Sales Process

We have added sales process in Inventory module on purpose. Because it shows how much you can ship and invoice based on inventory. If you are running a warehouse, then this sales order & invoicing should be tightly integrated with your inventory process.

The diagram below describes the sales process from quotation to billing. Everything is automatic and process oriented. All these transactions are available on mobile also.

Some of components are essential to run this automatic processes and all of these are described in details in the below sections.

Quotation:

Quotation is an important step in the sales process. Its kind of bridge between sales and marketing. Because when leads / enquiries are created and reaches to maturity stage, we can raise quotation. It becomes clear intent in terms of price , discounts, terms & conditions and deliveries.

Our quotation module is connected to multiple components of the system. You can create quotation for spares, for finished products and for services also. You can create it with reference to Part Request or from the Lead. All data is automatically transferred from preceding document and you just need to validate all the adopted data.

You can also create quotation without any reference. In this case, you need to add customer, contact and item details with the search function and you can then release the quotation.

You can modify the quotation as negotiations are progressing. If you win the deal and then quotation is converted into the sales order.

In case, you have not won the deal, you can close the quotation with appropriate status such as Lost, Abandoned, etc. You can see all quotations raised for a product vs won deals and so on.  

Sales Order:

When you win a deal, your customer will give you a purchase order. You need to create a sales order in the system with reference to that Purchase Order. Anything you sell from your business, you need to create a sales order. Sales order becomes then the single point of tracking reference for payments, deliveries and receivables.

Many times, in smaller businesses, this concept is not followed. Small businesses receive Purchase order from the customer and sends shipments and raise the invoice. But when there are multiple deliveries, or payment schedules, etc this becomes a problem in terms of tracking and tracing of all milestones.

The reason of not creating sales order in our system is mainly lack of systems or very complicated system setup. We have tried to solve this issue in our sales module. So it becomes very easy to create sales order in the system and that way track all of your sales through the transactions.

There are different types of service orders available in CEMS. You can do counter sales, you can do material or service sales or third party sales. It depends on what kind of sale you are doing and what are you selling. Additionally, this is compliant with Goods & Services Tax (GST) system of India and so you need not worry on taxation stand point. System will calculate GST as per the rules automatically and store it in the database.

So this is very simple to follow as well as it takes care of all of your sales process complexities. You can give discounts, it gets into claims matrix automatically and so on. Once booked, it updates your AR balance automatically and so on.

Fulfilment:

Once sales order is booked, it has to be fulfilled. It needs to lookup stock or open purchase orders and tell you when can you fulfil the order. Typically in any ERP system such as SAP its done via Material Requirements Planning or MRP process. We have simplified this MRP engine keeping all business level requirements. Our MRP process looks for all undelivered sales orders, available stock and all pending(Unreceived) Purchase orders and derives net quantity. If net quantity is positive, then it will be shown as quantity to purchase. If net quantity is negative, that means existing sales order can be fulfilled via available stock or unreceived Purchase Orders.

Once Net Requirements are available, system will determine if you can fulfil the sales order or need to purchase shortage quantities. You can convert these Net Requirements into Purchase Orders and then fulfil the sales order.

One of the key master data element is Delivery Lead Time on item master. If you maintain that, then you would be able to determine the net requirements more accurately.

This net requirement calculation happens via a batch job for all items or for all sales orders. But you can also do it on ad hoc basis whenever its needed.

This net requirements calculation will result into all procurement activities. Once you receive materials, it will go in the available stock and can be used to fulfil sales orders. This is soft allocation of materials to the sales orders.

Quite often, many business users wonder if procurement can happen specific to a sales order. We have addressed this issue as well. If you want to procure specific to the sales order, then you can do so by flagging it in the sales order. Once you set this flag system will create purchase orders specific to the sales order. Only flip side in this process is it will overlook existing stock or open purchase orders. But this can be useful if you deal with job specific purchasing. You can create sales order and lfag items to be purchased and in that case, you only these items will be used to fulfil sales order.  

Shipping &Billing :

Once materials are available those need to be packed and shipped appropriately. Our logistics process support simple shipping as well as any complex packaging & shipping process. Packaging – If you do packing on your products you can activate this functionality and system will ask for packing for every shipment. If you do not activate this process, then you can simply create billing or invoice from sales order and ship out the materials.

When packing is not activated, you need to create invoice from sales order. Only un shipped quantity will be allowed to ship. Once you create invoice, your inventory will be reduced from the warehouse. So you need to be careful that all invoices should be physically shipped out of the door. That will keep your physical stock in sync with billing amounts. Also, its legally required to ship out all materials before you create liability to your customers.You can create billing with reference to the sales order. You can create multiple billing based on your terms with the customer. As soon as Invoice is created & saved, your stock will be reduced from the inventory. So this transaction is used to create Account Receivables balance as well as goods issue from the warehouse.

If stock is not available then you can not create billing for that quantity. You can invoice only for available stock. Once Invoice is generated, it calculates all taxes based on GST settings. And every month you can download the invoice list to see all your sales and GST postings. This is done in such a way that all GST compliance is taken care of by the transaction itself.

Once Invoice is generated, it calculates all taxes based on GST settings. And every month you can download the invoice list to see all your sales and GST postings. This is done in such a way that all GST compliance is taken care of by the transaction itself.

Milestone Billing – Within billing, you can define milestones and system will automatically prompt you for the billing. You can define monthly billing and system will trigger invoices on the designated dates. Once invoice is saved in the system, you can email it to customer as a pdf attachment or print and mail it.

Account receivables

Once invoice is created and sent to customer, system will start showing it in your AR report. Based on payment due date, it will start showing aging of your AR balance.