Sales Order Management

Definition

A sale is referred as selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.

Sales management is the process of planning, organizing and controlling the sales team of a company.

Sales order management involves much more than taking an order and shipping it. Today'srequirements include sophisticated order management, inventory allocation, kits andconfigurations, and promotional pricing. The Sales Order Management system allows you to address these issues.

Sales order management

The Sales Order Management system provides the following features:

Extensive user defined information

Recurring order and order template processing

Customer and item preference profiles

Online inventory availability and available-to-promise information

Comprehensive order and line status tracking

Flexible pricing and discounting, which supports promotions, contracts, andallowances.

Types of sales order

Regular sales order

Regular sales is normal sales order entered and shipment done based on the order placed.

Quote order

Quote order is entered when customer requires a formal price quote prior to actuallyplacing an order.

Blanket order

Blanket order is entered when a customer agrees to purchase a quantity of an item over aspecified period of time.

Direct ship order

A direct ship order is the sale of an item that you purchase from a supplier, who then sendsthe item directly to your customer. The quantity and item information of a direct ship orderdoes not affect your inventory.

Inter branch sales order

Interbranch orders are helpful if company sells from one location but fills and ships orders from another location, such as a central supply warehouse.

Credit order

Credit orders is entered when a customer returns goods that you might return to inventory, orwhen you receive back damaged goods that you cannot return to inventory. In both cases,we need to issue the necessary credits and make adjustments for the returned merchandise.

Sales Order management Flow

Customer places an order.

Order received, based on that production starts.

Shipment of finished goods to the customer.

Invoice generated for the shipment quantity.

Accounting books get updated.

Prepayment processing

Prepayment of an order takes place when a seller receives a form of payment from thecustomer at the time of order entry. There are many types of prepayments that a customercan use, such as cash, check, and credit card.

There are two types of prepayment transactions:

Two-party Prepayment

Two-party prepayments are typically cash or check transactions, which occur betweensupplier and customer.

Three-party Prepayment

Three-party prepayments are typically credit card transactions, which occur between supplier,customer, and the credit card company.