INTRODUCTION TO SALES ORDERS

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Introduction to Sales Orders

NOTE: This article explains the Sales Orders in Magaya software version 10.0 and earlier. In version 10.2, the Sales Orders process changed. Release date for 10.2: December 2015. If you are using 10.2 or later, please see the Magaya Knowledgebase for the current documentation on Sales Orders.

Introduction to Sales Orders:

Sales Orders are used by wholesalers, distribution centers, or others who sell items. Having sales orders in your Magaya system helps you process sales, create reports, and track your wholesale operations and the related accounting processes more accurately.

When creating Sales Orders, you can add items from your inventory list, even if the item is out of stock. The information entered in the Sales Order dialog box is transferred to a Sales Order document automatically.

You can create new Sales Orders or use the information in an existing Purchase Order to build a Sales Order.

STEPS

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Steps

This section explains how to create a new Sales Order in Magaya software version 10.0 or earlier. (Sales Orders can also be created from existing Purchase Orders via the Actions button in the PO.)

1) Expand the Sales folder.

2) Click the “Add” button. A dialog box opens:

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3) Enter the following information in the fields on the General tab:

• The Sales Order number is an internal number assigned by your Magaya system. It is filled in automatically based on the Configura-tion setup in the Maintenance folder. It can be changed if needed. The date and employee fields are also filled in automatically, and they can be changed as needed.

• Select the payment terms from the dropdown. If the buyer has payment terms set up in their profile (or your system), the terms will be displayed in this SO. The field can be typed over to enter a custom number.

• Click the “Via” field to select a mode of transportation such as air, ocean, etc. This is optional, but if a mode is not selected, then freight charges are not activated on the Charges tab.

• The Reference # is the number is the Purchase Order (PO) number of the company that is buying the items.

• If a salesperson will receive a commission, select their name from the dropdown. To generate the commission, go to the Actions button after completing the sales order.

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• If the sales order needs approval, select the name of the person who approved the sales order and the approval date.

• Select the Incoterms such as DDP (Delivered Duty Paid). This list of incoterms is pulled from the Incoterms included in your Magaya system Configuration. If the buyer/customer has Incoterms set in their profile (on the Pmt. Terms tab), they will be automatically filled in here when their name is selected for the SO.

• Select the shipping date.

• Connect the sales order to a Job (optional) by clicking the “Set” button. See the Jobs chapter for more details.

• If this sales order is for a division within the company, select the division from the dropdown.

• Select the Buyer, the customer who is buying the goods from you, the wholesaler. If the buyer has payment terms set up in their profile, they will be used in this SO. These terms are carried over into the invoice.

• If there was a Purchase Order and it has been accepted by the Seller, check the box.

4) Add items to the Commodities tab:

• Each line in the Commodity screen has a line number. If you don’t see it, scroll across the commodity list to view the column heading “Line No.” Click and drag it to the start of the line if preferred so you

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can see it more easily. To move an item up or down on the list, right-click the item.

• Click the “Add” button in the Commodities tab to add items to the Sales Order. A dialog box opens.

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• Click the “Part Number” dropdown to select items from your inven-tory part number list. This is an example of the dropdown list:

Enter the quantity to order. Note: The system will use items on hand first.

The first two checkboxes on the “Add Items” dialog box are checked by default. Items are filled according to the inventory method set for your company, either LIFO or FIFO. You can set which locations your system can allocate items from; see the section “Allocate Sales Orders.”

Then the system takes items that have a status of “Arriving” (in Pickup Orders and POs).

If there aren’t enough items of these types (On Hand or Arriving), the system will create Backordered Items.

The last checkbox, “Force items as backordered” is used when there are items in stock but you do not want to use them for this order. The system will order items specifically for this SO. Checking this option will disable the other two checkboxes.

If you would rather not add items by Part Number, you can add the items by browsing through your inventory, the arriving items, or items in

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Purchase Orders: Click the ‘Browse” button on the “Commodities” tab to open a dialog box.

To view the Inventory Item Definition statistics, click the arrow button on

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the dialog box:

Items can also be viewed from the Commodity tab by clicking the “Show statistics” button.

For more on this view of the items, see the section “Summarize Items.”

5) On the Charges tab, enter the income charges and income freight charges. For more details on charges, see the Charges section.

6) On the Events tab, enter events as needed. To display events related to this sales order, check the box. For more details on entering events, see the section on Events.

7) On the Attachments tab, add any documents or images. For more details on adding attachments, see the section on Attachments.

8) Add notes in the Notes tab, and add internal notes on the Internal Notes tab. For more details on using the notes tabs, see the section on Notes.

9) Click OK. The information entered in the dialog box appears in the Sales Order form.

SUMMARIZE ITEMS

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Summarize Items

To enable editing of a group of Part Numbers, switch to the “Summarize entries” view in the Commodities dialog box:

This can be set in the Sales Order’s Commodities tab, or in Configuration > Sales, if you want the summary view as the default. Note: While viewing items this way, you cannot add or remove items from the Sales Order; this Commod-ities tab is in a Read-Only state while the box is checked.

In the summarized view, you can edit a part number by double-clicking on it.

PROMISE DATE

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The common properties available to edit include the item description, its unit of measure (UOM), the unit price, and the promise date.

Items can be viewed from the Commodity tab by clicking the “Show statistics” button.

To add photos of items, go to the Inventory Item Definition and add a .jpg format image to the Images tab.

Promise Date

In an SO, you can set the date that an item was promised. To access the Promise Date function, click the column for the item to display a calendar and select a date. (Alternative: check the box to summarize the entries, and double-click an item to open a dialog box with the calendar.)

The Promise Date can be viewed from the columns in the SO List by clicking the “Detail” button and selecting the “Detailed Inventory” panel.

ALLOCATE SALES ORDERS

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Allocate Sales Orders

To restrict the locations that can be used to allocate items in Sales Orders, set your preferences in the Configuration menu for Sales:

By default, the system checkmarks all the locations in the list as “allowed”. To restrict a location, uncheck the box.

This function can prevent the addition of certain items in Sales Orders. If a user creates a Sales Order and tries to add items that are in a restricted location, the system will present an error message.

ACTIONS FOR SALES ORDERS

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Actions for Sales Orders

The Actions menu contains many options for the sales orders and can be accessed from the list view or the document view:

This pop-up menu can also be accessed by selecting an item and right-clicking on it. Menu options are:

• To create reports, use the Actions button in the list view (not the docu-ment view). There are many reports options such as creating reports by buyer, seller, mode of transportation, etc. (If you added Custom Fields, they can be used in reports.)

Also see the reports in the top toolbar menu for Profit Reports > Profit by Customer. When the profitability of a SO is analyzed, other cost charges on related PO’s are considered.

• Cargo releases and shipments can be created from sales orders to ship out goods to the customer. All the information in the sales order is automati-cally transferred to the new transaction you create. For more details on releasing cargo, see Chapter 16. You can also drop ship items. See the section “Drop Shipping” for details.

ACTIONS FOR SALES ORDERS

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• Cancel SO: Any canceled S.O. will have a status of “Canceled” and display in the S.O. List. The items will be returned to inventory. For information on cancelling online sales orders, see Chapter 5 in the Magaya Software Communications Manual.

Sales Orders that have already been canceled or contain items that have been canceled from a Purchase Order may not be canceled again. Sales Orders that have already been invoiced or loaded onto a shipment or cargo release cannot be canceled.

• Invoices can also be created. All items must be “Resale items” and have the income and expense information in the Inventory Item Definition in order to include the item in an invoice. If this information is missing, a notice will tell you that all items must have appropriate charge definitions assigned. (If you need to edit the information, open the Inventory Item Definition dialog box and go to the Accounting tab.) See the section “Accounting Transactions of Sales Orders” for more. If selling a kit, the kit price displays, not the prices of the items inside the kit. See the topic “Kits” for details.

If an invoice was already made, the option will be grayed out.

If there are charges from more than one vendor, the system will generate an invoice for each vendor with the appropriate charges. If there are charges in more than one currency for the same vendor, the invoices will be split with the charges of the different currencies.

• View attachments for a sales order by selecting the Attachments option.

• Print a batch of the sales orders. Select the sales orders to highlight them, then choose the Print Batch option from the Actions button in the list view.

• View a document by selecting the “Go to Document” option.

• To exclude a sales order from view on the online tracking tool, Magaya LiveTrack, select Exclude from Tracking. When an item has been excluded from tracking, a checkmark will appear next to the option.

• Generate Commissions for salespersons. Only items or salespeople that have inventory commission set up will calculate commissions. Create the invoice before generating the commission.

To add a commission amount to an item, go to the Inventory Item Defi-nitions list, select the item, and go to the Accounting tab in the item dialog

ACTIONS FOR SALES ORDERS

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box. Then click the Commissions button to set the commission type and amount.

A customized commission for an individual salesperson can be set up in the profile for that salesperson in the Maintenance > Configuration menu.

See the Magaya Software Customization Manual for details.

• Customize the columns for the list by selecting the Choose Columns option.

• Select Template: This option includes a template with line numbers for all the items and a template to group items with the same part number and price (the Summarized template).

• Import or export list data.

• View the history of a sales order. This shows the history of the items in a sales order that was shipped and delivered:

ONLINE TRACKING OF SALES ORDERS

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From the Sales Order list, you can view a date range of transactions by using the date menus at the top of the list. To save a view, click the star button next to the date range options.

The status of sales orders depends on the status of the items inside the sales order. For example, if the sales order has 10 items and 8 have been received, but 2 are still arriving, the sales order status will remain as “Arriving”. To see the status of individual commodities, see the Commodities list in the Warehousing folder. The status of the sales order (SO) can be:

• On Hand: As soon as items are entered, the SO has a status of On Hand.

• Backordered

• Loading: The items in this SO have been placed in a Shipment or Cargo Release.

• In Transit: The shipment is in transit.

• Delivered: The shipment has been delivered.

Online Tracking of Sales Orders

The Magaya Supply Chain Solution gives you the option to make a Sales Order visible or not visible online to your customers. The default for the system is to make the SO visible.

If you do not want a customer to see an individual Sales Order, it can be excluded from online view by selecting the SO from the Sales Orders List and selecting the option “Exclude from Tracking” from the Actions button.

From Magaya LiveTrack, the customer can view and print the Sales Order, sort the list by date range, or use the Filter button to narrow down the view if the list is long.

To exclude the list of all SOs from the tracking view of a customer, follow these steps:

1) Go to Maintenance > Customers.

2) Click the Actions button (or right-click on the customer name) and select “WebTrack User List”. A list opens.

3) In the list, double-click on the customer name to open the WebTrack User dialog box. In the dialog box, click on the Tracking tab and uncheck the “Submit Sales Orders” option.

Customers can also place Sales Orders online. Permissions for this option are in the Maintenance folder > Customer List > Actions >Web Track Users list. See

ONLINE TRACKING OF SALES ORDERS

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the section “Online Sales Orders” in the Magaya Software Communications Manual for details.

When a customer places a sales order online and it arrives in your Magaya system, the system can be configured to add the SO to the SO List even if there isn’t a Purchase Order. The items will have a status of “Backordered” and added to the Backordered Items list. See the section “Backordered Items” for more.

To get a quick view of which sales orders were placed online, add the column to your Sales Orders List by selecting the option “Choose Columns” from the Actions button. There are many columns to choose from. Here is an example:

If you configure your system to process online sales orders automatically and the sales order contains perishable items, the items are dispatched in the order set by the expiration date preference. For more on expiration dates, see the section “Add Resale Items.”

For full details on how to configure your system for online sales orders, see Chapter 5 in the Magaya Software Communications Manual.

ACCOUNTING TRANSACTIONS OF SALES ORDERS

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Accounting Transactions of Sales Orders

Sales Orders can be converted into Invoices. Click the Actions button from the document view of the Sales Order and select “Create Invoice”. A dialog box opens:

All the charges in the Sales Order are automatically converted into the Invoice. When an invoice is created from a SO, the cost of each item is deducted from the related inventory asset account and added to the related Cost of Goods Sold (COGS) account.

Items can be removed from the invoice; then those items can be included in a different invoice later. When an invoice is created from a SO, the commodities are listed in the same order. (Change the order by right-clicking an item.)

If the income and expense information for any items in the Sales Order is missing, a notice will tell you that all items must have appropriate charge defi-nitions assigned. All items must be “Resale” in order to be included in an

ACCOUNTING TRANSACTIONS OF SALES ORDERS

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invoice. (It is recommended to use the Resalable items wizard when you first create a resale item.)

If you need to edit the accounting information for an item, go to the Ware-housing folder, open the Inventory Item Definition dialog box, and click the Accounting tab.

If there are charges from more than one vendor, the system will generate an invoice for each vendor with the appropriate charges. If there are charges in more than one currency for the same vendor, the invoices will be split with the charges of the different currencies.

Note: To sell items (i.e., include them in a sales order), the items must have accounting information. This information can be found on the Inventory Item Definition dialog box on the Accounting tab. If you are a logistics provider who is shipping items but not selling them, then you do not need the accounting information for inventory item definitions.

If you are including landed costs or working with average cost of items, please see the Magaya Software Accounting Manual for details.