Sales order system for Education

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okay so after completing procurement our processes and order to cash cycle in sales process now we should also know how to how to process the customer returns as well as the vendor returns so in our first session we'll be having a look uh at how to process the vendor returns customer returns and that too in multiple ways and from second session uh we'll be having uh a brief introduction about the production and the various terminologies because production is also very much important uh there are very few consultants who actually are well aware of the production processes in any erp system so that is like a kind of a plus point so if most of the consultants they know dynamics uh they know finance most of them they know like trade and logistics but there are very few who know like dynamics uh trading logistics as well as uh the production the production is very vast topic on nelson we'll try to touch upon almost every aspect so yeah that will be our way to go so first let us you know uh know how to process vendor returns and customer returns all right that i think is was not in the syllabus original syllabus um vendor returns customer returns yeah yeah i think i might have added it later on because that is very important topic just revisit the syllabus and let me know what was there so i'm pretty sure i added something but haven't removed anything as such just have a look after that i think we have yeah all right so okay i found it now you found it so we have written vendor returns and customer returns there sales order returns and portuguese server returns yeah yeah okay okay right so first uh first we'll we'll try to you know receive and invoice our purchase order and then we'll try to return that purchase order so there can be various reasons for returning let us say we ordered some goods from a vendor and the goods were not up to the mark or maybe the goods were damaged so you only can return after doing the invoice yes we have to return after doing the invoice because then see we have to settle two things first we have to settle the inventory settling inventory means uh we received something so the stock went up so we have to reduce that thing first and second the vendor was credited so we have to nullify that also so now we have to decrease the inventory or meaning we have to take those items out of the inventory the first step which we can say are negative of product receipt and then second we have to debit the uh debit the vendor because the vendor was credited now we have to debit it so these are the two things that are most important during the purchase order returns so we'll see how to do that okay so first prior to doing that uh let me create a purchase order and we'll have a look at what exactly we received and then what we want to return so let me create a simple purchase order let me select our vendor account fight and warehouse and let me say i want let me take our item let us say we ordered a quantity of 10 with the unit price okay so this is the quantity let me see if there are some automatic charges applied we can have charges also and then we can apply those charges also so okay so we have a charges of 25 let me see where are these charges okay so these are the header charges and not the line charges so we can see we have the header charges also so these are the automatic charges i guess yeah we set up the automatic charges in last session okay so no issue we can have the charges as well and then let me click on the confirmation to confirm this okay purchase order confirmation done and now let me try to receive this item so right now i'm receiving it since it is a patch controlled we have to specify the batch number what are the possible batch numbers right now okay so a1 and a2 were the batches oh no we can let me say we have a2 okay and confirm registration so this is the term now i'm receiving it and i'm posting a product receipt so while posting a product receipt i want to specify the items that i registered okay a random product receipt number the line okay click on ok and then i'm invoicing it generating the invoice random invoice number invoice date let me put it as today matching the product receipts okay don't want to include or exclude anything i'm trying to click on post so now i've received a simple purchase order and now our like team decided we do not want these goods maybe these items are damaged or anything as such so there are actually multiple ways so the first thing a very common a simple technique is you know you can just add a new line in the same po only thing you have to do is you have to put a minus sign in front of the quantity so now this will reverse everything minus sign will give you the net amount of minus 600 and minus sign also means that when you try to do the product receipt so instead of doing a product receipt uh it will try to you know uh push those items out of inventory or very simply you can also like after doing this so you can do it in the same po so actually uh like this is not the standard way of you know like returning the items but since we are not concerned very much with the return processes we are very much concerned with the exact process steps whenever we are receiving our goods from the customers who are sending us back so written process is a little bit simpler but usually what most of the uh customers do is uh they just try to create a new purchase order just as to you know keep track so what they'll do is they'll usually do this in these two ways the first way is simply create a purchase order from here and then the other way is to create a written order so let me process by creating a simple purchase order and click ok so there they are going to do the same thing they are going to specify the item and they are going to specify the minus 10 quantity or any amount of items it's not necessary that you want to return only 10 what if only few goods are damaged so that is also one thing let me say only five items were damaged so let me try to return only five so it will give us the net amount ing to the quantity five if there were some kind of charges so we already have automatic charges here so we can have those charges as well the charges are here and if i try to refresh this i can see my charges are positive but i don't want them to be positive because i'm returning so it's not like i'm going to pay the vendor for these prices instead i'm going to deduct it from vendor so what i'll do is i'll put a quantity of minus 25 here so okay where yeah i understand yeah but you you're going to pay for charges for example for freight yes uh yeah yeah yeah okay yeah exactly so this is the reason so what i did is so now so now ing to that yeah yeah it depends on you like what is your business scenario maybe you are not using uh maybe you are not you know crediting that vendor for that freight maybe you are using a third party freight so in that case we will select a different charge code and maybe we do not want charges at all because uh let me say uh the freight vendor the freight has nothing to do with vendor so in that case like we'll totally omit the charges because we anyway paid the vendor to you know to bring forth the goods and all so that depends on your business scenario whether you want to include charges or not and even if you want to include it let me set it's a third-party freight so again anyway so you so freight will be charging you all right you want me to send your goods okay so give me the charge so in that case you will be applying the positive charges but right now i'm assuming is that the vendor from which we are buying goods so i am actually paying the vendor for that freight so since the goods are damaged so why will i pay for it so i will try to reduce it now so that depends totally on the business scenario so now my amount looks fine uh it can also happen for example instead of 25 i want to i want to apply only to 12.5 since i'm you know i'm providing a quantity exactly half so that depends totally on business scenario uh the people from procurement department they try to make calls or they have specified you know protocols okay if this sort of thing is happening then this is the amount that needs to be deducted okay so once we do that now all we have to do is follow the simple uh purchase cycle but there will be some different steps for example now let me try to confirm it so once you confirm the purchase order now usually what we do is we try to register it and post a product receipt so now let me try to register it system seems to be running slow much stuck there okay it's saying it's confirmed i think confirmation is done okay it was trying to print the report now therefore it was stuck let me disable that otherwise it will try to print report again and again so anyway we got our purchase order so we can see a quantity of minus 5 i haven't configured this purchase order properly because of which it is not showing me the prices and all so yeah once the purchase order confirmation is done now if you look at the line instead of registration you will find the option of picking any idea nelson why because you're this is a an outbound right process exactly exactly so because we are not going to register we are not going to add something to the inventory we are going to pick something and if you remember that this is the process that we use in sales picking because once the sales order is confirmed the next step is the users will pick those items and and pack it i mean pick those items and try to do the packing slip posting so in sales order also after sales order confirmation this is the second step we pick the items and then we post the product uh post the packing slip so it is very much like the sales part because right now we are doing exactly the same thing we are instructing the users go and pick these items because they are going out of the inventory so registration will be disabled pick will be enabled so right now we'll have to pick and after doing that we'll be adding adding a picking line and we can specify from which batch number so we added the inventory for batch b2 so we will remove the inventory from batch b2 is not created why oh sorry it was a2 it was a2 a2 so now i'll click on confirm pick all so basically now what happened is the quantity of five it just went out of inventory it was in the status deducted so if now the same thing so one change is here and the another change is if i click on product receipt so now in the uh parameter we cannot select registered because we haven't registered anything as you can see it's totally blank so what we'll do is we anyway have that line so we'll we'll click on ordered quantity not the product received quantity or registered quantity we'll click on order quantity so it will give us the ordered quantity means whatever the lines are present in the po it will give us those lines so this is the ordered quantity and that is exactly what we returned even if you returned something less or something more so you can still edit this quantity so if you click on ordered here you can anyway update the quantity at any point of time but we do but this is the exact amount that we returned so now i'll click on okay okay i forgot to mention the product receipt number so i'll click on okay all right so now my product receipt is done and as we can see that we will have the lines here so ordered was minus five received was minus five and because of which it means you try to send minus five uh try to send five quantity and you did send five quantity so with this so you can do it in multiple goes also if you if you understand if you understand the scenario the scenario where like let me say the goods are way too heavy and maybe you need two or three types of shipments so maybe you want to you know you want to receive them you want to pick them in two or three times so that also can be done so it's pretty much configured and what about the 25 25 yeah 25 are in the charges we can see they are still in the charges hold on i'll show you actually uh in the during the product receipt it usually shows us the quantity but 25 are always there let me see 25 it is showing the line amount and if i navigate to the totals see we have those 25 dollars here so not an issue that invoice amount will be that only okay so that is the important one okay yeah yeah actually product receipt uh mostly uh they they deal with the quantity so even in the report if you look at the product receipt report so you will not find any sort of like charges or you know something as such for example uh the quantity although you can find on the line that what was the amount the line amount and so yeah that is that is one thing so now i'll try to post it and we will have our purchase order like successfully returned so our vendor balance is also settled uh it's now debited our inventory is also credit inventory is credited because it was debited or during the normal purchase process so this is one way the most of the users do otherwise they can you know uh but in this way if you have a look here so you'll see that all all are of type purchase orders okay so usually what some people do is that they just try to use the same process but instead they they will use the return order so they can also search for return orders specifically from all purchase orders and once if you select return order then you have to specify something called rmb number maybe this is written acknowledgement number or any kind of number that uh that the vendor will give you or maybe you will give the vendor you know a sort of acknowledgement id that this is what like we are going to return maybe they'll try to enter this rma number in their system so yeah this can be any number so let me say it is a123 so two changes here first you have to specify the purchase type then you have to specify the rma number once you do that you can carry on with the same process so i'll click on ok now let me say i want my rest of the items i want them to go from here so i'll again enter the quantity of minus five and then okay i just want to tell you that we have something called in sales and purchase we have something called copy suppose you have a 50 or 55 lines okay and you do not want to like you know add those lines again and again because many of the times you will find pos the pu's are pretty much recurring in nature pos and so's so let us say if your pu is having uh 55 lines or 60 lines so it will really become a very much of a kind of a tedious task for user to again and again try to add those lines and same quantities so one very nice feature in dynamics 365 is you can copy from previous orders so in case of return order let me see that i i want to copy some lines so right now this is just one line so basically you will find this form in copy all in purchase order as well as in the sales orders because this is a way you can copy for example have a look at this item acme office supplies i just want to return all of these items at once or let me see i just want to order them again okay so if you just click and if you select all of these items here and then you have a certain settings let me say copy charges if you want to copy the charges in the existing po you want to copy precisely means copy exactly whatever the line quantity and everything so this is one thing if you want to invert the sign or if you want all of this quantity to be multiplied with something so that's a very nice feature and almost everyone makes use of it so this is the way you know you can avoid most of the typing while trying to add purchase orders okay nelson any kind of question or doubt from this so if i click on okay so this was one thing that i forgot to tell you so this is like something you guys should know yeah okay so quantity of items must be okay so this is throwing error especially in this case why because we created a return order okay so return order so it is it is showing uh that you the copy the quantity of items uh must be negative so it is trying to copy the positive items so let me try to see in word time will it do anything i haven't used this feature in a while so let me try to click ok copy precisely and all all right yeah it's something else so i'll just tell you here let me try to add something here because this copy operation is very much important it helps user a lot so if i try to i think this is a normal pu yeah this is the normal one if i try let me try to add these lines copy charges copy precisely also let me quantity factor of two so 10 10 15 we try to copy these so you can have copy order lines in purchase order you can have them in sales order so now can you see that within the fraction of few seconds i was able to copy and i was able to multiply the quantities as well these were 10 10 so they turned out to be 20 20 the 15 ones in 30 so this is a very nice feature okay always make sure if you ever encounter such situations where you have to add ah you have to add multiple lines in purchase order or sales order this is the way to go you can just click on create copy from all and you can create you can copy from all sorts of the existing purchase orders and sales orders so this was something that just you know i remember so i thought you guys should know that but anyway so let me click cancel here and let me try to add my line so i can select from the existing po here also and add that line so it depends upon you how you want to add that so let me say i want a quantity of minus so this time i'm creating the return purchase order and let me assume i have all the correct information here so rma number and type return order so these are the two most important things whenever you are trying to create a return order using this functionality so if i navigate to all purchase order here's so we can see we have a written order okay so this is the way it is clearly showing us that this is not a normal purchase order but a return order so i think this is a much better way to do it okay it's printing it again and again oh now i'll click on the once confirmation is done the same steps here we don't have to do anything new we'll have to click on pick since the quantity is negative add a picking line uh picked quantity and then we can click on confirm pick all okay this is an error be specif we have to specify the batch number i think so five cannot be picked because it's not available okay let me see i think i forgot to mention the patch number because of which it was throwing an error system forgot to see which batch number exactly i'll click on confirm pay call okay now it's picked so you can see uh most of most of the uh most of the errors in dynamics are self-explanatory if you just you know try to debug that you'll find it out so picking is done and now i want to post a negative product receipt so i'll click on ordered quantity that is good a random product receipt number and we have our line okay we'll do that okay so now we can click on invoice and generate the invoices let me match the product receipts okay updating match status and clicking on posting i forgot to mention the invoice number and invoice date let me click on post so nelson this was the way of uh returning uh what a thing you must match the status okay match so this is the way of like you know processing the purchase order returns so you can have charges you can return all the quantities or you can return some less quantity so any sort of like confusion here or what exactly went like anything any sort of confusion i think this is a pretty much straightforward business scenario yeah okay okay that's good that is good and now we will notice that that you can create a purchase order from a sales order that is also nice yep yes because it's all about it's all about you know copying so you you can have that thing you can create that and you can also create so let me say you are creating a sales order and another scenario is that you can create something called direct delivery purchase order that is also a very common business scenario you want to sell something but you do not have the item but you do not want to buy you yeah so you buy it and you you just you know you just process the purchase and the sales will be done automatically you're trying to receive that uh once you receive that packing slip will be done in case of direct delivery so if you uh like if you want to know about direct delivery so that is one more scenario so it's like uh you want the vendor to ship the goods instead of you doing the same so that is a direct delivery scenario otherwise usually you'll buy it and then put it in your inventory for a couple of minutes or days and then maybe you want to send it so all sorts of scenarios are possible so when you create a bunch of do you have inter company sales yes we do have inter company sales orders as well so you will you will okay i forgot to give you a document i forgot to give you the okay okay let me note it down oh yeah yeah that is also interesting yes inter-company sales order is definitely interesting because you know there are some very nice blogs about these so i forgot to give you the links i'll make sure to give you the links for them today it's very much simple to configure these inter company sales and purchase orders and another was the pricing and discounts pressing discounts these blocks maybe uh the direct sales yeah direct delivery because these are really very nice do you have make to order scenario make to order scenario right now we do not have uh so that is a kind of that that is in a production you know so uh yeah i say a manufacturer to order is uh you make a sales order and that triggers a work order yes so that that is also a very common scenario we do have that so in this way the sales order is going to be linked with the production order so that is a very common scenario we do have that and we will try to configure those and we'll talk in production okay so yeah really some very nice blocks are present so i'll make sure after today's session i'll give you the links for them very simple to configure so okay so now once we're done with the purchase process i think now we should know how to process the sales return the sales return is going to be a bit more detailed because see whenever you are doing the purchase return uh what exactly you are doing is you are picking the items out of your inventory load it on to the truck and there you go but during the case of a sales order return it's like you send something to the customer the customer found it effective or the customer is maybe defective maybe the goods are broken so anyway the customer is returning some or maybe all part of your shipment so now a various processes will be involved now the customer now the scenario one is customer customer may send it in in three shipments and not in one so every time you will have to register those and then do a kind of a product receipt and what with each registration what you want to do maybe maybe you want to scrap if the goods are damaged so those goods even have no value for you maybe only the scrap value so maybe you want to scrap that inventory and credit the customer or maybe you uh maybe the customer retained it because the quality was not up to the mark but you know you can sell those goods to some other customer so maybe you want to put those goods back into your inventory and do not disturb the inventory cost but credit the customer because anyway customer has returned us so we have to settle that amount so these will be taken care using something called disposition code so once you receive all and then you do something called a kind of a product receipt so there you do is a kind of a packing slip posting and then you will finally invoice so there are a lot of scenarios involved maybe you try to send they try to send you and the truck was lost in between or even the truck met with an accident so all sort of scenarios will be taken care of that so it's like a kind of a detailed uh customer written process so we will have a look how to process that so let me navigate to okay i can create a sales order from accounts receivable only so let me create a sales order first we will try to invoice the sales orders and then we'll take them back so let me see okay so i'll create the item with the quantity of 10 so right now i'm performing a simple sales order processing task let me say i want to sell 10 quantities okay so let me click on sales order confirmation click on save okay click on ok all right now i'll pick and back let me click on pick i'm going to pick from batch a2 confirm pick all items are now picked and i'll try to pack post the packing slip i want to post whatever is picked all right looks good click on okay and we have that same credit management issue i suppose it's enabled for this customer let me try to release it so that i can pack the posting uh select post the packing slip so let me do that meanwhile i'll i'll duplicate and let me say odd open all sales orders in this tab also okay so once this is done let me create the invoice so i'll generate the invoice i want to invest the packing slip okay packing slip number is mentioned two zero eight five click on okay all right so our invoice is posted now and the invoice number is 763 so now here we we will go to sales and marketing and we have a special tab if you click on we have a special section for return orders okay so the created written orders open return orders and all return orders so i'll click on all return orders so here we have this separate uh form for or you know creating and processing written order so i'll click on new and let me say for the customer account and okay so we have we can specify the return reason code also so you can have a list of your own written reason codes you know just to keep track for reporting purpose or what exactly so i think a defective is good seems to be a good quantity so let me say our goods were defective therefore the customer is returning the goods back to us also we can click on ok now so this is the written order same the header and the line concept but it's a little bit different than the sales order so now what we'll do is in the in case of return order we'll try to find the return sales order you know we'll click the return find sales order and we'll find the order for what we want to return the material so let me say uh i think our latest invoice was 763 so this is the invoice that we did we can see the invoices that find order is only to show the orders that match the item the customer or something right right so you first and foremost they will only match for something that is invoiced so they'll not uh so like it can say so here we have the invoices so only the invoices will be showing up so invoice header invoice header and invoice lines so and it is also filtering it using the customer the customer exactly this because it makes sense you created something for a customer and you want to return to that customer only so this is one thing that you can do otherwise if you navigate to normal sales order that copy functionality is present here also so that is present on all purchase on purchase order form and sales order form so that copy uh thing is present here so if you want to copy from all others and that is here but this is return order and this is copy this is the option to copy and that is the option to find sales order because we want to find the exact vendor and the exact invoice against which we are going to perform these transactions yeah okay so now the this is what this was our invoice 763 we can see so let me have a look at this once again i think it was seven yeah 763 it is so i'll click on 763 and in these sections okay so yeah so copy charges if you want to copy the charges or anything as such so i'll click on select this is selected now i'll click on ok so as you can see it automatically uh you know added this minus 10 quantity here yeah so once we do that so here we don't have to explicitly specify the negative quantity so everything is uh like seems to be good right now here so now what we'll we'll click on the return order so it's a kind of a written order report and let me see okay no it's no issue we can print it on the screen it's like a kind of as we have the sales order confirmation so this is the kind of written order confirmation this is like you want to return how much quantity and what so we have the written order now so now what we'll do is uh let us say okay so we've created a written order in our system now after maybe a day or two the first shipment came okay so and they try to return us let me say half of the quantity let me say a quantity of five so now i'll click on update line and we can see the process of registration is enabled registration why even though it is the sales process but since we are adding something to our inventory so it's very much logical when we were you know pushing items out of inventory even if it was purchased uh the pick was enabled so that was the purchase order but now what is happening is uh we are trying to bring something into the inventory so we will definitely register it so when you click on register then you have to assign the disposition code so there are certain disposition codes enabled and you can click on view details to have a list of what exactly they will do so disposition code are like for example credit so it's like you know uh you just have to put the item back into the inventory and credit the customer so now you have credit repair and ad so it's like a scrap scrap and credit to customer so basically you can select any of the disposition codes so these are the actions credit credit only replace and credit replace and scrap return to customer and customer and these are all the possible scenarios so this is one thing a very nice feature you have for with every registration you can have a disposition code let me say for this one i just want to you know put the item back into the inventory and credit the inventory and credit the customer usually whenever we are doing the customer invoice we are debiting the customer so the debit balance stands against the customer now we will credit the customer so let me select the disposition code of 11 and so it will now give us the registration form let me add the registration line so registration line let me say we tried to receive it in batch a2 the quantity of register now was five let me say uh we'll get another shipment after like a day and then we'll register rest of the quantity so if i click on confirm registration quantity is registered now and now let me say so okay so we can see it's okay so the quantity is registered here the quantity returned is minus five and we have this status as registered and this is yet expected so i'll click on this line let me say we got the items after a day again and with the same disposition code or a different disposition code depends on you let me select the same disposition code and we can register the remaining items let me select the batch a2 click on confirm registration this is registered so basically now we have all those 10 items in our inventory now okay so registered registered so that created the two lines so once we do that so after registration means now we can post the packing select post the packing slip for the replace uh for the return order so if you click on post the packing slip the quantity will be all means whatever whatever we've registered it's totally fine created the two lines because we registered it using you know the two sequences maybe everyone was having a different uh disposition course would create the two lines so anyway i'll click on ok so now our packing slip will be posted but a negative packing slip you can say because we registered the quantities but this is uh the way to go and one more thing you will find here is that you will not find anything called invoicing invoicing tab so the users get confused about that because that you will have to do from here so once you register that thing so now if you filter all the sales orders so you can see the so this was the original sales order and this is the return order for this sales order and you can see we have a status of delivered which means we've received all the items in short the negative posting uh the negative packing slip is posted delivered everything so if you want to do the invoice so again we'll have to come to all sales all sales orders page and click on invoice so from here we will be able to generate the invoices so now it is showing us okay the packing slip totally fine packing slip that was created was this one and it is showing us the negative quantities and amounts all right we can click on okay and you know process the sales return sales invoice so this is the whole process nelson of the it is a bit more detailed as compared to more stuff here yep definitely good amount of steps are there because good amount of scenarios are there so the systems the system makes sure that you know every sort of scenario is handled you can have otherwise like it's uh it's not a good idea to just create a negative sales order line you can do here also let me say your sales return is not that much detailed you just want to debit the customer or credit the customer and bring back the inventory you can anyway do the same thing using the minus sign so adding a minus sign in in front of quantity will reverse all the transactions will reverse the inventory so if you know that you do not have the mechanism of you know you know using this truck and you you know that it's a shop nearby you can uh the the system will definitely uh the the puts will be definitely returned towards that two in time and one shipment just create a negative sales order line so all the transactions will reverse itself so the system gives you flexibility to you know to perform these steps but let us imagine the huge warehouses for example amazon warehouse and walmart a walmart warehouse and also such such type of scenarios are handled you know there so there they have the proper process they have the something called return acknowledgement number then written reason codes and then disposition codes so you can have all sorts of features you can have like exact depicting exactly what is the truck going through on the road and the time it is coming in your warehouse so you can have the each and every list of steps because some customers do that actually okay so that depends on for specifically that depends for what customer you are trying to process the customer returns you know anyway after after two days the this invent this will come back into my inventory and you do not have this scenario just create a negative sales order line and you know just go through till the invoicing so the inventory will be balanced and the and the customer balance will also be balanced okay yeah so this is how nelson we if we process the purchase returns and sales returns i think we'll take a quick 10 minutes break and then we'll start the manufacturing processes today we will have a quick look of various types of manufacturing and certain terminologies that will definitely be needed when we will be configuring the system for production okay okay