SOP: Processing Purchase Orders in Navision

Orion Fittings.

SOP-018.  Processing Purchase Orders in Navision

(02/01/2017 note: This is most of the content of this standard operating procedure (SOP). It is not the form itself. The form has several illustrations and captions, and it has a better layout that makes it easier to read. The original PDF will be posted on this site later.  I deleted proprietary and personal information from this posting, and replaced specific names and formulas with ## or letters, e.g. bbbb, cccc, etc.)

1)  Objective:

This document provides the procedure for entering purchasing orders into Navision, verifying that a requested discount rate is within Orion’s parameters, printing order documents and picking lists for the appropriate departments, and sending an acknowledgement to the sales rep.

2)  Scope:

The scope of this document is how to use Navision to process purchasing orders.

3)  Policy: n/a.

4)  Definitions:

4.1)  Warnings Cautions and Notes

WARNING: A warning indicates to the reader that if the information provided is NOT followed, serious personal injury or death can occur. A warning is preceded by a red triangle containing an exclamation mark.

CAUTION: A caution indicates to the reader that if the information provided is NOT followed, damage to the equipment or material can occur. A caution is preceded by a yellow triangle containing an exclamation mark.

NOTE: A note provides useful information that helps the reader to perform a task or procedure.

4.2   Terms used in this document

Term Definition
Multiplier Multiply the current list price of an ítem by the multiplier (a decimal fraction)  to get a discounted price.
Percentage off Multiplying a current list price by a multiplier of 0.300 produces a price that is 30% of the original price. But Orion refers to that price as a “discount of 70% off the current list price.”
  1. Procedure:

7.1) Notes before starting the process of processing purchase orders:

7.1.1)  The process begins when sales representatives fax or email their orders to Orion.Orders@wattswater.com.

7.1.2) Sales reps give customers price discounts that have already been approved by Orion. These discounts vary by sales reps, customers, and often by location or project.

NOTE: Some sales reps have different standard discounts for the same customer, depending on geographic location.

7.1.3) Sales reps cannot arbitrarily change price discounts. Changes require approval by dddd eeee (western U.S.)  or cccc bbbb (eastern U.S) . See the sales map for the boundary that separates the east and west districts.

7.2) Before opening Navision, examine the original purchase order:

7.2.1) P/O #: Record this purchasing order number as External Document No. in Navision. However, do not confuse the original P/O with the Sales Order number generated by Navision.

7.2.2) From: This includes the customer’s name, post office or street address, city, state, and zip code.

7.2.3) To: Orion Fittings’s name, the sales rep’s name, the company’s street or postal office box or street address, city, state, and zip code. Remember that the sales rep’s name is used to look up discount and customer information.

7.2.4) Ship to: Note that this address usually is not the customer’s name, address, city, state, and zip code. They are often the address of construction projects and work sites.

7.2.5) Multiplier: Compare this number to those in the 2016 Protected Job List and other documents listed in this SOP.

7.2.6)  This purchase order from a sales rep will be the example in this SOP:

7.2.7)  Note these specific names and numbers:

7.3) Verify that the order’s pricing is within Orion’s proper discount parameters.

7.3.1) Open 2016 PROTECTED JOB LIST.

7.3.2) The Protected Job List’s format:

Rows in green indicate who approved the pricing and the price standard discount by column.

Rows in yellow represent the standard discount for specific customers.

Rows in white with names represent locations or projects for each of those specific customers, and the price discounts they receive on specific product lines.

(Illustration)

7.3.5) Multipliers vs. discount rates

7.3.5.1) The numerals listed in this document are multipliers. “0.###” means yy.z0% of the current list price. (Or 0.yy,z times the current list price.)

7.3.5.2) That means a bf.d0% discount off the current list price. (100% – yy.z0% = bf.d0%.)

7.3.5.4) In other words, Orion Fittings authorized EDCBA Sales to offer customers a discount rate of up to bf.d0% subtracted from the current list price.

7.3.5.5) The purchase order requested a multiplier of 0.##5, which means requesting that the whiteline be priced at ##.50% of the current list price. That’s a discount of ##.5% subtracted from the current list price.

7.3.5.6)  The ##.5% exceeds bf.d%, so that purchase order would not be authorized. However….

7.3.6)  Pricing Authority discount rates

7.3.6.1) Before customer reps consider disallowing the purchase order, they must also review another set of discounts. Orion has two smaller lists of authorized discounts:

  • For the east region, the list is “PRICING AUTHORITY bbbb.xls” at I:\CustomerService\KansasCity\Pricing information\PRICING AUTHORITY bbbb.xlsx.
  • For the west region, the list is “PRICING AUTHORITY MMMM.xls” at I:\CustomerService\KansasCity\Pricing information\PRICING AUTHORITY mmmm.xlsx

NOTE: Both documents are for internal office use only. Do not copy and send to reps.

7.3.7) A multiplier of 0.##9 means this price guide allows a discount rate of up to 67.1% subtracted from the current list price.

EDCBA Sales is requesting a multiplier of 0.##5, which would be a discount rate of mm.5%.

So, mm.5% is less than nn.1%. It is within the permissible discount rate.

As a result, Orion would authorize the EDCBA Sales purchase order and its discount rate.

7.4) If a sales rep requests a discount rate that exceeded what Orion authorizes, the customer service rep sends an email message explaining that the requests is unauthorized and needs the approval of the regional representative (West: www ssss; North: ppp rrrr.)

7.5) Begin entering data into Navision.

7.5.1) Open Navision. Main Menu→ Sales & Receivables → Orders.

7.5.2) The software opens on the General tab.

7.5.3) Assign the new purchase order a Navision Sales Order number.

7.5.3.1) Click F3 and Enter.

7.5.3.2) A new six-digit Sales Order number appears in the No. text field.

7.5.3.3) In this example, it is 3####3.

7.5.4) Click on Sell-to Customer No textfield.

Click on the upward arrow next to the textfield to search for the customer number.

Select the number. If this is a current customer, the window will populate the Sell-to Customer Name. It will also autopopulate the following text fields, but verify they are correct by comparing to the original purchase order.

  • Sell-to Customer Name
  • Sell-to Address and, if needed, Sell-to Address 2.
  • Sell-to City
  • Sell-to State/ ZIP code
  • Sell to Contact (if available) .
  • Order Date: (with today’s date.)

7.5.5) Navision will autopopulate these text fields to today’s date.

  • Posting Date
  • Order Date (if the field is not already populated with the correct date)
  • Document Date.
  • Expected Ship Date.

7.5.6)  The Promised Delivery Date field should automatically populate with two business days from today. Again, examine the original purchase order and verify that the shipping and delivery dates are correct.

7.5.7)  Also enter on the General tab:

7.5.7.1) The External Document No., which is the P/O number that appeared on the original purchase order. In the EDCBA Sales example, enter P26-5768. Some customers use this format: P##-###. But the format varies by customer.

7.5.7.2) The Salesperson Code. Click on the upward arrow to search, if necessary.

(Illustration)

Enter product data into the body of the General, Invoicing, or Shipping tabs.

NOTE: The General, Invoicing, and Shipping tabs all have tables with these column heads:

7.6) Selecting items and cells.

7.6.1) Before entering items in cells, verify that nothing already occupies in the cell.

7.6.2) In Type column, note the drop-down options.

  • Item
  • General Ledger
  • Resource

Select Item.

7.6.3) In the No. column,

Enter the Orion part number (which should be on the original purchase order.)

If the number is not on the order, click the upward arrow on the far-right corner of the table. That will open a menu of more than 9,000 items.

Select the number.

Upon entering that number, the cells for Description, Production Department, and Unit of Measure Code will autopopulate with the correct information.

NOTE: If an item’s description ends with an asterisk, that requires adding the words “non-cancellable/returnable” to the Description column cell.

7.6.4) Enter quantity of items requested in Quantity.

7.6.5) Customer Price List: in most cases, the price list is OFxx##, which is for 2016. It is also the default. The 2015 list was OFyy##.

7.6.7)  In Line Discount %:

See Section 7.3.5) Multipliers vs. Discount Rates in this SOP.

In the EDCBA Sales example, the approved standard discount for EDCBA Sales for whiteline is 0.###.

To calculate the discount price:

  • Multiply 0.### by 100. The answer is yy.z.
  • Go to the General tab of Navision, and, on the row for the whiteline product, enter into the List Discount % column: (100-yy.z) .
  • Navision will calculate that equation and will place bf.d0 in that cell.

(Illustration)

That means the discount rate will be bf.d% off of the current list price.

(Illustration)

7.7)  Enter Invoice Data.

7.1) Click the Invoicing tab.

7.1.1) Entering customer information and dates in the body table should automatically populate many of the Invoicing tab fields.

7.1.2) Click on fields to enter new information if necessary.

(Illustration)

7.8)  Enter Shipping Data.

7.8.1) Click on the Shipping tab.

7.8.2) Do not assume that the customer’s address is the same as the shipping address.

7.8.3) The total of Sales information typed into the body table populate the Order Total field on this tab.

This tab may require typing information into all the appropriate text fields, as well as deleting autopopulated data.

The original purchase order should have most of the shipping address information.

7.8.4) Exception: for Uuuuu, see the Uuuuu Shipping Billing Process chart, which is Section 7.13 of this SOP.

//

7.9)  Releasing the order:

7.9.1) On all tabs, the Functions button appears below the body table.

Click that button and then select the Release option.

7.9.2) Clicking Release populates the order total on the Shipping tab.

7.9.3) Double-check that the information matches that on the original purchase order.

NOTE: The Navision method of rounding numbers may be different than those used by the sales rep or customer. As a result, the Navision total order dollar amount may different slightly from the purchase order.

  • If the total variation is less than $1, that is OK. Proceed with the order.
  • If the variation is larger, double-check items and prices.

7.10 Printing:

7.10.1) Click the yellow Print tab at the bottom of the order.

NOTE: a first-time user of Navision must first go to Options and click checkbox for Print Company Address.

7.10.2) Choose the printer:

  • For a regular purchase order – a delivery time of three business days — go to the printer drop-down menu and select “Kabcde1.”
  • For a rush order that requires a next-day delivery, select “Kabcde2”

Both of these options print both a work order and a packing slip.

7.10.3) Under Department, select each department that had items on the purchasing order.

Print the order for each department.

  • Assembly and Fabrication orders are printed on M4.
  • Tanks and Dual Containment are printed on M8.

NOTE: If the product is for the Pipe or Coupling departments, there is no need to print the picking list, because shipping will pull the pipe or coupling.

After printing, the Sales tab appears with the order number.

NOTE: Be careful if typing the name of the department, as opposed to selecting the department from a drop-down menu. If the typed department name is misspelled, the document will not print, nor will the user be notified that it typed errors.

7.10.4) Print a Picking List:

The department uses this to assign someone to pick up an item from the warehouse, or to request that someone assemble one.

7.10.5) Create an acknowledgement

7.10.5.1) Main Menu → Sales and Receivables→ Documents

7.10.5.2) Scroll to ORI-Work Order-ACK-FS. This is the acknowledgement document.

7.10.5.3) Enter the Navision Sales Order Number into the filter. (In the EDCBA Sales example, that would be 344543.)

7.10.5.4) Open Printer window, select “PDF Creator,” and select Print. This saves the document as a PDF.

7.10.5.5) Within the PDF (i.e., within Adobe Acrobat) , select Email. The email window appears.

7.10.5.6)  Enter the sales rep’s email address.

7.10.5.7)  In the Subject line, enter: Navision Sales Order Number, space, slash, space, and the original purchase order number. The spaces allow for easier searching within email. In the EDCBA Sales example, that would look like this: 3####3/ P26-ffff.

7.10.5.8)  Send.

7.11 File the original purchase order.

Write on the order:

  • The Navision Sales Order Number.
  • Your initials
  • Departments that received the work order and picket lists.

File the order in the cabinet.

(Illustration)

7.12 Over credit limit.

7.12.1) Entering information about a customer into Navision may trigger this message: “The customer credit limit has been exceeded. Do you still want to record the amount?”

7.12.1.1) Send the purchase order amount, the customer name and account number, and this question to jjjj Smith in Corporate Accounting: “May I enter and ship this order?”

7.12.1.2) She will respond yes or no.

7.12.1.3) Until she sends a response, the order is on hold.

7.12.2) To designate that an order is on hold, change the Expected Shipping Date and Delivery Date to 010130.

Advertisements