Basic Sales Order Process

This diagram shows the suggested steps for processing a typical sales order. Note that, in this chapter, we skip sales quotes. Items with a single asterisk are required, but are covered at length in Training Guide: Allocation and Shipping.

Four modules are typically involved in the sales order process:

• Configured Products, described in Training Guide: Configured Products

QAD Enterprise Applications also supports many optional features that can be used with sales orders. For details, see Optional Sales Order Features.

Depending on your company requirements, you may complete some or all of the above procedures when processing a sales order.

Procedures that are typically required to process a sales order include:

2 Processing the shipment of the items on the sales order

A sales order consists of a header, line items, and a trailer. Each part is displayed in a separate frame.

The header frames include the sales order generic information that defines customer information and applies to the entire order:

• Dates: Order Date, Due Date, Required Date, Promise Date, and Pricing Date

• Customer name and address: sold-to address and/or bill-to address

• Comments can follow to describe in more detail the terms or instructions associated with this order

After completing the header information, you enter specific line items in the Sales Order Line frame. The line item frame includes all items on the order.

Note: Best list price, discount percentage, and net price are determined by the system based on analysis codes and defined price lists.

• Mode defaults from your settings in Sales Order Control

• You can switch between the two modes within an order

When all line items are entered, the trailer frame is displayed:

• Freight charges: calculated automatically on a bulk or unit basis

You can create a sales order or view an existing sales order using Sales Order Maintenance.

Each sales order or pending invoice has a unique sales order number, entered manually or system assigned. The system automatically assigns a number when you leave the number field blank and increments the next number in Sales Order Control

The system calculates the due date by adding the specified Shipping Lead Time from Sales Order Control to the Order Date

• The due date is the date the system uses for MRP and for determining shipping priorities

Note: You can also specify the Order Date, Required Date, Promise Date. These dates are for your reference only. The system does not reference to these values.

Defaults to one of the other four dates, depending on the setting of SO Default Price Date in Pricing Control. This date is used in the search for effective price dates

Defaults from the setting of Price SO by Line in Pricing Control and determines for a new order whether the system prices each line item as it is entered or waits until the end of order entry before calculating prices.

Yes: The system prices each line item as it is entered, recalculating prices for previous lines when they change due to volume price breaks.

No: The system recalculates line item prices only once, when transaction entry is complete.

Setting Line Pricing to No on sales transactions may reduce processing time during line item entry since the system does not recalculate prices for previous lines. However, in order to know the exact price of each line as you enter it, set Line Pricing to Yes.

Note: In both cases, if prices change because of quantity breaks the system recalculates them at the end of order entry.

Example: When lines 1 and 2 are for the same item (or break category), the combined quantity can qualify line 1 for a different price list (with better prices). The system always adjusts prices affected in this way when order entry is complete.

A price list to be considered for line item pricing on this order in addition to the ones that the system selects as potential price list candidates

• When a price list is defined in Sales Order Price List Maintenance, you can optionally mark it as manual. In this case, the system never considers it for pricing unless it is entered by the user in the Manual field on an order header.

• If a price list is entered, it is included as a price list candidate when the system selects price lists to consider for this order

• Specifying a manual price list only marks it to be considered

• The system still determines the best price according to the rules and codes previously set up

The currency code for this sales order or invoice, uniquely identifying a foreign currency. When an order is entered, the system displays the exchange rate effective on the order date and lets you change it, optionally flagging this rate as fixed.

When the invoice is posted, the system takes the exchange rate effective on the post date and posts the rate to Accounts Receivable unless it is marked as fixed.

Once an order or invoice has been entered, the currency cannot be changed

Warning If you made a mistake and entered the wrong currency, you can only correct it by deleting the order or invoice and re-entering it.

The method for entering sales order and invoice line items. Values must be S or M:

• Single: You can display and maintain detailed information for each line item

• Multi: You can enter basic information—item, quantity, and price—for up to 12 lines on a single screen

Defaults from Sales Order Control; see Ln Format S/M.

For detail allocation, specify a location from which the inventory is to be allocated. For General Allocation, leave field blank; the system allocates from the default site/location for the item

If doing a detail allocation, specify the site, locations, lot/serial numbers, and lot references for the allocated quantity for the item

Defaults from Sales Order Control; see Detail Allocations

The total of quantity allocated, plus quantity shipped, plus quantity picked cannot be greater than quantity open on the line item. You can add security for this field.

A quantity allocated can only be specified for a confirmed order. For confirmed orders, the system calculates a default based on a number of fields:

• Allocations reserve inventory. You cannot allocate it to other sales orders, RMA issue lines, intersite requests, or work orders

• Allocations are used to control the shipment of items, especially in shortage situations when a sufficient quantity of an item does not exist to fill all orders

• Most shipment functions let you set up the quantity allocated or picked for immediate shipment

• Allocation quantity can be changed manually; usually picklists only print the quantity allocated

• Sales Order Manual Allocations or Sales Order Auto Allocations can be used later to allocate inventory to a sales order due outside the allocation window or when sufficient inventory becomes available

• Sales Order Packing List Print will only detail allocate sales orders with a quantity allocated greater than zero

Quantity picked cannot be greater than the quantity open on the line item

• The quantity printed on a picklist for this line item

• When a picklist prints, the system updates the quantity picked, ensuring that the same quantity is not printed again on the next picklist printed for this order

• Quantity picked can display as the default quantity to ship during the Sales Order Shipment function to simplify the entry of shipments

See in this training guide: Qty Available to Allocate and Pick Only Allocated Lines and After Printing the Picklist

Defaults to the value entered on the sales order header and indicates whether this order line is considered a firm order

Note: A confirmed order can have some line items that are not confirmed. If sufficient items are not available, it is necessary to review the order before promising delivery.