Blog Posts Process Analysis

Requirements – Sales Order Processing (SO)

Blog: Biz-Performance, David Brown

Sales Order Processing (SO)

1.1 General requirements

The following order types will be supported:
  • quotation,
  • proforma,
  • repeat order,
  • back order,
  • forward order,
  • order with call-offs,
  • direct invoice/credit note.
The following data will be stored for each customer:
  • customer code,
  • customer name,
  • customer VAT registration number,
  • customer type (category),
  • five line invoice address plus postcode (many per customer with one default address),
  • country code of customer,
  • five line delivery address plus postcode and country (many per invoice address with one default address),
  • country code for delivery address,
  • default delivery warehouse,
  • sales representative,
  • telephone number,
  • fax number,
  • telex number,
  • payment terms,
  • delivery instructions (per delivery address).
Stock will be held in multiple warehouses.
Each customer will allocated to a particular warehouse at delivery address level, and which can be over-ridden during order entry.
Each warehouse will have multiple bins, with some stock being at more than one bin location.
The system will maintain a customer/ product discount matrix.
The system will maintain a file of promotional prices, being customer/ product discount matrices for specific time periods.
It will be possible to override the prices displayed when the order is input.
It will be possible to override the line discount percentage when the order is input.
It will be possible to suppress printing the discount on invoices, i.e. show the net price only.
It will be possible to bar customers from buying certain product ranges (to prevent customers buying another customer’s own brand goods).
An expected delivery date will be held for each order line.
It will be possible to add the following to invoices:
  • free-type text,
  • standard text,
  • fixed charges,
  • charges based on order value,
  • charges based on order weight/ volume,
  • non-stocked product lines,
  • additional discount based on total value.
  • basis of value,
  • type of sale,
  • mode of transport,
It will be possible to suppress the printing of the above.
It will be possible to suppress the printing of lines containing components on invoices.
Foreign currency will be supported by the system. The unit price will be converted to the foreign currency at the current exchange rate.
There will be no restriction on the number of lines on an order.
The field size for unit prices will be 999,999.99.
The field size for quantities will be 9,999,999.
Sales order processing will have links to the following systems:
  • stock control, for the allocation of stock,
  • sales ledger for posting invoices,
  • project costing, for posting revenue,
  • sales analysis,
  • general ledger, for revenue (unless dealt with elsewhere in system).

1.2 Order input

Multiple order lines will be contained on a single screen.
To assist with input there will be an alphanumeric search facility on customer name.
To assist with input there will be an alphanumeric search facility on product description.
If it is possible to create a new customer record during order entry, their credit limit will default to zero.
During order entry it will be possible to make enquiries on customers and products.
The field for the customer’s own order reference will be 30 alphanumeric characters and be printed on delivery notes and invoices.
There will be a field for comments on the order entry screen, but these will not appear on documents.
There will be an option to allocate less stock than is ordered even if there is stock available.
If a particular order line is out of stock, the system will offer:
  • an alternative product,
  • an alternative warehouse.
The system will allow for the allocation of stock that is not yet available, thus creating negative free stock.
If insufficient stock is available, there will be options to:
  • back order the whole order line,
  • allocate available stock and back order the remainder,
  • allocate available stock and drop the remainder of the order line,
  • drop the entire order line.
If an item is out of stock it will be possible to select an appropriate message to appear on output documents.
As order lines are input it will be possible to monitor the weight/volume of the order.
There will be a field for the input of delivery instructions. These may be customer delivery address specific.
It will be possible to combine multiple deliveries on one order.
The number of labels required for delivery documentation will be input at the end of the order.
User-defined analysis codes such as sales representative or customer type will be picked up at order entry time from the customer record, and applied to each order for sales analysis purposes.
During order input it will be possible to insert/amend/delete/add lines.
It will be possible to record item serial numbers against each order line after picking as a means of tracking individual stock items so that returns under warranty can be validated.
A customer record can be set to accept no new orders.
The order will be stopped at the start of the order entry if the outstanding balance and existing orders exceed the credit limit.
The order will be stopped if the outstanding balance, existing orders and the new order together exceed the credit limit.
Only the credit controller will be able to release stopped orders for further processing.
When credit notes are input, the operator will be able to select whether:
  • stock quantities will be increased,
  • stock quantities will not be increased.
Forward orders, repeat orders and call-offs will be automatically released as current orders based on due date.
Quotations and pro-formas will be converted to current orders when accepted.
Back orders will be released when stock becomes available, using the following methods:
  • manual on an order by order basis,
  • automatically using customer priority, due date or order date,
  • when a current order for the same customer is processed.
It will be possible to put orders and order lines on hold to prevent further processing.

1.3 Sales order cycle

The following processing cycle will be followed, but may be customised if required:
  • input/create the order,
  • print acknowledgements where required,
  • print picking lists,
  • print delivery notes,
  • print delivery labels,
  • deliveries (or despatches) confirmed by calling up the order,
  • print the invoices after confirmation,
  • print specific invoices without confirmation stage (i.e. direct invoicing),
  • post to sales ledger, general ledger and sales analysis files.

1.4 Data output

1.4.1 Enquiries

Screen enquiries will be made on orders by the following routes:
  • by order number,
  • by product line,
  • by customer,
  • by due date.
In each instance, enquiries may be restricted to individual or combinations of transactions.
It will be possible to enquire on the status of each order line as it passes through the system, and to review the documents printed to date.

1.4.2 Documents

The following user-definable documents will be printed by the system:
  • quotations,
  • proformas,
  • acknowledgements,
  • picking lists,
  • despatch/delivery notes,
  • labels,
  • invoices,
  • credit notes.
The delivery note reference will appear on labels.
Picking lists may be printed for single or multiple deliveries.
Picking lists will group stock requirements by product for multiple deliveries.
Picking lists will be printed for stock transfers and issues.
Picking lists will be printed at the relevant stock location.
Picking lists will be sorted by bin location.
Invoices will be printed with standard user-definable messages.
It will be possible to reprint all of a document print run, or ones for individual orders.

1.4.3 Reports

Outstanding order reports may be selected and sorted using the following fields:
  • customer,
  • product line,
  • commodity code,
  • product group,
  • order type,
  • order date,
  • due date,
  • warehouse,
  • sales representative,
  • order number,
  • margin.
The information appearing on order reports will include:
  • quantity – net mass, weight in kilogrammes,
  • quantities – other units,
  • gross sales values,
  • net sales values.
The content of reports on orders will be user-defined and may be changed at run-time.

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