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Sales and Distribution

NSD ERP System _ Sales and Distribution Application
NSD ERP System _ Sales and Distribution Application

Every company is structured in a certain way. In order to work with the NSD System your company structure has to be represented in the system. This is done with the help of various organizational structures.In sales and distribution, products are sold or sent to business partners as well as services performed for them. Data about the products and services as well as about the business partners is the basis for sales processing.

In addition to sales and distribution, other departments of the company such as accounting or materials management access the master data. The material master data is stored in a specific structure in order to allow access from these different views.
The processing of business transactions in sales and distribution is based on the master data. In the NSD System, business transactions are stored in the form of documents. These sales and distribution documents are structured according to certain criteria so that all necessary information in the document is stored in a systematic way.
The SD application helps optimize all the tasks and activities carried out in sales, delivery, and billing…..
The Customer order management refers to the process of taking orders, checking availability, delivering goods, invoicing customers, and receiving payment. Its functionality includes the following:

  • Sales order processing
  • Delivery
  • Billing
  • Customer payment
  • Customer support
  • Sales Reports Processing customer quotations
  • Customer contract processing
  • Customer order processing
  • Delivery processing
  • Credit control
  • Goods issue processing
  • Processing credit/debit memos
  • Returns processing
  • Returns delivery processing
  • Receipt processing

A sales processing with the NSD System requires that the master data has been stored in the system. In addition to sales and distribution, other departments of the company such as accounting or materials management access the master data. The material master data is stored in a specific structure in order to allow access from these different views.The processing of business transactions in sales and distribution is based on the master data. In the NSD System, business transactions are stored in the form of documents. These sales and distribution documents are structured according to certain criteria so that all necessary information in the document is stored in a systematic way.The SD application helps optimize all the tasks and activities carried out in sales, delivery, and billing…..The Customer order management refers to the process of taking orders, checking availability, delivering goods, invoicing customers, and receiving payment. Its functionality includes the following:

The Sales procedure is constituted by the below  main steps:

  1. Inventory Sourcing
  2. Delivery
  3. Billing
  4. Payment
Inventory Sourcing

There are two categories of pre-sales activity:  Sales Support and Pre-sales Documents.
Sales Support allows tracking of customer contacts by including sales visits, phone calls, letters and direct mailings.  Mailing lists can be generated based on specific customer characteristics.  Basically an Integrated CRM system.
Pre-sales contracts include inquiries and quotes.
Inquiries document customer requests for information (“how much is, is the product in stock)?
Quotes are binding documents to a customer offering a specific quantity of material at a specific price if accepted within a specific period.
Both Inquiries and Quotes can be used as a starting point to create a customer order.

Customers place orders with a customer service representative who creates a document with information about:

  • Customer
  • Material Ordered - material and quantity
  • Pricing conditions for each item
  • Schedule lines - delivery dates and quantities
  • Delivery Information
  • Billing information

Information is pulled from master data on customers and materials to minimize data entry errors.
Inventory Sourcing determines:

    1. If a product is available (availability check).
    2. How the product will be supplied:
      1. From stock on hand.
      2. From production or purchase orders that should be available.
      3. From make-to-order production.
      4. Shipped from an external supplier.
      5. Shipped from another plant or warehouse.

Inventory sourcing occurs when:

    1. An order is created.
    2. An order is changed.
    3. When the delivery document is created.
Delivery

Delivery activities include:

    1. Creating delivery documents
    2. Creating transfer orders for material picking
    3. Provide packing information (if required)
    4. Goods issue (updating accounting and inventory data)
Billing

A Billing Document is created by copying information for the sales order and delivery document into the billing document which is used to create the invoice.
Creating a Billing Document will automatically debit the customer’s accounts receivable account and credits the revenue account.  Postings may also be made to other accounts.

Payment

Payment is the final step in the customer order management cycle.
Final payment includes:

    1. Posting payments against invoices.
    2. Reconciling differences, if necessary.

The Cycle may not always go as planned (material not in stock, defective material returned for credit, etc.).  NSD has procedures to deal with these possibilities.