SO-03
Sales Order Processing
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Contents
Contents ...1
Overview ...2
Objectives:...2
Who should attend? ...2
Dependencies ...2
Credits ...3
Convert credit – value only ...4
Convert to credit- return to stock ...12
Collection of goods for credit ...12
Convert to credit- return to stock ...16
Credit being given now at counter on return of goods...16
Credit – value only...19
Credit – return to stock ...24
Acknowledge cash receipts ...27
Account payments ...36
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Overview
The Sales Order Processing module and the main Order Processing form control the order-taking process for all kinds of sales transactions. They also allow Purchase orders to be generated immediately when a sale is made.
In this, the second Sales Order Processing Training course we will concentrate on creating quotations, back orders, back-to-backs, directs, confirming pick notes and deliveries. The course is written assuming a mouse will be used in conjunction with the keyboard.
Objectives:
After completing this session you be competent at the following processes in K8 SOP: • Credits
• Convert to credit –value only • Convert to credit- return to stock • Credit – value only
• Credit – return to stock • Credit pick ups
• Acknowledge cash receipts
• Account payments
• Cash analysis
• Order Margin review
Who should attend?
• Staff who require administration knowledge of Sales Order Processing.
Dependencies
• K801 – K8 Introduction.
• SO01 – Sales Order Processing Foundation • SO02 - Sales Order Processing Advanced
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Credits
The Kerridge system allows various methods of producing credits. Essentially the 2 main methods are to only allow the creation of Credit Notes where the customer has provided proof that they have bought the goods from your Company. The customer can provide you with any document number in order to search for their sales order.
The other main method is to allow Credits regardless of the customer returning goods. This is usually restricted to senior staff and above and will allow refunds, for example, to give a refund to appease a disgruntled customer.
Convert credit – value only
A good example of why this option would be used is where a customer has bought goods and has then been invoiced at a price higher than he normally pays for those items. It is possible to raise a credit note linked to his original invoice and item so that he can’t get the same credit on the same order and item more than once. The system tags the original item line to prevent any future credits. ONLY users with a priority over 3 have access to Credit functions in SOP.
Create a new delivered sales order using account A3 and sell 10, opc Note that the price per item is £3.72
Process the order. Confirm full pick. Confirm full delivery.
Make a note of the internal sales order. Check that your order line is at COM status.
Your customer receives his invoice from your accounts department and queries the price that he has been charged. He remembers being charged only £3.44 per bag of cement, and not £3.72.
He calls into the branch to ask for a credit to be given to him. He doesn’t bring in any paperwork that he has received from us.
In SOP click on the NEW icon and select Convert to Credit from the drop down menu. ALL users will have this option on their menu.
Select a reason why you are giving the credit. Some reasons will affect stock and others will say VALUE ONLY.
In this case we wish to give a refund to the customer due to a pricing error. Click on the arrow to bring up the reason list.
As our customer didn’t bring any paperwork we can search for invoiced order lines on his account.
Click on the Customer button and type in A3. Click on Search to call up completed order lines.
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Select the order that YOU created by clicking on it to make it blue (highlighted) Click on PASTE to paste the order line into the Credit note.
The line will now appear in the sales order for crediting.
The difference in price per item is £0.28 so change the price from £3.72 to £0.28 and press the TAB key.
Accept the minimum margin warning
Process the credit
ccept the delivery address A
Yes to print the credit advice now
Convert to credit- return to stock
Collection of goods for credit
Create a NEW Convert to credit order using account B3
Select Goods returned to stock as the reason for the credit note. Click on Search
Click on Paste
Change the quantity to 2 Click on Process or press F9.
Select Credit pick up as the Delivery method:
Process the credit note – press F9 - A Collection note will be printed
When the goods are collected we need to go back in the order and process to push the credit advice to be printed.
Type “L” to call up your last order Process the order – F9
Recall last order
A Standard return percentage has been applied. This percentage or set value can be changed by your Kerridge Consultant to match your own Companies charges.
Convert to credit- return to stock
Credit being given now at counter on return of goods. Branigan’s builders buy
some bricks and then bring back 100 for credit as they did not use them.
Amend quantity to 100 and Process the credit note.
A Credit Advice will be the default document.
Credit – value only
Value only credits are set to a high priority and it is implied that only senior staff and managers will have this option available to them within Sales Order Processing.
Its main usage is where you are moving over from one system to Kerridge, whether that is a manual system or another Computer Software system.
As seen in the previous 2 exercises to produce a credit for a customer the system needs to have the original order on Kerridge.
However, when changing systems it is likely for the first few months that customers will want a credit for goods that they bought from you when you were running your old system. To create a credit note without linking it to a Kerridge Sales Order it is necessary to raise a Credit Note from the NEW icon menu.
Our cash customer wants a credit for goods that are faulty. The goods cannot go back into stock and we wish to allow a credit to our customer at the counter.
Select Faulty goods from the reason code table.
Enter a made up number to represent your old invoice umber. Accept the warning displayed about not finding the original invoice.
Enter any date prior to today’s date.
Enter part number F225 as this is the item that our customer is returning. Quantity 1 and a value of £30.00
Process the order – F9
Cash Refund will default as the document as we are processing a cash refund.
Enter a name and address for the customer. Click on OK
Click on Delivery to copy the Delivery name and address in to the Invoice address.
Credit – return to stock
Again this is not to be used once you have been using K8 for several months. It should only be used in the change over period where the original order was on your old system.
Our customer bought goods a few weeks before the K8 system went live and now wishes to return the goods for a full refund.
Create a new CREDIT by clicking on the NEW icon and selecting Credit Note, or by typing in CR in the Order Number field and pressing the TAB key.
Select Goods returned to stock as the reason for the credit. Enter a number to represent your old invoice number and accept the warning that the system can’t find it.
Enter a date prior to today and click on OK
Enter Product K1015 and enter the list price of £44.00 in the Net Price field in the pricing window:
TAB off the order line and Process the credit note – F9
Enter a name and address for the customer and click on OK
Click on Delivery to copy the delivery address as the invoice address:
Acknowledge cash receipts
This is an option within the Sales Order Processing screen, or can be found on the tree menu if accessed outside SOP.
It is used to confirm the receipt of cash from either Cash on Delivery or Cash on Collection orders only. Once the cash has been acknowledged as being paid put the money into the relevant till drawer. This is necessary to keep the till correct on a daily basis.
To ensure that we have an order to acknowledge cash we will create a new order and follow the paper flow.
Create a new sales order using account C1
Amend the Order category to Delivered and TAB to accept Delivered as the Delivery method.
Sell 500 x Redland Plain Tile 02 Brown
Process the order
In the action window select O cash on collect/delivery as the payment method. TAB to accept.
Enter a name and address for the customer
The system will print a Pick Note to pick the goods to be delivered.
Confirm Pick using the SHIFT + F2 keys and enter your order number to be confirmed
Click on REFRESH
Click on the Pick note and then click on CONFIRM to confirm the picking note.
On confirmation of the pick the system will print an advice note AND an invoice. The invoice shows that the payment was cash on collect/delivery
Our driver will now deliver the goods taking the Advice Note AND the Invoice to our customer. Once the goods are paid for the customer will need to sign the advice note and our diver needs to sign the invoice as paid. The customer can keep the top copy of both documents.
Our driver returns with both documents and we need to confirm delivery has been successful AND that we have received cash on delivery. The cash needs to go into the till once
confirmed as it will form part of the cashing up at the end of the day. Step 1 – Acknowledge Cash
Within SOP press CTRL + F10 or use Tools and select Acknowledge Cash from the drop down menu
All orders which have been paid as cash on collect/delivery will appear in this screen.
Type A to Acknowledge receipt of the cash.
Click on SAVE and CLOSE. Place the cash received in the till.
Step 2 – Confirm Delivery
Use tools and select Confirm delivery from the menu – or press CTRL + F2
Enter your order number in the Order Number field and click on REFRESH
Click on you Advice note and then CONFIRM delivery by clicking on the CONFIRM icon
Click on Process and then go back into you order – type in L and TAB
The order line now has a status of COM as it is now complete.
Account payments
Account customers may wish to call in to pay cheques against their account, without the cheque amount applying to any particular order.
In the SOP screen click on Tools and select Make Account Payment. This option can also be invoked by pressing CTRL + F11 keys together.
In the Account payment screen enter the account as A3 – Branigan’s Builders, and accept a payment by Cheque for £1,000.00.
Change the printer to Main Spooler (Newbury) to print a receipt for the payment.
Click on OK to process the account payment.
In the Sales Ledger account for A3 Branigan’s Builders the £1,000 cheque appears waiting to be allocated by the accounts personnel.
Cash Analysis
As a daily routine the cash in the till or tills needs to be checked against what the Kerridge system has taken. There is a standard cashing up routine within Sales Order Processing which provides a reconciliation process where the user enters the takings for the day in the till and this is checked against what the K8 system has taken on tickets.
If there is a large discrepancy it is possible to print out a detailed report of all orders entered on the system and the cash payments made against each order.
Once the figures match the system can be updated to draw a line for that day and clear the K8 till ready for the next day.
To perform the cash analysis in the Sales Order Processing screen use tools and select cash analysis from the drop down menu offered.
Select the cash drawer which you are going to cash up from those offered. If you have more than one till drawer you will need to cash up each till individually.
TAB to accept the drawer number and then select a printer to where you wish the daily report to print.
DO NOT tick the UPDATE box at this point. This must only be ticked once you are happy that the till balances with what K8 is expecting.
If you have a float it would be advisable to count out the float, in small denominations, and then put that to on side. Add up all cash and enter the values in to the Cash Analysis screen. I.e. if you have 10 x £50 pound notes you enter £500 in the £50 note column.
Continue to enter your cash taken and cheques taken. Complete the credit cards values and debit card values.
Once the Balance is 0.00 at the bottom of the screen your till balances!
Tick the Update box and then click on Print. This will then clear the cash analysis drawer ready for the next day.
Note: If the till does NOT balance leave the UPDATE box unchecked. This will then print a detailed report listing all of the day’s transactions. You will have to re-input the analysis again when you have reconciled the differences.
