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Oracle Cloud Procurement study materials
Oracle Cloud Procurement study resources

Oracle Cloud Procurement practice questions

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Question 1Procurement Configuration and Setup

In Oracle Procurement, which document type must be created before a purchase order can reference negotiated pricing and terms with a supplier?

  1. A supplier qualification record
  2. A request for quotation
  3. A purchase requisition
  4. A blanket purchase agreement Correct answer.

Explanation

A blanket purchase agreement stores negotiated prices and terms for a supplier over a defined period, and purchase orders can be released against it. Requisitions are internal requests, RFQs gather bids, and qualification records assess suppliers rather than hold pricing.

Question 2Procurement Configuration and Setup

Which procurement business function determines the default buyer and default document styles applied when a requisition is created for a given organization?

  1. The supplier site assignment
  2. The Common Payables options
  3. The Procurement business function configuration Correct answer.
  4. The chart of accounts structure

Explanation

Procurement business function configuration controls defaults such as the default buyer, document styles, and control settings for an organization. Payables options govern invoicing and payment behavior, supplier sites are supplier-side data, and the chart of accounts defines accounting segments.

Question 3Procurement Configuration and Setup

A buyer needs a requisition to require approval by a cost center manager before it can be processed. Which configuration area is used to define this routing?

  1. Supplier portal registration settings
  2. Approval Management configuration in the Procurement offering Correct answer.
  3. The payment terms setup
  4. The unit of measure standard

Explanation

Approval rules for requisitions and purchase orders are defined through Approval Management configuration, where conditions such as cost center and amount determine the approver list. Supplier registration, payment terms, and units of measure do not govern document approval routing.

Question 4Procurement Configuration and Setup

Which setup step is required so that a purchase order can be automatically communicated to a supplier by email upon submission?

  1. Assigning the supplier to a tax regime
  2. Enabling the supplier site to receive electronic mail and configuring the delivery method Correct answer.
  3. Creating a new chart of accounts for the supplier
  4. Setting the requisition to a blanket style

Explanation

Outbound PO delivery depends on the supplier site being flagged to receive documents electronically and on the delivery method configured for the supplier or site. Chart of accounts, tax regime, and requisition style do not control document transmission.

Question 5Procurement Configuration and Setup

What is the purpose of defining a procurement category hierarchy during setup?

  1. To group spend for reporting and to drive category-based policies and defaults Correct answer.
  2. To assign bank accounts to supplier sites
  3. To determine the legal entity that pays the supplier invoice
  4. To sequence approval steps by dollar amount

Explanation

Category hierarchies classify purchased items so spend can be analyzed and category-level defaults or policies applied. Legal entity payment, approval sequencing, and supplier bank data are handled elsewhere in the application.

Question 6Procurement Configuration and Setup

Which object links a requisition line to the supplier, price, and terms that will be used when it is converted to a purchase order?

  1. The requisition header's justification text
  2. The requisition's note to buyer
  3. The requisition line's supplier item and source assignment Correct answer.
  4. The requisition's deliver-to location

Explanation

The supplier item and sourcing assignment on the requisition line carry the supplier, price, and terms used when the line is placed on a purchase order. Justification, notes, and deliver-to location provide context but do not supply commercial terms.

Question 7Procurement Configuration and Setup

Which setup determines the numbering sequence used for purchase orders in an organization?

  1. The document sequence assigned to the procurement document category Correct answer.
  2. The general ledger journal sequence
  3. The supplier numbering scheme
  4. The inventory item numbering scheme

Explanation

Document sequences are assigned to document categories, and the sequence assigned to the purchase order category generates PO numbers. Supplier, journal, and item numbering schemes apply to different objects.

Question 8Procurement Configuration and Setup

A procurement administrator wants to restrict which buyers can create purchase orders above a set amount. Which configuration mechanism best enforces this?

  1. Supplier site inactivation
  2. Document control rules based on buyer and amount Correct answer.
  3. Payment term defaults
  4. Automatic sourcing rules

Explanation

Document control rules can evaluate attributes such as buyer and amount to allow, warn, or reject a document before it is submitted. Supplier site status, sourcing rules, and payment terms do not enforce buyer spending limits.

Question 9Procurement Configuration and Setup

A company wants requisitions above 10,000 USD to require both the department manager and the procurement director, while lower amounts require only the department manager. Which approach achieves this in Approval Management?

  1. Assign the procurement director as the default buyer for the organization
  2. Create two separate requisition document types, one for each amount range
  3. Enable document control rules to block requisitions below the threshold
  4. Define one approval rule with an amount condition that adds the procurement director only above the threshold Correct answer.

Explanation

A single approval rule can use an amount condition to include the additional approver only when the threshold is exceeded, keeping lower amounts on the manager-only path. Separate document types are unnecessary, the default buyer does not control approval lists, and document controls do not build approver lists.

Question 10Procurement Configuration and Setup

A buyer creates a blanket purchase agreement with a validity period of one year. What happens when a purchase order is released against it after the agreement's end date?

  1. The release proceeds but the price defaults to zero
  2. The release is prevented because the agreement is no longer active Correct answer.
  3. The agreement is converted into a contract automatically
  4. The release proceeds and the agreement end date is automatically extended

Explanation

A blanket purchase agreement can only be used for releases while it is active within its validity dates. Once the end date passes, the agreement is no longer available for new releases, and the system does not silently extend it, zero the price, or convert it.

Question 11Procurement Configuration and Setup

A supplier offers tiered pricing where the unit price drops when cumulative order quantity exceeds a threshold. Which setup supports this on a blanket purchase agreement?

  1. A separate supplier site per tier
  2. Price breaks defined on the agreement line Correct answer.
  3. A distinct document style per tier
  4. Multiple payment terms on the agreement header

Explanation

Price breaks on agreement lines let the unit price vary by ordered quantity tier, so releases automatically use the correct tier price. Supplier sites, payment terms, and document styles do not model quantity-based pricing.

Question 12Procurement Configuration and Setup

During setup, an administrator notices that requisitions created in a new organization default to the wrong buyer. Which configuration should be reviewed first?

  1. The inventory organization parameters
  2. The supplier site contact list
  3. The Procurement business function assignment for the organization Correct answer.
  4. The tax configuration for the legal entity

Explanation

Default buyer behavior is driven by the Procurement business function configuration for the organization. Supplier contacts, inventory parameters, and tax configuration do not determine the default buyer on requisitions.

Question 13Procurement Configuration and Setup

A company wants all purchase orders for a specific category to be routed to a category manager for review before submission. Which configuration element is most appropriate?

  1. A payment term restricted to that category
  2. A supplier qualification model for that category
  3. A unit of measure conversion for that category
  4. An approval rule conditioned on the purchase order category Correct answer.

Explanation

Approval rules can evaluate document attributes including category, allowing category-specific approvers to be added. Qualification models, payment terms, and UOM conversions do not control approval routing.

Question 14Procurement Configuration and Setup

A requisition line is sourced from an internal transfer instead of an external supplier. Which setup must exist for this sourcing path to work?

  1. A transfer supply source defined for the item and organization Correct answer.
  2. A blanket purchase agreement with zero price
  3. A supplier site flagged as internal
  4. An RFQ award to the internal organization

Explanation

Internal transfer sourcing requires the item to be defined with a transfer supply source for the relevant organization so the requisition can be fulfilled internally. Supplier sites, zero-price agreements, and RFQ awards are external sourcing constructs.

Question 15Procurement Configuration and Setup

An administrator needs purchase order lines to default the deliver-to location based on the requisitioning organization. Which setup object should be configured?

  1. The buyer's user profile preferences
  2. The payment terms on the supplier site
  3. The supplier's remit-to address
  4. The requisitioning business function's default deliver-to location Correct answer.

Explanation

The default deliver-to location is a property of the requisitioning business function and organization setup, so lines inherit it automatically. Remit-to addresses, payment terms, and user profiles do not supply deliver-to defaults.

Question 16Procurement Configuration and Setup

Which configuration allows a company to require that purchase orders include a valid supplier tax registration before submission?

  1. A payment term with a tax discount
  2. A document control rule validating supplier tax registration Correct answer.
  3. A category hierarchy node for tax
  4. A unit of measure named for tax

Explanation

Document control rules can validate attributes such as supplier tax registration and prevent submission when the condition fails. Payment terms, categories, and units of measure do not perform validation of supplier tax data.

Question 17Procurement Configuration and Setup

A company uses automatic sourcing rules. A buyer creates a requisition line and the application does not assign a supplier. Which cause is most likely?

  1. The requisition style is set to blanket
  2. No sourcing rule matches the item, category, and organization combination Correct answer.
  3. The payment terms are missing on the supplier
  4. The supplier site is flagged as primary

Explanation

Automatic sourcing assigns a source only when a sourcing rule matches the item or category together with the organization and effective dates. A primary supplier site supports sourcing rather than blocking it, and requisition style or payment terms do not prevent source assignment.

Question 18Procurement Configuration and Setup

An administrator wants the requisition approval list to include the requester's supervisor dynamically rather than a named individual. Which approval configuration feature supports this?

  1. A static list of named approvers
  2. A fixed cost center list
  3. A supervisory hierarchy-based approver list Correct answer.
  4. A supplier contact list

Explanation

Approval rules can build the approver list from the supervisory hierarchy so the current supervisor is selected at runtime. Static named approvers, supplier contacts, and cost center lists are fixed and do not resolve the requester's supervisor dynamically.

Question 19Procurement Configuration and Setup

Which setup determines whether a purchase order can be changed after it has been submitted for approval?

  1. The supplier's payment terms
  2. The document control and change order configuration for the PO document type Correct answer.
  3. The inventory organization's cost method
  4. The chart of accounts segment values

Explanation

Change order behavior and document control settings on the purchase order document type determine whether and how a submitted PO can be modified. Payment terms, cost method, and account segments do not govern document changeability.

Question 20Procurement Configuration and Setup

A company wants a supplier to be able to view and respond to a negotiation published from Procurement. Which setup is required for the supplier to access the negotiation?

  1. The supplier must be assigned a unit of measure
  2. The supplier must be linked to an inventory organization
  3. The supplier must be registered and have a user with the appropriate supplier portal role Correct answer.
  4. The supplier must be assigned a payment term

Explanation

Suppliers access negotiations through the supplier portal, which requires a registered supplier and a user holding the appropriate role. Payment terms, inventory organization links, and units of measure do not grant portal access.

Question 21Procurement Configuration and Setup

An administrator is designing approval rules and wants a purchase order to be rejected automatically when the supplier is inactive. Which configuration approach is most appropriate?

  1. A payment term that expires with the supplier
  2. A category hierarchy node for inactive suppliers
  3. An approval rule that adds the supplier as an approver
  4. A document control rule that rejects the document when the supplier status is inactive Correct answer.

Explanation

Document control rules evaluate document attributes at submission and can reject a document when a condition such as inactive supplier status is met. Approval rules add approvers, and payment terms or category nodes cannot enforce this validation.

Question 22Procurement Configuration and Setup

A global company needs requisitions in different legal entities to use different approval chains while sharing one document type. Which configuration achieves this most efficiently?

  1. Approval rules conditioned on the legal entity attribute of the requisition Correct answer.
  2. One payment term per legal entity
  3. A single static approver list for all legal entities
  4. Separate document types for every legal entity

Explanation

Approval rules can evaluate the legal entity attribute so one document type serves multiple entities with entity-specific approver lists. Duplicating document types adds maintenance, a static list cannot vary by entity, and payment terms do not route approvals.

Question 23Procurement Configuration and Setup

A buyer reports that price breaks on a blanket purchase agreement are not being applied to releases. Which configuration issue should be investigated?

  1. The supplier site is not flagged as primary
  2. The requisition uses a catalog item
  3. The release quantity does not reach the threshold defined for the price break tier Correct answer.
  4. The agreement header uses a standard document style

Explanation

Price breaks apply only when the ordered quantity falls within a defined tier, so a release below the first threshold uses the base price. Primary site flags, document style, and catalog sourcing do not disable tier pricing.

Question 24Procurement Configuration and Setup

An organization requires that all requisitions be reviewed by a procurement specialist before sourcing occurs, but only when the requested item is not on a catalog. Which configuration element enables this conditional review?

  1. A blanket agreement with a validity period
  2. An approval rule conditioned on whether the requisition line is catalog-sourced Correct answer.
  3. A unit of measure conversion set
  4. A supplier qualification model

Explanation

Approval rules can branch on line attributes such as whether the item is catalog-sourced, adding the specialist only for non-catalog lines. Agreements, qualification models, and UOM conversions do not create conditional approval paths.

Question 25Procurement Configuration and Setup

A company wants requisitions to be automatically placed on a purchase order when approved, without buyer intervention. Which configuration supports this behavior?

  1. Automatic document creation settings on the requisition business function Correct answer.
  2. A payment term with automatic discounting
  3. A category hierarchy with a single root node
  4. A supplier site flagged as pay-only

Explanation

Automatic document creation settings on the requisitioning business function allow approved requisitions to be processed into purchase orders automatically. Pay-only sites, discount payment terms, and category structure do not automate PO creation.

Question 26Procurement Configuration and Setup

In Oracle Cloud Procurement, which configuration element determines the default unit of measure that appears on a requisition line when the requester selects an item but does not change the UOM?

  1. The item's primary unit of measure defined in the product master Correct answer.
  2. The procurement business unit's purchasing UOM override
  3. The buyer's default UOM set on the user profile
  4. The supplier site's ordering UOM

Explanation

When an item is selected on a requisition line, the application derives the default unit of measure from the item definition in the product master, specifically its primary UOM. User-level or supplier-level values do not override the item default at line creation. Configuration of the item master therefore drives line-level defaults.

Question 27Procurement Configuration and Setup

An administrator is configuring document styles for purchase orders and wants to control which descriptive flexfields appear on the order header. Where is this controlled?

  1. In the common look and feel profile option for the procurement business unit
  2. In the supplier registration business classification setup
  3. In the approval rule set assigned to the order type
  4. In the page layout and extensibility configuration associated with the purchase order document style Correct answer.

Explanation

Descriptive flexfields and other page elements on purchase order pages are exposed through the page layout and extensibility framework tied to the document style. Document styles determine which regions and flexfields render for a given order type. Approval rules and supplier classification do not control field visibility.

Question 28Procurement Configuration and Setup

A company wants purchase order documents to be generated in PDF and automatically emailed to the supplier when the order is submitted. Which two setup areas must be aligned for this to work?

  1. The requisition document type and the buyer's notification preferences
  2. The item category hierarchy and the supplier's tax registration
  3. The approval rule set and the procurement agent's default printer
  4. The document style's output configuration and the supplier contact's communication delivery method Correct answer.

Explanation

Delivery of a purchase order to a supplier depends on the document style being configured to produce the desired output and on the supplier contact having a communication method that supports email delivery. Both the output format and the delivery destination must be set up. Other areas such as approval rules or tax registration do not drive document delivery.

Question 29Procurement Configuration and Setup

Which setup controls whether a supplier must be marked as an approved supplier before a purchase order can be placed with them?

  1. The buyer's procurement agent assignment
  2. The supplier site's payment terms configuration
  3. The procurement business unit's default currency setting
  4. The supplier's qualification and approval status maintained through supplier qualification management Correct answer.

Explanation

Supplier qualification management tracks whether a supplier is approved for business, and procurement can be configured to prevent ordering from unapproved suppliers. Payment terms, currency, and agent assignment do not reflect approval status. This ensures compliance with sourcing governance.

Question 30Procurement Configuration and Setup

A procurement administrator needs to define which cost centers are valid for charge accounts on requisition distributions. Which configuration object is used?

  1. The supplier site assignment hierarchy
  2. The negotiation style template
  3. The purchase order document style
  4. The distribution set assigned to the requisitioning business unit Correct answer.

Explanation

Distribution sets define the valid charge account combinations that requesters can select on requisition distributions. They are assigned so that only permitted cost centers and accounts appear. Supplier sites, document styles, and negotiation templates do not govern distribution account validation.

Question 31Procurement Configuration and Setup

An administrator is configuring procurement agents and wants a specific employee to be able to create and manage purchase orders only for a defined set of categories. Which setup achieves this?

  1. Grant the employee the supplier administrator role
  2. Assign the employee as a procurement agent with category restrictions in the agent setup Correct answer.
  3. Add the employee to the negotiation collaboration team
  4. Set the employee's default requisitioning business unit

Explanation

Procurement agent setup allows an administrator to designate an employee as a buyer and optionally restrict the categories they can transact. This limits the scope of orders the agent can create and manage. Roles, collaboration teams, and business unit defaults do not impose category-level purchasing limits.

Question 32Procurement Configuration and Setup

Which configuration determines the default payment terms that appear on a purchase order when the supplier site has payment terms defined?

  1. The payment terms default from the item master regardless of supplier
  2. The payment terms are always blank until the buyer enters them manually
  3. The payment terms on the procurement business unit always override the supplier site
  4. The payment terms on the supplier site take precedence and populate the order Correct answer.

Explanation

When payment terms are defined at the supplier site, they default onto the purchase order. The supplier site is the appropriate level for settlement terms because they vary by supplier location. Business unit or item settings do not automatically override supplier site terms, and the field is not left blank when a default exists.

Question 33Procurement Configuration and Setup

A company wants a purchase order to require a justification comment before it can be submitted. Which configuration supports this requirement?

  1. Enable the supplier qualification approval workflow
  2. Set the procurement business unit to require budgetary control
  3. Configure the document style or order type to make the justification field required Correct answer.
  4. Assign a negotiation style with mandatory internal reviewers

Explanation

Requiring a justification on a purchase order is achieved by configuring the document style or order type so the justification field is mandatory before submission. Supplier qualification workflows, budgetary control, and negotiation styles address different controls. This ensures the buyer records a reason before the order proceeds.

Question 34Procurement Configuration and Setup

Which setup allows a procurement business unit to use a specific approval hierarchy based on supervisory relationships for purchase order approvals?

  1. A cost center hierarchy used for budgeting
  2. A position hierarchy or supervisory hierarchy assigned to the approval rule set Correct answer.
  3. A supplier site hierarchy used for ordering
  4. An item category hierarchy used for sourcing

Explanation

Purchase order approval routing based on reporting lines uses a supervisory or position hierarchy referenced by the approval rule set. The hierarchy defines who approves at each level. Supplier, item category, and cost center hierarchies serve sourcing, classification, and budgeting purposes rather than approval routing.

Question 35Procurement Configuration and Setup

An administrator wants requisitions to be visible only to the requester and the assigned buyer until approved. Which configuration enforces this?

  1. Assign a negotiation style to the requisition
  2. Enable supplier self-service registration
  3. Set the default currency for the requisitioning business unit
  4. Configure document access and security policies so requisition visibility is restricted by role until approval Correct answer.

Explanation

Visibility of requisitions before approval is governed by document access and security policies tied to roles and document states. These policies restrict who can view or act on in-process documents. Currency, negotiation style, and supplier registration do not control requisition visibility.

Question 36Procurement Configuration and Setup

Which configuration object stores the purchasing categories that can be selected on requisition and purchase order lines?

  1. The negotiation outcome template
  2. The purchasing category hierarchy associated with the procurement business unit Correct answer.
  3. The supplier business classification hierarchy
  4. The chart of accounts structure

Explanation

Purchasing categories are organized in a category hierarchy that is enabled for procurement so requesters and buyers can classify lines. This hierarchy drives category selection and related controls. Supplier classifications, chart of accounts, and negotiation templates serve different purposes.

Question 37Procurement Configuration and Setup

A company wants a blanket purchase agreement to be usable only by buyers in a specific procurement business unit. Which setup enforces this restriction?

  1. Restrict the agreement's business unit scope and access through document access configuration Correct answer.
  2. Set the supplier's payment terms to net 30
  3. Enable budgetary control on the requisitioning business unit
  4. Assign the agreement to a negotiation style

Explanation

Limiting who can use a blanket purchase agreement is accomplished by controlling its business unit scope and document access settings. These determine which buyers can reference the agreement on orders. Payment terms, budgetary control, and negotiation styles do not restrict agreement usage by business unit.

Question 38Procurement Configuration and Setup

Which setup determines the default deliver-to organization that appears on a purchase order line created directly by a buyer?

  1. The supplier site's remit-to address
  2. The item's cost of goods sold account
  3. The negotiation style's response rules
  4. The buyer's default procurement business unit and associated deliver-to organization settings Correct answer.

Explanation

The default deliver-to organization on a directly created purchase order line derives from the buyer's procurement business unit and its configured organization defaults. Remit-to addresses, cost accounts, and negotiation rules do not supply the deliver-to default. This aligns the order with the correct receiving organization.

Question 39Procurement Configuration and Setup

An administrator needs to configure how requisition line descriptions are generated when requesters select an item. Which setup governs the default description?

  1. The procurement business unit's tax configuration
  2. The item master's description and the requisition line defaulting configuration Correct answer.
  3. The supplier site's contact name
  4. The approval rule set's description field

Explanation

When an item is selected, the line description defaults from the item master description, subject to requisition line defaulting configuration. This ensures consistent item descriptions across documents. Supplier contacts, approval rule descriptions, and tax configuration do not generate line descriptions.

Question 40Procurement Configuration and Setup

A company wants to prevent buyers from changing the supplier on a purchase order after the order has been approved. Which configuration achieves this control?

  1. Configure the order type or document style to lock the supplier field after approval Correct answer.
  2. Set the supplier's payment terms to immediate
  3. Enable supplier self-service registration
  4. Assign the buyer a negotiation collaboration role

Explanation

Field-level control after approval is achieved through order type or document style configuration that locks the supplier field once the document is approved. This prevents unauthorized changes to a committed commercial relationship. Payment terms, supplier registration, and collaboration roles do not lock fields.

Question 41Procurement Process and Transaction Management

In Oracle Fusion Cloud Procurement, which document type is created internally to communicate approved demand to a supplier and forms the contractual basis for the purchase?

  1. Requisition
  2. Request for quotation
  3. Supplier negotiation
  4. Purchase order Correct answer.

Explanation

A purchase order is the buyer-issued document that formally commits the organization to buy goods or services from a supplier and serves as the contractual basis for the transaction. A requisition is an internal request, an RFQ gathers pricing, and a negotiation supports sourcing rather than committing spend.

Question 42Procurement Process and Transaction Management

A buyer wants a requisition to be sourced automatically to an existing purchase agreement when the requested item matches the agreement line. Which configuration enables this behavior?

  1. Invoice matching tolerance setup at the supplier site
  2. Manual creation of a blanket purchase order for each requisition
  3. Approval hierarchy routing by requisition amount
  4. Automatic sourcing rules assigned to the requisitioning business function Correct answer.

Explanation

Automatic sourcing rules let Procurement match requisition lines to existing agreements, catalogs, or sourcing rules so the demand is fulfilled without manual buyer intervention. Invoice tolerances and approval routing affect downstream payment and authorization, not the sourcing of demand.

Question 43Procurement Process and Transaction Management

Which approval outcome on a purchase order allows the document to be dispatched to the supplier?

  1. The purchase order is submitted for approval but pending the first approver
  2. The purchase order is saved as Incomplete by the buyer
  3. The purchase order reaches the Approved status after all approvers act Correct answer.
  4. The purchase order is canceled by the requester

Explanation

A purchase order must complete its approval workflow and reach Approved status before it can be communicated to the supplier. Incomplete, pending-approval, and canceled states do not permit dispatch because the commitment is not yet authorized.

Question 44Procurement Process and Transaction Management

A requisition line is created for an item that has no catalog or agreement match. What does Oracle Procurement typically do with that line during automatic sourcing?

  1. It remains unsourced and can be grouped for a buyer to process or to create a request for quotation Correct answer.
  2. It is approved without any buyer review
  3. It is converted into an invoice for immediate payment
  4. It is automatically deleted from the requisition

Explanation

Lines that cannot be matched to a source remain unsourced so a buyer can review them, group them, and decide whether to source via negotiation or create a purchase order. The system does not delete demand or bypass buyer review for unmatched lines.

Question 45Procurement Process and Transaction Management

Which document is used to establish pre-negotiated pricing and terms with a supplier over a defined period without committing to a specific quantity?

  1. Standard purchase order
  2. Requisition
  3. Receiving receipt
  4. Blanket purchase agreement Correct answer.

Explanation

A blanket purchase agreement fixes prices and terms for a period and is released against as demand arises, so it does not commit to a specific quantity. A standard purchase order commits specific quantities and amounts, while requisitions and receipts are internal or logistical documents.

Question 46Procurement Process and Transaction Management

A buyer needs to release against a blanket purchase agreement for a specific quantity of an item. Which action creates the committed order?

  1. Record a supplier invoice against the agreement
  2. Create a new requisition without a source
  3. Create a purchase order referencing the blanket agreement line Correct answer.
  4. Submit the blanket agreement for reapproval

Explanation

Releases against a blanket agreement are made by creating a purchase order that references the agreement line, which applies the negotiated price and terms to a committed quantity. Reapproving the agreement or invoicing does not create the committed order.

Question 47Procurement Process and Transaction Management

Which matching option compares a supplier invoice to the purchase order and the receipt before payment?

  1. Invoice-only match
  2. Two-way match
  3. Three-way match Correct answer.
  4. Budgetary control check

Explanation

Three-way matching validates the invoice against both the purchase order and the receiving record, confirming quantity and price before payment. Two-way match compares only invoice and purchase order, while budgetary control validates funds rather than receipt.

Question 48Procurement Process and Transaction Management

A supplier invoice shows a unit price slightly above the purchase order price but within the configured tolerance. What is the expected outcome during invoice validation?

  1. The purchase order price is overwritten with the invoice price
  2. The invoice is automatically rejected and returned to the supplier
  3. The invoice is placed on permanent hold until the buyer cancels the order
  4. The invoice passes validation and can proceed to payment subject to remaining holds Correct answer.

Explanation

Invoice tolerances define acceptable variance between invoice and purchase order values; within tolerance the invoice passes validation and is not held for that reason. The system does not overwrite the purchase order price or automatically reject an in-tolerance invoice.

Question 49Procurement Process and Transaction Management

What is the purpose of a hold on a supplier invoice in Oracle Procurement?

  1. To cancel the related purchase order automatically
  2. To return the goods to the supplier
  3. To reverse the receipt quantity
  4. To prevent payment until the identified exception is resolved Correct answer.

Explanation

Invoice holds block payment while an exception such as a quantity or price variance is investigated and resolved. Holds do not cancel purchase orders, return goods, or reverse receipts; those are separate transactions.

Question 50Procurement Process and Transaction Management

A receipt is recorded for goods delivered against a purchase order. Which downstream process depends directly on that receipt when three-way matching is enabled?

  1. Requisition approval routing
  2. Purchase order style configuration
  3. Invoice validation comparing invoiced quantity to received quantity Correct answer.
  4. Supplier registration approval

Explanation

With three-way matching, invoice validation compares the invoiced quantity to the received quantity, so the receipt must exist before the invoice can pass. Requisition approvals, supplier registration, and document styles are unrelated to receipt-based quantity validation.