Stock - Sales Order Processing and Despatches

Sales Order Processing (SOP) is available both for the sale of stocked items as well as non-stocked sales items. The SOP system allows for:

The SOP system is accessed via the Stock menu.

Stock - Sales Orders

Before creating sales orders ensure that customer details, including ship-to details, are correct and that the stock item or sales items are present.

This guide addresses the following topics.

Entering a New Sales Order

Enter a new Sales Order via the Sales Order menu.

Stock - Add Sales Order
Stock - Sales Orders - Add SO

An input screen is presented.

The Sales Order Number will be the next in the series but an alternative can be entered if preferred. A Customer PO Number may be entered. A number may be mandatory if the Stock Configuration options specify this.

Select the Bill-to Customer from the drop down list (The Bill-to is the location to which the Invoice is sent). If the customer does not exist, click the + button to create a customer and complete the details in the customer maintenance dialogue box in the usual way. If the sale is to an EU customer and can be zero rated tick the Zero Rate EC Sale box.

If the sale is despatched to a ship-to location that is different to the Bill-to location, un-tick the 'Ship To Bill To box' to allow a Ship-To location to be selected from the drop down. Enter a Memo note if desired.

The Order Date defaults to today?s date but may be overridden. Delivery Date and Planned Shipment Date are also entered as defaults but can be amended by users. The dates can be used as filters in preparing sales order management reports. Note also the Delivery Date will be displayed on the SO document, adjacent to the Date Raised field.

Click ADD ITEM to start the process of selecting a sales Item. Select the Sales Item from the drop-down.

Enter the sales quantity, the unit price will default to any price on the sales item record, it can be amended as necessary. The total price is displayed.

Click SAVE ITEM to save the line item, if further items are to be added click ADD ITEM again. When all line items have been entered, click SUBMIT to record the Sales Order. The RESET button, resets the screen to allow a user to start again.

A quote/order in pdf format can be created for printing or emailing. Go to the Sales Order Listing screen and click the Print icon adjacent to the relevant sales order.

Having saved the Sales Order the screen rebuilds to allow stock check and reservation.

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Reserving and Despatching Goods

The re-drawn sales order screen now displays additional information and buttons to reserve stock and despatch it.

Click the RESERVE button, if sufficient stock exists to satisfy the quantity then the stock is reserved and will remain reserved until despatched or the Unreserve button is clicked to release it. If insufficient stocks exist then depending on the whether the Allow negative stock from 'Sales Order?' box in stock configuration is ticked or not one of two actions is taken.

Allow negative stock from 'Sales Order?' box ticked.
The sales order quantities are still reserved and the reserve balance goes negative. Note that it is not possible to despatch from a negative reserve so the Sales Order will remain with an outstanding balance displayed.
Allow negative stock from 'Sales Order?' not box ticked.
Only the available stock is reserved for despatch, and the Sales Order will remain with an outstanding balance displayed.

If desired the despatch may be launched by clicking the DESPATCH button.

A despatch screen is displayed.

Enter the Date Despatched, defaults to the current date but can be amended. If all the reserved stock is to be despatched click DESPATCH ALL or if not enter the quantity to be despatched in the right hand box. Click SUBMIT to confirm.

The system creates a sales invoice and posts a sales and cost of sales transaction (see below). A Quote/Order note can be created as a PDF for both printing or emailing, simply go to the Sales Order Listing and click the Print icon icon adjacent to the relevant SO. If the user clicks the VIEW button the details of the SO are displayed. It is possible to create a despatch note as well as view the sales invoice that was created. The Sales Invoice can also be accessed via the Lists menu.

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Sales Invoice Accounting

The accounting for the sales invoice is normal.

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Cost of Sales Accounting

Despatching a sales order adjusts the physical stock quantities and the values as described below.

For a standard cost valuation method where a BOM is used; then the despatched quantity multiplied by the standard cost elements of material, labour and other overheads where they exist.

For a standard cost valuation method where no BOM exists, then the despatched quantity multiplied by the standard cost.

For FIFO and Average valuation methods, the system calculates the required stock value just prior to and after the despatch and posts the difference.

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Dealing with Stock Returns

This is a two stage process

  1. Adjust the physical stock by the return amount
  2. Raise a credit note for the customer

Stock is adjusted on the stock adjustment tab of the stock item

Stock - Manage Stock - Stock Items - EDIT the relevant stock item

In the Adjust Stock tab, enter a date for the transaction and the stock adjustment quantity. (+ve to add stock or -ve to reduce stock) The system amends the stock value (using the current unit stock value) and puts the other side of the adjustment to the Stock Value Adjustment Account in P&L. Note you can view (or edit, if say, you would prefer the P&L impact be recorded in another account) the journal entry that is created.

Control - Journals

Stock is now correct, as is cost of sales.

Now raise the credit note as normal and for the appropriate value.

Sales - Add Credit Note

Sales and accounts receivable are now correct.

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