Dynamics gp insights to distribution - sales orders

Dynamics GP Insights to Distribution: Sales Orders
Dynamics GP includes powerful distribution functionality that will help you more
easily and effectively manage your distribution operations. This book covers some
of the more important and effective aspects of the Dynamics GP distribution
solution.
This book contains explanations and directions for using specific functions within
Dynamics GP. It also includes links to videos that support specific functionality.
Table of Contents
Sales Orders, Invoices, Returns .................................................................................. 2
Sales Orders........................................................................................................... 2
Invoices.................................................................................................................. 8
Returns ................................................................................................................ 10
Fulfillment Workflow in Sales Order Processing................................................... 13
Processing Drop Shipments in Dynamics GP ........................................................ 16
High Volume Drop Ship Processing in Dynamics GP ............................................. 18
Using Sales Kits to Track Actual Variable Costs in Dynamics GP ........................... 20
Advanced Distribution, Pick, Pack, and Ship......................................................... 20
www.amllp.com 11512 El Camino Real, Suite 311; San Diego, CA 92130 (888)794-9401
1

Sales Orders, Invoices, Returns
This section covers the following:
Order Entry
Document Transfer & Shipping
Returns Processing
Sales Inquiry
Dynamics GP includes a very useful Sales Transaction Entry screen. The Sales
Transaction Entry screen can be used to enter, view, edit and process various
transactions types; including quotes, orders, invoices, and returns.
Sales Orders
Navigate to the Sales Transaction Entry screen: Transactions >> Sales >> Sales
Transaction Entry
To enter an order, select Order from the Type drop down list.
Select the Ship To Address as the default address.
Enter or look up a Batch ID.
2

Once you’ve entered the Customer ID, you can click on the blue expansion arrow
to the right of the Customer ID to pop up the Sales Customer Detail Entry screen.
In this screen you can override the default values for a specific order if you want.
Along the bottom are several buttons you can click on to provide additional
information about the customer. The Payments button pops up the Customer
Payment Summary Inquiry screen that provides current credit information about
the client.
3

4

The User-Defined button opens a screen that allows you to enter and track
additional information about the specific order.
Enter sales line items by entering or looking up an Item Number. For
noninventory items, just enter some text to identify the item being included on
the order. Enter the quantity. The correct price should be automatically filled in
from the Item Price List.
Click on the blue expansion arrow to the right of the Item Number field to reveal
the Sales Item Detail Entry screen.
5

Let’s look at two important concepts here:
1.) Throughout Dynamics GP you will see data entry screens and inquiry
screens that have 2 or 3 rows of field labels that correspond to the data
rows in the grid below them. For example, in the screen below, the filed
label, “QTY Ordered” is in the first row of field labels (there are three rows
of field labels in this screen) and it relates to the first row of data. The field
label, “Quantity to Invoice” is in the second row of field labels and it relates
to the second row of data.
2.) There are various Quantity Types on a sales transaction that assists you in
managing your sales transactions. The Qty Ordered will be the quantity of
the item that is being ordered. If you’ve set up your system to
automatically allocate and fulfill orders, the Quantity Fulfilled and the
Quantity to Invoice will automatically be set equal to the Qty Ordered.
6

If you enter an order quantity for an inventory item of which you do not have an
adequate supply, the Sales Quantity Shortage Options screen will pop up. You will
need to indicate how you want to resolve the difference. Your options are listed
below. The Distribute option allows you to select another inventory location from
which to supply the item quantity.
7

When you’re done entering the sales order, save it to a Batch ID.
Invoices
Generally organizations using Dynamics GP will indicate that a sales order has
been shipped by transferring the sales order to an invoice. The transfer process
can be done at a batch level or on individual transactions.
To transfer an individual sales order to an invoice, select the sales order in the
Sales Transaction Entry screen. Click on Options and select the Transfer option.
This will open the Sales Trasnfer Documents screen. Select “Transfer to Invoice”
and “Include Totals and Deposits”. Click the Transfer button.
This will transfer all the sales line items that have a Qty to Invoice quantity to a
new Invoice type sales document. Dynamics GP maintains an audit trail for
related sales documents. You can view the audit trail by clicking on the blue
expansion arrow to the right of the Document Number field.
8

Here you can see the Invoice and Sales Order documents linked together with drill
downs to views of each.
9

After the invoice has been reviewed for accuracy it can be posted. When an
invoice is posted, the inventory quantities will be relieved from inventory, an
invoice will be posted to accounts receivable, and all the associated general
journal entries will be created.
Returns
The Sales Transaction Entry screen can also be used to post customer returns.
10

When a quantity is returned for an item, the Sales Return Quantities Entry screen
will open. You must distribute the total quantity to be returned among the
various Quantity Types.
Quantities in inventory are maintained by Quantity Type. This view of the
ACCSCRD-12WH item shows the various quantity types and current quantities.
11

12

The quantities in a return document are displayed as positive numbers.
When the item has been returned, you can post the Return document. When the
return is posted, the inventory for the items will increase for the indicated
quantity types, a credit will be created in accounts receivables, and all the
associated general journal entries will be created.
Sales Order Processing video: http://youtu.be/VpgWKmqs_z0
Fulfillment Workflow in Sales Order Processing
13

The Advanced Distribution module in Dynamics GP allows you to setup a workflow
process for order fulfillment. You can select up to six steps, and rename them to
fit your organization. This functionality gives you more control over the order
fulfillment process and helps ensure that orders are processed accurately. These
are the setup steps from the contextual "Help" documentation:
If you’re using sales fulfillment workflow, use the Sales Fulfillment Order/Invoice
Setup window to activate workflow for sales. Use the Sales Fulfillment Document
Workflow Setup window to select the workflow statuses to track for a fulfillment
order/invoice type ID with the Enable Fulfillment Workflow option marked. You
must mark Status 6 and at least one other status to track workflow information.
To set up fulfillment workflow for sales:
Open the Sales Fulfillment Order/Invoice Setup window. (Microsoft Dynamics GP
menu >> Tools >> Setup >> Sales >> Sales Order Processing >> Sales Document
Setup button >> select the Fulfillment Order/Invoice option)
Enter or select a fulfillment order ID/invoice ID for the workflow you’re setting up.
Mark the Enable Fulfillment Workflow option.
Choose Workflow to open the Sales Fulfillment Document Workflow Setup
window.
To exclude a document status from the workflow process, unmark the Active
option for the status.
Choose OK in the Sales Fulfillment Document Workflow Setup window. Choose
Save in the Sales Fulfillment Order/Invoice Setup window.
This is the window in which you can modify the description for the different steps.
(Microsoft Dynamics GP menu >> Tools >> Setup >> Sales >> Fulfillment Workflow
Setup)
14

This is the window referenced above, that allows you to setup workflows for
specific sales document ID's:
Related video: http://www.youtube.com/watch?v=gHZTMhsPLqE
15

Processing Drop Shipments in Dynamics GP
Dynamics GP has the ability to quickly process drop ship orders. Typically in a drop
ship situation, your customer will place an order with you. You will then create a
purchase order to your supplier and instruct them to ship the product directly to
your customer. Once your supplier has shipped the product, you will enter the
vendor's invoice to accounts payable and invoice your customer. You can use this
process on a single order basis or process orders in bulk. This is the process if
you're processing one order at a time:
I found it best to create a separate order type for drop ship orders that has the
allocation option set to, "none."
Enter the order from your customer and make sure to mark the Drop Ship check
box. This will modify the shipping instruction on the purchase order to indicate
that the vendor should send the product directly to your customer. Notice that
the quantity fulfilled is o.
16

You can quickly create a purchase order for this sales order by selecting Actions >>
Purchase. This will bring up the Purchase Order Preview screen. You can modify
the attributes here if you want, or just accept the defaults that are based on your
system setups.
This action will create a new purchase order. Once the shipment to your customer
has been made by your vendor, you can enter the vendor's invoice into accounts
payable. This will update the sales order to indicate that the quantity ordered, has
been fulfilled.
17

From this point you can process the invoice as you normally would; send the
invoice to your customer, and post the invoice.
Related video: http://youtu.be/CsUvTiw2PtM
High Volume Drop Ship Processing in Dynamics GP
If you have a high volume drop ship business, Dynamics GP can help you manage
and operate the business. You may receive sales orders from a website or have
several sales order entry people that can really turn out the orders. If a lot of
these orders are to be drop shipped from your suppliers, directly to your
customers, Dynamics GP can help you keep it all in control.
This is a typical process that might be used:
Orders have sales order lines that have the Drop Ship box checked.
All orders are saved into one or more batches. The batches will be used to process
a lot of orders at once.
Periodically purchase orders will be created to your suppliers to provide order
detail and shipping instructions. Use the Sales Document Range Inquiry screen to
select all sales orders for which you want to create purchase orders. There are
different criteria that can be used to select all the drop ship orders. In my example
I used a unique Order Type to identify the drop ship orders. Click on the Purchase
button to create purchase orders for all the drop ship orders.
18

The system will suggest purchase orders that should be placed. You can change
the attributes of any purchase order at this time if you want.
In this example I am creating several purchase orders to two vendors to fulfill all
the drop ship orders. When the suggested purchase orders are reviewed and
determine to be OK, select the Generate button, and the purchase orders will be
created.
You can use the Print Purchasing Documents screen to e-mail purchase orders to
the vendors all at one time.
19

As orders are shipped by your suppliers, you can process the vendors' invoices
into accounts payable. When the vendor invoicing transactions are posted, they
will indicate to the related sales orders that the items have been shipped. The
Quantity Fulfilled on each sales order line will be updated with the information.
Periodically you can transfer orders in your batch(es) to invoices, send the
invoices out via e-mail, and post the invoices.
By using the batch processing functionality in Dynamics GP, you can quickly
manage a large number of drop ship orders.
Related video: http://youtu.be/GD_qzCe6KeQ
Using Sales Kits to Track Actual Variable Costs in Dynamics GP
Video: http://youtu.be/lZLb-_DUPwo
Advanced Distribution, Pick, Pack, and Ship
20

Video: http://youtu.be/gHZTMhsPLqE
Contributing Authors:
Steve Chapman
Francisco Hilyard
Steven Johnston
Liane McIlraith
Doug Pitcher
21

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