Case study 2B Sales and marketing

Objectives

Enter a sales order, review the order totals, and confirm the sale
Create a sales order with commission, and then check the registered sales commission on the sales order.
Create a customer trade agreement for specific customers, a specific item and for a certain date range.
Generate rebates and process rebate claims for payment.

Exercise #1 Enter and confirm sales order

Objective: Enter a sales order, review the order totals, and confirm the sale.

A sales clerk at USMF who is responsible for receiving and recording sales orders in the system so that customer requests are fulfilled.

She received a request form Customer US-004, who wants to buy 1 of Item T0004 (“Television M120 37”) with a color of black.

She is not sure on the steps enter and confirm the sales order.

You are called to provide assistant. What would you do?

Enter sales order header details

Go to Sales and marketing > Sales orders > All sales orders.
Click New.
In the Customer account field, click the drop-down button to open the lookup.
In the list, find and select the customer US-004.
Click OK.
Click Sales order line.
Click Dimensions.
For this example, select the Color, Site and Warehouse dimensions. The dimensions you select here will appear in the sales order grid. If you want your selections to persist, set the Save setup option to Yes.
Click OK.
In the Item number field, click the drop-down button to open the lookup.
For this example, select item number T0004.
In the Color field, click the drop-down button to open the lookup.
In the list, find and select Black
In the Quantity field, enter 1.

Review the order totals

On the Action Pane, click Sales order.
Click View > totals.
The Totals page displays details about the entire order. This includes the subtotal amount, which is a sum of all line net amounts adjusted for eventual line discounts, the total invoice amount, which is a subtotal amount adjusted for eventual order-level discount, charges, and sales tax, the customer credit limit situation, and more. The invoice amount is the amount that will appear on the customer’s invoice document.
Click OK.

Confirm Sales order

On the Action Pane, click Sell.
Click General> confirm Sale Order.
This will prompt you with a screen where you will check the Posting flag is set to Yes and Print confirmation is set to Yes.
Click OK.
This will print the Sale order Confirmation on the screen

Exercise #2 Create and review a sales order for commission

Objective: Create a sales order with commission, and then check the registered sales commission on the sales order.

The sales manager is required to manage the sales commissions for the sales representative team. Part of this process is to extend the commission calculation rule that expired. She will need to set up the necessary commission to ensure the commission for customer US-013 is being calculated for all items.

You will need to help her to create a sales order for customer US-013, who is requesting 2 units of item D0001. You will proceed with all of the sales order process until the invoicing step. Then you will check the registered sales commission on the sales order.

You will have to do the following:

Invoice a sales order that qualifies a salesperson for a commission.
Review the registered sales commission.

Invoice a sales order that qualifies a salesperson for a commission

Go to Sales and marketing > Commissions > Commission calculation
Click Edit.
In the To field select 12/31/2020
Click Save.
Close the page.
Go to Sales and marketing > Sales orders > All sales orders.
Click New.
In the Customer account field, click the drop-down button to open the lookup.
In the list, find and select US-013.
Click OK.
On the Action Pane, click Options.
Click Change view.
Click Header view.
Expand the Setup section.
The value in the Sales group field represents a group with one or more sales representatives assigned to it. The people in the group are the ones who will receive commissions when the order is invoiced, as per predefined rates and distribution. The value is copied from the Customer card, but you can change it if you wish. The Sales group is also copied to the sales order line. You can change it so that it can differ from the one in the header and/or between lines.
The value in the Commission group field represents a group that you have created for one or more customers with the purpose of tracking commissions. The value is copied from the Customer card, but you can change it if you wish.
On the Action Pane, click Options.
Click Change view.
Click Line view.
In the Item number field, click the drop-down button to open the lookup.
In the list, select D0001.
In the Quantity field, enter 2.
Take note of the net amount. It represents the sales revenue, which in this example is the basis for commission.
Click Save.
On the Action Pane, click Sell.
Click General> confirm Sale Order.
This will prompt you with a screen where you will check the Posting flag is set to Yes and Print confirmation is set to Yes.
Click OK.
This will print the Sale order Confirmation on the screen
On the Action Pane, click Pick and Pack.
Click General> Post packing Slip.
This will prompt you with a screen where you will check that the Parameter Quantity Field is set to ALL and the Posting flag is set to Yes.
Click OK.
On the Action Pane, click Invoice.
Under Generate field group, click Invoice.
Expand the Parameters section.
In the Quantity field, select All.
Select Yes in the Posting field.
Click OK.
Click OK. It may take a minute or so to post the transaction. Allow the processing to complete and don’t close the page until it’s done.

Review the registered sales commissions

On the Action Pane, click Invoice.
Under Journals field group, click Invoice.
On the Action Pane, click Invoice.
Click Details > Commission transactions.
The Overview tab displays lines representing the commission amounts payable to sales representatives who are associated with the invoiced sales order. Review the details.
Close the page.
Click Voucher. You can review the voucher transactions for the commission amounts that have been posted to the predefined commission expense and commission payable accounts.
Close all pages.

Exercise #3 Create a customer trade agreement

Objective: Create a customer trade agreement for specific customers, a specific item and for a certain date range.

The sales managers always try to standardize the sales price list and discounts (trade agreements) for products. Sometimes they create special price lists and discounts for special customers.

The sales manager you are working with decided to create sales price trade agreement for item A0001 for all retail customers accounts and to set that price at $20. she also want to add a validity date for that price.

In order to record this sales price in the system she will use the trade agreement journal, so that whenever a sales order is created for item A0001 and the customer is from the retail accounts group, the price will default to $20.

What would you do to guide her thru this entry?

Create a trade agreement named “Sales price adjustment

Go to Sales and marketing, then to Prices and discounts, and then to Trade agreement journals.
Click New.
Name: Select S_Price, Sales price adjustment.
Click the Lines button to open the journal.
Relation: Select Price (sales).
Account code or Party code type: Select Group.
Account selection: Select 03, Retail accounts.
Item code or Product code type: Select Table.
Item Relation: Select A0001, HDMI 6’ Cables.
From: Enter 1.
Amount in currency: Enter 20.00.
Change to the Details tab.
From date: Select February 15, 2017.
Lead time: Enter 2.
Select Validate > Validate all lines.
Click OK.
After successful validation, post the journal
Close all pages

Exercise #4 Generate and process customer rebates

Objective: Generate rebates and process rebate claims for payment.

Sales manager build better relationships with customers and encourage them to be loyal to the company`s products and services by offering them rebates based on the order volumes or quantities.

Customers can receive balance deductions, trade spending, invoices deductions, or get paid directly.

The sales manager you are working with asked you to show how this works using existing rebates for item T0020 and process a claim.

You will have to do the following:

Generate and process customer rebates.
Generate rebate claims.
Process rebate claims.
Process rebates for payment.

Generate and process customer rebates

In USMF navigate to the Accounts Receivable > Setup > Accounts receivable parameters page, click the Prices tab and expand the Price details tab, and check that the Enable price details option is set to Yes.
Navigate to the Sales and marketing>Customer rebates>Rebate agreements page and select the customer rebate agreement: USMF-000001.
If the Workflow approval status field is not set to Approved, you need to click Validation on the Action pane to approve it.
Review a customer rebate agreement

The agreement is for an individual customer, in this example customer US-009.
Rebates are given to the customer when they purchase a specific product. In this case, the product has item number T0020.
The customer’s sales performance, against which the rebate amounts are estimated, is to be accumulated on a weekly basis.
- The setting for Price taken from is Gross, which means that line’s sales amount on which basis the claim is estimated is not reduced by the line discount.
- The Rebate line break type field shows the method for calculating rebates. In this case, the sales target against which the rebates are to be estimated is set to Quantity.
- The agreement’s lines specify the rebate amount type, the actual rebate value, and the thresholds. In this example, the customer will qualify for a rebate of 20 USD per unit sold, if their weekly purchases of the product fall within 1 to 50 units; and a rebate of 40 USD per unit sold, if they purchase above 50 units.

Generate rebate claims

Navigate to Sales and marketing > Sales orders > All sales orders.
Click New.
In the Customer account field, enter or select US-009.
Click OK.
In the Item number field, enter or select T0020.
Set Quantity to ‘40’.
Click Sales order line.
Click Price details.
Expand the Rebates section. The Rebates tab lists all the rebate agreements that are applicable to the current order line and shows the estimated rebate amount. Note that the displayed amounts are only indications of what future rebate claims may be. The actual rebate amounts may be different depending on: the total sales volume achieved by the customer under a periodic rebate agreement; whether the customer had returned all or partial quantities; and whether the applicable sales order was invoiced.
Close the page.
Click Save.
On the Action Pane, click Invoice.
Click Invoice > Generate > Invoice.
Expand the Parameters section.
In the Quantity field, select ‘All’.
Click OK.
Click OK.
Close all pages.

Process rebate claims

The Rebates page acts a workbench in which you can review, approve, and process rebate claims. You’ll now process the claims that were created as a result of invoicing a sales order for customer US-009, who is the subject of the rebate agreement USMF-000001.

The line represents a rebate claim for 800 USD, which is based on the sales of 40 units of product T0020, calculated at 20 USD per unit. This matches the conditions of the first quantity break in the rebate agreement.

The claim is in the To be calculated state. This means that it is associated with an agreement that tracks the customer’s sales performance on periodic basis and it must be re-calculated to account for the total sales volume within the respective period.

Navigate to Sales and marketing > Customer rebates > Rebates.
Click Cumulate.
In the Customer field, enter or select US-009.
In the Start date field, select today’s date.
Click OK.
Click Approve.
Click Process.
In the Customer field, enter or select US-009.
Click OK.

If you get a message that it cannot create a record in Ledger journal table, it is because the demo data is out of sync; perform these steps:

Click Close.
Reset the number sequence:
1. Navigate to General Ledger > Ledger setup > General ledger parameters.
2. Select Number sequences tab
3. Click the hyperlink for Number sequence code field for Journal batch number
4. In the General fast tab, change the Next number higher
5. Set Continuous to No
6. Click Yes
Navigate to Sales and marketing > Customer rebates > Rebates.
Resume with step 7 of Process rebate claims.

A message shows that the rebate was processed successfully, and the status of the claims has been changed to Mark. This means that as a result of a Rebate accrual journal being posted:

the claims have now been transferred to the temporary customer balance as deductions;
the Rebate accrual account has been credited to represent the future liability towards the customer; and
the Rebate expense account has been debited, in recognition of the cost incurred in connection with the sales.

Process rebates for payment

The Rebate page lists the rebate claims that you have processed in the customer rebate workbench and that are in status Mark. When you create a credit note, a message appears to inform you that a journal has been posted.

This is the Accounts receivable consumption journal, as specified in the Accounts receivable parameters page. This causes the real liability (credit) amount to be moved to the customer balance. This means that the customer’s account has been credited, and the Rebate accrual account has been debited.

Navigate to Accounts receivable>Customers>All customers.
In the list, find and select US-009.
On the Action Pane, click Collect.
Click Settle > Settle transactions.
Click Functions.
Click Rebate program.
Click Edit. Set checkmarks in the Mark field for the claims that you want to include into credit note.
Click Functions.
Click Create credit note.
Close the page.
Click Cancel. This refreshes the page so that you can see the updates.
On the Action Pane, click Collect.
Click Settle transactions. Note that a transaction for negative amount, representing the total rebate amount, without invoice reference has been added to the customer balance.
Click Cancel.
Close all pages.