Trade-in Customer Order with Automatic Purchase Order Entry

The trade-in workflow often starts when a customer wants to buy equipment and has old equipment that is traded in. A customer order is created including a customer order line with the new equipment and a customer order line with the equipment traded in. A purchase order will be automatically created with the traded equipment.

Background

Acquiring trade-in equipment is similar to purchasing used equipment. In this type of transaction the customer on the quote/sales order becomes the supplier that the dealer acquires the equipment from.

In previous versions of M3 the trade-in was treated more like a customer return with no automatic purchase order generated. In this solution a purchase order will be created when the trade-in customer order line is created.

The purchase price is retrieved from the trade-in pricing information on the sales order.

Limitations

The trade-in solution is only valid for workflows creating records in Equipment/Serialized items (MMS240) and not valid for Individual items (SOS160) workflows.

The sales price of the trade-in customer order line must always be entered manually.

No line discount is applicable on a trade-in customer order line.

No supplier discount will be entered to a trade-in purchase order.

If the sales price on the Customer order is changed the purchase price of the purchase order will also be changed if the purchase order has not been goods received. If the purchase order has been goods received it will not be possible to change the sales price.

The trade-in workflow is only valid for items with inventory accounting method actual cost. There will not be possible to have any external charges on the trade-in costing model since no supplier invoice will be received.

Before you start

To define values in (CRS780)

Follow these steps

  1. Specify a customer order in 'Customer order. Open' (OIS100).

  2. In 'Customer order. Open Line' (OIS101):

    • Specify a normal customer order line for the equipment being ordered.
    • Specify a trade-in customer order line (line type 3) on the equipment being traded in. The quantity must be negative. The serial number and the sales price must be specified.
  3. 'Customer order. Acquire Sales item' (OIS145) is displayed.

    • The purchase price will be equal to the sales price.
    • The cost will be equal to the purchase price.
    • The Supplier will be retrieved from the field 'Trade-in Supplier no' in 'Customer. Open' (CRS610).
  4. If no trade-in supplier number exist:

    • Specify a supplier number manually.
    • Specify a new supplier number that will be created and press 'New Supplier'.
    • Leave the supplier number blank and press 'New Supplier'. The customer number will be used when creating the new supplier.
  5. When the trade-in supplier number has been created, a message will be displayed informing that this has been performed.

    • The new supplier number will have supplier type trade-in.
    • The supplier number created will be updated as 'Trade-in Supplier' on the customer.
  6. To update, press F17='Update'

  7. If the serial number has not been specified, the OIS101/G panel will be displayed where the serial number must be entered.

  8. A purchase order will be created in 'Purchase order.Open' (PPS200) with reference to the customer order in the relation order field. The purchase order will be connected to an order type with purchase order category trade-in.

  9. When the equipment is received, it will be goods received in 'Purchase order. Receive Goods' (PPS300) with the possibility of also using the inspection and put-away functionality (PPS310 and PPS320). If further inspections or other services need to be performed it is possible to go to 'Work Request. Quick Entry' (MOS185) through an option when performing the goods receiving (or inspection).

  10. The status of the trade-in customer order line will be updated to delivered and the customer order can be invoiced.

Outcome

  1. The VAT code for purchase will be retrieved from the item warehouse record (MMS002/I) to the trade-in customer order line.

  2. When a trade-in customer order line has been created and if the equipment does not exist in 'Equipment/serialized item. Open' (MMS240) it will automatically be updated in MMS240.

  3. When goods receiving has been performed the Trade-in customer order line will be in status delivered and it will be possible to invoice the customer order.

  4. The basic transactions created at goods receiving are:

    Accounting rule

    Account

    Debit

    Credit

    PP10 – 910

    Inventory

    X

     

    PP10-251

    Calculated charges

    X

    X

    PP10-951

    Delivered not invoiced

     

    X

    The cost on the customer order line will be the same as the purchase price (excluding the calculated charges).

  5. At goods receipt a new record will be created in 'Serial number based pricing. Open' (MMS250) indicating the trade-in value and if an evaluation value exist on the quotation (in EQM) this will be updated to the evaluation value. The status of the record will be 00 = at entry and there is a reference to the purchase order number. The purchase price (including charges) will be updated to 'Equipment/serialized item. Open' (MMS240).

  6. The basic transactions created at invoicing are:

    Accounting rule

    Account

    Debit

    Credit

    OI20-100

    Account receivable

     

    X

    OI20-120

    Revenue

    X

     

    OI20-951

    Delivered not invoiced

    X

     

    OI20-971

    Cost of goods sold

     

    X

Settings descriptions

Program ID

Field heading

Description

(PPS095)

Purchase order category

A new purchase order category (50) for Trade-in has been added.

(OIS014/L)

Order type

The field indicates from where the defaulted purchase order type is retrieved for customer Trade-in order lines entered in 'Customer Order. Acquire Sales Item' (OIS145).

(OIS014/L)

Buyer

The field indicates from where the defaulted buyer is retrieved for customer order lines entered in 'Customer Order. Acquire Sales Item' (OIS145).

(CRS780/H)

Default Trade-in Supplier

In the trade-in scenario, the customer who wants to trade-in their equipment needs to also be a supplier (ie the supplier on the purchase order that will be created by the dealer to buy the trade-in equipment from the customer). The purchase settings therefore need to contain a template supplier number. This template supplier will be used to take the customer information and create the supplier from it. The trade-in supplier has a special supplier type (supplier type 9).

(CRS780/H)

Default PO type Trade-in purchase

The default PO type used for a trade-in purchase via a customer order. This can be overruled in 'Customer Order. Acquire Sales Item' (OIS145).

(CRS780/H)

General Costing Model Trade-in

The costing model used for trade-in transactions.

(CRS780/H)

Batch origin trade-in

The purchase batch origin used when creating a trade-in purchase order from the customer order.

(CRS610/F)

Trade-in Supplier

The field indicates a supplier number connected to a customer and used when goods is purchased from the customer as part of a trade-in transaction.

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