Application Features

The Order Entry application offers these features:

• Makes on line updates to inventory quantities and the On Order amount in Accounts Receivable
• Prevents entry of a ship date if a hold code is specified on the customer’s order
• Provides use of a function key (Option 17) to fully confirm all line items in Open Orders records
• Displays inventory quantities on screen during entry
• Defaults current cost and price, from Inventory Control
• Calculates sales tax for taxable items
• Displays customer’s credit status on screen during entry; issues warning if such status is “BAD” or “NO”
• Handles cash deposits received with orders
• Permits an entire order or individual line items to be drop shipped

Drop Shipments

The Order Entry application permits you to sell products not currently on hand in your warehouse by purchasing the required products and having them shipped directly from your supplying vendor to your customer. The costs and quantities associated with these products are tracked through a separate “drop ship” Products By Warehouse record in Inventory Control. The number of this drop ship warehouse is identified in the Drop Ship Warehouse Number field in the Inventory Control Parameters file. When the purchase order for the drop ship products is entered in Purchase Order Control, the customer’s address is entered as the “ship to” address, and the drop ship warehouse is entered on the purchase order record. The purchase invoice must be posted before the sales invoice in order to insure proper costing of the drop shipped products.

Deposits

The Order Entry application has been designed to facilitate processing of cash received with a sales order. The cash receipt is linked to the related invoice by sales order number and the use of the Apply To field used in both Order Entry and Accounts Receivable. Under normal circumstances, the Apply To field is used within the Accounts Receivable application to reference invoice records and to link multiple records which pertain to the same invoice. In general, the “apply to” is the same as the invoice number.

If you receive cash with an order, the amount of the cash received is entered in the Deposit field during Sales Orders entry. When the invoice related to this sales order is posted, two separate invoice records will be created in Accounts Receivable – an invoice record which shows a balance in the amount of the invoice less the deposit, and a separate deposit record for the amount of the deposit. The system will default the order number in the Apply To field for the deposit record. When you enter the deposit during Cash Receipts entry in Accounts Receivable, enter the order number in the Apply To field. The system will then apply the cash to the appropriate invoice by locating the deposit record with the same “order number/apply to” combination.

Discounts

There are three levels of discounts utilized in pricing sales orders through Order Entry:

The price that defaults for a sales order line item represents the price (for the associated quantity) set up in the Inventory Control Products By Warehouse file. However, if special customer/product pricing has been defined in the Inventory Control Product Discounts By Customer file, the original price will be either adjusted or overridden by the special price contained in this file and then defaulted for the sales order line item. These “discounts” are considered price adjustments and are not posted to the customer discount account.

When entering a sales order line item, you can enter a price discount percent. This discount is applied to the product of the line item quantity times the line item price to compute the line item extension/ amount. Again, this is considered a price adjustment and is not posted to the customer discount account.

Two discount percentages can be entered on a Sales Orders header screen. The first discount is applied to the sales order subtotal (sum of the line item extensions). If a second discount percentage was entered, it is applied to the subtotal less the amount of the first discount. These discounts are posted to the customer discount account identified in the Accounts Receivable Parameters file.