Describe the sales order creation process
Sales order creation is one of the most frequently used processes in Supply Chain Management. A sales order is a legal agreement with a customer to sell goods or services. A sales order document keeps track of the sale of products and accounting of the sales invoice. You can access the sales order page from Sales and marketing > Sales orders > All sales orders.
Sales order number is an autogenerated number, which you can configure by using the number sequence framework available in the finance and operations apps.
The customer account and invoice account are usually the same information. They might differ if an item is sold to a subsidiary company and the parent company issues the invoice.
The Order type field can have five possible values:
Journal: You can use a journal as a draft sales order. You can’t generate any further transactions from the journal. A sales order journal type isn't considered as a demand during the master planning process.
Subscription: If you need to create a recurring order, you can select Subscription as the order type. In this type, once the sales order is invoiced, the order status is set automatically to Open order. The Quantity delivered and Invoiced fields are also updated. This feature can’t be used when the Warehouse management module is in use.
Sales order: You use this order type to create regular sales orders.
Returned order: When a customer returns an item to stock, you need to create a return order with an automatically assigned RMA number.
Item requirements: This order type is created automatically when you make an item sale through a Project module. The project number can be seen in the Project column.
Order status has four values:
Open order: When the order is created
Delivered: When the order is fully delivered
Invoiced: When the order is fully invoiced
Canceled: When the order is fully canceled
To create a new order, select the New button in the action pane to open the Create sales order dialog. From this dialog, you can enter important information, including Customer account, Order type, Site, Warehouse, Currency, Delivery information, and Sales Responsible.
The Sales order details screen has two sections: Header and Lines.
The sales header has several FastTabs. On the Setup FastTab, you need to define the tax-related information. The delivery address should be available on the Address FastTab. The Delivery FastTab contains information that includes ship date, receipt date, mode of delivery, delivery terms, and shipping carrier. The Price and discount FastTab hold information that includes currency, payment terms, method of payment, credit card details, discount details, price groups, and charge groups. If the customer is in credit management, relevant details are available on the Credit management FastTab.
For the sales line, the following tabs capture line-specific information.
The Setup tab contains the sales tax that is specific for items. You can also find inventory-related information that includes the lot ID and reservation process for individual items.
If an individual item in the sales order has a different delivery address, you can capture it on the Address tab.
On the Product tab, you can capture the inventory dimensions.
The Packing tab is responsible for capturing the bar code and packing details.
The Delivery tab provides information such as ship dates, receipt dates, delivery details, and the shipping carrier individually for each line item.
The Pricing and discount tab includes information such as prices, discounts, and rebates.
A sales order has several menus in the action pane, with buttons to provide various functionalities.
From the Sales order menu in the action pane, you can initiate a new purchase order, service order, or direct delivery. You can also check the totals, put the order on hold, or cancel the order.
The Sell menu in the action pane provides features for sales tax, charges, discounts, supplementary items, and order confirmation.
The Manage menu is used for intercompany trading. You can also initiate the credit card authorization process from this menu.
Pick and pack is an important menu for processing picking list, registration, packing slip, quality order, and nonconformance.
The Invoice menu mostly deals with invoicing related processes.
From the Credit management menu, you can release the sales orders that are on hold due to credit management settings.
The buttons in the sales line grid apply to each line item.
You can select the Sales order line button to explode Bill of Materials (BOM) lines, calculate supplementary items, process credit notes, and copy sales lines from other sources.
By selecting the Financials button, you can manage the charges and sales tax for individual lines.
The most important action of the Inventory button is to process item reservations. You can also view on-hand inventory and trace dimensions when you select this button.
You can create new productions or transfer orders by selecting the Product and supply button on the line. You can also view the available-to-promise (ATP) information from here.
By selecting the Product and supply button, you can process nonconformance and quality orders for a sales line item.
You can select the Product and supply button in the sales line to review requirements related to production processes such as explosion, net requirement, and pegging.
To update the picking and delivery remainder, you can select the Update line button in the sales line.
Apart from the regular process to create a sales order, you can also generate sales order from the sales quotation.