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Sales Order Processing System / 1
Chapter 1
Sales Order Processing System
1.0 Objectives
1.1 Introduction
1.2 Sales Enquiry & preparation of Quotation
1.3 Order acceptance
1.4 Dispatch & Invoicing
1.5 Sales Analysis (based on products, Customers)
1.6 Sales Invoice
1.7 Summary
1.8 Check your Progress – Answers
1.9 Questions for Self – Study
1.10 Suggested Readings
1.0 OBJECTIVES
After studying this chapter you should be able be :
1. Understand Sales Enquiry and preparation of Quotation
2. Order acceptance, Dispatch and Invoicing
3. Sales Analysis and Sales Invoice
1.1 INTRODUCTION
Companies often use a set of processes to complete the tasks and activities that
occur in their business every day. Order processing also known as order fulfillment in
the business environment is one of these activities. This process is often a system of
steps repeated to fill customer orders.
Historically, order processing detailed the activities a company completed for
customer mail orders. Fulfillment is now more common with the advent of Internet
websites, which customers use to purchase all sorts of products without ever stepping
foot in a store.
Order processing systems feature tasks that often include the picking, packing and
shipping of products to consumers. A company typically completes these activities in
its warehouse or a similar setting. This system can also include handling customer
questions, returns or other issues.
Sales order processing is considered as an important function in any business
organization. Every organization is interested in important function in any business
organization. A very wide variety of sales order processing systems are in use in a
number of business organization. The objective and scope of the sales order
processing system are governed by the type of organization, the market environment
as well as the nature of the product and marketing organization. The sales order
processing system for a heavy engineering organization would be different as
compared with the system that is used for consumer nondurable products.
Sales order processing system has considerable interfaces with many other
application systems. Sales order processing system has interface with financial
accounting system or accounts receivables system in respect of credit control.