AC 340 Ch 10 order entry sales process

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order entry sales process
1. customer places order
2. sales order dept requests credit approval from credit dept
3. credit dept informs sales order dept if accepted or denied
4. sales order dept acknowledges order to customer, and notifies warehouse shipping and B/AR/CR process of sales order
5. warehouse sends picking ticket to shipping
6. shipping dept informs carrier, B/AR/CR, general ledger and sales order dept of shipment
primary function of order entry sales process
create info flows to support:
1. repetitive work routines of sales order, credit, and shipping department
2. decision needs of those who manage various sales and marketing functions
connecting with customers with web 2.0 and cloud computing
-set of tools that allow people to build social and business connections, share info, and collaborate on projects online (social networks)
data warehousing
-providing info needed to monitor and control business processes
-ex: how many hours does it take to make a shipment after receiving customer order
data mining
-allow use of sophisticated statistical and other analytical software to help understand customers, processes, markets
e- business systems
-allows trading partners and customers to easily process international order without physical presence
-categories: buy side and sell side
buy side systems (category of e- business system)
-use internet to automate and manage purchases and vendors
-ex: EDI (electronic data interchange), SCM
sell side systems (category of e- business system)
-designed to allow company to market, sell, deliver, and service goods and services to customers throughout the world via internet.
-ex: CRM
support of CRM
-facilitate recording and storing of info related to each contact the org has with client, and context of conversations or meetings
-supports organizing and retrieving info on historical sales activities and promotions planning
-segmentation: groups customers into categories based on key characteristics
-support for customer service–> can route call to rep that customer has already spoken to
-customer self service systems
context diagram of OES process
-process: OE/ S process
-entities (squares): customer, general ledger process, billing/AR/ cash receipts (B/AR/CR) process, carrier
dissemination of sales order (dissemination= process)
-picking ticket: authorizes warehouse to pick goods from shelf and send them to shipping dept
-customer acknowledgment: notify her that order has been accepted and when it will be delivered
dissemination of notices of shipment
1. shipping notifies billing to begin invoice process
2. bill of lading
3. packing slip
4. notify general ledger process that inventory sold and need to increase COGS
bill of lading
K b/w shipper and carrier indicating that carrier agrees to transport goods
packing slip
identifies customer, destination, contents
5 data stores of OE/S process
1. customer master data
2. inventory master data
3. marketing data
4. sales order master data
customer master data
contains record of every customer with whom we are authorized to regularly do business with
-unique customer number, characteristics, credit data
inventory master data
contains record of each item that is stocked in warehouse or is regularly ordered by vendor
marketing data
contains economic forecasts, census reports, responses to marketing questionnaires, customer buying habits
sales order master data
-created on completion of sales order
-after goods shipped, sales order record updated
bar code readers
-devices that use light reflection to read differences in bar code patterns to identify a labeled item.
-used in grocery stores but also UPS to track inv items during shipping transfers
optical character recognition
-pattern recognition of handwritten or printed characters
-used when customers mail pmts and company asks to write total amt on remittance slip
-input devices that capture printed images or docs and convert them into electronic digital signals that can be stored on comp media
-radio frequency identification
-as long as chip is close to reader, it can be sensed and info like product ID is captured
digital image processing systems
-computer based programs for capture, storage, retrieval, and presentation of images of objects like pics and docs
digital imaging process steps
1. input stage: use scanner to capture images. may need to input some data if can’t read doc
2. electronic folders created to store and org related docs
effectiveness goals of OE/S process (at bottom of chart)
A. provide timely acknowledgment of customer orders
B. provide assurance of customer’s creditworthiness
C. provide timely shipment of goods to customers
control goals of ops process
1. effectiveness goals
2. efficiency (people, computers)
3. security (inventory, customer master data)
control goals of info process
1. For sales order inputs (customer orders): IV, IC, IA
2. For sales order and inventory master data: UA, UC**
3. For shipping notice inputs (shipment data):IV, IC, IA
P1: enter customer data close to where order is received
-A, C, efficiency, sales order IC, sales order IA
P2: Customer credit check
-ensure that org does not extend more credit to customer than is prudent
-enables segregation of duties
-B, efficiency, security, IV sales order input
P3: Populate Input screens with Master data
-A, C, efficiency, sales order IV, shipping notice IV, sales order IA
P4: Programmed edit checks
-A, C b/c edits data as it is input so faster results
-efficiency, sales order IA
P5: Compare input data with master data
-A, C, efficiency
-security: inventory lost if order isn’t real
-sales order IV: if no customer record in customer master data, sales to customer may not be authorized
-sales order IA
P6: Preformatted screens
-A, C, efficiency, sales order IA
P7: online prompting
-A, C, efficiency
-sales order IA: b/c rep has to stop and “accept” order
P8: Procedures for rejected inputs
A, C, sales order IC, IA, shipping notice IC, IA
P9: Confirm input acceptance
sales order and shipping notice IC
P10: one for one checking of picking ticket with goods
-ensure that correct goods are picked from shelf and that any errors are detected and corrected in timely manner
-C, efficiency, security, shipping notice IV and IA
P11: enter shipment data in shipping
-C, efficiency–> process shipments immediately
-shipping notice IC: b/c shipping clerk puts in data himself rather than forwarding it to another dept
-shipping notice IA
P12: turnaround doc (picking ticket)
-C, efficiency, shipping notice IV
-shipping notice IA: prerecorded barcode
P13: automated data entry
-C, efficiency
-shipping notice IA: use prerecorded barcode
P14: independent shipping authorization
–someone other than warehouse authorized shipment
-security, shipping notice IV
P15: one for one checking of goods, picking ticket, sales order
-ensures shipment will be authorized and accurate
-shipping notice IV, IA, security
M1: independent customer master data maintenance
-segregation of duties b/w person who creates customer record and person who creates sales order
-security, B, sales order IV
M2: review open files (tickler file)
-detect any shipments that should’ve taken place
-C, shipping notice IC
-valid sales order is from existing, authorized customer whose current order falls within authorized credit limits
-valid shipping notice is one that is supported by both approved sales order and actual shipment of goods
IC and IA of sales orders and shipping notices
-failure to achieve–> inaccurate shipments, shipments not being made, or entered twice
UC and UA of sales order and inventory master data
-updated when new sales order created, and updated when order has been shipped
Categories: Sales