Description

The Order Processing application performs four major functions:  sales order maintenance, quote order maintenance, quote order conversion, and shipping and billing.  The maintenance, reporting, and inquiry capabilities provided by the application support these four functions.

Order Processing also provides the capability for electronically receiving sales orders and sending invoices and acknowledgments through the Electronic Data Interchange (EDI) module.  In addition, the windows-based Sales Force Automation module runs on a remote PC and allows sales staff to enter orders at remote locations without having to dial into MAC-PAC.  The normal order processing functions described below are not functionally modified during EDI or Sales Force Automation processing.  For more specific information on these interfaces, see to the Interface with Other Modules key concept in this manual or refer to Electronic Data Interchange User Manual and/or the Sales Force Automation Online Help System.

Sales Order Maintenance

The sales order maintenance function encompasses several sub-functions:

·      Maintaining customer sales orders.

-    Customer information, sales order line items and sales order comments are maintained simultaneously.

-    Blanket order and backorder releases are created based on data on the original (parent) order.

·      Controlling customer sales and initiating the shipping process.

-    Sales orders identify what the customer has ordered and the total amount of the order.

-    Pickers identify the quantities to be picked and shipped.

·     Defining shipping parameters

-    Sourcing warehouse, promised ship date, carrier, route, ship via, and the ship via's volume and weight capacities determine how sales order lines are grouped into order shipments.

-    Load numbers can be entered to assign sales order lines to deliveries.

·      Controlling open orders and enforcing management policies.

-    The sales order register identifies all orders entered since the last time the report was produced.

-    Exception reports provide hard copy evidence of the credit, pricing, and availability exceptions that were detected in online processing.

-    Audit trail reports identify changes to key order, line, and comment data.

• Displaying (via online inquiry) the status of sales orders by order number, order line number, or shipment number.

·     Displaying (via online inquiry) documents, return authorizations, and invoices for a particular part number on a sales order or for an entire sales order.  The transactions will be listed in date sequence.

·     Displaying the financial detail pertaining to all of the sales order lines for a specific customer.

Quote Order Maintenance

The quote order maintenance function involves:

·      Maintaining customer quote orders.

-    Customer information, quote order line items, and quote order comments are maintained simultaneously.

-    An expiration date is assigned to each quote order.

·      Controlling open orders and enforcing management policies.

-    The quote order acknowledgment identifies all orders entered since the last time the report was produced.

·      Displaying (via online inquiry) the status of quote orders by customer, part, and order number.

This function will be performed by the Sales Order Maintenance program.  Two menu options will be available -- one for sales order maintenance and one for quote order maintenance.  The processing for the two maintenance modes will be very similar, except that some functions will not be performed (such as inventory reservation) and some fields will not be displayed for quotes.  Separate sets of files for quotes and sales orders will be used.

Quote Order Conversion

The quote order conversion function involves:

·      Converting quote orders into sales orders

-      Sales order numbers can either be system-assigned or manually assigned to realized quote orders.

-      Customer and order information from the quote order does not need to be re-entered or manually assigned to realized quote orders.

This function will be performed from the Sales Order Maintenance Function Select screen by pressing F7-Quote Conversion.  This method of converting quotes will provide greater flexibility by allowing you to copy from the quote selectively, as well as the ability to copy from the quote and modify it before ending the order.  For more information, refer to the Order Entry key concept in this manual.

Shipping and Billing

The shipping and billing function involves:

·      Recording quantities shipped.  Actual shipped quantities and stock location information are annotated on the picker for later entry.

·      Shipping the goods to the customer.  Shipping information on the picker assists warehouse personnel in sending the goods to the customer.  A Bill of Lading may also be printed for each shipment release of an order.

·     Printing packing and shipping paperwork.  Paperwork such as Bill of Ladings, packing lists, and packing and shipping labels enable contents of shipments  to be identified and verified.

·     Assigning serial numbers to the parts being shipped.  These serial numbers allow you to track the inventory's flow as it is shipped and returned.

·      Entering quantities shipped and updating inventory balances.  Shipped quantities can be entered against a previously entered sales order, or without previous creation of a sales order.

-     Shipped quantities can be recorded against a previously entered and released sales order with minimal data entry requirements.  Inventory on-hand and on order balances are automatically updated.

-     Shipped or returned quantities and billing adjustments can be entered directly without previous order entry.  Inventory on-hand balances are updated, if appropriate.

·      Updating accounts receivable data.  Accounts receivable data for the customer is automatically updated.

-     Accounts receivable and open order balances are updated based on total amount shipped, returned, or adjusted and include tax, special charges, and freight amounts.

-     Accounts receivable open items are created to provide detail to support the total accounts receivable balance.

·      Creating billing documents.  Invoice, debit memo, credit memo, or cash sale documents are created.  These documents notify the customer of amounts due or credits received.  The document types for these documents are defined on Reference File category 329.  You may also generate installment payments for an invoice based on the payment terms code associated with the order.

·     Creating a draft.  A bill of exchange is created for an invoice in Shipping/Billing and in Postbilling/Memo Entry if the following conditions are present:

-     Consolidated invoicing is not used

-     Customer is not defined with payment on a statement basis

-     open amount is greater than zero and payment type is a bill of exchange

If a draft is created for the invoice, then the next available draft number on Reference File category F37 will be retrieved and assigned to the draft.

·      Reporting activity.  Register and audit trail reports identify the billing activity, quote order maintenance, sales order maintenance, and inventory movement that has occurred since the last time the reports were produced.

·      Accounting for shipping and billing activity.  Transactions are created that account for shipping and billing activity.

-    Shipment and return audit trail transactions are created for all inventory movement.  These transactions are used to create journal entries that are passed to the General Ledger application.

-    Accounts receivable, sales, and tax journal entries are created for all billing activity and are passed to the General Ledger application.

-    Sales history transactions are created for each order line shipped.

-          Shipment and return audit trail transactions also provide lot traceability in a lot-controlled environment.