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Creating & Processing a Sales Order

Creating & Processing a Sales Order. Kyle Turner, Erika Perin, Tran Nguyen, Ricardo Calderon. Group 7. Process Overview. Transformation Process. Primary Output. Primary Input. Purchase Order. Customer Receives Order. Fulfill Sales Order. - Package Order - Ship Order - Prepare Invoice.

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Creating & Processing a Sales Order

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  1. Creating & Processing a Sales Order Kyle Turner, Erika Perin, Tran Nguyen, Ricardo Calderon Group 7

  2. Process Overview Transformation Process Primary Output Primary Input Purchase Order Customer Receives Order Fulfill Sales Order - Package Order - Ship Order - Prepare Invoice This process works well for customers purchasing bulk orders or for high priced orders that require specific payment terms described through an invoice. For example, companies who sell large amounts of lumbers to customers.

  3. Steps and Roles

  4. Customer Sales Team Warehouse Accounting [ Process STARTS Here Receives Purchase Order Receives Sales Order Sends Purchase Order Enters customer and order information into database Sufficient Inventory? YES NO Creates Sales Order Receives notification of order fulfillment and shipment Part or all of order is placed on backorder; customer is notified Order is packed and shipped. ] Process ENDS Here Receive Order Prepare and send invoice to customer; debit A/R Receive Invoice

  5. MIS Support Oracle’s Sales Order Management System • One type of information system that supports the process of creating and processing a sales orderis Oracle’s Sales Order Management System. • This system provides a platform to perform this business process easily and efficiently. • The size of the company and the amount of transactions made ultimately decides how in-depth the system needs to be.

  6. Oracle Information System Utilization Sales Department 1. Receiving Customer Purchase Order • When the sales team receives a purchase order, they can either check their databases for information on previous customers or input the new customer’s information (which will be saved). 2. Creating a Sales Order • When the sales team creates a sale order, they enter all the necessary data into the system such as customer information, quantities desired, prices, shipping information, delivery dates, and etc. All data entered into the system are saved into the oracle servers and is accessible by anyone in the company (as long as they have the proper credentials).

  7. Oracle Information System Utilization Warehouse 1. Receives Sales Order • Warehouse employees are notified of new sales orders through the system. 2. Inventory Check • The system can also provide information on inventory. • If inventory is sufficient enough to fulfill the order, it is prepared to be shipped. • If inventory is too low to fulfill the order, the order is placed on backorder and the customer is notified. 3. Order Packaged and Shipped • Manual labor is required to package and ship the order. • When the order is shipped, warehouse employees enter data into the system notifying the sales and accounting team that the order has been fulfilled and shipped.

  8. Oracle Information System Utilization Accounting 1. Receives Order Shipment Notification • After the order has been fulfilled and shipped by the warehouse, action is needed from Accounting. 2. Accounts Receivable Increased • When products are shipped, A/R will be debited by the accounting department – this information is entered into the system. 2. Invoice Preparation • Once the order has been shipped, Accounting uses the system to create an invoice. • The invoice is sent to the customer; when payment from the customer has been received, Accounting will record this payment and credit A/R.

  9. Other MIS Platforms Oracle is only one of many MIS platforms that support the process of creating and processing a sales order. Most of these platforms perform similarly to Oracle in that different sectors of the business can easily access all the information required to fulfill and record the order from start to finish. Listed below are some of the other commonly used platforms used to support this type of business process.

  10. Process Metrics • Customer Satisfaction • Were customer inquiries regarding their orders answered in a timely manner (i.e.. shipment date, inventory, availability, etc…)? • Percentage of Sales Order Error • Is the system reporting and relaying the right orders (products, quantities, etc…)? • Percentage of Inventory Errors • Is the system relaying the correct inventory information? • Percentage of orders that had to be backordered is a measure of this potential issue. • Percentage of Shipping Errors • How many orders were shipped to wrong customers? • Percentage of Invoice Errors • Are amounts on invoices being properly reported on the invoices? For example, are discounts to customers being properly applied? Is the system recognizing these specific customers to provide discounts to or do we have to manually enter the discounts in each time?

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