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A step-by-step book and eBook guide to implementing Microsoft Dynamics GP 2010
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Dynamics GP offers a great deal of options and additional modules surrounding the core distribution modules, using which some advanced workflow and functionality can be achieved when needed. Inventory, Sales Order Processing, and Purchase Order Processing are commonly referred to as the Distribution Modules. These modules integrate with each other and with the other modules in Dynamics GP and are the modules where the transactions pertaining to inventory quantities and costs, purchases, sales, and transfers are entered.
In this article by Victoria Yudin, author of Microsoft Dynamics GP 2010 Implementation, we will cover basic setup for the Sales Order Processing (SOP) module.
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All module settings are company specific. If you have multiple companies in Dynamics GP, you will need to set up each module in each company separately. This is often advantageous, as different companies may require different settings for various features. If you would like to copy setup from one company to another, Microsoft Dynamics GP KnowledgeBase article 872709?9? 9? 9? 9? 9? describes how to do this: https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?scid=kb;en-us;872709 (CustomerSource or PartnerSource login required).
The Sales Order Processing module, also commonly referred to as SOP, bridges the gap between the Inventory and Receivables modules in Dynamics GP. In SOP, you can enter quotes, orders, back orders, invoices, and returns, with detailed inventory and non-inventory items. SOP also integrates to the Purchase Order Processing module with the ability to automatically create purchase orders for sales orders that you do not have stock to fill.
Setup for Sales Order Processing consists of the following steps:
- Sales Order Processing Setup
- Sales Document Setup
- User-Defined Fields
- SOP Document Numbers
- Sales Order Processing Setup Options
- E-mail Settings
- Customer Items
Sales Order Processing Setup
To begin setting up SOP, navigate to Microsoft Dynamics GP | Tools | Setup | Sales | Sales Order Processing. The following is a list of the fields on the Sales Order Processing Setup window:
- Display Item Unit Cost: Unmarking this will show the unit cost of items entered on sales order transactions as zero. Some companies prefer to hide item costs from users; however, this option hides them only on the Sales Transaction Entry window, not anywhere else in the system. So, unless a user has extremely limited access in Dynamics GP, this is not as useful as it sounds.
- Track Voided Transactions in History: It is recommended to leave this option marked, as there may often be a reason to look at voided sales transactions.
- Calculate Kit Price based on Component Cost: This option applies to pricing methods based on cost, which are not too common. Selecting this option will cause the cost of the kit (and thus the price) to be recalculated based on the cost of each component in the kit.
- Display Quantity Distribution Warning: Selecting this enables a warning during transaction entry that helps users avoid mistakes when entering quantities for transactions. It is recommended to leave this checked.
- Search for New Rates During Transfer Process: This setting only applies to Multicurrency transactions. If it is checked, then during the transfer of sales documents (for example from quote to order), Dynamics GP will look for an updated exchange rate. If this setting is not selected, the system will still verify that the exchange rate is valid, but will not update exchange rates unless they are expired.
- Track Master Numbers and Next Master Number: Dynamics GP offers the ability to track related transactions with a Master Number. For example, a quote, a resulting order, and two partial invoices may all have their own individual numbers but share one master number, thus allowing for easy lookups of all related transactions. It is recommended to leave this option selected, even if you do not foresee a need to use master numbers. The Next Master Number can be anything you would like, although there is typically no reason to change it from the default value of 1.
- Prices Not Required in Price List: This option works together with the Inventory module and, if selected, allows users to enter items without a price level set up. This may sometimes be needed, but it is better to leave this unchecked and create price lists for all items to keep setup consistent. If this option is selected and no Password is supplied, any user can enter an item without a price level on a transaction. With a Password selected, a user will be prompted to enter the password before they can continue.
- Convert Functional Price: This option is only available if Prices Not Required in Price List is selected. With this checked, if a price cannot be found for the item in the currency that is being used on the transaction, the functional currency price will be converted as needed, using the current exchange rate.
- Data Entry Defaults: These are defaults to help speed up data entry:
- Quantity Shortage: Choose what users will see as the default option when they enter a quantity that is greater than what is in stock. Document Date: When entering a new SOP transaction, the Document Date will default to either the User Date (this is at the top of every window next to the User ID and Company Name) or the date of the previously saved transaction. For companies that typically enter all invoices with the same date (for example, the end of the previous month), it is best to default this to the Previous Doc. Date. For companies that want to have the current date defaulted for new transactions, choose User Date.
- Price Warning: You can decide whether to warn users if the price being used on a transaction they are entering is a default price for an item because a price has not been set up for the customer's price level. This may be useful if there should be a price set up on the item price list for each customer price level and can help avoid mistakes. If you choose to give a warning, using the Message option is recommended, as it will give users an indication of what the problem is; the Beep option may not be enough to catch a user's attention when you consider the typical noise level in an office and the number of beeps various applications generate.
- Requested Ship Date: When SOP orders are entered into Dynamics GP, a Requested Ship Date automatically populates to help determine when orders should be shipped and when purchase orders may need to be placed. A user can change the requested ship date on each line item for an order; however, if there is a typical default you can use this setting to help speed up data entry. Choices are either Document Date (order date) or number of Days After Doc. Date. If the latter is chosen, a box will appear next to this option where you can fill in the number of days (up to 999).
- Document Defaults: Similar to a customer with multiple Address IDs, each transaction type in SOP can have multiple document types set up to follow different rules. During transaction entry, users select which transaction type and document type to use for the proper set of rules to be followed. This section allows you to optionally set up a default for each transaction type, as well as the Site ID and Checkbook ID, to help speed up data entry. If you decide to set these up, you will need to come back to this section after you have created the various document types for each transaction type. If there is a transaction type you will not be using, or that you want to make sure users have to proactively select during transaction entry, you can leave it blank.
- Posting Accounts From: If Item is chosen, the system will first look at the item's accounts, then at the Inventory series of the company posting accounts to determine what GL accounts to use for SOP transactions. If Customer is chosen, the system will first look at the customer's accounts, then at the Sales series of the company posting accounts to determine what GL accounts to use for SOP transactions.
- Maintain History: It is recommended to keep all history and leave all of these selections checked.
- Decimal Places for Non-Inventoried Items: If non-inventory items are entered on SOP transactions, these settings will determine how many decimal places to use for Quantities and Currency. If Multicurrency is enabled, use the expansion button (blue arrow) next to the Currency field to enter these for each currency.
The following screenshot shows a typical Sales Order Processing Setup window:
Sales Document Setup
You can set up as many document types as you need for each Sales Order Processing transaction type. One reason to set up different document types is to set up different transaction rules. Another reason is to use different numbering schemes or be able to segregate transactions for reporting purposes.
Dynamics GP has two types of transactions that are basically the same—a fulfillment order and an invoice. In most places you will see these listed together as Fulfillment Order/Invoice. When using Workflow with the SOP module, a fulfillment order becomes a separate transaction type that, once completed, turns into an invoice automatically.
To start setting up document types, click the Sales Document Setup button at the bottom of the Sales Order Processing Setup window. You will see a list of the available transaction types:
The sections below will go over the setup for each transaction type.
Quotes are typically the start of the sales process and can be entered for customers or prospects. Prospects can be created "on the fly", as they are needed in Dynamics GP, and then transferred to customers if they accept a quote and place an order. The following list explains the fields on the Sales Quote Setup window:
- Quote ID: An ID for this quote document type—up to 15 characters. This ID is what users will need to type or select on a sales transaction when using this quote document type.
- Quote ID Next Number: If you are setting up multiple Quote IDs and would like for each to have its own numbering scheme, you can enter the next quote number here. Otherwise, if all quotes share one numbering scheme that can be entered during SOP Document Numbers setup, and you can leave this blank.
- Days to Expire: The default number of days a quote is valid for. After expiration, the user will not be able to transfer quotes to orders. Users can change this as needed on individual quotes.
- Comment ID: This is the default Comment ID for a quote. For example, if all quotes are set to expire in 30 days, you could create a comment that says Prices are guaranteed for 30 days from quote date and enter the corresponding Comment ID here. The comment would automatically populate on every quote created with this Quote ID.
- Format: Dynamics GP has four report formats available for each SOP transaction type: Blank Paper, Short Form, Long Form, and Other Form. If you need to set up multiple Quote IDs that show different information when printed, each Quote ID can be defaulted to use a different report format.
- Transfer Quote to Order: If this quote can be transferred to an order, check the box and enter an Order ID.
- Transfer Quote to Fulfillment Order/Invoice: If this quote can be transferred to a fulfillment order or invoice, check the box and enter a Fulfillment Order/Invoice ID.
- Default Quantities: This determines whether the item quantities for the quote default to Quantity to Invoice or Quantity to Order. This setting will depend on whether you plan to typically transfer a quote to an order or an invoice.
- Use Prospects: Leave this checked if you want to allow prospects to be used on quotes, otherwise only customers will be allowed.
- Allow Repeating Documents: A quote can be set up to repeat. This is more typical for orders, but may be needed at times for quotes. This setting determines whether this Quote ID will be allowed to repeat.
- Options and Password scrolling list: each of the Options listed has an optional Password, saved in clear text.
- Delete Documents: With this unchecked, once saved, a quote cannot be deleted.
- Edit Printed Documents: With this unchecked, once a quote is printed, it cannot be changed.
- Override Document Numbers: If users can change the quote numbers when they are creating them, check this option (once created a quote number cannot be changed).
- Void Documents: Select this if users are allowed to void quotes. If so, make sure that you have selected Track Voided Transactions in History on the Sales Order Processing Setup window.
In Dynamics GP, a sales transaction can start out as an order, or quotes can be transferred to orders. Depending on setup, orders can allocate inventory items, thus making them unavailable for other orders or invoices. The following is a list of the fields on the Sales Order Setup window:
- Order ID: An ID for the order document type—the maximum length allowed is 15 characters. This is what users will need to type or select when using this order document type.
- Order ID Next Number: If you are setting up multiple Order IDs and would like for each to have its own numbering scheme, you can enter the Next Number here. Otherwise, if all orders will share one numbering scheme, that numbering scheme can be entered during SOP Document Numbers setup.
- Comment ID: The default Comment ID for an order.
- Format: Dynamics GP has four report formats available for each SOP transaction type: Blank Paper, Short Form, Long Form, and Other Form. If you need to set up multiple Order IDs that show different information when printed, each Order ID can be defaulted to use a different report format.
- Allocate by: This setting determines how (or if) inventory is allocated for the Order ID. Allocated inventory is still considered On Hand stock, but it is not available for other orders or invoices.
- Line Item: Select this if you want to allocate inventory as each line is entered. Users will need to choose an action on each line with a quantity shortage, which could significantly slow down order entry if most of the orders being entered do not have inventory in stock.
- Document/Batch: Inventory is not allocated as orders are entered and a separate allocation process is run either for each order or batch of orders. This gives less visibility of inventory availability during order entry; however, this can greatly speed it up because each line item is not checked and dealt with individually.
- None: Orders are not allocated at all and only after an order is transferred to an invoice or fulfillment order is inventory allocated.
- Transfer Order to Back Order: If this order type can be transferred to a back order, check this selection and enter a Back Order ID. Many companies do not use back orders, and simply use the back ordered quantity on orders to track back ordered items.
- Transfer Order to Fulfillment Order/Invoice: There is no checkbox here, as the basic functionality of an order is to transfer to an invoice. The only choice is what Fulfillment Order/Invoice ID to use.
- Options section:
- Allow Repeating Documents: If this Order ID can be set up to be repeated, mark this checkbox. Allocate by has to be set to Document/Batch or None to enable this option.
- Use Separate Fulfillment Process: If this option is checked, a separate step to fulfill orders will be needed prior to being able to transfer them to invoices.
- Allow all Back Ordered Items to Print on Invoice: If this is selected, all back ordered items will be transferred to an invoice with a fulfilled quantity of zero, allowing them to print on the invoice. Most companies like to show only items that are being billed on invoices, so they would leave this option unchecked.
- Credit Limit Hold ID: Holds can offer an additional level of control in Sales Order Processing.
- Override Quantity to Invoice with Quantity Fulfilled: Marking this option will set the Quantity to Invoice to be the same as Quantity Fulfilled, if Quantity Fulfilled is not zero. If this option is checked, Enable Quantity Cancelled in Sales Order Fulfillment becomes available. If Transfer Order to Back Order is selected, Enable Quantity to Back Order in Sales Order Fulfillment will also be enabled.
- Options and Password scrolling list: Each of these Options has an optional Password, saved in clear text.
- Allow Invoicing of Unfulfilled or Partially Fulfilled Orders: This option is activated only when the Use Separate Fulfillment Process option is selected. Otherwise, if Use Separate Fulfillment Process is not selected, invoicing an unfulfilled or partially fulfilled order will not be allowed, even though you can select this option.
- Delete Documents: With this unchecked, a saved order cannot be deleted.
- Edit Printed Documents: With this unchecked, once an order is printed, it cannot be changed.
- Override Document Numbers: If users can change the order numbers when they are creating them, check this option (once created, an order number cannot be changed).
- Void Documents: Select this option if users are allowed to void orders. If so, make sure that you have selected Track Voided Transactions in History in the Sales Order Processing Setup window.
The following screenshot shows a typical Sales Order Setup window:
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Back orders allow companies to transfer unfulfilled line items from orders or invoices to a separate transaction. Many companies do not use back orders and simply use the back order quantity on orders for back ordered items. If you choose to use back orders in Dynamics GP, refer to the setup options under the Quote section for an explanation of the fields on the Sales Back Order Setup window.
Fulfillment orders and invoices share the same setup window because they are basically the same transaction. All the options on the Sales Fulfillment Order/Invoice Setup window have been explained under the Order section, with the following new fields: Enable Fulfillment Workflow, Update Actual Ship Date During Confirm Ship, and Update Invoice Date on First Print. These fields are used with Sales Fulfillment Workflow, which offers additional functionality for the SOP module. A sample Sales Fulfillment Order/Invoice Setup window is shown here:
A sales return transaction allows the return of inventory and non-inventory items to be entered. There are just a few options on the Sales Return Setup window compared to the other sales document types. All of these options have been explained in previous sections except the following:
- Use next number from Fulfillment Order/Invoice ID: If you would like your returns to use the same numbering scheme as your invoices, choose this option and provide an Invoice ID with the desired numbering scheme. With this selected, if the last invoice number was 1234, a new return transaction will be numbered 1235, and the next invoice will be 1236.
- Override Item Unit Cost for Returns: The default item cost on returns will be the Current Cost of the item. If this option is selected, users can override the costs on returns.
Some of the fields on the sales document type setup windows are difficult to give recommendations for, as they are very much dependent on the exact workflow and needs of your organization. Textbook explanations of these options are sometimes not enough to get a full understanding. Use your Dynamics GP resource to help you determine the best settings for your specific situation, and perform tests to verify that your selected settings will behave as desired.
During sales transaction entry, users have a window of user-defined fields available to them for entering additional data to be tracked for transactions. Additionally, prospects and customer items have some user-defined fields available. The labels for all of these fields can be changed on the Sales User-Defined Fields Setup window, accessed by clicking the User-Defined button at the bottom of the Sales Order Processing Setup window.
There are three sections of fields you can set up labels for:
- User-Defined Field Entry: These fields are accessed from the Sales Transaction Entry or Sales Transaction Inquiry windows. There are three lists that can hold predefined values (up to 20 characters), two date fields, and five text fields that can hold up to 20 characters each.
- Prospect Maintenance: These fields are available when entering or changing a prospect. Two text fields of 20 characters each are available.
- Customer/Item Maintenance: If you will be using customer items, five text fields holding 20 characters each will be available on the Customer Item Maintenance window.
You can change these labels at any time and the corresponding field names on the windows showing them will change.
SOP Document Numbers
Clicking the Numbers button at the bottom of the Sales Order Processing Setup window opens the Sales Document Numbers Setup window where you can change the Code, Next Number, and Format for each sales transaction type, as well as Packing Slips and Picking Tickets.
It is not recommended to change the default Codes, as that will make it more difficult for support and training. The Next Number selections in this window will only be used if no numbering scheme is set up for a Document Type ID. Some companies like to have letters at the beginning of transaction numbers, so that by looking at a transaction list they can quickly identify the transaction types, while other companies prefer to use only numbers. In either case, make sure to leave enough digits for growth, as the number of characters will not auto increment. After reaching 999, the next number will be 000, not 1000. However, after reaching 00999, the next number will be 01000.
Dynamics GP will allow the same number to be used for different sales transaction types. This means you can have Order # 12345, Invoice # 12345, and Return # 12345 all co-existing in the system with no conflicts. A unique transaction is determined by the combination of transaction type and number. Even though it is allowed by the system, users may find it confusing to have the same numbers for different transaction types and this is typically not recommended.
Packing slips and picking tickets can either have their own numbering schemes, or use the number of the transaction they are being printed for. The following screenshot shows a typical Sales Document Numbers Setup window where the invoice numbers will start with 0005500 to continue from a previous system, but all the other transaction types will have a new numbering scheme starting with a different digit for somewhat easier identification:
Note that you can also default a Format for each sales transaction type on this window. If the Next Number for a transaction is taken from this window, the Format selected here will be defaulted, otherwise the Next Number and Format will be taken from the document type setup.
Sales Order Processing Setup Options
The Sales Order Processing Setup Options window can be opened by clicking the Options button at the bottom of the Sales Order Processing Setup window. This window holds additional setup selections for the SOP module such as tax defaults and defaults for how POs are created from SOP transactions. The following is a list of the fields on this window:
- Tax Calculations: If Single Schedule is chosen, you can specify one tax schedule to be used on SOP transactions. Typically, if a company is selling taxable products and services, the Advanced setting is recommended so that you can control taxes with more granularity.
- Tax Options: When Advanced Tax Calculations is selected, this section is enabled and you can set up Tax Options for Non-Inventory Items, Freight, and Miscellaneous amounts. Typically non-inventory and miscellaneous amounts are taxed based on the customer's tax setup, and whether freight is taxed depends on each state. If you have a tax schedule called FREIGHT containing all the tax details where freight is taxed, the setup would look like the following:
- Defaults for Picking Ticket: These options will work only for Advanced Picking and when using multiple bins.
- Defaults for Purchase Order: These settings control the behavior of purchase orders that are created directly from sales order transactions:
- Site Preference: If you use different Site IDs for line items on the same sales invoice (which is not very typical), you can choose between:
- Combine Items with Different Sites on Same PO: If a sales order has items shipping from more than one site, all the items will be placed on the same purchase order, with different sites for each line. This is not typical for most companies.
- Don't Combine Items with Different Sites on Same PO: If a sales order has items shipping from more than one site, separate purchase orders will be created for each site. This selection is the most common.
- Use a Single Site for All POs: This will enable a Site ID field where you can choose what site to use. This is useful for companies that always receive items to one location.
- Required Date: Purchase orders can store and print required dates. Choose between Requested Ship Date from the order or Days Prior to Requested Ship Date, which will enable you to enter the number of Days.
- U of M: Select whether to use the Sales Line Item's U of M or the Item's Default Purchasing U of M.
- Combine Similar Items Into a Single PO Line: If the same item exists on multiple lines, they will be combined into one PO line with this option selected. Often there is a reason why the same item is on separate lines on an order, so this is typically unchecked to preserve the separate line items on the PO.
The following is a sample Defaults for Purchase Order setup, where POs are always received at the NJ site and the PO Required Date is set to 3 Days before the required ship date for the sales order:
- Site Preference: If you use different Site IDs for line items on the same sales invoice (which is not very typical), you can choose between:
- Options: This section has a list of actions that you can allow or disallow during sales transaction entry. You can also enter a Password for each of these so that only a user who knows the password will be allowed to complete the action.
If you are planning on e-mailing sales documents to customers from Dynamics GP, you will need to make sure that e-mailing for Sales Order Processing transactions is enabled and set up. To do this, navigate to Microsoft Dynamics GP | Tools | Setup | Sales | E-mail Settings. You may have already completed this setup as part of the Receivables module setup.
The Customer Items functionality in Dynamics GP allows you to set up customer-specific numbers for your inventory items. This may be needed for larger customers who want to order using their own part numbers and want to see these numbers on their invoices. When entering sales transactions, if a customer item number is typed in, the system will automatically substitute it with your inventory item number.
As the name suggests, customer items allows you to set up a one-to-one relationship between each customer and item you have set up in Dynamics GP. To start this setup, navigate to Cards | Sales | Customer Items. The fields on the Customer Item Maintenance window are:
- Customer ID and Name: When you select a Customer ID, their Name will automatically be displayed.
- Item Number and Description: Select the Item Number you want to set up a customer item for and the Description will be displayed.
- Customer Item: Enter the customer part number for the item.
- Customer Item Description: This will default to your Item Description, but if you would like the customer to see a different description, enter it here.
- Customer Item Short Name and Customer Item Generic: These will be blank by default, if there is any other information you want to save about the customer item, you can store it in these fields.
- Text Fields 1, 2, 3, 4, and 5: These are user-defined fields and can store any other information you need about the customer item. The labels for these fields can be changed on the Sales User-Defined Fields Setup window, accessed by clicking the User-Defined button at the bottom of the Sales Order Processing Setup window.
- Substitute Item Number, Description, and Effective Date Range: Optionally, you can set up an item to be offered as a substitute if the item being ordered is out of stock. This is a customer-specific substitute, as opposed to generic substitutes that can be set up for each item in the Inventory module.
Once the setup of the Sales Order Processing module is complete, you can start entering SOP transactions in Dynamics GP.
In this article we covered the basic setup of the Sales Order Processing(SOP) module.
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About the Author :
Victoria Yudin has been designing, implementing, integrating, and customizing business management and accounting systems for over 20 years. She has been a user of Microsoft Dynamics GP (and its Great Plains Software predecessor) since it was available on DOS and has been a Dynamics GP consultant for almost 15 years.
Victoria has the distinction of being the only person in the world named a Microsoft Dynamics GP Most Valuable Professional (MVP) each consecutive year since 2005. She has also been on the DynamicsWorld's Microsoft Dynamics Top 100 Most Influential People list each year since 2010. Victoria has also been in the top 10 of Doug Pitcher’s "most famous, awesome and totally influential Dynamics people" list for all 3 years it has been published. (http://bit.ly/18UaKkL)
Victoria has an undergraduate degree from the Wharton School of Business at the University of Pennsylvania, and has numerous certifications for Microsoft Dynamics GP and related technologies.
In November 2000, Victoria started Flexible Solutions, Inc. to bring together her experience in accounting and business with her love for technology. Flexible Solutions (www.GPReportsViewer.com) is a Microsoft Dynamics GP Partner, offering the GP Reports Viewer add-on for Dynamics GP, as well as Microsoft Dynamics GP implementation, reporting, and support services.
In September 2008, Victoria started her blog, called Ramblings and musings of a Dynamics GP MVP (http://victoriayudin.com) to share her experiences and thoughts with the Dynamics GP community. Currently Victoria's blog gets more than 45,000 hits per month. Victoria also regularly helps fellow Dynamics GP users and consultants on many of the Dynamics GP online forums, including Experts Exchange, where she has earned the rank of Wizard.
Victoria previously authored the Microsoft Dynamics GP 2010 Implementation book and has had articles published on MSDynamicsWorld.com and in the GPUG Magazine.