Sales orders - additional processes

A number of processes do not always occur in the sales order procedure, but can be used optionally.

Adding additional costs to a sales order

Cost items are used to define surcharges such as freight, handling, and administrative fees. These costs can be put on a sales order so the order accurately reflects charges billed to a customer. Several cost items with additional costs can be assigned to an order by bringing them together in a cost set.

Additional costs can be order based or shipment based.

  • Order based
    Additional costs are calculated for a sales order. After sales order approval, additional costs are placed on an order as extra cost (items) after the last item recorded.
  • Shipment based
    Additional costs are calculated for a sales shipment. After confirmation of a shipment, a sales shipment cost order is generated containing all additional costs for one shipment.
Blocking and unblocking sales orders

Several reasons can exist for blocking a sales order or a sales order line. An order can be held for more than one reason at any point in the sales order procedure.

For more information, refer to Blocking sales orders.

Changing sales data after release to Invoicing

In some cases, you can update sales invoice data after the sales data is released to Invoicing.

Depending on the invoice status, you can change:

For more information, refer to Changing sales data after release to Invoicing.

Creating direct delivery orders

On a sales order or service order, you can indicate whether you want the sold goods to be directly delivered. In case of a direct delivery, a sales order or service order results into a purchase order. Because the buy-from business partner delivers the goods directly to the sold-to business partner, Warehousing is not involved.

For detailed information on generating and processing direct delivery orders, refer to the following topics:

Creating freight orders from sales orders

The Freight package can be used to handle transportation requirements. During sales order entry, you can identify and choose the appropriate means of transportation and generate a freight order from a sales order.

The integration between Freight and Sales includes these topics:

  • Integration between freight order control and sales

    In Freight Order Control, two types of planning exist:

    • Rough planning, which is used for long-term capacity planning.
    • Load building, which is the actual execution time plan of the shipments and loads. To ship the goods, Freight Order Control must know the shipments that must be moved over a period of time. If a freight order is created from Sales, the progress of the shipment and loads can be exchanged and information can be shared between Freight Order Control and Sales.
  • Integration between freight invoicing and sales invoicing

    The freight rate that you must pay to the carrier, is called freight costs. You can invoice your business partner for the freight costs, based on:

    • Freight Costs.
    • Freight Costs (Update Allowed).
    • Client Rates.
Creating product variants

If you specify a configurable item item on the sales order line, you can configure or link a product variant.

An item is configurable if the Configurable check box is selected in the Items (tcibd0501m000) session.

  • Manufactured or Product items with the Default Supply Source set to Assembly in the Items (tcibd0501m000) session and Generic items, are always configurable.
  • Purchased or Product items with the Purchase Schedule in use check box selected in the Items - Purchase (tdipu0101m000) session, can be configurable.

For more information, refer to Product variants in Sales.

Items with Default Supply Source set to Job Shop

You must decide whether you want to use a Project Control project when producing product variants, or you want to use Product Configuration (PCF) without PCS. A PCS project is used to plan, produce, and control the manufacturing process. Consequently, the structure of the product variant is generated by project. The advantage of using PCS is that it provides an item with a detailed cost roll-up, and the possibility of pegging. However, in high volume environments, a detailed cost roll-up is often not required. Furthermore, using PCS requires extra time to calculate the project costs and to delete the project structure afterwards.

If you want to use PCS for PCF, the With PCS check box in the Items (tcibd0501m000) session must be selected. To use PCF without PCS, the With PCS check box must be cleared.

After the product variant is configured in the Product Configurator (tipcf5120m000) session, you must use the Generate (Project PCS) Structure for Sales Orders (tdsls4244m000) session to generate the project structure and/or product structure for the product variant.

For more information, refer to How to use a product model in a sales order.

Creating rush orders

Every company deals with rush requests from customers. These requests usually require special payment and delivery terms. To determine whether a rush request is reasonable or not, and to be able to inform the business partner about the delivery date of an order, standard rush order conditions must be defined for a company.

The two possible rush situations are:

  • The customer asks for a rush delivery during the order entry itself.
  • The customer asks you to rush an already issued order.

For more information, refer to Rush orders.

Creating sales order lines from a catalog

You can create a new sales order line based on a catalog.

For more information, refer to Using catalogs in sales orders and quotations.

Creating sales orders from a template

You can use sales order templates for recurring sales orders from the same (group of) business partner(s). You can generate sales orders or sales order lines based on an order template.

For more information, refer to Using templates in sales orders.

Demand pegging

If the demand pegging functionality is used in a company, inventory is allocated when sales orders are created. In addition, a specification is linked to these orders.

For more information, refer to Demand pegging overview.

Export compliance for sales orders

If global trade compliance is applicable for export documents, sales orders are validated to ensure that the export compliance information is valid and the required licenses are available.

For more information, refer to Export compliance for sales orders.

Handling ATP/CTP

The ATP functionality is part of a more extensive order promising technique, called capable-to-promise (CTP).

You can check the ATP/CTP for plan items during the ATP/CTP horizon as specified in the Items - Planning (cprpd1100m000) session. Before you can specify a plan item in the Items - Planning (cprpd1100m000) session, you must set the Order System field to Planned in the Items (tcibd0501m000) session.

To check an item's ATP/CTP at sales order entry:

  1. Select the CTP Check for Sales check box in the Planning Parameters (cprpd0100m000) session. If this check box is selected, a capable-to-promise (CTP) check is performed when a sales order for an item is closed. If this check box is cleared, LN does not carry out any CTP check, regardless of the values of CTP-related parameters in the Items - Planning (cprpd1100m000) session.
  2. Indicate the types of ATP and CTP checks that must be applied and specify the settings for the checks in the Items - Planning (cprpd1100m000) session.

If the free available inventory (ATP) and additional critical components and capacities (CTP) are insufficient to fulfill the order, various possibilities are presented to handle the shortage. One way to handle the shortage for a sales order is to propose a delivery schedule, which you can specify in the ATP Handling (cprrp4800m000) session.

You can also use the ATP Handling (cprrp4800m000) session to perform offline ATP/CTP checks. For instance, you can collect multiple orders in written form and then use the ATP Handling (cprrp4800m000) session to carry out ATP/CTP checks.

For more information, refer to Types of ATP and CTP checks.

Handling backorders

If only a part of the goods or none of the goods listed on a sales order are shipped, backorders can be created.

A backorder can be created in the following modules:

  • Sales Control

    A backorder can be created as follows:

    • You manually enter a hold back quantity.
    • The direct delivery purchase order that is created for the sales order is not completely delivered.
  • Inventory Handling

    The shipping quantity can be decreased at two points in the Warehouse Orders module of Warehousing:

    • Before confirmation of the outbound advice.
    • Before confirmation of the shipment.

For more information, refer to Backorder handling for sales orders.

Handling components

If you want to deliver components instead of main items, in the sales order procedure, you can define how components are handled.

For more information, refer to Overview of kit handling in Sales.

Handling installment orders

Invoicing business partners is a normal and necessary part of business. Invoicing can be performed in a number of ways. Invoicing by installment enables you to send invoices for partial amounts or percentages of the total net amount before or after the ordered goods are actually delivered. To establish the installments, installment lines are linked to the sales order.

For more information, refer to Installments.

Handling promotions

In Pricing under Common, promotions are defined for items and business partners. Promotions are used to offer extra discounts and/or free gifts (premiums) on sales orders or sales order lines.

To check whether a promotion is defined for the item and/or the business partner of a sales order, LN uses promotion matrices.

LN looks for valid promotions in the promotion matrices for which a matrix sequence number is defined. The retrieval of promotion matrices is controlled by the parameter settings in the Pricing Parameters (tdpcg0100m000) session.

To retrieve promotions from a promotion matrix, LN looks for promotion matrices with a matrix definition and matrix attributes that match the properties of the relevant sales order. Note that all of the matrix attributes must match the properties of the order. When found, the promotion linked to the promotion matrix is applied to the sales order.

Note

If you enter a sales order or a sales order line, you can display and select eligible and/or applied promotions in the Sales Order Promotion Data Link (tdsls4536m000) session.

For details on setting up promotions, refer to Setting up a promotion matrix.

Handling return orders

If goods must be returned on a sales order, a return order can be created. A return order can only contain negative amounts. A number of steps are involved in the return order process.

For more information, refer to Sales return orders.

Letters of credit for sales orders

If payment is to be made through a letter of credit (L/C), an export or domestic sales letter of credit must be linked to a sales order or sales order line.

An order or order line linked to a letter of credit can only be approved if it is linked to an approved letter of credit. To be released, the order or order line must be linked to a letter of credit with status Accepted, which expresses that the seller accepts the terms of the letter of credit.

For more information, refer to Letter of credit and Export letter of credit procedure.

Material prices on sales orders

If the Material Pricing in Sales check box is selected in the Material Price Parameters (tcmpr0100m000) session, after setting up the material pricing master data, LN can retrieve material price information and calculate material prices for a sales order line.

Linked material price information can be viewed in the Material Price Information (tcmpr1600m000) session.

For more information, refer to Material price information – sales orders.

Project pegging

Project pegging in Sales includes the pegging of project costs for sales order lines and sales quotation lines. If project pegging is mandatory for the item on the sales order line or quotation line, a peg must be specified, which is a combination of project/budget, project element and/or project activity. For example, if demand is pegged for a sales order line, the goods are sold for and the costs are booked to the project, element, and activity on the sales order line.

For more information, refer to Project pegging in Sales.

Retrobilling sales orders

If price changes are made to a sales contract or to an item because of price renegotiations, the retrobilling functionality can be used to re-invoice previously invoiced items for sales orders. Price differences are handled through retrobilled sales orders, which have an item quantity of zero and an order amount that includes the price difference.

For more information, refer to Retrobilling in Sales.

Setting up and using alternative items

Whenever a stock shortage occurs for an item, you can offer the sold-to business partner an alternative item. To avoid the risk that an item becomes obsolete, you can first consume the available stock of the original item and then fill the remaining shortage with an alternative.

For more information, refer to Alternative items.

Specifying after-sales services

An item can be sold with the related after-sales services. You can use a sales quotation or sales order to specify the after-sales services that are applicable for the sold item after delivery.

You can specify these after-sales service related settings for an item:

Based on the settings, the after-sales service actions are executed when a delivered after-sales service line (item) is processed to Service.

For more information, refer to Extended integration between Sales and Service for after-sales services.

Static cross-docking order

If you want to fulfill an existing sales order for which no inventory is available, you can take inbound goods immediately from the receipt location to the staging location for issue. To initiate this process, you must generate a cross-docking order.

For more information, refer to Static cross-docking.

Using consigned inventory

If you want to use consigned inventory in the sales order procedure, you can define how consigned inventory is handled.

For more information, refer to Consignment in Sales and Procurement.

Using copy templates

In LN you can indicate whether copy templates are used in the copy sales order (line) process. With copy templates, you can specify how order (line) data is copied.

A copy template contains a standard set of copy exceptions with which you can complete the following:

  • Copy existing orders to target orders in the Copy Sales Order (tdsls4201s000) session.
  • Copy existing sales order lines to target order lines.
  • Copy an original document's sales order lines to target order lines in the return order process.

For more information, refer to Copy templates.

Using customer furnished materials

To enable customers or their suppliers to furnish the materials that are required to produce a specific customer item, you can implement Customer Furnished Materials. Furnishing of customer materials is initiated from a sales order line, which includes the item that contains customer furnished materials. The sales order line has a linked demand peg for the customer demand.

For more information, refer to Customer furnished materials in Sales and Procurement.

Using price stages

You can use price stages to categorize the price based on the phase of the price-negotiation process. As long as the price is not final, price stages are used to allow the continuation of the order process, but with a restriction on the activities that you can perform during this process. The blocking definition that is linked to the price stage determines the phase at which the sales order line must be blocked or a signaling message must be displayed.

For more information, refer to Price stages - overview.

Using priority simulations

Order priority simulations help you determine the priority by which sales orders are handled in the warehouse for delivery. You can use a priority simulation to calculate the priority by which inventory is allocated to orders. To set actual priorities for sales orders, you must accept the results of the simulation. You can modify these results before accepting them.

For more information, refer to Order priority (simulations).