Sales, Purchases, Inventory, GL

1. Distribution Process Sales, Purchases, Inventory, GL Anand Subramaniam

4. Distribution Overview

5. Distribution Process Customer Purchase Order Customer Sales Order Puts demand on Inventory Reserve, Pick, and Ship Inventory Billing Price - order Qty - shipped Accounts Receivable Cash Receipt Cheque / Cash Deplete Inv @ Standard Cost COGS Replenishment Put demand on Items to buy Purchase Order Replenish Items to buy Receive & Put away @ Standard cost Vendor Invoice Voucher Entry Accounts Payable Payment

6. Order to Cash

7. Customer Sales Order Sales Order Header Customer Info Sales Order Line Items Sales Order Schedule Copy List Price to Schedule Sales Order Completion Copy line item Group from Item Master Dist. Rules Link Group to Dist. Set ID Dist. Set Link ID to Dist. Codes Dist. Codes Link codes to Chart Fields Copy Chart Fields to Sales Order Sales Order Schedule A/c Dist. Key A/c – Accounting Dist. - Distribution Customer Sales Order Puts demand on Inventory

8. Product Pack & Ship Soft Reserve -Any location Print Pick List - Hard Reserve Physically Pick Product from W/H Picking Feedback Changed Loc.? Confirm Feedback Process Physically Pack Product ready to ship Shipping Issues BOL, pack list, Export docs Line Item Ship date & Quantity Key W/H – Warehouse Loc. – Location BOL – Bill of Lading Reserve, Pick, and Ship

9. Billing Populate Billing tables Price X Qty Shipped Item date & Quantity Sales Order Schedule Price, A/c Billing Combine Line Amount, A/c for Rev., Dis. Generate Invoice to Customer Load A/c Receivable A/c Entries Load General Ledger A/c Entries Key A/c – Accounting Dist. – Distribution Rev - Revenue Billing Price - order Qty - shipped

10. A/R – Cash Receipt Enter Cash Receipt Info (unapplied) Auto matching Apply cash to unpaid Invoices Open Invoices to be paid by customer A/R Price & Qty within tolerance? Post Voucher and schedule payment yes Build Customer worksheet with receipts and unpaid invoices no Match cash to unpaid invoices write off misc. Key Info – Information A/R – Accounts Receivable Accounts Receivable Cash Receipt

11. Inv Depletion - COGS Deplete Inv @ Standard Cost COGS Product is sold Inventory is what ships to Customer Inventory Inventory Specific Inventory Location Ship Record Item, Date & Quantity Deplete Inventory Process Inventory Item Bus. Unit Standard Cost Transact Type A/c. Dist. for Inv. Issue Inventory Transactions COGS Detail GL COGS by Product Line Load GL Accounting Entries Key Inv. – Inventory GL – General Ledger A/c – Accounting Dist. – Distribution COGS – Cost of Good Sold Bus. – Business

12. Inv Replenish Backorders (Customers) Reorder Point Replenish Fixed Bin Replenish Qty to Reorder? Exact Quantity Shortfall Fixed Order Qty - EOQ Variable Refill until Full Purchase Order Replenish Items to buy Key EOQ – Economic Order Quantity Inv – Inventory Replenishment Put demand on Items to buy

13. Procure to Pay

14. Purchase Order (PO) Key PR – Purchase Requisition Req – Requirements PO – Purchase Order Replenishment creates PR. for items Gather Req. by Source Vendor Item Vendor Table links Item to Source Create PO Header for Vendor Order Vendor Master for Address, Terms, etc. Dispatch Purchase Order PO Replenish Items to buy

15. Receipt & Put-away PO # on Receipt ? Enter / Select order number Copy Detail yes Open Orders for Vendor Enter Vendor Name/ID - List Open Orders no Select Items Received & Confirm Qty Print Put-away Plan using default location Physically put Items away in stock Confirm Item Put-away and location Receive & Put away @ Standard cost

16. PP Variance PPV part 1 PO price - Std price Inventory Item Business Unit Standard Cost Actual Quantity Put-away PO “ Actual” Price PPV part 2 Invoice price - PO price Matched Vendor Invoice Qty & Price Net is Invoice Price less Standard Cost Accounting Line creation Gen Ledger Accounting Entry Purchase Price (PP) Variance

17. Vendor Invoice Enter Vendor Invoice Info & PO if avail Edit / Confirm Qty & Price Invoiced Copy Lines and Prices from PO Receipt Qty from Receiving Price & Qty within tolerance ? Price & Amount Tolerance from Vendor Item Post Voucher and schedule payment yes Build Vendor worksheet with invoice & PO Item Amounts no match invoice to PO item amounts Vendor Invoice Voucher Entry

18. Vendor Payment time Invoices due and paid Discount Alert Paid early to keep discount Invoices due beyond both dates skipped Generate Journal Lines Gen Ledger Accounting Entry Accounts Payable Payment