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hello everyone today let's understand how the sales and distribution process happens for a B2B sales in an organization the B2B sales process if we were to Define consist of the following activities it starts with a pre-sale activity then the sales order then stock check picking up the materials packing of the materials posting the goods which are issued to the customer invoicing to the customer and then the final receipt of the customer payment and let's understand what exactly your pre-sales activity means a pre-sale activity is basically an activity wherein the sales guy tracks and creates the customer contacts and Communications all kinds of phone records meetings letters campaign Communications emails are a part of this contact and communication activities activity which is done during this phase not only that the information which is required during the pre-sales activity includes all the past sales activity which has happened to that customer ever all the past communication which has happened to that customer whatever the contact information is available the company information is available what are the kind of credit limits which are available to the company which means how much of order can be serviced how much of payment can be released by the company at given point of time and what is the status of the current orders which are already there from that company all this information put together helps the sales guy to negotiate and complete the potential sale to the customer after you have done the pre-sales activity it's the inquiry from the customer which takes the way forward so inquiry is basically the customer asking the sales guy how much will the product cost what would be the availability the timelines and what quantities would be available at what timelines so inquiry can be very specific to each and every customer once the inquiry comes in the sales guy then gives a quotation based on the prices which can be offered the quantities which can be offered and the timelines at which those quantities can be offered the sales order process it can originate from a variety of documents it can originate from a phone call a email a a physical order it can even originate from an existing contract or any of the quotations that you have given in the previous history but any order that comes from any customer needs to include the following information the customer information the material how much quantity is required the pricing at which the quantity needs to be serviced and the specific dates on which this quantity needs to be delivered the shipping information and the billing information it is not necessary that the shipping and the billing would be same there are many cases where billing happens to one point whereas the shipping happens to multiple points so the sales document basically considers of consists of three large heads one is the header which is the data relevant for the entire order like the customer name what is the total cost what is the total vat then there is line item line item is basically each and every product information separately what is the price what is the quantity each and every product is specified in each line item then there are scheduled lines which belong to a line item which we which contain the delivery quantities and dates for partial deliveries so the sales order contains all the information which is needed to process the request like the delivery schedule the shipping point the stock check MRP is the pricing and even the credit limit which is available to that customer for billing after you have got the sales order you do the delivery scheduling which is where you decide when can the products be delivered for each of the light items to the customer this is based on the availability to promise date so basically in the system there is a date which is fixed for each and every product which can be made available at any given point of time based on this the commitment to the customer is made for the deliveries this date can be determined based on two Logics one can be a forward scheduling other one can be a backward scheduling and it can be defined by the company itself so just to explain what exactly is a backward scheduling a backward scheduling as the name suggests is that we know the delivery date which is requested by the customer and we work backwards so there is an example on screen which we can discuss so we know that sixth is the date which is requested by the customer for delivery and the transit time is two days so from the delivery date we did move two days which means that loading of the goods has to happen on the fourth again we know that one day is the scheduled Transportation time so we remove that so we come to third material availability has to be confirmed by second which means the material has to be picked and packed on the first so basis this we can do a backward scheduling of the products which can be delivered to the customer in the similar manner there is the forward scheduling forward scheduling basically does the other way around wherein without taking the requested date into account we work on the basis of what is the possibility of us delivering the product by the best possible timelines so it is possible that the customer might have asked for a date of sixth but we might not be able to deliver before seventh so in that case the scheduling will happen ing to the date of 7th and will commit to the customer that will be able to deliver the product by the 7th of the month so the availability check what we are talking about is basically that the system determines whether the material would be available by the uh by the mentioned date or not it considers all Inward and output movement of the inventory so basically it takes into account all the stocks which are going to come into the warehouse from the factory also is going to take into account all the products which are going to go out for customer delivery before this so basically it takes into account each and everything before it gives you an availability of the product there can be three different methods of delivery which can be followed there can be a one-time delivery there can be a complete delivery or they can be a delayed delivery again all of these rules are created by the company by the sales guy who are running the show so let's see how this works so before we go there the pricing the pricing in the system displays each and every information by line item because the pricing for each and every line item each and every product has to be specified for each and every customer separately it cannot be the same It generally not as the same for everybody although the system automatically searches for the taxes and the freight based on the state where the product is going in and the distance which is there to deliver the product but still there is a ability in the system to always manipulate the pricing at both the header as well as the line item level credit check is basically uh the system process wherein The credibility of the customer the payment should the payment history of the customer is taken into account and we see that if we have allocated a credit exposure of 100 rupees to a customer as of today what is the status do we have any receivables is there anything any payment pending from that customer taking that into account a credit limit is generated if you can see in the example the credit limit for this customer is 25 000 USD whereas the credit exposure is only 9000 USD which means that there is still a 14 000 USD credit exposure that I can take further on this customer coming to the shipping and transportation so the delivery document for the sales order has to contain the picking packing and the postcodes issue which has to be integrated with the materials management and the finance modules all of this is basically the process through which the products are delivered to the customer and the basis which the invoices are generated once your shipping documents are created now shipping can happen in multiple manners one can be a order combination very simple wherein you have got multiple orders from the same customer and you have space in your vehicle wherein all the orders can be combined into a single vehicle and can be delivered at the same date this is called the order combination where multiple orders are clubbed and delivered to head to a customer similarly there is a other way around which is a partial delivery wherein an order one a single order can be too huge to be delivered at one single time so therefore it needs to be split into multiple deliveries and therefore it's called a partial delivery so every time that a vehicle delivers to the customer it only delivers it in partial third one is a complete delivery wherein one single order is delivered at one single point of time the simplest of them all so basically the delivery creation checks order and materials to determine if a delivery is possible if there is any kind of hold in the system the credit is fine the con availability is confirmed all the trade requirements are confirmed the weight and the volume of the products has to be determined because it spaces the weight and the volume that the vehicle would be loaded and the vehicle would be charging the expenses to you it generates a packing proposal again calculates the weight and volume it checks the scheduling because that is very important otherwise you will not be able to figure out when exactly your vehicle is going to leave and when exactly it's going to reach there it considers all partial deliveries which are to be made by the multiple vehicles are required not required it updates the root assignment as well which route would be taken so as to ensure that the costs are minimal and the time is maximized it assigns picking locations this is applicable for warehouses which is generally automated it even determines the batches it is very important to determine batches in certain industries because of regulations and in certain other Industries to keep a track of what products are going at what point of time to which customers quality check if needed and then this delivery creation upgrades the same order that the delivery has been created Goods issue is the state where the legal and the legal ownership transfers from the uh from the company to the customer it reduces your inventory in the system finally and enters the cost of goods sold as receivables from your customer it automatically operates your ledger accounts financials and it ends the shipping process and updates the shipping documents so finally after your product has been delivered and your goods have been issued a billing document is created a billing document is created either on the order based or on the delivery based it can be created either which ways and this is Gen used to generate the invoice to the customer and therefore Define his credit status the billing documents automatically you know create a debit posting to the customer so basically Financial Accounting which takes over the sales process is now over in finance takes up for payments from the customer like delivery billing can also be done in different manners there can be a delivery based invoicing where there can be an invoice for every single partial delivery which was made to the customer at the same point of time there is another way whether although three deliveries were made but still only one invoice was generated and the third one where only single delivery was made but still because of the customer constraints we had to split the invoices into multiple so each one of them is valid and easily acceptable by most of the companies and the customers payment is the final process after which the sales is closed once you receive the payment from your customer for the products that were shipped the sales is considered to be closed and the postings are made against the invoices into your financials so it clears the liability in the accounts receivable and thereby hits your bank account that's about the sales process which happens in a B2B organization I hope it was helpful to you thank you