ORDER ACKNOWLEDGMENT / PICKING LIST

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Ship Item Number AT414 BT222 Description $42.00 $51.00 Price Lounge Chair Arm Chair Amount $252.00 $204.00 10/12/2013 Order 12424 HOLT DISTRIBUTORS 146 NELSON PLACE BRONSTON, MI 49802 SOLD SHIP

TO: Smith Rentals TO: A & B Supplies 153 Main St. 2180 Halton Pl. Suite 102 Arendville, MI 49232 Grandville, MI 49494

Customer P.O. No. Order Date Sales Rep 1354 PO335 10/02/2013 10-Brown, Sam

Quantity

ORDER ACKNOWLEDGMENT / PICKING LIST

FIGURE A-18 Order acknowledgment/picking list for Holt Distributors

B/O Order

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Ship Item Number AT414 BT222 Description $42.00 $51.00 Price Lounge Chair Arm Chair Freight Amount $210.00 $204.00 $42.50

Pay This Amount 10/15/2013 Invoice 11025

HOLT DISTRIBUTORS 146 NELSON PLACE BRONSTON, MI 49802 SOLD SHIP

TO: Smith Rentals TO: A & B Supplies 153 Main St. 2180 Halton Pl. Suite 102 Arendville, MI 49232 Grandville, MI 49494

Customer P.O. No. Our Order No. Sales Rep

1354 PO335 12424 10-Brown, Sam

Quantity $456.50 Ship Date 10/15/2013 Order Date 10/02/2013 5 4 1 0

FIGURE A-19 Invoice for Holt Distributors

Most companies use one of two methods to accept payments from customers: open items and balance forward. In the open-item method, customers make payments on specific invoices. An invoice remains on file until the customer pays it in full. In the balance-forward method, customers have balances. When the system generates an invoice, the customer’s balance is increased by the amount of the invoice. When a customer makes a payment, the system decreases the customer’s balance by the payment amount. Holt Distributors uses the balance- forward method.

At the end of each month, the system updates and ages customers’ accounts. (You’ll learn about month-end processing requirements and the update and aging processes in the following sections.) The system prints customer statements, an aged trial balance (described in the report requirements section), a monthly cash receipts journal, a monthly invoice register, and a sales rep commission report. The system then removes cash receipts and invoice summary records from the database and sets month-to-date (MTD) fields to zero. When the system processes the monthly data for December, it also sets the year-to-date (YTD) fields to zero.

Transaction requirements. The following transaction requirements are required by Holt Distributors:

a. Enter and edit territories (territory number and name).

b. Enter and edit sales reps (sales rep number, name, address, city, state, zip, MTD sales, YTD sales, MTD commission, YTD commission, and commission rate). Each sales rep represents a single territory.

c. Enter and edit customers (customer number, name, first line of address, second line of address, city, state, zip, MTD sales, YTD sales, current balance, and credit limit). A customer can have a different name and address to which goods are shipped (called the“ship to” address). Each customer has a single sales rep who is located in a single territory. The sales rep must represent the territory in which the customer is located.

d. Enter and edit parts (part number, description, price, MTD and YTD sales, units on hand, units allocated, and reorder point). Units allocated is the number of units that are currently present on some open orders. The reorder point is the lowest value acceptable for units on hand without the product being reordered. On the stock status report, which will be described later, an asterisk indicates any part for which the number of units on hand is less than the reorder point.

e. Enter and edit vendors (vendor number, name, address, city, state, and zip). In addition, for each part supplied by the vendor, enter and edit the part number, the price the vendor charges for the part, the minimum order quantity that the vendor will accept for this part, and the expected lead time for delivery of this part from this vendor.

f. Order entry (order number, date, customer, customer PO number, and order detail lines). An order detail line consists of a part number, a description, the number ordered, and the quoted price. Each order detail line includes a sequence number that is entered by the user. Detail lines on an order must print in the order of this sequence number. The system should calculate and display the order total. After all orders for the day have been entered, the sys- tem prints order acknowledgment/picking list reports (see Figure A-18). In addition, for each part ordered, the system must increase the units allocated for the part by the number of units that the customer ordered.

g. The invoicing system has the following requirements:

1. Enter the numbers of the orders to be released. For each order, enter the ship date for invoicing and the freight amount. Indicate whether the order is to be shipped in full or in part. If an order is to be partially shipped, enter the number shipped for each order

shipped, the system decreases units on hand and units allocated by the number of units of the part or parts that were shipped. The system also increases the MTD and YTD sales of the part by the amount of the number of units shipped multiplied by the quoted price.

4. Create an invoice summary record for each invoice printed. These records contain the invoice number, date, customer, sales rep, invoice total, and freight.

5. Delete the released orders.

h. Receive payments on account (customer number, date, and amount). The system assigns each payment a number, adds the payment amount to the total of current payments for the customer, and subtracts the payment amount from the current balance of the customer.

Report requirements. The following is a list of the reports required by Holt Distributors: a. Territory List: For each territory, list the number and name of the territory; the number,

name, and address of each sales rep in the territory; and the number, name, and address of each customer represented by these sales reps.

b. Customer Master List: For each customer, list the customer number, the bill-to address, and the ship-to address. Also list the number, name, address, city, state, and zip of the sales rep who represents the customer and the number and name of the territory in which the cus- tomer is located.

c. Customer Open Order Report: This report lists open orders organized by customer. It is shown in Figure A-20.

d. Item Open Order Report: This report lists open orders organized by item and is shown in Figure A-21.

HOLT DISTRIBUTORS