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  1. 1. TRADE IN MICROSOFT DYNAMICS™ NAV 5.0 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  2. 2. Last Revision: February 2008The information contained in this document represents the current view of Microsoft Corporation on the issues discussed asof the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to bea commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after thedate of publication.This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED ORSTATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright,no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form orby any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the expresswritten permission of Microsoft Corporation.Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights coveringsubject matter in this document. Except as expressly provided in any written license agreement from Microsoft, thefurnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectualproperty.© 2007 Microsoft Corporation. All rights reserved. Microsoft, Microsoft Excel, Microsoft Windows, and MicrosoftDynamics NAV are either trademarks or registered trademarks of Microsoft Corporation or Great Plains Software, Inc. ortheir affiliates in the United States and/or other countries/regions. Great Plains Software, Inc. is a subsidiary of MicrosoftCorporation. The names of actual companies and products mentioned herein may be the trademarks of their respectiveowners.The names of actual companies and products mentioned herein may be the trademarks of their respective owners.The certification requirements for Microsoft Dynamics NAV 5.0 will stay the same as for Microsoft Dynamics NAV 4.0 dueto the release window between Microsoft Dynamics NAV 5.0 and Microsoft Dynamics NAV 5.1. The certificationrequirements are expected to be renewed with Microsoft Dynamics NAV 5.1 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  3. 3. Table of ContentsIntroduction 0-1 Online Training ...................................................................................................0-1 Classroom Training ............................................................................................0-1 Training Materials ...............................................................................................0-1 About the Trade in Microsoft Dynamics NAV Training Manual ..........................0-2 About This Course..............................................................................................0-5 Student Objectives .............................................................................................0-7Chapter 1: TRADE Overview 1-1 Quick Interaction: Lessons Learned ...................................................................1-2Chapter 2: Sales Order Management 2-1 Objectives...........................................................................................................2-1 Introduction.........................................................................................................2-1 Sales Order Management Overview ..................................................................2-2 Setting Up Sales Order Management.................................................................2-3 Demonstration − Setting Up Sales Order Management .....................................2-3 Setting Up Customers and Shipping Options .....................................................2-5 Demonstration − Setting Up Shipping Options ...................................................2-5 Setting Up Reservation Rules ............................................................................2-7 Demonstration − Setting Up Customer Posting Groups .....................................2-7 Demonstration − Setting Up Salespeople...........................................................2-9 Managing Sales Transactions ............................................................................2-9 Demonstration − Creating a Blanket Order ......................................................2-10 Demonstration − Creating a Sales Order .........................................................2-12 Sales Order Processing ...................................................................................2-14 Drop Shipments................................................................................................2-16 Demonstration − Creating Drop Shipments......................................................2-17 Item Reservation ..............................................................................................2-20 Demonstration − Reserving Items ....................................................................2-20 Posting Orders .................................................................................................2-23 Demonstration − Performing a Partial Shipment ..............................................2-24 Invoicing a Combined Shipment.......................................................................2-25 Demonstration − Invoicing a Combined Shipment ...........................................2-26 Process Prepayment ........................................................................................2-27 Demonstration − Creating Sales Order with Prepayment Percentage .............2-28 Conclusion........................................................................................................2-30 Lab 2.1 − Handling Sales .................................................................................2-31 Quick Interaction: Lessons Learned .................................................................2-32Sales Prices and Discounts 1 Objectives.............................................................................................................. 1 Introduction............................................................................................................ 1 Overview of Sales Prices ...................................................................................... 2 Sales Prices .......................................................................................................... 3 Demonstration − Setting up Sales Prices .............................................................. 5 Demonstration − Setting up Customer Price Groups ............................................ 6 Demonstration − Creating a Sales Order with Sales Price Information................. 8 Microsoft Official Training Materials for Microsoft Dynamics ™ Page i Your use of this content is subject to your current services agreement
  4. 4. Trade in Microsoft Dynamics™ NAV 5.0 Lab 3.1 − Managing Alternative Sales Prices...................................................... 10 Lab 3.2 − Creating Sales Prices for a Campaign ................................................ 11 Maintaining Sales Prices ..................................................................................... 12 Demonstration − Creating Sales Prices and Customer Groups .......................... 13 Lab 3.3 − Updating Sales Prices ......................................................................... 16 Line and Invoice Discounts ................................................................................. 17 Setting Up Line Discounts ................................................................................... 18 Demonstration − Setting up Customer Discounts................................................ 19 Using the Line Discount Mechanism ................................................................... 20 Demonstration − Setting Up Sales Line Discounts.............................................. 21 Lab 3.4 − The "Best Price" Rule .......................................................................... 24 Invoice Discounts ................................................................................................ 25 Conclusion........................................................................................................... 27 Lab 3.5 − Creating Sales Line Discounts for a Campaign................................... 28 Quick Interaction: Lessons Learned .................................................................... 29Chapter 4: Customer Service Features 4-1 Objectives...........................................................................................................4-1 Introduction.........................................................................................................4-1 Using Item Substitution ......................................................................................4-2 Demonstration − Creating a Sales Order with Substitutions ..............................4-4 Lab 4.1 − Handle Items with Substitutes ............................................................4-6 Creating Item Cross References ........................................................................4-7 Demonstration − Setting Up Item Cross References..........................................4-7 Demonstration − Creating a Sales Order with a Cross Reference .....................4-8 Lab 4.2 − Handle Items with Cross Reference .................................................4-10 Nonstock Items.................................................................................................4-11 Demonstration − Creating a Nonstock Item Manually ......................................4-12 Demonstration − Importing Vendor Catalogs ...................................................4-13 Handling Nonstock Items .................................................................................4-14 Demonstration − Using Drop Shipments ..........................................................4-15 Conclusion........................................................................................................4-17 Lab 4.3 − Handling the Sale of a Nonstock Item using a Special Order...........4-18 Quick Interaction: Lessons Learned .................................................................4-19Chapter 5: Purchase Order Management 5-1 Objectives...........................................................................................................5-1 Introduction.........................................................................................................5-1 Efficient Purchasing............................................................................................5-2 Setting Up Purchases.........................................................................................5-3 Demonstration − Setting Up Purchases .............................................................5-3 Setting Up Vendors ............................................................................................5-4 Demonstration − Setting Up Vendors .................................................................5-4 Demonstration − Setting up Alternative Vendors................................................5-6 Vendor Posting Groups ......................................................................................5-6 Demonstration - Setting Up Vendor Posting Groups..........................................5-7 Setting Up Purchasers .......................................................................................5-8 Managing Purchase Transactions ......................................................................5-8 Demonstration − Creating Purchase Quotes....................................................5-10Page ii Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  5. 5. Table of Contents Demonstration − Creating Purchase Orders ....................................................5-11 Purchase Prices and Discounts .......................................................................5-12 Demonstration − Setting up Alternative Purchase Prices.................................5-12 Demonstration − Setting Up Individual Prices based on Price Agreement.......5-14 Using the Pricing Mechanism ...........................................................................5-15 Lab 5.1 − Managing Alternative Purchase Prices.............................................5-16 Line Discounts ..................................................................................................5-17 Conclusion........................................................................................................5-18 Lab 5.2 – Managing Purchase Line Discounts .................................................5-19 Quick Interaction: Lessons Learned .................................................................5-20Chapter 6: Requisition Management 6-1 Objectives...........................................................................................................6-1 Introduction.........................................................................................................6-1 Requisition Management....................................................................................6-2 Requisition Management Setup .........................................................................6-2 Demonstration − Setting Up Planning Parameters.............................................6-4 The Requisition Worksheet ................................................................................6-8 Demonstration − Using the Requisition Worksheet ............................................6-9 Demonstration − Creating Purchase Orders from the Requisition Worksheet .6-10 Additional Worksheet Features ........................................................................6-11 Demonstration − Using the Additional Worksheet Features.............................6-12 Conclusion........................................................................................................6-13 Lab 6.1 − Calculating a Replenishment Plan from the Requisition Worksheet 6-14 Quick Interaction: Lessons Learned .................................................................6-15Chapter 7: Item Charges 7-1 Objectives...........................................................................................................7-1 Introduction.........................................................................................................7-1 Overview of Item Charges ..................................................................................7-2 Setting Up Item Charges ....................................................................................7-3 Purchase Item Charges......................................................................................7-3 Demonstration − Handling Additional Direct Cost as an Item Charge................7-4 Lab 7.1 − Handling Purchase Item Charges.......................................................7-8 Sales Item Charges ............................................................................................7-9 Demonstration − Handling Sales Item Charges .................................................7-9 Purchase and Sales Allowances ......................................................................7-11 Demonstration − Creating Item Charge Credit Memo ......................................7-11 Conclusion........................................................................................................7-12 Lab 7.2 − Handling Purchase Allowances ........................................................7-13 Quick Interaction: Lessons Learned .................................................................7-14Chapter 8: Order Promising 8-1 Objectives:..........................................................................................................8-1 Introduction.........................................................................................................8-1 Date Calculation Concepts .................................................................................8-2 Promising Orders to Customers .........................................................................8-3 Setting Up Date Calculation for Sales Orders ....................................................8-6 Demonstration − Setting Up Outbound Warehouse Handling Time ...................8-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Page iii Your use of this content is subject to your current services agreement
  6. 6. Trade in Microsoft Dynamics™ NAV 5.0 Demonstration − Setting Up Shipping Time .......................................................8-7 Demonstration − Setting Up an Availability Test Interval....................................8-8 Setting Up the Order Promising Feature ............................................................8-8 Promising Sales Order Delivery .........................................................................8-9 Demonstration − Promising Sales Orders without a Requested Delivery Date..8-9 Demonstration − Requesting Items that are not Available for Shipping ...........8-10 Demonstration − Meeting the Requested Delivery Date ..................................8-12 Demonstration − Requesting an Order where the Delivery Date cannot be Met8-13 Demonstration − Setting Shipment Date Before Current Date .........................8-16 Promising Sales Order Delivery in Other Situations.........................................8-17 Demonstration − Requesting Different Shipment Dates on Lines ....................8-17 Lab 8.1 − Promise Order Delivery to a Customer.............................................8-18 Estimating Purchase Order Receipt .................................................................8-19 Demonstration − Using Lead Time Calculations ..............................................8-23 Estimating Purchase Order Receipt .................................................................8-24 Demonstration − Calculating Purchase Order Receipt without a Receipt Date Requested ........................................................................................................8-24 Demonstration − Estimating a Purchase Order Receipt with a Receipt Date Requested ........................................................................................................8-26 Demonstration − Calculating an Order that must be Placed before the Current Date..................................................................................................................8-27 Demonstration − Estimating a Purchase Order Receipt in Other Situations ....8-28 Lab 8.2 − Order Promising ...............................................................................8-29 Estimating Transfer Order Receipt ...................................................................8-30 Calendars .........................................................................................................8-30 Conclusion........................................................................................................8-32 Quick Interaction: Lessons Learned .................................................................8-33Chapter 9: Returns Management 9-1 Objectives...........................................................................................................9-1 Introduction.........................................................................................................9-1 Sales Return Management.................................................................................9-2 Setting Up Returns Management .......................................................................9-3 Managing Returns from Customers....................................................................9-5 Demonstration − Using Sales Return and Sales Allowance...............................9-7 Demonstration − Processing the Sales Return.................................................9-14 Demonstration − Returning Items for Repair at Vendor ...................................9-16 Lab 9.1 − Processing the Customer Return .....................................................9-20 Managing Returns to Vendors..........................................................................9-21 Demonstration − Returning Items to Vendor for Repair ...................................9-23 Demonstration − Using Purchase Allowance ...................................................9-25 Lab 9.2 − Processing the Customer Return, II .................................................9-27 Activity Diagram for Return Management.........................................................9-28 Conclusion........................................................................................................9-28 Quick Interaction: Lessons Learned .................................................................9-29Chapter 10: Analysis and Reporting 10-1 Objectives.........................................................................................................10-1 Introduction.......................................................................................................10-1Page iv Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  7. 7. Table of Contents Analysis and Reporting ....................................................................................10-2 Creating Analysis Reports ................................................................................10-2 Demonstration − Customizing Analysis Reports ..............................................10-6 Demonstration − Creating Analysis Reports.....................................................10-8 Demonstration − Using Customer and Item Groups.......................................10-10 Demonstration − Analyzing Quantity Purchased by Customer Groups..........10-12 Demonstration − Using the Bar Chart Feature ...............................................10-13 Lab 10.1 − Creating Analysis Reports ............................................................10-14 Analysis by Dimensions .................................................................................10-15 Demonstration − Using Analysis by Dimensions ............................................10-15 Lab 10.2 − Performing Analysis by Dimensions .............................................10-18 Sales and Purchase Budgets .........................................................................10-19 Demonstration − Creating a Purchase Budget ...............................................10-20 Demonstration − Exporting Budgets to Excel .................................................10-21 Demonstration − Using Budgets in Analysis Reports .....................................10-23 Lab 10.3 − Creating a Sales Budget...............................................................10-24 Conclusion......................................................................................................10-25 Quick Interaction: Lessons Learned ...............................................................10-26Appendix A: Terminology List A-1 Inventory Terminology List ................................................................................ A-1 List of Sales Batch Jobs, Reports, and Sales Documents ................................ A-4 List of Purchase Batch Jobs, Reports, and Purchase Documents .................... A-9Appendix B: Functionality and Licenses B-1 Trade licenses in Microsoft Dynamics NAV....................................................... B-1Appendix C: Lab Solutions C-1 Lab 2.1 − Handling Sales .................................................................................. C-1 Lab 3.1 − Managing Alternative Sales Prices.................................................... C-3 Lab 3.2 − Creating Sales Prices for a Campaign .............................................. C-4 Lab 3.3 − Updating Sales Prices ....................................................................... C-6 Lab 3.4 − The "Best Price" Rule ........................................................................ C-8 Lab 3.5 − Creating Sales Line Discounts for a Campaign................................. C-9 Lab 4.1 − Handle Items with Substitutes ......................................................... C-11 Lab 4.2 − Handle Items with Cross Reference ................................................ C-12 Lab 4.3 − Handling the Sale of a Nonstock Item using a Special Order.......... C-13 Lab 5.1 − Managing Alternative Purchase Prices............................................ C-14 Lab 5.2 − Managing Purchase Line Discounts ................................................ C-15 Lab 6.1 − Calculating a Replenishment Plan from the Requisition Worksheet C-17 Lab 7.1 − Handling Item Charges.................................................................... C-19 Lab 7.2 − Handling Purchase Allowances ....................................................... C-19 Lab 8.1 − Promise Order Delivery to a Customer............................................ C-21 Lab 8.2 − Order Promising .............................................................................. C-22 Lab 9.1 − Processing the Customer Return .................................................... C-23 Lab 9.2 − Processing the Customer Return, II ................................................ C-25 Lab 10.1 − Creating Analysis Reports ............................................................. C-26 Lab 10.2 − Performing Analysis by Dimensions .............................................. C-28 Microsoft Official Training Materials for Microsoft Dynamics ™ Page v Your use of this content is subject to your current services agreement
  8. 8. Trade in Microsoft Dynamics™ NAV 5.0 Lab 10.3 − Creating a Sales Budget................................................................ C-29Page vi Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  9. 9. IntroductionINTRODUCTION Training is an important component of maintaining the value of your Microsoft Dynamics™ NAV 5.0 investment. Quality training from industry experts keeps you up-to-date and helps you develop the skills necessary for fully maximizing the value of your solution. Whether you want Online Training, Classroom Training, or Training Materials, there is a type of training to meet everyone’s needs. Select the training type that allows you to stay ahead of the competition.Online Training Online Training delivers convenient, in-depth training to you in the comfort of your own home or office. Online training provides immediate access to training 24 hours a day, and is perfect for the customer who does not have the time or budget to travel. The online training option, eCourses, combines the efficiency of online training with the in-depth product coverage of classroom training, with at least two weeks to complete each course.Classroom Training Classroom Training provides serious, in-depth learning through hands-on interaction. From demonstrations to presentations to classroom activities, you will receive hands-on experience with instruction from a certified staff of experts.Training Materials Training Materials enable you to learn at your own pace, on your own time, with information-packed training manuals. Our wide variety of training manuals feature many tips, tricks, and insights you can refer to repeatedly. Microsoft Dynamics Training Courseware: The Microsoft Dynamics Training Courseware are detailed training manuals, designed from a training perspective. These manuals include advanced topics and training objectives, exercises, interactions, and quizzes. Microsoft Official Training Materials for Microsoft Dynamics ™ 0-1 Your use of this content is subject to your current services agreement
  10. 10. Trade in Microsoft Dynamics™ NAV 5.0About the Trade in Microsoft Dynamics NAV Training Manual This training manual provides a conceptual and operational description of the standard trade functionality of Microsoft Dynamics NAV. The manual can be used both in the context of an instructor-led training course and as reference material for self-teaching. Target Audience This training manual is intended for Microsoft Certified Dynamics Partners employees selling, implementing, and supporting Microsoft Dynamics NAV. Training Objectives Whether used in a course setting or for self-teaching, the manual is designed to equip course participants with the product knowledge, both at conceptual and functional levels, required when implementing and supporting Microsoft Dynamics NAV at a wide range of wholesale and manufacturing companies with a focus on the trade area. Training Prerequisites To successfully participate in the Trade course or complete the training in the self-teaching manner, participants must have passed the following: • The Microsoft Dynamics NAV Overview test (or have equivalent experience with Microsoft Dynamics NAV (Financials) application). • The Microsoft Dynamics NAV Essentials test. Additionally, participants need to have a background in distribution/logistics to understand the underlying principles of these businesses. Training Manual Overview Before you start the course (self-teaching), you must install Microsoft Dynamics NAV on your computer. This manual provides the participants with an in depth understanding of the granules and features of the trade-related functionality in Microsoft Dynamics NAV. The manual consists of the following chapters: • Chapter 2: Sales Order Management • Chapter 3: Sales Prices and Discounts • Chapter 4: Customer Service Features • Chapter 5: Purchase Order Management • Chapter 6: Requisition Management • Chapter 7: Item Charges0-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  11. 11. Introduction • Chapter 8: Order Promising • Chapter 9: Returns Management • Chapter 10: Analysis and Reporting Every chapter includes an overview of the feature, explains the setup procedure, and describes how the feature supports the associated operating processes involved in managing a reselling business. In this manual, the chapters are organized logically, reflecting the relationship between different granules of the program. It is, therefore, recommended that the course (when built on this manual) or self-teaching activity follows the suggested teaching path. If preferred, however, the users of the manual can choose alternative paths. The chapters in this training manual typically contain the following elements: • Concepts • Demonstrations • Labs Concepts explain the business processes that can be managed by using the trade functionality of the program. Demonstrations represent the typical business situations where the application is used. Demonstrations provide a basis for examples that give practical step-by- step descriptions of how to use the application. Labs enable the course participants (manual readers) to practice using the program. The manual includes the following typographic conventions: • Name is used for names of fields, tabs, and windows. • PATHNAME→PATH is used for navigation paths for users to follow. Dates The dates in the course manual are in the American format. In order to avoid confusion when reading the manual and following the exercises, if necessary, it is a good idea to change the date format in Windows before starting the training session. The working date is set to be 01/24/08 (January 24, 2008). It is important that this date is used when following the examples and doing the exercises included in the manual. Microsoft Official Training Materials for Microsoft Dynamics ™ 0-3Your use of this content is subject to your current services agreement
  12. 12. Trade in Microsoft Dynamics™ NAV 5.0 Demonstration Data All examples and exercises in this manual are based on a fictitious company, Cronus International Ltd. Where possible, examples and exercises in each chapter are designed independently of each other. However, because of the limited scope of the Cronus demo database, the same data is sometimes used in examples illustrating different functionality. To make sure that you always have a clean demo database, make a copy of the database on the hard disk before you start the course. License Information To run the examples and exercises included in this training manual, you must have a standard Cronus license. This is provided on the product CD. Suggested Course Duration When this training manual is used to run a course, it is recommended that the course be taught over a period of two to three days. Additional Information You can learn more about Microsoft Dynamics NAV in the Financial Management and Inventory Management courses, and in Microsoft Dynamics NAV eCourses and Online Help. You can learn more about the topics of distribution and supply chain management from the APICS homepage: http://www.apics.org. APICS is a nonprofit, educational society for resource management.0-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  13. 13. IntroductionAbout This Course This section provides you with a brief description of: • The course • Audience • Suggested prerequisites • Course objectives • Student materials • Related certification exams Description This two and a half day Microsoft Dynamics™ NAV Trade course explores all of the activities required to handle the purchase, sale, and return of inventory in the program. This course will show you how to manage sales and purchase transactions, including prices and discounts, item charges and order promising. Requisition management will be covered, as well as returns management and customer service features. Audience The intended audience includes individuals wanting to learn the basic features and to develop a working knowledge of the typical day-to-day procedures required to effectively use Microsoft Dynamics NAV Trade. The class is targeted toward sales and purchase managers, salespeople and purchasers, and others in an organization who are responsible for the setup and administration of trade functionality, including item prices, discounts, and substitutions. At Course Completion Completing this course allows students to: • Manage sales transactions • Create and use sales prices and discounts • Process sales of items with substitutions and cross references • Process sales of nonstock items • Manage purchase transactions • Create and process purchase requisitions • Set up and use item charges • Use the order promising functionality • Process returns from customers and to vendors • Create analysis reports Microsoft Official Training Materials for Microsoft Dynamics ™ 0-5 Your use of this content is subject to your current services agreement
  14. 14. Trade in Microsoft Dynamics™ NAV 5.0 • Perform analysis by dimensions • Create sales and purchase budgets Prerequisites Before attending this course, students must have: • General knowledge of Microsoft® Windows® • The ability to use Microsoft Dynamics NAV financials for financials processing • Basic knowledge of distribution and logistics Student Materials The following material for Microsoft Dynamics NAV version 5.0 are releted to this course: • Whats New in Microsoft Dynamics version 5.0 Application, Part I • Introduction • Inventory Management • Finance Certification Exams This course is releted to the following exams: • Inventory Management0-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  15. 15. IntroductionStudent Objectives What do you hope to learn by participating in this course? List three main objectives below: 1. 2. 3. Microsoft Official Training Materials for Microsoft Dynamics ™ 0-7 Your use of this content is subject to your current services agreement
  16. 16. Trade in Microsoft Dynamics™ NAV 5.00-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  17. 17. Chapter 1: Trade OverviewCHAPTER 1: TRADE OVERVIEW Microsoft Dynamics™ NAV is a collaborative business management solution for medium-sized companies. It is an integrated product that includes functionality to support financial and relationship management, distribution, and manufacturing. The Microsoft Dynamics NAV Trade module is aimed at a variety of wholesale and manufacturing companies. The module provides tools to help with the following: • Manage day-to-day purchase and sales operations • Increase the level of customer service • Improve operational efficiency This course is a part of the Supply Chain curriculum and is designed for students who have passed the Microsoft Dynamics NAV Overview test (or have equivalent experience with the Microsoft Dynamics NAV Financials application) and the Microsoft Dynamics NAV Essentials test, and want to learn more about Microsoft Dynamics NAV for Trade. The course primarily provides explanations of the program’s conceptual design and functionality related to managing and administrating basic trading operations. Students who want to take the Financial Management exam can use this course as preparation. Microsoft Official Training Materials for Microsoft Dynamics ™ 1-1 Your use of this content is subject to your current services agreement
  18. 18. Trade in Microsoft Dynamics™ NAV 5.0Quick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter: 1. 2. 3.1-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  19. 19. Chapter 2: Sales Order ManagementCHAPTER 2: SALES ORDER MANAGEMENTObjectives The objectives are: • Provide an overview of the Sales Order Management process • Set up Sales Order Management, Customers and Shipping Options • Set up Reservation Rules, Customer Posting Groups, and Sales People • Manage the Sales Transactions flow • Create Quotations, Blanket Orders, and Sales Orders • Perform Drop Shipments • Create Item Reservations • Post Orders • Perform Partial and Combined shipments • Process PrepaymentIntroduction The sales handling process is the cornerstone in all companies in order to achieve a high customer service level. Microsoft Dynamics™ NAV supports companies in managing all the steps in the sales order management process from creating the blanket order to shipping and invoicing the order. Sales Order Management provides an overview of background and set up information. The main focus is put on common aspects of sales transaction handling and all aspects of the flow is described in details. Examples are given in comprehensive demonstrations. A list of sales batch jobs, reports, and sales documents is included in Appendix A. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-1 Your use of this content is subject to your current services agreement
  20. 20. Trade in Microsoft Dynamics NAV 5.0Sales Order Management Overview For companies to survive, they must keep customers satisfied. An instant and accurate response to inquiries, such as delivery time or the price of the product, is a key factor contributing to customer satisfaction. In addition, efficiently handling special customer requests about shipping arrangements and invoicing preferences is likely to ensure repeat orders. Typical examples of these requests include: • Receiving shipments in parts or to different addresses • Receiving the orders before they are invoiced • Being invoiced for several shipped orders at the same time Companies must also ensure they can easily register sales transaction information. For example, adjusting customer balance and updating inventory availability and values are tasks that must always be performed when handling sales. Additionally, companies may want to keep a record of the salespeople performing the sale. As aspects of a future sales agreements are negotiated and agreed upon in the presales stage, it is helpful for salespeople to record relevant agreement details once and then reuse this information when creating an actual sales order. There is a lot of functionality in Microsoft Dynamics™ NAV that supports efficient sales transaction handling, such as: • Sales Order Management: This functionality includes documents (quotes, blanket orders, and sales orders) that support the order processor in efficiently managing sales. The functionality supports partial order shipment, separation between shipping and invoicing, and combined invoicing. • Alternative Ship-Tos: This facilitates handling sales orders for customers who have several alternative shipping addresses. • Drop Shipments: This enables the order processor to efficiently handle orders shipped directly from the vendor to the customer without involving the companys operations. • Order processors/purchasing agents: This enables collection of sales statistics at the salesperson level. • Shipping agents: This facilitates the management of carriers (shipping agents) and related information.2-2 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  21. 21. Chapter 2: Sales Order ManagementSetting Up Sales Order Management This chapter contains setup options that define the functionality of sales order management, focusing on the physical handling rather than financial aspects of a sales transaction. Setup options that support additional sales practices and tasks (for example, sales and invoice discounts, and return management) are discussed in separate chapters. The sales setup consists of the following elements: • Sales & Receivables setup: Based on their established practices, companies must specify how they want the program to support them in managing different aspects of their sales transactions. These are general setup options the program applies to all sales transactions, regardless of the item or customer. • Customer setup: Basic information such as name and address, in addition to invoicing details (for example, credit limit, invoicing, discount and payment terms, currencies, shipping schemes, and reservation rules, and so on) are recorded for each customer on a customer card. The setup of customer posting groups defines the connection between a customer and accounts in the general ledger. This is done by assigning a customer to a posting group for which balance sheet and income statement accounts are set up. • Salesperson setup: Companies can set up codes to identify and describe salespeople. This is done to establish a link between a salesperson and the performance in terms of, for example, the number of sales transactions (orders, invoices, or returns) handled.Demonstration − Setting Up Sales Order Management At Cronus, management wants to notify the order processor about a customers credit and balance every time the customer places an order. Because management wants to ensure that orders are delivered on time, they want the programs feedback on item availability when a sales order is entered. They also require the program to create shipment and return receipt documents when posting invoices, credit memos or both. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-3 Your use of this content is subject to your current services agreement
  22. 22. Trade in Microsoft Dynamics NAV 5.0 Steps These business requirements have led to the following Sales & Receivables setup for Cronus: 1. On the Sales & Marketing menu, click SETUP→SALES & RECEIVABLES SETUP. The Sales & Receivables Setup window appears. 2. Check the different fields that are explained in the following. Field Explanation General tab The fields on the General tab specify the programs facilities for sales order management. Credit Warnings The Credit Warnings field specifies if the program warns about the customers credit standing when the user creates a sales order or invoice for the customer. When it is required, the warning can be triggered by overdue balance, exceeded credit limit, or both. Cronus has chosen both. Stockout Warning Selecting the Stockout Warning field specifies that the program warns the user when there are not enough items on inventory to fulfill a sales order. The warning is based on a calculation that sums up quantity amounts on all posted item ledger entries and unposted sales order lines, including reserved quantities. Shipment on Invoice Selecting the Shipment on Invoice and Return and Return Receipt on Receipt on Credit Memo fields automatically Credit Memo creates posted shipment and posted return receipt documents at the time of posting sales invoices and sales credit memos. If these fields are clear, the program only creates posted invoices, credit memos or both. Posted shipment (return receipt) documents are needed when you are using: • The functionality of the Item Charges granule. • The automatic package tracking function. Dimensions tab Use the fields on the Dimensions tab to group customers and salespeople for budgeting and sales analysis purposes. These fields are described later in this course. The definition and setup options of all other fields on the General and Numbering tabs of the Sales & Receivables Setup window can be found in Help. Fields determining invoice discount setup and cost reversing options are described in "Sales Prices and Discounts" and "Returns Management" sections in this training manual.2-4 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  23. 23. Chapter 2: Sales Order ManagementSetting Up Customers and Shipping Options Basic customer setup is covered in other courses. This topic explains additional setup options for customer data management. These options manage shipping- related information and processes and control item reservation rules. The set up information is followed by the explanation of the customer posting group setup considerations. Customers often have alternative sites in addition to the main business address for shipping items. For example, a subcontractor may require deliveries to several construction sites. Companies may have warehousing and production sites that have addresses different from the main office address. The Alternative Ship-Tos functionality supports those customers that have alternative shipping sites. If a customer wants the orders shipped to different addresses, addresses can be recorded as alternative ship-to addresses and chosen by the order processor when creating an order/invoice. Ship-to addresses are entered in the Ship-to Address table. This can contain unlimited number of addresses for each customer. A code representing information such as customer number and name is linked to each address.Demonstration − Setting Up Shipping Options Cronus customer 10000 has two alternative ship-to addresses. Steps Perform the following steps: 1. Open the customer card for customer 10000 by selecting ORDER PROCESSING→CUSTOMERS from the Sales & Marketing menu. 2. Click CUSTOMER→SHIP-TO ADDRESSES and press F5. The list of ship- to addresses is displayed. 3. Select the second address line, and then click OK to review address details. When the code for this ship-to address (found on the upper-left of the card) is selected in the Ship-to Code field on orders (invoices and credit memos), the ship-to information appears on document printouts. Ship-to codes are available on purchase orders that are drop-shipped to a customer. All other shipping setup options are located on the Shipping tab of a customer card. 4. Click the Shipping tab on the Customer Card. The shipping options are displayed. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-5 Your use of this content is subject to your current services agreement
  24. 24. Trade in Microsoft Dynamics NAV 5.0 Companies may use a decentralized distribution strategy to ensure that orders are delivered fast to their customers. Such a strategy suggests that customer orders ship from local warehouses rather than from a central location. A company can link a customer to a specific location by specifying a default location in the Location Code field. The option selected in the Shipping Advice field indicates if the customer accepts partial order shipments or only wants complete shipments. For complete shipments, the program does not allow posting of a sales order unless the Qty. to Ship field is equal to the total sales order quantity. Depending on their profile, industrial practices, and location, customers may have different preferences as to whom (a customer or a supplier) picks up the shipment, how orders must be shipped, and so on. The program can record all the terms of sale and shipment methods (often based on INCOTERMS) that can be associated with each customer. Cronus has set up several Shipment Method Codes in the program. 1. From the Sales and Marketing menu, click ORDER PROCESSING→SETUP→SHIPMENT METHODS. The Shipment Methods window appears: FIGURE 2-1: SHIPMENT METHODS WINDOW When assigned to a customer, the shipment method code is copied to sales documents for that customer. The shipping setup options in the Shipping Agent Code, Shipping Agent Service Code, and Shipping Time fields, and the two calendar fields on the Shipping tab of the customer card calculate shipment and delivery dates for sales documents. These setup options are described in Chapter 8, "Order Promising."2-6 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  25. 25. Chapter 2: Sales Order Management The combine shipments option using the Combine Shipments field is selected when invoicing or debiting a customer for several shipments or return receipts in one invoice or credit memo. This field is selected by default in the order header, but can be changed if it is required. The Combine Shipments or Return Receipts batch job combines the posted shipment or return receipt documents into one invoice or credit memo and includes the orders selected in the Combine Shipments field.Setting Up Reservation Rules Companies can make and manage item reservations between sales and purchase orders, and they can decide whether reservations are made in relation to a specific customer. This decision is determined by selecting one of the options: Never, Optional, or Always in the Reserve field on the Shipping tab of the customer card. The selected option is copied to the Reserve field on the header of a sales document created for the customer, where it, in combination with the contents of the Reserve field on the item card, determine the reservation option for individual sales lines in the document. To complete customer setup, the following demonstration describes the setup details of customer posting groups.Demonstration − Setting Up Customer Posting Groups The financial value of a sales transaction is posted to dedicated accounts in the general ledger. When companies do not want to establish accounts for each customer, they can put several customers into one posting group and specify accounts per group. After the company decides on criteria for how its customers are grouped, the groups must be set up in the Customer Posting Group table. In this table, the user can assign a code to each posting group and specify general ledger accounts for categories, such as receivables, service charges, payment discount amounts, interest, additional fees, and so on. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-7 Your use of this content is subject to your current services agreement
  26. 26. Trade in Microsoft Dynamics NAV 5.0 Steps Cronus accountants have set up two customer posting groups, domestic and foreign: 1. From the Financial Management menu, click SETUP→POSTING GROUPS→CUSTOMER to open the Customer Posting Groups window. FIGURE 2-2: CUSTOMER POSTING GROUPS WINDOW Entering a code in the Customer Posting Group field of the Invoicing tab on a customer card assigns the customer to a specific posting group: 2. Open the customer card for customer 10000 and then click the Invoicing tab. 3. Check that Domestic has been selected in the Customer Posting Group field. Each customer can only be assigned one customer posting group. When a sales transaction (orders, invoices, and credit memos) for this customer is posted, the accounts for the posting group where the customer belongs is used. NOTE: Accountants can also assign general business posting groups and VAT business posting groups to customers. The business group code is used in combination with a general product posting group code in the general posting setup to specify the posting accounts to which certain transactions are posted. The VAT business posting group code is used in combination with a VAT product posting group code to find the VAT %, VAT calculation type, and VAT accounts to which the program posts VAT amounts. You can learn more about general setup rules in the Microsoft Dynamics NAV Financial Management course.2-8 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  27. 27. Chapter 2: Sales Order Management Each customer posting group can have different general ledger accounts or the same accounts set up for it. An advantage of having different groups that have the same accounts is that it gives accountants flexibility in grouping customers for reporting and analysis purposes. For example, a total receivables amount can be presented and analyzed with two groups representing domestic and foreign customers.Demonstration − Setting Up Salespeople When companies want to monitor sales performance, they can record volume achieved by salespeople and produce statistics. Steps To set up salespeople, a company assigns a code to each salesperson. Cronus has set up several codes for their employees in the sales department: 1. From the Sales & Marketing menu, click SALES→SALESPEOPLE. A Salesperson card appears. Details such as job title, commission percent, and other dimensions can be specified on each salesperson card. 2. To create a new salesperson, press F3. 3. To view a list of all salespeople in the program, click SALESPERSON→LIST, or press F5. NOTE: Apart from two default dimensions (department and project) selected on the Invoicing tab of the salesperson card, companies can also assign additional default dimensions. This can be done for a single salesperson or the whole group. This setup option is found in the Salespeople/Purchasers window, by clicking SALESPERSON→DIMENSIONS→DIMENSIONS-SINGLE/DIMENSIONS-MULTIPLE. Selecting a salesperson code as the default on a customer card or directly in the sales documents makes sure that sales statistics are created at the salesperson level. Based on this, the overall performance of salespeople can be calculated and presented in a report.Managing Sales Transactions Managing Sales Transations elaborates on the programs facilities that support common tasks in sales transaction management. The workflow includes the following steps: • Registering a blanket agreement with a customer • Converting the agreement into a sales order • Drop shipping • Reserving the ordered quantity for the sales order Microsoft Official Training Materials for Microsoft Dynamics ™ 2-9 Your use of this content is subject to your current services agreement
  28. 28. Trade in Microsoft Dynamics NAV 5.0 Sales Quotes A sales quote can be considered a "draft order" that the order processor gives to a customer that specifies price, terms of sale, and description of items. If the customer wants to buy the items on the quote, the quote can be converted to a sales order. Because the functionality in quotes is also available in sales orders (addressed in detail later in this section), sales quotes are not described here. Blanket Orders A blanket sales order represents a framework for a long-term agreement between the company and a customer. The order processor makes a blanket order when the customer has committed to buying large quantities to be delivered in several shipments over a period of time. Often, blanket orders cover only one item with predetermined delivery dates. Quantities on a blanket order do not affect item availability and can be used as a worksheet for monitoring, forecasting, and planning. On the blanket order, each shipment can be set up as an order line. This can then be converted into a sales order at the time of shipping. The following demonstration shows how to create a blanket order.Demonstration − Creating a Blanket Order A representative from customer 10000 calls the order processor at Cronus to order 1000 units of item 70000. The customer wants the items to be delivered in 250 units every week over the next month. Steps Create a blanket order for 1000 units of item 70000 for customer 10000: 1. From the Sales & Marketing menu, select ORDER PROCESSING→BLANKET ORDER. Press F3 to make a new order and enter the customer information in the blanket order header. 2. Leave the Order Date field blank. When separate sales orders are created from the blanket order, the order date of the sales order is equal to the actual work date. Notice that the Salesperson Code field on the order header contains the default code for the salesperson assigned to the customer 10000. This code is retrieved from the customer card. Create four lines of 250 units of item 70000:2-10 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  29. 29. Chapter 2: Sales Order Management 3. On each line, in the Type field, select Item. In the No. field select 70000. In the Quantity field, enter 250. 4. In the Shipment Date field, enter the shipment dates of 02/01/08, 02/08/08, 02/15/08, and 02/22/08 respectively. Notice that the Qty. to Ship field is filled in automatically to indicate the quantity to be listed on the sales orders for the respective shipment dates. Create the order for the first shipment of 250 units: 5. In the Qty. to Ship field, leave the quantity of 250 for the first line and delete the quantity to ship in the three other lines. The completed blanket order looks as follows:FIGURE 2-3: COMPLETED BLANKET SALES ORDER Convert a blanket order into a sales order: 6. Click Make Order, selecting Yes in the information message and in all other warnings. The link between the blanket order and the sales order it is retained and enables the order processor to view unposted and posted sales order (invoice) lines. To view the list: 7. Select the first line in the blanket order and then click LINE→UNPOSTED LINES→ORDERS. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-11 Your use of this content is subject to your current services agreement
  30. 30. Trade in Microsoft Dynamics NAV 5.0 8. In the Sales Lines window click LINE→SHOW document to view the order. The sales order contains all the lines from the blanket order. The quantities for the lines where the quantity in the Qty. to Ship field was deleted appear, but with blank quantity fields. Remember that the sales order line quantity must not exceed the quantity of the associated blanket order line. Otherwise, posting of the sales order is not possible. 9. Delete the last three lines in the sales order. When the sales order is posted as shipped, invoiced, or both, the Quantity Shipped and Quantity Invoiced fields are updated on the related blanket order. As soon as the sales order(s) has been created for the total quantity of a blanket order line, no other sales order(s) is created for the same line. The blanket order number and line number are recorded as properties of the sales lines when created from a blanket order. 10. Zoom in on the lines of the sales order created earlier or press CTRL + F8. The Blanket Order No. and the Blanket Order Line No. fields have corresponding references. NOTE: Where sales orders are not created directly from the blanket order but are still relate to it, a link between a sales order and a blanket order is established by selecting the number of the blanket order in the Blanket Order No. field on the sales line.Demonstration − Creating a Sales Order This demonstration is a continuation of the previous demonstration: "Creating a Blanket Order." The order processor at Cronus is about to ship 250 units of item 70000 to customer 10000. This is the first shipment out of four on the blanket order. The shipment needs to be delivered to the customers subsidiary address instead of to the main address. The shipping agent is DHL, who provides the option of package tracking.2-12 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  31. 31. Chapter 2: Sales Order Management Steps Perform the following steps: 1. Locate the sales order created earlier from the blanket order. The General tab of the sales header specifies default customer details and additional information for the customer. These are copied from the customer card when the order is created. The document dates and delivery dates are addressed in detail later in this training manual. NOTE: Links to more information about the customer, such as alternative shipping addresses, comments, contacts, and credit, can be found on the right pane of the sales order, across from the sales order header. When the salesperson clicks on the Sales History link, a list of previous sales transactions appears. Lines can be copied to the current sales order by clicking the Copy to Doc button at the bottom of the sales history form. Links to information about the item are located across from the sales lines. The salesperson can link directly to the item card and can access information about item availability, substitutions, sales prices, and sales line discounts by clicking the available fields. The fields on the Shipping tab provides detailed shipping-related information, for example, the customers alternative shipping address, shipment terms, agents, advice, ship-from location, and so on. The values in these fields are copied from the customer card. 2. On the sales order, click the Shipping tab. According to scenario 3, the order must be delivered to an address other than the companys main office. 3. In the Ship-to Code field, select DUDLEY. This is an alternative ship-to address for this customer. Click OK to accept all information messages that appear. Because there is no default shipping agent associated with this ship-to address, the shipping agent code is selected directly on the sales header: 4. On the Shipping tab, in the Shipping Agent Code field, select DHL. Click Yes to update the lines. When the shipment is picked up by the carrier, the assigned package tracking number can be entered on the Shipping tab in the Package Tracking No. field. The Internet address of the shipping agent can access the agents package tracking scheme. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-13Your use of this content is subject to your current services agreement
  32. 32. Trade in Microsoft Dynamics NAV 5.0 The contents of the Outbound Whse. Handling Time and Shipping Time fields relate to the programs calculation of various delivery dates. These fields and the Late Order Shipping field are explained later in this training manual. If the company has a default location (that is, a site where inventory is physically stored, such as a warehouse, service car, showroom, and so on) the appropriate code is copied to the sales order header in the Location Code field. Depending on the company, a default location for the order can be defined, for example, as their central warehouse, or as a local warehouse. This serves customers within a nearby geographical area. When the sales order header is complete, the order processor can continue with entering details that relates to the contents of the order and the items. The major aspects and properties of the order lines are described in the following topics.Sales Order Processing A sales order can be used to register both a physical and financial transaction. The choice of transaction is defined by one of the following line type options: • G/L Account • Item • Resource • Fixed Asset • Charge (Item) The line type Item represents a sale of physical goods. Sales defined by G/L Account, Resource, and Fixed Asset type are addressed in the Financial Management training manual. Transactions of a Charge (Item) type are explained later in this manual. Location Selecting a location code on the order line will start the features that support an employees tasks. The order processor can: • Check the item availability in a specified location (including the blank location). • Get an overview of item availability per specified location or on other locations at the same time.2-14 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  33. 33. Chapter 2: Sales Order Management Inventory management employees and planners can: • Use the requisition planning facility when considering replenishment and planning parameters set up on the item stockkeeping units. • Perform transfers of inventory between locations. • Create inventory statistics per location. Accountants can calculate inventory value and cost of goods sold per location. Warehouse managers can use the bin management functionality associated with a location. Quantity Entering the quantity amount in the Quantity field causes the program to check for sufficient inventory in the location to fulfill the sales order. If this is not the case, the program gives a stockout warning (the Stockout Warning field in the Sales & Receivables Setup window must be selected). The programs mechanism of calculating item availability is explained in the Inventory Management training manual. NOTE: The program supports the practice of creating sales lines with negative quantity. A negative sales line implies a reverse transaction to the sales document. A negative line in a sales order means a sales return. Handling sales lines with negative quantity is supported throughout all functional areas. Unit of Measures The program automatically fills in the Unit of Measure Code field when the sales line is created. The value is copied from the Sales Unit of Measure field on the item card. The unit of measure code is used: • When checking item availability. • To determine the unit price amount. • To validate if there are any alternative prices, line discounts, or both, for the sale based on the unit of measure. Unit Price Selecting the item in the No. field automatically fills in the Unit Price field. The unit price is calculated and copied from the item card or the alternative sales prices applicable to the item and customer. The setup options and the mechanism of alternative sale prices are addressed in more detail later in this manual. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-15Your use of this content is subject to your current services agreement
  34. 34. Trade in Microsoft Dynamics NAV 5.0 When companies sell to retail consumers, they may want sales document prices to include VAT information when printed. To enable this option, the Prices Including VAT field on the Invoicing tab on the document header must be selected. If the field is clear, Unit Price and Line Amount will exclude VAT amounts, and the field names reflect this choice. The Financials training manuals provide an in-depth setup description and explanation of VAT functionality. Item Tracking and Warehousing For many companies, registration of a sales order must also include inventory management related information. These are the records of item serial/lot numbers and item physical placement (bin code) in a warehouse. These aspects of a sales transaction are not directly associated with the customer interface but characterize the companys internal processes, and are addressed in the Inventory Management manual.Drop Shipments A drop shipment is the shipment of an item or a consignment of items from a companys vendor directly to a customer. Drop shipments are used when a company wants to avoid handling an order, such as stocking and delivering, but wants to fulfill the customers request and include the transaction in a calculation of cost of goods sold and profit. Companies can use the Drop Shipments functionality to ensure drop shipped orders are handled efficiently. In addition to making a process easier that involves many tasks and people, it makes sure that the correct inventory value and item costs are calculated. Although the sales and purchase transactions of the drop shipment are registered, the drop shipped items do not physically enter the companys inventory. Handling of a drop shipment is illustrated in Figure 2-4: FIGURE 2-4: DROP SHIPMENTS2-16 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  35. 35. Chapter 2: Sales Order Management Specifically, drop shipping includes the following tasks: 1. The customer places a sales order with the company. 2. The company places a purchase order with the vendor. 3. The vendor delivers the ordered items directly to the customer. 4. The vendor invoices the company for the shipment. 5. The company invoices the customer. The following demonstration illustrates this process.Demonstration − Creating Drop Shipments This demonstration is a continuation of the previous demonstration, "Creating a Sales Order." The current work date is 02/01/08. When Cronus order processor is ready to post the first shipment from the blanket order, the representative for customer 10000 calls and orders 250 units of item 1984-W. The salesperson at Cronus notices that there is not enough quantity in stock, and knowing that Cronus will stop stocking it, decides to tell the vendor to ship directly to customer 10000. Item 1984-W is ordered from vendor 30000. Steps Enter the order details on the blanket order (according to the previous demonstration, "Creating a Sales Order"). 1. Create a new sales line for item 1984-W, and enter 250 in the Quantity field. 2. In the Purchasing Code field, click the AssistButton to open a list of purchasing codes. (Use the Show Column function to make the Purchasing Code and Drop Shipment fields visible.) The window contains a list of purchasing codes the company sets up to distinguish different purchase transactions. Notice the special order code with the Special Order field selected. This is the purchase transaction type companies use for handling non-stock items. Non-stock items are items that are rarely ordered, or items where there is a small variation compared to the regular item; for example, color, stickers, and so on. (Read the appropriate topic in the online Help for more information about the individual fields in this window.) 3. In the Purchasing Codes window, select the DROP SHIP code with the Drop Shipment field selected and then click OK. The program places a check mark in the Drop Shipment field on the sales order line. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-17 Your use of this content is subject to your current services agreement
  36. 36. Trade in Microsoft Dynamics NAV 5.0 4. In the Quantity field, enter 250, and in the Shipment Date field enter 02/08/08. FIGURE 2-5: SALES ORDER - DROP SHIPMENTS This completes the drop shipment handling task on the sales side. The program does not allow posting of the sales order until it is linked to a purchase order. There are two ways to create the purchase order to be linked to the sales order for drop shipment: • Manually, by creating an order directly. • Automatically, through a requisition worksheet. The following steps go through the manual method. Because creating purchase orders for drop shipments through requisition worksheets is based on the same principles as creating orders directly, it is not described here. Learn more about the mechanism behind requisition worksheets in Chapter 6, "Requisition Management," of this manual. After being informed about the drop shipment, a purchasing agent places the order with vendor 30000, who delivers the shipment directly to customer 10000.2-18 Microsoft Official Training Materials for Microsoft Dynamics ™ Your use of this content is subject to your current services agreement
  37. 37. Chapter 2: Sales Order Management Steps To create the purchase order: 1. Select the Purchase menu option and then click ORDER PROCESSING→ORDERS. 2. Press F3 to create a new purchase order. 3. Fill in the order details on the purchase header by selecting vendor 30000 in the Buy-from Vendor No. field. Make a reference to the customer for a drop shipment: 4. On the Shipping tab, in the Sell-to Customer No. field, select customer 10000. The purchasing agent must establish a link between the purchase order and the sales order, and copy the sales lines to be drop shipped into the purchase order: 5. Click ORDER→DROP SHIPMENT→GET SALES ORDERS. The Order – Sales List window appears. This sales list contains all the sales orders for customer 10000 that the customer specified in the Sell-to Customer No. field on the purchase header. 6. Select the relevant order (the first one on the list) and then click OK. Before the purchasing agent can continue, the program indicates that the purchase order must be shipped to a different ship-to address (instead of the customers regular address). This is the address specified on the associated sales order. 7. Click OK to the information message. On the Shipping tab of the purchase order, in the Ship-to Code field, select DUDLEY. 8. Repeat steps 3 and 4. The sales line selected for drop shipment is now transferred to a purchase line. After being informed that the purchase order has been shipped to the customer, the purchasing agent can post the order as received. Posting the purchase order as invoiced can only occur after the linked sales order is invoiced. Upon posting the purchase order as received, the program automatically posts the associated sales order as shipped. The salesperson can post the sales order as invoiced. Posting the purchase order as invoiced completes the drop shipment handling. Microsoft Official Training Materials for Microsoft Dynamics ™ 2-19Your use of this content is subject to your current services agreement

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