Sales order entry scenarios
Here are two scenarios for creating a sales order: a simple one and one with variances.
The scenarios use the demo data company USMF for Supply Chain Management.
Scenario - Sales order entry to cash process - simple
In this scenario, the Order processor in USMF, plays the role of multiple persons in this end-to-end demonstration. The company that the Order processor works for sells standard products, typically either manufactured, or procured to stock. The sale of standard products helps ensure a short delivery lead time. In some cases, the company procures to order. In this scenario, the customer (a wholesaler) orders replenishment of three line items, a projector, and LCD TVs. Customer US-013 requests that all order lines be shipped as early as possible, and be complete; so no partial orders will be accepted.
Instructions
Go to Sales and marketing > Customers > All customers.
Select customer US-013.
On the Sell FastTab, under the New sub-menu, select Sales order.
Under the Sales order lines FastTab, in the Item number field, select T0002.
In the Quantity field, enter 10. In the Sales order FastTab, the Requested ship date and the Requested receive date default to the current date.
Expand the Line details FastTab, and then select the Delivery FastTab.
Select the Simulate delivery dates link.
In the Available ship and receipt dates dialog, observe the Transport days (Example: five days). Observe that you can ship the goods tomorrow, and that the customer will receive the line item in five business days.
Select Cancel to exit the page.
Note
You will not confirm dates on a line-by-line basis; instead, you will confirm dates across all lines later so that you can ensure ship date alignment for complete delivery.
Back in the Sales order lines FastTab, select Add line.
In the Item number field, select T0004.
In the Quantity field, enter 8.
In Line details FastTab, select the Product tab.
In the Color field, enter Silver.
Back in the Sales order lines FastTab, Select Add.
In the Item number field, enter T0005.
In the Quantity field, enter 10.
In Line details FastTab, in the Color field, select White. You now have three order lines for the customer.
Click Save.
Close the page.
You might receive a warning that the customer credit limit has been exceeded. The reason is because the Accounts receivable clerks have had an off-site meeting and have not registered the payments that have been recently received from the customer. Therefore, this message is only a warning, so you may proceed.
Scenario - Sales order entry to cash process - reserve inventory
Because US-013 is a high priority customer, you have received a request to make a reservation against inventory to ensure that no subsequent orders reserve the required on-hand for this high priority customer order.
Instructions
Go to Sales and marketing > Sales orders > All sales orders.
On the list page, find the sales order that you just created. This sales order is most likely at the bottom of the grid.
Select the Sales order number, which is a link that will open the sales order.
Select Edit in the Action Pane at the top of the screen.
Under the Sales order lines FastTab, select line item T0002. A check mark appears on the line selected.
Expand the Line details FastTab and then select the Setup tab.
Set the Reservation field to Automatic. This setting creates a reservation in inventory for the sales order line demand.
Scroll up to the Sales order lines. In the grid, select line item T0004.
In the Line details FastTab select the Setup tab. Set the Reservation field to Automatic.
Scroll back up to the Sales order lines. In the grid, select line item T0005.
Set the Reservation field to Automatic. Now, all line items have been reserved.
Click Save.
In the Action Pane, select the Manage tab.
In the Customer submenu, select Find prices. The Current prices and discounts page opens. Close the "customer credit limit is exceeded" warning if it appears.
The Current prices and discounts page shows how prices and discounts are calculated on items for the specific customer in the Customer account field.
In the Item number drop-down menu, select item number T0002.
Enter a Quantity of 10 and then press tab.
View the detail of the Price and discounts from agreements section towards the bottom of the page.
Observe how prices and discounts are retrieved from trade agreements. No discounts have been defined and there are no price breaks. A general price for all customers has been defined, implying a standard list price of USD 3,750.00 for all customers who are quantity independent.
In the Item number drop-down menu, enter a quantity of 15, and then press tab to recalculate values.
Observe, as expected, that no better price or additional discount is granted for a higher quantity that is ordered.
Close the Current prices and discounts page.
On the Sales order Action Pane, select the Sell tab.
In the Tax submenu, select Sales tax.
Observe the Actual sales tax amount calculated. The sales tax calculated is for a sales tax code for the customer receipt location, which in this case is New York State, where the sales tax code is 4 percent.
Click OK to close the Sales tax page.
In the Action Pane, select the Sales order tab.
In the View submenu, select Totals.
Observe the total computation of all sales taxes that pertain to this sales order. The customer credit line is USD 500,000.00. If the Subtotal amount exceeds the credit line amount you will receive the credit limit exceeded warning. Additionally, the Invoice amount field has the sales order total to be invoiced to the customer.
After creating a sales order confirmation for the customer, the objective is to ensure that all line items align with the line item that has the ship date farthest in the future. This verification is to ensure complete shipment, no partials.
Output is that all lines will get the same confirmed ship and receipt date, and the sales order header will have the confirmed ship and receipt date auto updated.
On the Sales order page, with your sales order checked, select the Sell tab in the Action Pane.
In the Calculate submenu, select Confirmed delivery dates. Confirmed ship dates are set on all order lines and on the sales order header. Select the Latest confirmed date accepted using the calendar icon.
Click OK. You are then returned to the Sales order details page.
Select your Sales order. This places a check mark next to your order.
On the Action Pane, in the Generate submenu, select Confirm sales order.
In the Confirm sales order dialog, set the Print confirmation toggle bar to Yes, and then select OK to generate print-to-screen. You may receive a warning about posting the confirmation and printing to screen only. Click Yes to continue.
You will receive a screen displaying the report. Review and then close the report. You may receive a warning if the credit limit is exceeded. Close the warning.
On the Sales order Action Pane, select the Pick and Pack tab.
In the Generate submenu, select Generate picking list.
In the Posting picking list page, you can scroll to see the Picking list overview, and the associated Sales order lines. Select OK. You will receive a confirmation message noting you are about to post the document without printing it.
Click OK. Do not print. The picking list has now been issued and picking can commence. Picking can be started from multiple areas in Supply Chain Management. So far, you have performed picking in the simplest way, which is directly from the Sales order page.
Note
An alternative and more specialized way to release lines for picking is to use Release sales order picking, allowing a centralized and consolidated view on sales order line demands that are waiting to be released to pick. Yet another approach would be to release in a batch, depending on specific query criteria.
On the Sales order Action Pane, select the Pick and Pack tab.
In the Generate submenu, select Picking List Registration.
In the Action Pane, select Updates > Update All. The Handling status under the Identification FastTab now shows Completed.
Click Save and then Close the window.
On the Sales order Action Pane, select the Pick and Pack tab.
In the Generate submenu, select Post Packing Slip.
On the Packing slip posting page, set the Print packing slip toggle bar to Yes.
Select OK to generate print-to-screen. A packing slip has now been generated and goods have been shipped. You will receive a warning that you are posting the packing slip and printing to the screen only. Click Yes to continue.
When you have reviewed the report, close the report.
On the Sales order header, select the Invoice tab.
In the Generate submenu, select Invoice.
On the Posting Invoice page, set the Print invoice toggle bar to Yes. You can also scroll down to view the Invoice overview as well as the Lines.
Select OK to generate print-to-screen. Note the customer invoice number; you will need this number later. You will receive a warning that you are posting the invoice and printing to screen only.
Click Yes.
Create a new payment journal.
There are more ways to receive a customer payment and settle the payment against one or more customer debits. The chosen method shown here is fast and performs the payment registration and settlement in the same task. However, if business requirements dictate, a customer payment can first be received and then later settled against one or more customer debits.
Go to Accounts receivable > Payments > Customer payment journal.
In the Action Pane at the top of the page, select New.
In the Name field, enter CustPay. The system defaults the Description to Customer payment.
In the Action Pane at the top, select the Enter customer payments" tab.
Select the Customer US-013.
Enter an appropriate payment reference of your choice, example: Customer Payment.
Enter the Amount of the payment. Example: $74,092.80. For reference, the invoice amount that is due appears at the bottom of the page, displayed under the Amount to pay column. This is the net amount due after discounts. Ensure that the amount of payment is equal to the amount debited to the customer for the previous invoice.
Select the Currency if different than USD.
In the Select to Pay grid, select the invoice that was previously created.
In the Amount field, enter the amount equal to the Remaining amount. Note that the Settled field automatically calculates the payment amount being made.
Check that there is no Remaining amount for settlement that has resulted from the payment.
Select Save in Journal in the Action Pane.
Select Close. You have now recorded the customer payment and have received and settled it against the customer invoice. However, it has not been posted in the ledger yet.
In the Customer payment journal page, click to select the Journal batch number for the payment journal that you just created. A check mark will appear next to the payment journal.
Select Post and then select the Post option. On the Customer payment journal page, under the Posted on column, you will see the date and time the payment was posted.
If the Infolog appears, select to close it.
On the page, select Close.
Scenario - Sales order entry to cash process - with variances
In this scenario, the customer (a wholesaler) orders replenishment of two line items. However, stock is insufficient on one of the line items, and the Order processor must trigger supply for this specific demand. This scenario can be considered a deviation of the previous scenario and is slightly more complex.
Go to Sales and marketing > Customers > All customers.
On the list page, select customer US-027.
On the Sell tab, under the New submenu, select Sales order.
On the Sales order details page, expand the Line details FastTab.
Select the Delivery tab. The Requested ship date and receipt dates default to today, which is defaulted from the order header. Because a shipping location is not defined currently, the Requested ship date and Requested receipt date at the customer location are the same (so no transport time). The customer wants 10 projector televisions, 8 sound receivers, 10 cables that measure 10 meters each, and 4 cables that measure 2 meters each.
In the Sales order lines FastTab, select Add line.
In the Item number field, enter and select T0002.
In the Quantity field, enter 10. In the Line details FastTab, under the Delivery tab, observe the requested receipt date online. This date has been projected in the number of days from the requested ship date, so you will need to investigate.
Select the Simulate delivery date link.
In the Delivery date simulation, observe the Transport days. Notice that you can ship the goods today and that the customer will receive the line item in the number of days noted from today. Example: If the Transport days field shows 3 days, the customer will receive the goods in three days.
Select Cancel to exit the page. You will not confirm dates on a line-by-line basis; instead, you will confirm dates across all lines later so that you can ensure ship date alignment for complete delivery.
In the Sales order lines FastTab, select Add line.
In the Item number field, enter and select T0001.
In the Quantity field, enter 8.
In the Line details FastTab, select the Product tab.
In the Size drop-down menu, select 10.
In the Sales order lines grid, select Add line.
In the Item number field, enter T0003.
In the Quantity field, enter 16.
Depending on your data, when you entered the T0003 line item, you might have noticed that the Requested ship date that was set by the Available to Promise (ATP) calculation was slightly into the future. The reason is because you might already have too much time-phased demand for your projected and time-phased supply and shorter-term supply.
With the cursor still positioned on line item T0003, on the Sales order lines FastTab, select Product and supply > ATP information.
Go to the ATP quantity table.
Scroll to the first line that does not have an exclamation mark. This point in time is where you, based on current expected receipts, issues, and projected on-hand, can promise a shipment of a quantity of 16.
Select Close. The objective is to ensure that all line items align with the line item that has the ship date farthest in the future. This helps to ensure complete shipment and no partial delivery. Output is that all lines will get the same confirmed ship and receipt date, and the sales order header will have the confirmed ship and receipt date auto updated.
On the Sales order header, select the Sell tab.
On the Sales order header, in the Generate group, select Confirm sales order.
In the Confirm sales order dialog, set the Print confirmation toggle bar to Yes, and then select OK to generate print-to-screen.
You will receive a warning that you are posting the confirmation and printing to screen only. Click Yes.
Review and then close the report.
On Sales order header, select the Pick and Pack tab.
In the Generate group, select Generate Picking List.
On the Posting picking List page, select OK.
On the Sales order header, select the Pick and Pack tab.
In the Generate group, select Picking List Registration.
Select Updates and then select Update All.
Select Close.
On the Sales order Action Pane, select the Pick and Pack tab.
In the Generate group, select the Post Packing Slip action.
In the Packing slip page, set the Print packing slip select the toggle bar to Yes and then select OK to generate print-to-screen.
You will receive a warning communicating you are posting the packing slip and printing to screen only. Click Yes. Note the Sales order status now shows as Delivered.
On the Sales order Action Pane, select the Invoice tab. In the Generate submenu, select Invoice.
On the Posting invoice page, set the Print invoice toggle bar to Yes and then select OK to generate print-to-screen.
You will receive a warning stating you are posting the invoice and printing to screen only. Select Yes.
Review and then close the report. Note down the Customer invoice number as you will need this number later.
Go to Accounts receivables > Journals > Payments > Payment Journal.
Select New in the Action Pane.
In the Name field, enter CustPay and then tab off the field.
With the new journal still selected, select Enter Customer Payments in the Action Pane.
Select customer US-027.
Make sure that the amount of payment is equal to the amount debited to the customer for the previous invoice.
In the Select to Pay grid, select the invoice that was previously created.
In the Amount field, enter the amount equal to the Remaining Amount.
Check that there is no remaining amount for settlement that has resulted from the payment.
Select Save in Journal in the Action Pane.
Select Close.
Select the Journal batch number that you created, select Post, and then select the Post option. You can now see the Posted on date displays the date and time the journal was posted.
If the Infolog appears, close it.
In the page, select Close.