Sales is the arguably the lifeblood of your business and efficiently handling the sales order your customers issue is as such crucial. Here’s how easy it should be to issue a sales order.
First, pick Sales Order under Orders
|Choosing Sales Order from the main menu|
Once picked, you need to choose the Client that is to receive the Order - simply typing the first couple of letters should be enough to bring the details and auto-complete half the form.
|Start typing to fetch Client data|
The other half can be filled by completing product details - such as the product code (SKU) or the product description along with other applicable details. Stock information is also readily available in real-time to notify you from selecting a low-stock product or sending the item from the wrong location.
|The product entry is easy and fast|
Once product details have been filled in, click on 'Verify' to lock the product details of the Sales Order.
|Verification requires the Inventory Location to be chosen|
The only thing left is to decide whether the action will be recorded as just a change in the inventory or whether an invoice will be issued as well. The former is useful in the case of a Sale on Consignment (explained below in this post).
|The choice of the Document Type to issue at the time of shipping|
Closing the Sales Order will make the Sales Order and all the documents that were created against the Sales Order strictly non-editable.
|Closing the Sales Order completes the process and makes the Sales Order non-editable|
That way -in a few minutes- you can start and complete a Sales Order to one of your clients! A megaventory client that uses the feature efficiently is infraredsauna.com.
Infrared Sauna is a US-based company in the business of innovative infrared light saunas (instead of the conventional steam ones) with sales from all over the world and partners in 3 other countries (Australia, Belgium, Malaisia). With such a varied and wide network of business it is crucial to handle orders efficiently - especially given that saunas are expensive and hard to transfer due to their size (so ordering and inventory mistakes are not an option).
Sales on Consignment
Another popular type of sale is by consignment, i.e. when your business has transferred your products to a seller (e.g. a shop) while still owning them. It’s only when the seller manages to move your product that you issue a Sales Invoice to the client. This way of making sales can also be handled by the above Sales Order system - just by appropriately choosing the Document Type to issue upon shipping. Invoicing of the shipping documents can then be performed at a later time.
For example, lomography.co.il, an Israel-based online shop about lomographic cameras and accessories. Apart from the e-shop, the business sells their product via a number of other physical retail shops in the city of Tel Aviv and Jerusalem, while they cooperate with labs which help customers develop their films.
This means there’s a need to track where is what across a network of quite a few locations and for a highly specialized product line. That’s something that could translate to a huge administration overhead but is made easy with inventory management software.
Pre-Sales and Purchases
Most of the times however and unless we’re talking about an established relationship with your customer a sales quote must take place before the actual order happens. Sales quotes should ideally transition seamlessly into sales orders if accepted - you can see how this should flow in this post on pre-sales.
And of course in order to make sales you have to make a purchase first (either of the product itself or the materials its made of). That’s why a proper ERP package comes with a function called Purchase Order (or an equivalent). That’s essentially the opposite of a Sales Order by means of which your business purchases products (or materials) from a supplier and your inventory levels increase accordingly. You can see examples of all three functions (sales, sales quotes and purchases) in this short tutorial video.