What are the core documents that support the Sales Order Management business process?

Business Applications Sales
1

I’d like to know what the main sales documents are and their sequence.

2

There are many documents that support the Sales Order Management business process. They are as follows:

  1. Sales Quote: A legal document sent to the customer detailing pricing, quantity, and schedule information for requested products. It is typically sent with an expiration date and is converted to a Sales Order once accepted.

  2. Sales Order: An internal document indicating that a customer is ready to purchase products and services. It is a legal document committing a company to the terms, dates, quantities, and pricing of the sales order.

  3. Picking Document: Supports warehouse picking as an integral part of the Sales Order functionality.

  4. Shipment: Represents the package sent to the customer. The confirmation of a Shipment relieves inventory, and the Pack List is generated from a Shipment.

  5. Customer Invoice: A legal document requesting payment for services rendered. It contains information about the services, terms of service, and generates GL entries such as Revenue, Costs, Discounts, Taxes Payable, and Receivables.

  6. Sales Credit: An internal document representing the reversal or refund of the customer invoice due to a return or other reasons like a price adjustment.

  7. Sales Return: Manages customer returns. Once an item is returned, a Sales Credit is created for the refund. A replacement Sales Order can be created if requested by the customer.

  8. Customer Credit Memo: A legal document sent to the customer to refund a previously created invoice. It also reverses GL entries such as Revenue, Costs, Discounts, Taxes Payable, and Receivables.

These documents rely on the setup of the following entities:

  • Customers: The customer whose demand is being fulfilled.

  • Items: The products being sold.

  • Pricing: Definition of product prices for a customer.

  • Contracts: Contractual prices and quantities agreed upon with the customer.

  • Shipping Terms: Terms of delivery of the product.

  • Ship Via: The carrier and shipping method used for product delivery.

  • Payment Terms: Terms of the invoice.

A lot to read through, but hopefully that helps!

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