Sales Order Preparation & Approval Procedure

Sales Order: Preparation & Approval in ERP (SAP)

Sales Order (SO)

Sales order is an internal document generated on the basis of Purchase Order received from the customer.

In an ERP environment, it serves as the basis for generating the “pick list” and “Sales Invoice” once the finished goods are ready for despatch.

Sales order is prepared by the sales officer based on customer’s Purchase Order or such other communication received from the customer. However, some form of written confirmation must be received from the customer as regards the product specification, pricing, credit and delivery terms. If verbal enquiries / orders are received a document detailing the discussion with the customer should be prepared.

The Sales order is serially numbered and controlled.

Sales Order allows scope for change in pricing (refer pricing policy).

The Sales order is submitted for the approval by Branch Head, along with:

  • copy of written evidence of order confirmation by the customer; and 
  • Necessary approval in case of any revision or amendment to price duly approved from Head Office. 
Branch Head approves the Sales order after considering the following aspects:

  • Written confirmation of order by Customer 
  • Completeness of the Order Details 
  • Verification of Price and adherence to Pricing Policy 
  • Use of correct Sales order Series depending on the order and pricing terms 
  • Delivery credit and payment norms. 
  • Ensuring that the Sales order has been adequately planned for in the relevant month’s production plan. 
An approved sales order is a live document which can be viewed by Production, Dispatch Accounts Section.

Once the sales order has been accepted, a confirmation is sent to the customer within the stipulated time period of 2 days. In case where sales order could not be accepted a communication of regret explaining the reason is sent by/or on behalf of the Branch Head.


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