Sales Order Processing: Sale from Stock, Third Party Drop Ship, and Services
This includes all steps of a business cycle from sales order creation, delivery, picking, goods issue and billing procedure.
This scenario describes the entire process sequence for a standard sales process (sale from stock) with a customer. The business process encompasses all steps from creating an order to clearing a customer account after payment is received.
The process starts with the creation of a customer's standard sales order. Depending on the customer and the material, various special events take place during the order entry, such as customer/material pricing, insertion of applicable discounts, checking the availability of the materials, and checking the customer's credit history.
It is checked whether enough material exists in the required storage location. If this is not the case, a stock movement takes place. Then the picking slips are generated to the warehouse clerks to stage the product for shipment to the customer.
Once picked, the physically shipped quantity has to be registered in the system to ensure that there are no differences between the sales order and the delivery document. Possible discrepancies may also be documented to ensure correct postings.
After picking, the warehouse clerk systematically relieves the inventory. This means the physical quantity that is actually being shipped to the customer is recorded. Eventually, the costs of the sold goods are recorded.
Once the inventory has been relieved, the delivery can be invoiced and the revenue together with the cost of goods sold is recorded in management accounting. This step signifies the end of the business transaction in Sales and Distribution.
This scenario consists of the following steps: