The goals of sales order processing and invoicing are to maximize customer service, simplify clerical tasks, and create accurate documents and records. There are several advantages to automated processing such as automatic update of inventory balances, accounts receivable, general ledger, commissions, and sales analysis history, credit checking, quick retrieval of transactions, improved company image, and increased dispensing of valuable information, to name just a few.

The main clerical tasks of the sales order department are taking orders, answering customer questions about merchandise, credit, or outstanding orders, and entering orders into the computer. We have already seen how the Inventory Insight and Customer Insight programs help with customer service. Let's discuss the Sales Order Entry process.

With the GENESYS system, you now have a tool for controlling inventory and checking credit. But the system is only as accurate and timely as the information it is told. The point is to get the information into the system as soon as possible, and as accurately as possible. And you will spend a great deal of time in the beginning struggling for better accuracy and faster input, until the right people, the right procedures, and the needed skills are all in place. Once the information is in the memory, and is accurate, then valuable information can be dispensed.

Your firm may opt to use the Sales Order Entry program while the customer is on the telephone making inquiries and hopefully placing an order. This is termed the "Order Desk" environment. Using single keystrokes, the operator can pass from the Sales Order Entry program to Customer or Inventory Insight, and return to the same point in Sales Order Entry. This allows the operator to converse with the customer and get needed customer or inventory information from the computer while never losing her place during order-taking.

In this age of technology, many firms still have order-takers enter their own orders, or route orders from several takers to data entry operators. In either case, orders are handwritten on order blanks, encoded, then input. Since accuracy is essential, the order-taker must manually encode the customer number and each item number, and show clearly the quantity ordered, price (if negotiated), and any special terms, freight carrier, special instructions, or salesman commission. What a cumbersome process!

The Sales Order Entry program is designed to be easy to operate, fast, and accurate. Operators can simply use any function key, within any program, to access the necessary data. Many fields are coded to diminish key strokes and to verify and assure accuracy. Many fields have default values pre-set in the customer and inventory files, so that input is not required each time. Each data field is numbered so you can position your input directly to a field for easy error correction.

During the input of items, you may change or delete a prior line at any time, or simply redisplay any or all lines already entered. And, of course, because customers and inventory are coded, the time-consuming process of typing the name and address, ship via, terms, and item descriptions are virtually eliminated.

The Sales Order Entry program allows for input of new orders and also for changes to existing orders or deletions of entire orders.

You begin Sales Order Entry by supplying the proper customer number for the new order. The system checks the customer master file and retrieves the customer's name and address and other "header" information. It checks the customer's record in three ways: 1) compares the assigned credit limit with open accounts receivable and unfulfilled orders in-house, 2) checks if any single invoice is more than a pre- determined number of days past due, and 3) checks if the customer has been placed on credit hold--you do this by entering a code in the customer's master record. Any credit problem brings a message to the screen and you must then choose to stop or continue with the order.

You then may change any of the heading information such as terms, ship via, customer P.O. number, discount percent, tax code, salesman, commission rate, or the warehouse from which the merchandise will be shipped. Also, if a deposit towards this sales order has been received, the reference number is entered here. Any field can easily be corrected. When the heading information is correct, you can move to the line item screen. A six-digit sales order number is generated by the system and assigned to this order.

Enter the item number for the merchandise ordered and the system retrieves the item description, unit of measure, and price. Then enter the quantity ordered. Adding a line item is that simple. If you want to change something, choose the change option and you can override the description, unit of measure, price, and discount. Each line can have a discount percent. The price comes from the price file automatically.

At any place among the line items, you can add "messages", which we call tagalong lines. Up to 63 characters per line may be typed and you can enter as many lines as you need. These tagalong lines will print on the pick slip and/or the invoice, depending on how you have instructed the system analyst to set the flag in Company Maintenance. When an item has tagalong lines and the item is backordered, the tagalong lines stay on the backorder. You can even type messages without connecting them to a particular line item. These are called "open typing" lines. They are printed just as the tagalong lines are, but are removed from a backorder that might be created.

Once an order is entered, you have control. Inventory has been committed (committed quantity is deducted from on-hand to show net quantity available), the customer credit balance updated, and your order backlog increased. The order cannot be misplaced now, even if the paperwork is lost. The order will appear on appropriate Insight Screens, and on the Open Order List--a report of unfulfilled orders.

The next step is to print the newly added orders onto pick slip/packing list forms and shipping labels (if desired). Some choose to have pre-printed forms made up for this, but most find it acceptable (and cost effective) just to print orders on blank 8 1/2 by 11 inch paper with usually 2 or 3 parts (copies). The system prints your company's name, address, and phone number plus all necessary column headings. Orders can be printed as each one is entered. This requires a dedicated printer with the proper forms always loaded. Or you can wait while entering orders for several hours, then print a batch of them at once. It depends on your need for quick turnaround, and your budget.

The pick slip/packing list form is used in the warehouse for pulling, packing, and shipping the merchandise. The pick slip can be printed in bin location sequence, giving the picker the shortest route for finding the items. The picker should mark each item that is shipped complete and note any items that can't be shipped. These items will have to be backordered. The packer keeps copies two and three for a packing list to accompany the shipment, and returns the original document, with all his hand written notes, to the accounting department. The invoicing data entry operators will use the document to confirm the shipment, thereby creating an invoice. The shipment doesn't need to wait for the invoice, it is mailed later in the day.

You may prefer to hold shipments that cannot be shipped complete. This may be due to freight costs or simply to appear to better satisfy the customer. You needn’t hold a shipment because of clerical costs required to create the backorder paperwork and two invoices. The computer system cuts this cost to pennies.

The invoice data entry operator uses the Order Shipping Confirmation program to create an invoice for a shipped or partially shipped order. This is a very simple task. With the pick slip document in front of him, he enters the desired sales order number. The order is retrieved from memory and displayed on the screen in the same format as the Sales Order Entry program. Changes can be made to the header portion, then pass to the line item screen. Again, in a format identical to Sales Order Entry, you can modify the line items: add, change, or delete lines, or review (display) them. Any line items that could not be shipped should be called onto the screen. Then input the actual quantity shipped and backordered. All other line items are assumed to be shipped complete. When all line item information is correct, pass on to the totals screen where the total net sales and applicable sales tax have been computed, and an invoice number has been assigned.

At this point, add-on charges such as freight, handling, marking, insurance, etc. may be added to the invoice. Each such charge ties to a general ledger account for proper posting.

The invoice is now created in memory and may be printed. Normally, orders are confirmed in a batch, then those invoices created are printed in a large group. The Sales Journal is printed as an audit trail before the next batch (the next day) of invoices is created.

Then, a UPS manifest and labels can be printed. This is an optional add-on software. You may choose to enter UPS information for each carton shipped by the carrier package.

Most invoice transactions are first entered as orders, then pick slips are confirmed to create the invoice. You can also create "direct" invoices and or debit memos using Sales Order Entry, without printing pick slips and then confirming the order. Whenever there is a billing error--the wrong item or price or the wrong account--or shipping error, a credit or debit memo must be created, not only for accounting, but to keep the inventory, commission, and sales analysis records accurate. Remember the nature of the system--several records are updated by a single posting. Direct invoices (without pick slip) might be generated if you're rushing a handwritten order through the warehouse for a will call order, or if the computer was unavailable (broken) and you've had to hand write and process some orders.

As you process invoices, historical sales information about each customer, salesman, and inventory item is captured for later analysis. There are three ways to look at this data.

First is the 24 month history of sales volume for each customer. It shows the current month and years and the prior years, 12 months plus current year-to-date and last year-to-date. It may be printed in salesman sequence.

Second is the rank report, a picture of your top customers in sales or gross profit dollars over the current year and month and the proro years 12 months or year-to-date. You can select to rank customers within their assigned territory (salesman) so that each salesman can see the relative ranking of his customers.

Finally, the detail analysis reports lists activity for each customer including units, sales dollars, and G/P% for the current month to date, year-to-date, and total last year for every item the customer has purchased. You may print in a summary manner which prints only product class subtotals, not each individual items. Giving this kind of information to your sales staff can increase the effectiveness of their sales calls.

The same three reports can be printed to show sales and gross profit dollars for each salesman. These reports can be used to evaluate their performances in total, and to highlight any product categories they are failing to promote effectively. And the three reports can be printed for each inventory item as well, showing the relative profitability of products and product lines.

As invoices are processed, records are filed by salesman in order to print a Commission Report at the end of each month. The commission processing in GENESYS is very simple, the salesman earns a percentage of the net sales amount on every invoice, and is charged back whenever a credit memo is issued.

At the end of the month, the commission report lists one line for every invoice, with the net sales, commission percentage entered for the invoice, and the computed amount of commission earned.

Each inventory item contains a commission percent that may be earned on sales of that item. This is considered when the net sales eligible for commission is computed. Of course freight and other add-on charges are not included in the net sales.

The customer master file which you will help create on the computer, contains the basic and relatively constant information about each customer, things such as name, address, contact, phone, normal warehouse, salesman, terms, and tax code. This information is essential to automating your paperwork because it ties into the order and invoice, and accounts receivable programs. You can pre-set most of the customer information that is required when entering an order.

The customer tax code indicates which taxing jurisdiction the customer operates within--California taxable, LA county taxable, resale, or out of state. You can create additional tax codes. When an invoice is created, the tax code is used to compute sales tax by using the correct tax rate and to accumulate sales and sales tax payable to the proper general ledger accounts for easy month-end reporting.

The terms code specifies the billing terms, the cash discount percent and days until the discount is due, and days until the net invoice amount is due. When an invoice is created, the customer's ledger gets a new invoice with the discount and discount date (if available), and net due date automatically calculated. This gives you flexibility to allow a variety of terms-- 1% 10 NET 20, NET 45, 5% 20 NET 60, even NET 10th PROX for example.

The warehouse code shows by which of your warehouses the customer should be serviced. Usually this is based on proximity. When an order is placed by this customer, inventory is committed in the correct warehouse.

Most distributors sell to customers that have a central billing location and several shipping locations. With GENESYS, you enter the order for the ship-to customer. Within the ship to customer record is the customer number for the bill-to account. The system references the bill-to customer automatically. By having separate customer records for each shipping location, you can pre-set different salesmen, terms, ship via, and warehouse codes, and accumulate customer sales analysis independently for each shipping location.

When you have made special notes about a customer--when to call, if he's a poor credit risk, if he requires an order acknowledgment or extra copies of each invoice--you can type these into the customer's "profile" or "Notes". These notes are displayed on the Customer Insight screen.

The Customer Insight program is designed to give a comprehensive picture of the current status of any customer on the video display screen. It is valuable to many people in your organization--order takers, credit managers, customer service, accounts receivable clerks, and salesmen.

GENESYS also has an Order/Invoice Insight program. This program helps you locate sales orders and invoices if you only have an order number or an invoice number to work with. If the transaction is still in the system, you can bring the detail to the screen for viewing.

The Inventory Insight program gives the current status of any inventory item. Use it to answer customer questions regarding pricing and availability. The customer's prices appear automatically. Prior transactions with the customer are displayed showing date, quantity, and price.

Use the Sales Order Entry program to enter customer orders into the system. It allows you to add new orders, make changes to orders already in the system, delete existing orders or add a duplicate order by copying an existing one.

The usual two-step process to create an invoice starts with inputting the customer's order. Print the pick slip/packing list and send it to the warehouse for picking, packing, and shipping. The warehouse worker returns the pick slip document with his handwritten notes about the order, including incomplete shipments, freight charges, or possibly a change in freight carrier. The accounting clerk then updates the information about the order to create an invoice. This is termed "shipping confirmation". The two steps to creating an invoice are, thus, Sales Order Entry and Shipping Confirmation.

There are instances when the pick slip document is not required. Perhaps the picking/packing document has been hand written for a rush order. Then, invoicing is a one-step process. Enter the invoice in nearly the same manner as entering an order.

Credit and debit memos, documents which notify the customer of credit for returns, short-shipments, or incorrect pricing, can also be entered in a one-step process. Please refer to Credit Memo Entry later in this chapter.

The Sales Order Entry program lets you input these different transactions: orders for pick slip printing, "direct" invoices, credit memos, debit memos and return authorizations.

You may use Sales Order Entry as a telephone ordering system. That is, orders called in by customers can be entered as the operator and customer converse. The program lets the terminal operator jump to Customer Insight, Inventory Insight, or Order/Invoice Insight without leaving the order entry task. Once an order has begun, the operator can jump to Inventory Insight, for example, to look up stock availability or prices, or check on expected arrival dates. Then he may jump back to Sales Order Entry at the exact point it was exited. And item numbers retrieved in the Inventory Insight can be passed back to Sales Order Entry so that the item number doesn't have to be retyped.

This "Order Desk" environment gets maximum productivity from your Sales Order Entry operators and gives customers additional service.

The sales order "header" screen contains several fields of information regarding a customer's order including the shipping location, terms, ship via, and customer's P/O number. The first message appears:

You may (A)dd, (C)hange, (D)elete or (C)opy an order, or (END)

Select "A" to add an order. "A" is the default entry. The word "ADD" appears in the upper right corner of the screen.

Customer number

Enter the appropriate ship-to customer number. It must be a valid number in the Customer File. The order "header" screen fills with the customer's name and address along with several default values pulled from the customer's master record.

You may choose to review the customer’s master file by using the Customer Insight program. Press the appropriate function key (F2) to leap immediately into the Insight program, retrieve the correct customer number and then exit the Insight program.

Transaction type

Enter "OR" to create an order, a two-step transaction. Enter "DI" to create an invoice. Enter "CM" to create a credit memo. Enter "DM" to create a debit memo. Enter "RA" to authorize the return of inventory. The default entry is "OR".

A note about the "RA" for return authorization: this is a two-step credit memo. The transaction is initially "open" and a pick slip is printed that authorizes return of the merchandise. When the shipment arrives at your warehouse, the return authorization can be confirmed, thus creating a credit memo.

Select a FIELD NUMBER to change, (X) to cancel, or (END)

Review the values for each field on the order "header" screen. Any one of these fields may be changed at this time. If you need to enter data at any of the numbered fields, type the number you want to change, the cursor moves up to that field, then make your entry or correction. You may repeat this as many times as needed to get the header information accurate for this order.

You may need to refer to the Sales Order Header Field List at the end of this section for detail information about a field.

When all fields are correct, press (END) to proceed to the next step, entering Line Items.

If you see that the wrong customer has been retrieved for this order, or you simply want to start over, press (X) and the new order is canceled and the screen erased.

The Sales Order Line Item screen appears which provides for the entry of merchandise the customer has ordered. This screen lets you:

Add an order line

You can enter order data: the item number and quantity ordered. Moreover, if this is a DI transaction, you can enter shipment data: the quantity shipped, and quantity backordered.

Change an order line

You can change many fields but not the item number. If the item number is wrong, you must delete the line and re-enter it.

Delete an order line

This command removes a line from the order.

Review order lines

This is helpful if you want to verify that your entries are correct.

Inventory availability and customer credit balances are updated as each line is processed.

The system prompts with this message:

You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)

Select "A" to add a line. "A" is the default entry.

Item Number

Enter an item number. Your entry must exist in the Inventory File. The warehouse in which the merchandise is committed is determined on the Sales Order Header screen.

You may choose to lookup the inventory items using the Inventory Insight program. Press the appropriate function key (F4) to switch to the Insight program. You may review inventory, select a line, then end-return to return to the sales order line entry segment.

When you have entered a valid item number the default information from the inventory master record display on the line item screen. Review to make sure the correct item has been retrieved.

The next line, which appears as a dotted line, is for messages. Depending upon how your flag is set in the System Installation program, you may have these messages print on either the pick slip or the invoice or both or neither! If your flag is set to "Y" for yes, then the prompt will appear at the bottom of the screen, "Enter Toggle Code (I/O/B/N)". TT You may type as many lines as you need, each one up to 63 characters in length.

Another feature about messages in the body of the sales order: instead of entering an item number, you may enter an asterisk "*" and return. Again, depending upon how your flag is set in System Installation, you will or will not get the prompt at the bottom of the screen , "Enter Toggle Code (I/O/B/N)". By entering an asterisk as an item number, you may then type as many lines as you need (up to 99 lines) with each one up to 63 characters in length.

Quantity Ordered

OR or DI transactions:
Enter the number of units ordered. Your entry may be up to six digits.

RA transactions:
Enter the number of units to credit (returned or rejected). The system automatically places a minus sign (-) in front of the number to indicate a credit.

CM or DM transactions:
Enter the number of units to debit or credit. The system will automatically reverse the sign (+ or -) of your entry.

You may enter both debits and credits on the same CM or DM transaction. For a credit then, enter a positive number just as you would for all the above transaction types. The system automatically places a minus sign (-) in front of the number to indicate a credit. For a debit, you must precede your entry with a minus sign and the system will reverse the sign making it a positive number.

Quantity Shipped

OR or RA transactions:
This field is skipped. You will enter the quantity shipped (or returned) when you "confirm" the order.

DI transactions:
Enter the number of units shipped. Your entry can be up to six digits. The default entry is the quantity ordered. You may ship more than have been ordered.

CM or DM transactions:
The quantity ordered is repeated here. No entry is made. The system places a minus sign (-) in front of the number for credits.

Quantity Backordered

OR or RA transactions:
This field is skipped.

DI transactions:
Enter the number of items backordered. Your entry may be up to six digits. The default entry is the quantity ordered less the quantity received.

CM or DM transactions:
This field is blank. No entry is made.

The computer calculates and displays the extended price and total order amount. Extension is calculated as the unit price less the trade discount times the quantity. Differences in the quantity and price units of measure are taken into consideration.

You have completed adding a new order line. Again the Line Item options message appears and you may proceed to add, change, delete, or review lines, or (END).

You may change many of the fields you see on the Sales Order Line screen. These fields are not accessible during the Add mode simply to make the data entry faster. But if you choose to change a line then most of the fields of information displayed for a line can be changed. When the system displays this message:

You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)

Select "C" to change a line. The program then asks:

Select a LINE NUMBER to change, or (END)

Enter the number of the line you want to change. The program retrieves the line and displays it. You can make your corrections. Refer to the Sales Order Line Field List at the end of this section for details regarding any field.

Or you may press (END) to cancel the Change command.

When the procedure to Change A Line has been completed, the system again prompts, "You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)."

You will need to delete an order line occasionally. In fact, if you have used the wrong item number when adding a line, you cannot change the line, you must delete the incorrect line and add a new line. When the program displays this message:

You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)

Select "D" to delete a line. The program then asks:

Select a LINE NUMBER to delete, or (END)

Enter the number of the line you want to delete. The system retrieves and displays the line.

Or you may press (END) to cancel the Delete command.

Do you want to delete this line? (Y)or(N)

Review the line information displayed and type "Y" to delete the line or "N" to retain the line. If you choose to delete, the program will remove the line from the order and deduct from the inventory quantity and from the order total.

When the procedure to Delete A Line has been completed, the system again prompts, "You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)."

At any point while entering an order you may want to look at lines previously entered. Use the review option. When the program displays this message:

You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)

Select "R" to review the order lines. The program then asks:

Select a starting LINE NUMBER, or (END)

Enter the number of a line you want to review. The specified line and all subsequent lines are displayed. Press (RETURN) to start with the first line on the order.

Or you may press (END) to cancel the Review command.

(RETURN) for add'l lines, or (END)

This prompt only appears if all of the lines cannot display on one screen. Press (RETURN) to display more order lines. Press (END) to cancel the Review command.

When the procedure to Review Lines has been completed, the system again prompts, "You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)."

You may end your input of the sales order at any time. When the system displays:

You may (A)dd, (C)hange, (D)elete, or (R)eview lines, or (END)

Press (END) to indicate that you have finished adding, changing, deleting and reviewing lines.

OR or RA transaction: Your work is done. The Sales Order Header screen reappears.

DI, CM, or DM transaction: The system continues on to the Sales Order Totals screen.

The next screen only appears for DI, CM and DM transactions. The program calculates the total sales, and sales tax and displays total fields at the bottom of the screen. You may override these fields and put Add-On Charges such as freight and handling onto the transaction.

You may (C)hange the above, or (END) to continue

Review the fields on the totals screen. Review the Add-On Charges.

You may (END) to complete the transaction with no additional changes.

Or you may type "C" to change any of the following fields. Many of these fields already contain the proper information as set up when the order was initially entered. You may press (RETURN) at any one of the fields to retain the data that currently is shown there.

Packed By

Enter up to three characters, the initials of the individual who packed the merchandise for shipment. This is written at the bottom of the pick slip. This information may be valuable in the future when reviewing shipped orders.

Cartons

Enter the number of cartons shipped. The maximum allowed is 200.

Weight

Enter the total weight in pounds of the shipment. The program has calculated the total weight based on the unit weight field on each order line. You may override this with the actual weight from the shipping department.

Shipped via

Enter a valid two-character Ship Via Code from the Codes File.

UPS Zone

This field is only applicable if the order is shipped via UPS. It identifies the UPS delivery zone. Enter a valid two-character UPS Zone Code from the Codes file.

Ppd/Coll

Enter a valid two-character Freight Terms Code from the Codes file. The freight terms help describe who will pay for freight charges.

F.O.B.

Enter a valid one-character F.O.B. Code from the Codes file. Free On Board helps define who has title to merchandise in transit.

Ship date

Enter the date using an MMDDYY (month, day, year) format.

Select an ADD-ON CHARGE NUMBER, or (END) to continue

To add miscellaneous charges to the transaction, select one of the six available Add-On Charge lines. These charges are for such things as freight, handling, insurance, etc. They are non-taxable and non-commissionable charges that will list on the invoice after all the merchandise lines have printed.

Or you may press (END) to skip the Add-Ons.

Add-On Charge Code

Enter the code assigned to the charge. Your entry must be a valid two-character Add-on Code from the Codes File.

You may press (END) to cancel the add-on charge.

Add-On Charge Description

Enter a description of the charge. Your entry may be up to 35 characters. This description will print on the invoice.

The default entry is the code description listed in the Codes File.

Add-On Charge Amount

Enter the amount charged. Your entry may be up to eight digits with two decimal places (up to 999999.99). You may enter both plus and minus amounts, thus, for CM transactions, a minus (-) is not automatically placed in front of the number you enter.

You may enter zero to delete the add-on charge.

The system again prompts, "Select an ADD-ON CHARGE NUMBER, or (END) to continue." Press (END) when you finish entering add-on charges.

If the shipment of goods was delivered by United Parcel Service (ship via code beginning with letter "U"), then an additional screen appears for input of UPS carton information.

1.No. of cartons 6.Name
2.Ship via code 7.Addr
3.Terms code 8.Addr
4.UPS zone 9.Addr
5.Cust P/O no 10.Phone