Create and process sales orders
A sales order is a key document in Supply Chain Management because it represents a sale of a product to a customer. A sales order consists of a customer who's being sold a product. It includes charges to items, such as freight or installation charges. The sales order also includes delivery options, where you can arrange for delivery to be at different times and different locations based on the customer's needs.
Sales order process
The sales order process involves several steps that you can complete. The general business process for sales orders in Supply Chain Management is as follows:
Create a sales order.
Add lines to the sales order.
Confirm the sales order.
Create the picking list.
Register the picking list.
Create the packing slip.
Ship items to the customer.
Create the invoice.
Receive payment from the customer.
You can create and manage sales orders in the following modules:
Sales and marketing
Accounts receivable
Retail
Revenue recognition
You can create a new sales order by going to Accounts receivable > Sales orders > All sales orders and then selecting New on the Action Pane. Additionally, you can create sales orders by confirming a sales quotation in the Sales and marketing module. When you confirm the sales quotation, the system automatically creates a sales order.
The following video shows how to convert a sales quotation to a sales order in Supply Chain Management.
Context-aware sales order insights with Copilot
Copilot's context-aware sales order summaries provide a streamlined, customized view of essential sales order information, tailored to your role and the pages you interact with most frequently. Featuring a dedicated Summary by Copilot FastTab on the Sales order details page, it highlights critical status insights, such as the number of confirmed, received, and invoiced lines, as well as overdue items. This feature adapts to your daily work context, pulling relevant details based on your user profile, permissions, and frequently accessed pages. Designed to enhance decision-making, it prioritizes and presents data most pertinent to you, supporting faster, more informed actions in Supply Chain Management.
Charge allocation
Charges are costs and fees that you can add to the cost of items and purchases according to the setup. Examples of charges include:
Freight
Transport
Postage
Automatic setup of charges
The system applies automatic charges, also referred to as auto charges, when you create a sales order. You can define auto charges for a specific customer or item, or you can define them for groups of customers or all items. You can set up this charge in the Accounts receivable, Accounts payable, or Procurement and sourcing modules under Setup > Charges > Auto charges.
In the Level field, select the level to which to apply the auto charge from the following values:
Header - Applies charges to the order header.
Line - Applies charges to the order lines.
Then, follow these steps to finish setting up auto charges:
Select an account in the Account code dropdown menu to be one of the following types:
Table - Assigns charges to a specific customer.
Group - Assigns charges to a miscellaneous Charges group.
All - Assigns charges to all customers.
In the Customer relation dropdown menu, select a specific customer if you selected Table, or select a customer charges group if you selected Group.
In the Item code dropdown menu, select an item code. You can select an item code only when you define auto charges at the lines level.
Select Table if you want the system to assign charges to a specific item.
Select Group to assign charges to an item charges group.
Select All to assign charges to all items.
In the Item relation dropdown menu, select a specific item if you selected Table, or select an item charges group if you selected Group.
In the Mode of delivery code dropdown menu, select the mode of delivery code.
Select Table if you want the system to assign charges to a mode of delivery.
Select Group to assign charges to a mode of delivery group.
Select All to assign charges to all modes of delivery.
In the Mode of delivery relation dropdown, select a specific mode of delivery if you selected Table, or select mode of delivery charges group if you selected Group.
Expand the Lines FastTab.
In the Currency field, select the currency to use to calculate the charge.
Select the Charge code from the dropdown menu. Before you plan to add automatic charges when you create a sales order, you must set up charges codes first. You would use these codes to define the type of charge and how the charge is debited or credited.
Choose the Category of the charge:
Fixed - The system enters the charge as a fixed amount on the line. You can use fixed charges on charges in the order header and on the order lines.
Pcs. - The charge is based on the unit. You can only use these charges on order lines.
Percent - The system enters the charge as a percentage on the line. You can use percentage charges on charges in the order header and on the order lines.
Intercompany percent - The system enters this charge as a percentage on the line for intercompany orders. You can only use intercompany percentage charges on order lines.
External - An external service that's associated with one or more shipping carriers calculates the charge.
Enter the Charge value as it pertains to the Category of the charge.
In the Charges currency code field, specify a currency for the charge to use a different currency than is specified in the Currency field. This scenario is possible if the Debit or Credit type is Ledger account or Item for the selected charges code.
Specify a starting amount to apply the auto charge to in the From amount field. In the To amount field, specify the ending amount to apply the auto charge to. Amount in this context refers to the order total. This step is optional and at header level only.
Select the Sales tax group (optional).
Select the Keep checkbox to keep the charges transaction after invoicing.
Select Site and Warehouse from the dropdown menus for the system to apply charges to (optional).
After you set up the automatic charges and add lines to a new Sales order, select Tiered charges on the Purchase Action Pane.
Select Allocate charges to apply the charges as expected.
