Sales Order System
Provides the functionality in the following Areas
- Sales Planning
- Sales Budgeting
- Sales Ordering System
- Customer Registration
- Products & Pricing
- Billing Requisitions
- Invoicing
- Finished Goods
Sales Planning
Framework to define Yearly Business Plan (LONG TERM)
- A Yearly Business Plan for Sales viz. define Sales Targets of Product vs Month
- This Business plan can also be optionally defined for each Branch (AREA)
- The Business Plan provides a framework for the Organization to forecast the proposed Sales / Production targets for the new year
Framework to define Rolling PSI Plan (MEDIUM TERM)
- A PSI plan for each Branch viz. define Sales Targets of Products vs Month
- This Plan is derived from the Yearly Business Plan
- The plan is normally firm for 1 month and tentative for the next 3 months
- Is indicative to the Production & Planning for scheduling production.
- The PSI plan targets for each Branch can also be defined by Distributors in the branch
- This provides a mechanism to help understand the stock movement at the Distributor
- Facility exists to maintain Opening and Closing stock of the distributor
- This is to help predict the secondary sales trend at the Distributor
Framework to define Billing Target for Current MONTH (SHORT TERM)
- A plan to monitor the Current months Sales Target by Branch
- The target is fixed by Product Group instead of by product (Granularity is Higher)
- Plan is derived from the Rolling PLAN (MEDIUM TERM)
- An easy means of closely monitoring whether the branch is meeting sales targets
Sales Budgeting
Sales Budgeting is a mechanism to help project the proposed expenditure under two broad heads viz. VARIABLE Head as a proportion of Sales Targets and FIXED like salary, rent, etc..
Budget Heads and StructureTo facilitate this Budget Heads and structure can be maintained based on how the budgeting activity is to be monitored. The structure is very similar to an Accounting structure. viz. Major Heads and minor heads etc..
Defining Variable & Fixed Budget ValuesThe VARIABLE expenses budget is defined as a percentage (Contribution against a Budget Head) of the total Sale Value (PL Value) and is called the SALES GENERATION towards the VARIABLE expenses. The percentages are normally maintained against each product and can be changed. Hence the VARIABLE expenses are directly proportional to Sales Targets.
The FIXED expenses budget is normally based on Past history and any changes which might happen from time to time.
Yearly Budget PlanThe Yearly planning exercise is carried out alongside Sales Planning where the sales targets are quantified for each branch for each product. Here the Generation is also specified and hence the yearly VARIABLE budgetary planning by Branch is also carried out.Provision is available to define the yearly FIXED budgetary plans by Budget heads for each branch based on previous years actuals.
How Budget monitoring is done on a monthly Basis ?The projected Sales from the PSI and the contribution percentage against each Budget head is used to arrive at the available VARIABLE budget for expenditure against each Budget Head
The Branches raise Monthly SANCTIONS indicating the purpose for the expenditure and also mentioning the appropriate budget heads. Approval is given after ensuring that the total amount on the sanctions does not exceed the Budget.
At the end of the month, the ACTUAL sales figures are available from the invoices. The expenses incurred by the Branch are also accounted against the sanction. A variance report reports on the Available Budget based on ACTUAL Sales and the Actual expenditure. The Profit / Loss can now be worked out and the net effect may be added to the Budget Forecast for the next month.
Sales Order System
The sales order system comprises the whole cycle from raising the request for Billing right up to the stage of Invoicing. This is been discussed below
Customer Registration
Attributes for CustomersAttributes for Customers like CST no, Credit period, Form 17 applicability is parameterized and more attributes can be defined and data can be captured while the Customer details are entered.
LocationsLocations can be registered and a Hierarchy of Locations viz. Region / Area / Location multi level can be built for purposes of reporting. Locations can be associated with auto numbering document types for generation of invoices using this document type viz. Location MUMBAI can be associated with document type BBY so that when the invoice is generated it looks like BBY/0304/009
Delivery Location (Destination)Destinations are registered for use in the Sale Orders where you can associate the delivery schedule with destination. This is to indicate where the delivery is to be made and also to collect information on the distance of the delivery location from the factory for purposes of Freight calculation in the Transportation Module.
Products & Pricing
Product AttributesYou may define attributes for products which are used to capture specific information viz. DIVISION, MARKET, PRODUCT GROUP, . Some of these are general in nature but others are specific. For example if the price of a product is dependant on AREA and DISTRIBUTOR then these attributes are grouped as PRICE attributes. CES provides for 3 broad Groupings (PRICE, INVOICE, OTHERS). PRICE Attributes whose values determine the price, INVOICE - Attributes captured at the time of invoicing and OTHERS - which are used only at Reporting.Default values for the attributes can also be specified.Finally after registering a product the specific values for the product against each of these attributes is captured in the appropriate facilities.