enabled. Configure the orchestration process to handle drop-ship lines. 3. What setup is required on the item level for Drop-Ship? Answer: Items must be flagged as drop-ship enabled in the item master. Associate approved drop-ship suppliers with the item. Define...
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Accounting Entries in O2C (Order to Cash) Cycle – Oracle Fusion

  Accounting Entries in O2C (Order to Cash) Cycle – Oracle Fusion Below is a step-by-step breakdown of the main stages in the O2C process and the typical accounting entries at each stage. 🔹 1. Sales Order Booking No accounting entry is generated at this stage. It’s just an order capture. 🔹 2. Order Picking & Shipping (Inventory Issue) When goods are shipped, inventory is relieved. Accounting Entry (from Inventory / Cost Management): Dr. Cost of Goods Sold (COGS) Cr. Inventory Valuation Account ✅ This reflects that goods have left inventory and are now considered sold from a costing perspective. 🔹 3. COGS Recognition (if deferred until invoicing) Depending on configuration, COGS may be recognized later (at invoicing), using deferred COGS . Accounting Entry (at invoicing time if deferred COGS is enabled): Dr. COGS Cr. Deferred COGS 🔹 4. Invoice Generation (AR Transaction Creation) When the invoice is created in Accounts Receivable , revenu...
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Oracle Fusion Order Management – Interview Questions & Answers

  Oracle Fusion Order Management – Interview Questions & Answers 🔹 1. What is Oracle Fusion Order Management? Answer: Oracle Fusion Order Management is a module in the Oracle Fusion Supply Chain Management suite that helps manage the order-to-cash process. It enables centralized order capture, order fulfillment, pricing, and orchestration across multiple channels and systems. 🔹 2. What are the key features of Fusion Order Management? Answer: Order orchestration Centralized order capture Global order promising (GOP) Integration with pricing, inventory, shipping, and billing Change management and audit trails Support for dropshipping and back-to-back orders 🔹 3. What is an Orchestration Process in Fusion Order Management? Answer: An Orchestration Process defines the steps required to fulfill an order. It includes activities such as scheduling, shipping, billing, and status updates. It is flexible and can be cust...
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Oracle Fusion Pricing – Interview Questions & Answers

Oracle Fusion Pricing – Interview Questions & Answers 🔹 1. What is Oracle Fusion Pricing? Answer: Oracle Fusion Pricing is a flexible and centralized pricing engine used across Oracle Cloud applications like Order Management and Procurement. It allows organizations to define, manage, and apply pricing strategies, price lists, discount rules, and pricing algorithms. 🔹 2. What are the key components of Oracle Fusion Pricing? Answer: Pricing Strategy Price Lists Discount Lists Modifiers Pricing Segments Pricing Algorithms and Rules Price Books Pricing Contexts and Attributes 🔹 3. What is a Pricing Strategy in Fusion Pricing? Answer: A Pricing Strategy is a collection of rules and lists (price list, discount list, cost list) that define how prices are calculated for a particular business segment. Strategies are assigned based on Pricing Segments (customer groups, sales channels, etc.). 🔹 4. What is a Price List, and how is it set up? Answer: A Price Li...
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Top Inventory Management Interview Questions & Answers (2025 Guide)

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 Top Inventory Management Interview Questions & Answers (2025 Guide) 1. What is Oracle Fusion Inventory Management? Answer: Oracle Fusion Inventory Management is a part of Oracle Fusion Supply Chain Management (SCM) suite. It enables efficient management of materials and inventory across an organization. It supports tasks like receiving, storage, picking, cycle counting, and shipping. 2. What are subinventories and locators in Oracle Fusion? Answer: Subinventory : A subdivision of inventory, like raw materials, finished goods, or defective items. It helps manage and segregate stock. Locator : A physical location within a subinventory (like shelf, row, bin) that helps in pinpointing the exact location of inventory items. 3. What is a lot and a serial number? Answer: Lot number : Groups of items produced or received at the same time with the same characteristics. Serial number : A unique identifier for a single uni...
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