Order Entry Processing 

Purpose

Incoming orders and order entry processing are important for the value-added in the MTO process. On receipt of an order, a significant amount of money may already be due. At the same time a series of activities are triggered in the enterprise, which unlike during quotation creation are binding.

In the quotation phase, documents and data that are created can be included in the order, or are the order basis. On receipt of an order however, you have to specify and define in detail the inexact and/or rough details from the quotation. The main phases of quotation processing are repeated here.

The incoming order phase finishes externally when the order confirmation is sent to the customer. Internally, this phase is complete when the requirements are finally communicated to production and procurement or assembly.

Process Flow

  1. The customer has accepted your offer for the turbine project. Now you create a sales order in the system and assign it to the project.

When you create the sales order you can use the quotation as a reference. In this case, you receive different order items reflecting the services to be provided. If you create the order without reference, you can create a single item that describes the overall product.
  1. During the contractual negotiations, you agreed on terms of payment with the customer. You store a billing plan in the sales order. You delete the billing plan for the WBS element to enable the billing dates to be transferred from the sales order to revenue planning for the project.
  2. When the customer accepts the offer, you release your project and confirm the first activities. When you confirm the activities, the customer's down payment automatically becomes due through the milestone linkage. A down payment request to the customer is created.
  3. You bill the down payment to the customer.
  4. When the customer makes the down payment, you post the incoming payment.

The following graphic explains the steps you follow in this example: