Sales Order Management

Sales Orders in simpleBillBook allow you to formally document customer orders, track order fulfillment, and manage delivery schedules. Sales orders bridge the gap between quotations and invoices, providing a structured way to manage customer orders through the fulfillment process.

Overview of Sales Orders

Sales Orders serve as formal commitments to deliver goods or services to customers. They provide:

• Order Confirmation: Formal record of customer order
• Fulfillment Tracking: Monitor order processing stages
• Delivery Scheduling: Plan and track delivery timelines
• Inventory Management: Reserve stock for confirmed orders
• Invoice Preparation: Basis for creating final invoices

Viewing Sales Orders

To view all sales orders:

1. Navigate to Manage Sales → Sale Order from the main sidebar
2. You'll see a table listing all sales orders (empty if no orders exist)

Figure 1: Sales orders list showing order management interface

Sales Order Table Columns:

Order Identification:

• Sales Order: Unique order number (e.g., SO1, SO2)
• Order Date: Date when order was placed
• Customer: Customer name
• Qty: Total quantity of ordered items

Order Details:

• Total: Total order value
• Due Date: Expected delivery/completion date
• Status: Current status (Draft, Confirmed, Processing, Shipped, Delivered, Cancelled)

Interface Elements:

• Create Sales Order +: Button to create new sales order
• Type to search: Search functionality for existing orders
• Pagination: Navigation controls (e.g., "10" items per page)
• Empty State: "No results" message when no orders exist
• Next >: Navigation to next page when available

Creating a New Sales Order

Step 1: Access Sales Order Creation

Click Create Sales Order + from the sales orders list page.

Step 2: Fill Sales Order Details

Figure 2: Form for creating new sales orders

Header Information:

• Customer*: Select customer from dropdown (required)
• Customer Details: Shows company name if available
• Sales Order Date: Auto-filled with current date (editable)
• Delivery Date: Expected delivery date to customer
• Sales Order Number: Auto-generated based on settings

Item Selection:

1. Select Product from inventory dropdown
2. Enter Qty*: Ordered quantity (required)
3. Unit Price*: Price per unit (can be edited)
4. Tax %: Applicable tax rate (if any)
5. Total: Line item total (auto-calculated: Qty × Unit Price)
6. Click Add Item to add more products

Order Summary:

• Subtotal: Sum of all item totals before tax
• Tax Amount: Calculated tax based on tax rates
• Total Amount: Final order amount including taxes
• Shipping Charges: Can be added if applicable
• Discounts: Can be applied to entire order or specific items

Step 3: Save Sales Order

• Save as Draft: Save for later processing
• Save and Confirm: Save and mark as confirmed
• Save and Reserve Stock: Save and reserve inventory
• Cancel: Discard the sales order

Sales Order Settings

Accessing Sales Order Settings

From the sales orders page, access settings via gear icon or Settings menu.

Figure 3: Configuration settings for sales orders

Configurable Settings:

Numbering System:

• Sales Order Prefix*: Custom prefix (default: "SO")
• Start Number*: Beginning sequence number (required)
• Last Used Number: System tracks last generated number
• Next Sales Order Number: Preview of next auto-generated number

Terms and Conditions:

• Default Terms: Enter standard terms (one per line)
• Delivery Terms: Standard delivery conditions
• Payment Terms: Payment conditions for orders
• Cancellation Policy: Order cancellation terms

Process Settings:

• Default Delivery Days: Standard delivery timeframe
• Stock Reservation: Auto-reserve stock on confirmation
• Status Workflow: Define order status progression

Saving Settings:

• Click Save Settings to apply changes
• Use Cancel to discard modifications
• Settings affect all future sales orders

Sales Order Workflow

Complete Order Processing Lifecycle:

1. Order Creation (Status: Draft)

• Sales order created from quotation or directly
• Items and quantities specified
• Pricing confirmed

2. Order Confirmation (Status: Confirmed)

• Customer confirms acceptance
• Order locked for processing
• Stock may be reserved

3. Order Processing (Status: Processing)

• Internal processing begins
• Items picked/packed
• Documentation prepared
• Shipping arranged

4. Shipping Stage (Status: Shipped)

• Order dispatched to customer
• Tracking information recorded
• Customer notified

5. Delivery Stage (Status: Delivered)

• Order delivered to customer
• Customer acknowledgment received
• Ready for invoicing

6. Invoicing Stage (Status: Invoiced)

• Converted to sales invoice
• Payment processing begins
• Order closed

7. Cancellation Stage (Status: Cancelled)

• Order cancelled before fulfillment
• Stock reservation released
• Reason documented

Types of Sales Orders

1. Standard Sales Orders

• Purpose: Regular customer orders
• Features: Standard products, normal delivery
• Processing: Follows standard workflow

2. Back Orders

• Purpose: Orders for out-of-stock items
• Features: Items to be delivered when available
• Processing: Partial shipments possible

3. Drop Ship Orders

• Purpose: Supplier ships directly to customer
• Features: No inventory handling
• Processing: Coordinate with supplier

4. Pre-Orders

• Purpose: Orders for future product releases
• Features: Future delivery dates
• Processing: Hold until product available

5. Recurring Orders

• Purpose: Regular repeating orders
• Features: Scheduled deliveries
• Processing: Automated generation

6. Service Orders

• Purpose: Orders for services rather than products
• Features: Service descriptions, timeframes
• Processing: Service delivery tracking

Best Practices for Sales Order Management

Creating Effective Sales Orders:

1. Complete Customer Information: Ensure all details are accurate
2. Clear Item Specifications: Include product codes, descriptions
3. Accurate Pricing: Verify prices before confirmation
4. Realistic Dates: Set achievable delivery timelines
5. Special Instructions: Note any customer-specific requirements

Order Processing:

1. Status Updates: Keep order status current throughout process
2. Communication: Inform customers of status changes
3. Documentation: Maintain all order-related documents
4. Quality Checks: Verify order accuracy at each stage

Inventory Coordination:

1. Stock Verification: Check availability before confirming
2. Reservation Management: Properly reserve stock for orders
3. Backorder Handling: Clear process for out-of-stock items
4. Inventory Updates: Update stock levels appropriately

Customer Service:

1. Order Tracking: Provide customers with order status
2. Delivery Updates: Communicate delivery progress
3. Issue Resolution: Quick response to order issues
4. Feedback Collection: Gather customer feedback on order process

Converting Sales Orders to Invoices

Standard Conversion Process:

1. When order status reaches "Delivered" or appropriate stage
2. Click Convert to Invoice on sales order
3. System creates invoice with order details
4. Sales order status updates to "Invoiced"
5. Payment processing can begin

Partial Delivery Conversion:

1. Convert delivered items to invoice
2. Update sales order for remaining items
3. Create multiple invoices for partial deliveries
4. Track complete order fulfillment

Price Adjustments at Conversion:

1. Final prices can be adjusted if needed
2. Document reasons for price changes
3. Maintain relationship to original order
4. Customer confirmation for significant changes

Integration with Other Modules

Customer Management:

• Order History: Tracks all orders from each customer
• Customer Preferences: Records order patterns and preferences
• Credit Management: Monitors customer credit against orders

Inventory Management:

• Stock Reservation: Reserves inventory for confirmed orders
• Demand Planning: Provides data for inventory forecasting
• Pick Lists: Generates picking lists for order fulfillment

Sales Management:

• Pipeline Tracking: Orders represent confirmed sales
• Revenue Forecasting: Predicts future revenue from orders
• Performance Analysis: Tracks order fulfillment efficiency

Purchase Management:

• Purchase Trigger: May trigger purchase orders for stock
• Supplier Coordination: For drop ship orders
• Cost Tracking: Tracks cost of goods for orders

Shipping and Logistics:

• Delivery Scheduling: Coordinates with delivery schedules
• Shipping Documentation: Generates shipping labels and documents
• Tracking Integration: Updates order status with tracking info

Common Scenarios and Solutions

Scenario 1: Partial Stock Availability

Solution:

1. Create backorder for unavailable items
2. Process partial shipment for available items
3. Update customer on expected dates for remaining items
4. Create separate invoices for each shipment

Scenario 2: Customer Changes Order After Confirmation

Solution:

1. Assess impact on processing
2. Create order amendment if possible
3. Cancel and recreate if significant changes
4. Document all changes and communications

Scenario 3: Delivery Delays

Solution:

1. Update order with new delivery date
2. Communicate proactively with customer
3. Consider partial delivery if possible
4. Document reason for delay

Scenario 4: Damaged Goods During Delivery

Solution:

1. Process return through credit note system
2. Create replacement order if needed
3. Update original sales order status
4. Document damage and resolution

Scenario 5: Bulk Order with Special Terms

Solution:

1. Create custom terms in sales order
2. Set up special pricing or discounts
3. Coordinate special delivery requirements
4. Document all special arrangements

Reports and Analytics

Available Sales Order Reports:

1. Open Orders Report: All orders not yet delivered/invoiced
2. Order Aging Report: How long orders have been in each status
3. Customer Order Analysis: Orders by customer and value
4. Product Order Analysis: Most ordered products
5. Fulfillment Performance: Order processing efficiency
6. Backorder Report: All pending backorders

Key Metrics to Monitor:

• Order Cycle Time: From order to delivery
• Order Accuracy: Percentage of error-free orders
• On-Time Delivery: Percentage delivered by promised date
• Order Value: Average value per order
• Backorder Rate: Percentage of items on backorder

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