A process flow diagram showing that a newly entered sales order has a Quote status. When the order is confirmed it has a Confirmed status. When partially shipped, its status is Partially shipped and then Shipped status when fully shipped. When the tax calculation fails, the sales order status is Tax calculation failed. You can close or reopen a sales order at any stage.

The sales order flow in detail

Create the sales order

When you create a sales order, its status is Quote. After entering the header data and adding at least one line, you save the order. The order status stays as Quote.

You can also close the order at this stage. You can still reopen it to proceed with the order and the shipment.
Confirm the order

After you enter the header and line details, the sales order is ready. You need to confirm it.

The sales order status changes to Confirmed.

You can also close the order at this stage. You can still reopen it to proceed with the order and the shipment.
Ship the order

After the sales order is confirmed you can launch the shipping process, either from the Sales order page or the Sales shipment page.

To ship the order from the Sales order page, select Ship on the sales order. All line and quantities on the sales order are loaded on the sales shipment records. The sales order status changes to Shipped. It means there is nothing more to manage on the sales order.

To ship the order from the Sales shipment page, you need to create the sales shipment lines from the Sales shipment page and not by selecting Ship on the order. In this case, you can select:
- All the order lines
- Only some order lines
- All the order lines, but reduce the quantities to be shipped
The two last options correspond to a partial shipment. The sales order status changes to Partially shipped. There will be a remainder to ship later.

To load the remaining lines or quantities of the order on the sales shipment records, you can:
- Select Ship from the order. The remainder is loaded to sales shipment lines and the order status changes to Shipped.
- Select the order lines from the Sales shipment page. When everything on the sales order is loaded to sales shipment records, the sales order changes to Shipped.
Close or reopen the order

You can manually close an order at any stage. You can reopen it if needed. It reopens with the same status it had when you closed it. For example, if you close a confirmed sales order, it reopens and is still confirmed.

Create a sales order

To create a sales order, you first need to enter the header data. It includes information that relates to the customer and shipping. You also need to define some financial information that is used in invoicing and payment processes.

This information is used by default on all order lines, but you can edit the details individually, except for the Incoterms^® rule which is unique for a sales order.

The steps are described in detail below.

Main characteristics

On the header, if sequence number rules have been defined for the sales orders on the Sequence number page, the sales order number populates automatically when you save the order for the first time.

Otherwise, enter the sales order number.
Define the sales site and sold-to customer.
The order date defaults to the current date. You can edit it.
On the Information tab, the currency defaults to the currency linked to the sold-to customer.
You can enter the customer order reference.
The customer's primary address defined on the Customer page and its associated phone number are displayed and used as the sold-to address. You can edit these address details or select another address if needed.

Shipping data

On the Shipping tab, most of the fields default to information linked to the primary ship-to address defined on the Customer page. The ship-to address details are displayed, but you can edit them or select an alternative ship-to address. The shipping details are updated accordingly.

If the required shipping data does not populate automatically, enter the required data manually.

Financial data

On the Financial tab, the bill-to-customer defaults to the sold-to customer. The payment term for this customer populates by default, but you can modify it if needed.

These financial details are used in the invoicing process, and in the payment process performed within your financial solution.

The invoice status on the sales order then updates automatically depending on the invoice status of the sales shipment records.

Create sales order lines

Even if not all fields are filled, to add a sales order line you need to have entered at least the following details:

The sales site
The sold-to customer
The stock site

To create a new sales order line:

From the Lines grid, select Add line.
Enter the required information in the line detail panel.

The shipping details defined on the Shipping tab are used by default on the sales order lines. If needed, you can edit them individually on each line, except for the Incoterms^® rule.
Save.

The system uses the values in the Sales site, Stock site, Customer, Item, Date, Quantity, Unit and Currency fields to find a price list. If a price list matching those details is found, the gross price, price reason, price origin, discount percentage and charge percentage are entered. If a price list is not found, the item's base price is used as the gross price. You can edit it. If you change the gross price manually, you can select Price list to see any prices that have been created for the customer.

Manage the tax information

For companies using Avalara, a tax calculation is not performed on sales orders so amounts are excluding taxes.

For companies using the internal tax calculation system, a tax calculation is made. Tax amounts automatically calculate and update after you enter or edit a line. Tax related information is displayed on the Totals tab.

The first block displays the VAT amount, excluding VAT amount, and including VAT amount accumulated for all the order lines.
The Summary by tax block displays the total taxable base and amount, per tax and tax rate. For example:
- All order lines with the tax Normal rate collected on debits are totalled on one line.
- All order lines with the tax Reduced rate deductible on debits are totalled on another line.
The Amounts in company currency block displays the excluding and including VAT amounts in the company currency.

The company is the company of the sales site.

When the sales order status is Tax calculation failed, it means the tax calculation has not been done by the tax engine, or the tax details are not up-to-date, or an error occurred during the tax calculation process, or some tax information such as the tax is missing. Make sure that a tax is assigned to the item in the Tax details panel for each line. The tax calculation needs to be done for you to be able to carry on with the order process.

Add notes

You can add internal and customer notes to a sales order at the document or line level, or both.

Internal notes are notes you want to share with your colleagues. Customers never see these notes. There are for internal purposes only. But you can add notes in the Customer notes text box. These notes display on the PDF sales order for the customer's information.

Indicators Repeat the document notes on new documents. and Repeat all the line notes on new documents. are both located on the Notes tab at document level, not on the Line notes tab of the line detail panel.

Confirm the sales order

When the order is ready, select Confirm.

The order status changes from Quote to Confirmed.

Print a sales order quote or the sales order confirmation

When the sales order status is Quote, you can print the sales order quote.

When the sales order status is Confirmed, you can print the sales order confirmation.

Select Print.
You can print or download the PDF document.

The Printed checkbox on the Information tab is selected when you print a confirmed sales order. There's no indication for a sales quote being printed.

Send a sales order quote or the sales order confirmation

You can use the automatic email sending system to send a sales quote or the sales order confirmation to the customer or to any recipient.

Select Send.
Enter the recipient information.
Select Send again.

The email with the PDF document is automatically sent to your recipient.

The Sent checkbox on the Information tab is selected when you send the order to a recipient through the automatic email sending system. If you send the printed document by email and not by using the automatic email sending system, the Sent checkbox is not selected.

Generate a proforma invoice

When a sales order is confirmed, you have the option to generate a proforma invoice before shipping. Proforma invoices include an expiry date and the ability to enter customer notes. You can track proformas on a tab that displays after at least one is generated.

After generating the proforma PDF, you can download the file and send it to your customer, so they have preview of the expected billing.

Allocate stock and serial numbers on sales order lines

When the order is confirmed, you can allocate stock on order lines to reserve stock. Reserving stock from the sales order is a good way of ensuring the items are available, but if you prefer you can allocate stock later to the shipment lines. If you allocate stock and serial numbers on the sales order, the allocation details are copied to the shipment lines when you ship the order.

If the sales order has been linked to a work order or a purchase order, you need to allocate stock from the supply order stock entry. If not, allocate stock and serial numbers from the sales order. You can allocate stock at once automatically or allocate stock on each order line manually.

To allocate stock, the lines need to be at status Pending or In progress, and their allocation status at Not allocated or Partially allocated.

To allocate stock on all lines at once

To reserve stock for all lines at once, from the More actions icon for the sales order, select Allocate stock then OK at the information message.

Stock is allocated according to the FEFO rules for items managed by lot and with an expiry date, or FIFO rules. If the items are serial number managed, serial numbers are also automatically allocated, according to FIFO rules.

While the stock allocation is being performed, the Allocation request status column in the Lines grid displays the allocation request status:

In progress: The stock allocation is being performed. Whilst it is in progress, you cannot allocate or deallocate stock, you cannot close lines, and you cannot reduce the item quantities.
Error: The stock allocation failed. You can launch the automatic stock allocation again or manually allocate stock on the lines. An administrator can see what the errors are about on the Batch task history page.
No request: The items are not stock managed so no stock allocation is required for the line or the items are stock managed but no allocation request has been triggered.
Completed: The stock allocation is complete for the line.

After the allocation is completed for all lines and there's no error, the Allocation request status column no longer displays. In case of stock shortage, stock is not allocated or is partially allocated, but the automatic allocation is considered to be complete.

The line allocation request status also displays in the line detail panel on the Stock tab.

Whilst the stock allocation is being performed, the In progress allocation request status for the sales order displays on the Information tab. Error is displayed when an error occurs during the allocation process. After the allocation is completed for all lines and there's no error, no indication is displayed as allocation is considered to be complete.

After the automatic allocation is complete, you can go to each order line to check or modify the details manually if needed: from the More actions icon, select Allocate stock. See To allocate stock on lines individually for more information.

If you change your mind, you can deallocate stock at once: from the More actions icon for the sales order select Deallocate stock, then OK at the information message.

You can check the result of an automatic allocation on the Allocation result page. An administrator can also track the technical history of allocation jobs on the Batch task history page. They can see if errors occurred during the allocation process and what the errors are about.

To allocate stock on lines individually

From the More actions icon on the order line, select Allocate stock.

All stock lines that match the items are displayed in the Detailed stock allocation window. There are as many lines as lots, locations and A* statuses.

Lots display when the item is managed by lots. Locations display when the site is managed by locations.

Example

Quantity to allocate	Available quantity	Lot	Status	Location
0	500 litres	220001	A	LOC1
0	860 litres	220002	A	LOC2
0	70 litres	220003	A1	LOC3
0	50 litres	220004	A1	LOC3
0	10 litres	220005	A2	LOC3
0	10 litres	220006	A	LOC4

Select the stock lines on which you want to allocate stock.

On each line, enter the quantity in the Quantity to allocate field. You do not have to allocate all quantities. You can allocate only some quantities.

When you ship the order, the quantities allocated on the order line are copied to the corresponding shipment line. You will need to allocate the remaining quantities on the shipment line. Updates of stock allocation details on the sales order lines after creating the shipment are not copied to the shipment.
For each stock line on which there are serial number managed items, create the necessary lines in the Serial numbers grid and allocate serial numbers to the items:
1. From the Serial numbers grid, select Add.
2. In the From serial number field, enter the serial number you want to start the range with.
3. In the Quantity field, enter the quantity of items.
  
  The last serial number in the serial number range populates in the To serial number field.
  
  If you modify the first serial number in the range or the quantity, the last serial number in the range updates.
  
  The serial numbers, as all stock allocation details, are copied to the sales shipment lines when the sales order is shipped.
Save.

Stock allocation on a sales order is optional, but if serial number managed items are stock allocated, you need to allocate serial numbers to them.

As stock allocation on sales order lines is optional, a sales order line does not need to be fully allocated to be shipped and closed. It closes automatically when all its quantities are shipped, whether it is partially allocated, fully allocated or not allocated.

When a sales order line is allocated, you cannot decrease the number of ordered items to a quantity lower than the quantity allocated.

Transfer allocations

On a sales order line that is not fully allocated, you can use the Manage allocations action to see which sales orders and shipments have stock already allocated for the same item and stock site. Then you can transfer the allocations from a sales order or shipment to your order line. The option to see other sales order and shipment allocation details enables effective decisions when there is a stock shortage.

In the Manage allocations window, there are links to the sales orders or shipments stock already allocated. You can select a link to go the corresponding document to see the allocation details. Or you can transfer the allocation details from this document to the sales order line directly without accessing the document. To do so, select the Transfer allocation icon on the line.

To help you decide from which document you want to transfer allocation details, the Manage allocations grid shows the order or shipment amount and profit. This information can be useful because you probably do not want to remove stock from a higher-priority order or shipment.

The Allocation transfer option service needs to be activated on the Service options page to enable the transfer of allocations from one document to another.

Allocation details can only be transferred from allocated sales orders and from sales shipments ready to process.

After you transfer the allocation details:

The line showing the origin sales order or shipment allocation is no longer displayed in the grid because this document is now deallocated.
The Allocated quantity field updates to the new allocated quantity.
The Manage allocations window remains open until the sales order line is fully allocated.

When the sales order line is fully allocated, the Manage allocations action is no longer available from the line.

Create a work order from a sales order

You can create a work order from a confirmed sales order.

You need to activate the OrdertoOrderOption on the Service options page.

To do this you need to add a line with an item that meets the following requirements:

The item is stock managed.
The item is manufactured.
The Make-to-order checkbox is selected on the Replenishment tab of the Item-site panel on the Item page, or on the Replenishment tab of the Item-site page.
The Make-to-order checkbox is available when the Preferred process field is set to Production.

If you select an item that meets all the requirements, but the OrdertoOrderOption on the Service options page is not activated, you will not able to manually create a work order for the sales order line.

When the sales order status is Quote, the Create work order action is visible from the More actions icon on the line but you are not able to interact with it.

When the sales order status is Confirmed or Partially shipped, you can select the Create work order action to create a new work order.

From the More actions icon, select Create work order.
Enter the necessary details in the New work order window.
Select Create to create your work order.

The work order is created with the Pending status.

You can then select your work order from the main list on the Work order page.

Create a purchase order from a sales order

You can create a purchase order from a confirmed sales order.

You need to activate the OrdertoOrderOption on the Service options page.

To do this you need to add a line with an item that meets the following requirements:

The item is stock managed.
The item is purchased.
The Buy-to-order checkbox is selected on the Replenishment tab of the Item-site panel on the Item page, or on the Replenishment tab of the Item-site page.
The Buy-to-order checkbox is available when the Preferred process field is set to Purchasing.

If you select an item that meets all the requirements but the OrdertoOrderOption on the Service options page is not activated, you will not able to manually create a purchase order for the sales order line.

When the sales order status is Quote, the Create purchase order action is visible from the More actions icon on the line but you are not able to interact with it.

When the sales order status is Confirmed or Partially shipped, you can select the Create purchase order action to create a new purchase order.

From the More actions icon select Create purchase order.
Enter the necessary details in the New purchase order window.
1. Select Create to create your purchase order.
  The purchase order is created with the Draft status.
  You can then select your purchase order from the main list on the Purchase order page.

Manage supply orders

If a work order or purchase order was created from the sales order, an icon displays on the Order column of the Lines grid.

You can update the quantity of the supply order you want to assign to the sales order line, and you can remove the link between a sales order line and its supply order.

Assign a supply order quantity to a sales order line

From the More actions icon on the line, select Assign order.
In the window that opens, you can see if the assigned order is a work order or a purchase order line. There is a link to this supply order.
The Quantity on order field displays the supply order quantity.

In the Assigned quantity field, enter the supply order quantity to assign to the sales order line.

If you modify the sales order line quantity to a quantity greater than the assigned quantity, the assigned quantity is not updated.

If you modify the sales order line quantity to a quantity lower than the assigned quantity, the assigned quantity is automatically decreased to equal the new sales order line quantity. In this case, the remaining quantity on the work order or purchase order will be available for another demand.

If you modify the work order or purchase order line quantity to a quantity lower than the sales order remaining quantity to ship, the quantity assigned to the sales order line is equal to the supply order quantity.

Remove a link between a sales order line and a supply order

From the More actions icon on the line, select Assign order.
In the window that opens, select the Delete icon to delete the link between the sales order line and the supply order. Only the link between the sales order line and the supply order is removed. The work order or purchase order line is not deleted.

Manage analytical dimensions

Sales order lines can inherit dimensions and attributes from the site, customer, or item, or from all 3. For this, dimensions and attributes need to be set on the site, or customer, or item record, and Site, Customer or Item need to be set as default dimension rules on the company record, on the Dimensions tab. When you create a sales order, the dimensions default on the lines from those defined for the site, customer, or item, or all 3.

If default dimension rules are not set for the company, you can add dimensions directly on the order lines. When there are default dimension rules, the dimensions default on the lines, but you can update them if needed. You can add and change dimensions on each line individually. Or you can add or change the dimensions for all lines.

To manage dimensions on individual lines:

From the More actions icon on the line, select Dimensions.
Select the dimensions you want for the line.
Save.

To manage dimensions for all lines:

From the More actions menu at record level, select Set dimensions.
Select the necessary dimensions.
Select Apply to all lines to apply the dimensions to all the existing and future lines or Apply to new lines only to apply the dimensions to future lines only.

The Dimensions dialog box at record level displays the dimensions set for the site or customer, if any, and if default dimension rules are set for the company. You can use this dialog box at the record level to apply dimensions to all lines, but changes are not saved in this dialog box. The dimensions on the lines, not the ones in the dimension dialog box at record level, are transferred to the lines of the subsequent documents. A dimension from an item is inherited when the item is added to a line, not from the dimensions set at the record level.

Dimensions apply to lines that are Quote, Pending or In progress.

Manage dimensions when you create a work order from the sales order

When you create a work order from a sales order line, dimensions and attributes on the work order default to those on the sales order line, site or item, according to the default dimension rules on the company.

On the Company page, on the Dimensions tab, in the Default dimension rules grid, for Manufacturing order-to-order:

When Source document is selected for dimensions and attributes, the work order inherits the dimensions from the sales order line.
When Site is selected for dimensions and attributes, the work order inherits the dimensions from the site.
When Item is selected for dimensions and attributes, the work order inherits the dimensions from the item.

Manage dimensions when you create a purchase order from the sales order

When you create a purchase order from a sales order line, dimensions and attributes on the purchase order default to those on the sales order line, site, supplier or item, according to the default dimension rules on the company.

On the Company page, on the Dimensions tab, in the Default dimension rules grid, for Purchasing order-to-order:

When Source document is selected for dimensions and attributes, the purchase order inherits the dimensions from the sales order line.
When Site is selected for dimensions and attributes, the purchase order inherits the dimensions from the site.
When Supplier is selected for dimensions and attributes, the purchase order inherits the dimensions from the supplier.
When Item is selected for dimensions and attributes, the purchase order inherits the dimensions from the item.

Options on the lines

You can perform the following actions on the lines.

Ship the sales order

After the order is confirmed, and stock allocated if necessary, the next step is shipping.

You can ship the order either from the sales order or by creating sales shipment records manually from the Sales shipment page.

Close a sales order

A sales order is automatically Shipped when all quantities are shipped.

You can also close a sales order manually. For example when the customer wants to cancel the sales order or does not want the remaining quantities to be shipped.

You can reopen a sales order that you closed manually. It reopens with the same status it had when you closed it. For example, if you close a confirmed sales order, it reopens and is still confirmed.

If a work order or purchase order is assigned to a sales order line, the link between them remains. You can remove the link between the sales order line and the supply order if you want to.

Edit a sales order

After you save the sales order, you cannot edit the following critical information:

Sales order number
Sales site
Sold-to customer
Currency
Ship-to customer

If you made a mistake whilst creating the sales order, you should delete it or close it, then create a new one.

However, you can update the Stock site or Quantity in sales unit fields. In this case, you are asked if you want the price to be recalculated using the updated information. The discount and charge percentages are also recalculated, if applicable.

Other details on the header and lines can be modified. Such changes are mirrored on the order lines or on the shipment lines that are not yet shipped.

You cannot edit a shipped order.

Delete a sales order

You can delete a sales order at status Quote or Confirmed as no shipment is processed yet.

If work orders or purchase orders are assigned to sales order lines, they are not deleted when you delete the sales order. Only the links between the sales order lines and the supply orders are deleted.

Working with sales orders

Refer to the list of questions in this section for guidance on how to use your Sage Distribution and Manufacturing Operations solution to carry out day-to-day sales tasks.

I cannot confirm or ship the sales order.

Can I progress a sales order if it includes an inactive item?

I cannot confirm or ship the sales order.

If the sold-to customer or bill-to customer is on hold and the Customer on hold check field at the company level is set to Blocking, you can update the sales order but you cannot confirm it or ship it.

If the customer on hold check option is set to Warning, an information message displays when you confirm and ship the order. You can proceed with the transactions.

If the customer on hold check option is set to None, there’s no indicator and you can proceed with the transactions.

The on hold option is managed on the Customer page, on the Financial tab. The customer on hold check option is managed on the Company page, on the Management tab. When you integrate customers with Sage Intacct, the values for those options come from Sage Intacct. You can only manage those options in Sage Intacct.

Can I progress a sales order if it includes an inactive item?

No. If you add an inactive item to your sales order, you cannot save, duplicate, confirm or create a shipment. If you try to edit a sales order and an item on the order that was active is now inactive, you cannot perform the same actions. You need to remove the inactive item from the order to be able to progress the sales order.

Order assigned	Order	Quantity on order	Assigned quantity	Quantity not assigned
Purchase order line	PO230001	8 each	4 each	4 each