Customer orders are for items that are specifically ordered by the customer.
There are 2 types of Customer Order
- Special Order – Priced at the time of taking the order (Normally Retail customers)
- Back Order – Priced at the time of eventual supply (Normally Trade / Distribution customers)
Stages of a Special Order
- Create the initial transaction - A transaction is produced with items marked as Special Ordered (Can be an Invoice or a Sales Order if items are going to be Held or edited)
- Create the Purchase Order - Purchase Order(s) are created in Items / Orders for the customer ordered items
- Receiving from the Supplier - When items on the above Purchase Order(s) are marked as 'Received'
- Picking-Up - When the customer collects the item and it is marked as 'Picked-Up'
Stages of a Back Order
- Create the initial transaction - Produce a transaction for all items ordered and print as a Sales Order (pick List)
- Pick the items from the Pick list and mark any not able to be supplied
- Edit the Sales Order, mark items to be Back-Ordered and save as an Invoice. (Note: stages: 1, 2 and 3 can be combined and picked from Invoice if confident with stock accuracy)
- Create Purchase Order - Purchase Order(s) are created in Items / Orders for the customer ordered items
- Receiving from the Supplier - When items on the above Purchase Order are marked a received
- Releasing satisfiable Back Orders - From Sales / Options / Release Back orders, or by creating a new transaction for that customer. This will create a new Sales Order which you can process in the same way
The different Status of Customer Order
- Provisional (Created but not yet ordered)
- Ordered (Ordered from supplier)
- Received (Received from supplier)
- Completed (Released Back-order - or - Picked up Special-order)
- Cancelled (No longer required)
Deliver Direct Option
There is an option when Customer Ordering an Item, to select Deliver Direct. This is also known as Drop Shipping. When Deliver Direct is selected, and Auto Add has been selected on a Purchase Order, the system will loop through all the Delivery Direct customer order, group them by Customer and Supplier and then create Purchase orders for each Supplier / Customer combination with the Delivery address set to the Customer details. This enables the Supplier to dispatch directly to the Customer.
Creating Customer Orders
Customer orders are created on Sales Transactions.
If the item may need to be changed, the price modified or the order held until all items can be supplied, then we would normally use Special Orders and keep the Transaction as a Sales Order until everything is correct and complete.
If supplying a large number of items to Trade customers using a traditional Sales Order Processing procedure we would normally enter all items on a Sales Order to produce a Pick list, mark what items that can not be supplied as Back-ordered, and then convert to an Invoice
Customer Orders are normally for items in your stock file or a Price Book. Note: to keep your stock file clear and concise, only items that you intend to permanently keep in stock should be kept in the stock file. This is why it is common to customer order from Price Books.
If you want to customer order an item that is not in your stock file nor in a price book you could use a general non-stock item in the stock file (eg: with a part number of: .GNS-ACME (Where ACME is the supplier). If you create different ones for each common supplier it will save you having to enter the Supplier details in each time and it will also make the reporting better. You would normally set these stock items to Prompt for Price so it will prompt for the price and enable you to enter a description and Part No if needed.
Customer Orders should always have a Supplier set. The supplier is automatically set if a stock item has the Primary supplier set, or if a primary Supplier has been set for the Category. Note: For Price Files you would set the Default Category in Settings / System / Stores. You can see on the Items summary screen if any of the customer orders do not have the supplier set. You can change the supplier in Items / Purchases / Customer Orders.
When editing a sales transaction, lines can be changed from 'Supply' to 'Customer Order' and back again (A code is shown in location field so that the user can see eg: *SO or *BO).
When a stock item is Customer Ordered the Stock Quantity is not changed, either on the Invoice or Purchase Order. When looking at History these lines are shown for information but the adjustment quantity is set to zero.
The system does not actually create the customer order until saving the sales transaction for any newly added lines (This is so we can assign a transaction number to record on the customer order record).
If the transaction is of the type that can be recalled and changed (e.g. a Sales order or an item booked to a job) the line will be flagged as updated so it will not create the customer order again when the transaction is recalled and saved again.
When a transaction is saved any new Customer Order lines will have a record created and the status is set to PROVISIONAL
A common way to view outstanding customer orders for a contact is to select Contacts, then Customer Orders.
You can also change the customer order details in Items / Purchases / Customer Orders.
See also: Sales Orders
Creating a Purchase Order
When you select 'Auto Add' on a purchase order you have the option to automatically add any Provisional customer order lines for that supplier to the order. Do not change the Order Qty for any customer orders as it will not adjust the customer order record. If you want to order additional items for stock than create a stock order line on the Purchase Order
When you order these customer orders the status is changed to ORDERED
Receiving a Purchase Order
When the purchase order is received by you from the supplier we would mark the lines that have been received (Manually or selecting 'Auto Rcvd') Make sure you mark the individual order lines as received rather than putting into stock.
The only exception to this is if you have a large quantity of items for customer 'Back-Ordered' items and you do not need to set priorities. In this on a purchase order you have the option to automatically add any Provisional customer order lines for that supplier to the order.
When you receive customer orders the status is changed to RECEIVED
Picking Up a Special Order
Because Special Orders are normally invoiced at the time of taking the order, financially we do not technically have to do anything when the customer picks it up, however it is useful to see which items have not been Picked Up and for that we need to mark the parts Picked Up as they are picked up.
To mark a Special Order as Picked Up select Contacts and select the appropriate customer, then select Customer Orders, highlight the item they are Picking Up and select Complete Line from the left menu
When a customer picks up customer orders the status is changed to COMPLETED
It is also a good opportunity to check the Owes field to see if there is still an amount owing
Releasing a Back-Order
When selecting a Customer on a Sales transaction the system will automatically check to see if there are any satisfiable Back-Orders.
You can also release back-orders in bulk or individually by selecting Sales / Options / Release Back-Orders
When a Back-Order is Released the status is changed to COMPLETED
The system can release Back-Orders that meet one of the following conditions
•The Back-order line for that Customer has been marked as Received (e.g. When receiving a purchase order)
•There is stock of the item that was back-ordered (Stock Items only)
When releasing from stock, if you want certain customers to have priority you should release them first
When a stock item is Back-Ordered, the Stock Quantity is not changed. The stock quantity is also not changed when the back order line is received on the Purchase Order. These lines are shown on the stock item History for information but the adjustment quantity is zero.
When the Back-order is released, in most case the stock quantity is also not changed. The only exception to this is when a Back-Order is released from Stock (Rather than marking the customer order line on the purchase order as Received). Because the Purchase Order was Received into Stock (Stock Increased) the Stock Quantity needs to reduce as it is released. When this happens the UpdateStore field will be set to False so that the store will be updated. In other cases, if the back order line on the purchase order was marked received then the UpdateStore field will be set to True so the store will be updated.