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MYOB Advanced User Reference: Sales Order Processes to Invoicing

User Training Document: Setting up a new customer

Key Processes Index

  •  Sales Orders

  •  Sales Shipping

  •  Back Orders

  •  Invoicing

  •  Receiving Payment

  •  Generating a Credit

  •  Setting up Customer Pricing

Selling to your Customers

By using the Sales Orders module, you can easily setup sales order processing to fit your sales workflows. MYOB Advanced provides order types, and in the Enterprise edition you can create custom types of orders with special processing. The Sales Orders module provides flexible pricing and discounting policies. With MYOB Advanced, your company can deliver orders accurately, consistently, and efficiently.  

Let’s look at how we manage sales and sales orders in MYOB Advanced.

 

When you sell goods or services to our customers, a sales order is usually raised; you then pick the goods and ship them depending on the customer’s instructions. The customer may receive the invoice with the goods or you may send the invoice later. The customer then pays the invoice based on the terms you have agreed.

 

Sales Order showing Stock and Non-stock items

In your training today, we will go over the sales order module. Receiving payment for customer invoices will be covered in the Accounts Receivable module of the Finance suite.

As MYOB Advanced is highly configurable, the features and processes may differ for your business. Please refer to your Business Partner for details on any customisations they may have included in your implementation.

The Sales Orders module supports the following sales order types in the Enterprise edition of MYOB Advanced:

  • CM (Credit Memo)

  • CR (Cash Returns)

  • CS (Cash Sale)

  • IN (Invoice)

  • QT (Quote)

  • RC (Return for Credit)

  • RR (Return with Replacement

  • RM (Generic Authorised Return)

  • SA (Sales Order with Allocation)

  • SO (Sales Order)

  • TR (Transfer)

 

In the Enterprise Edition, you can also create new Order Types.

Your MYOB Advanced will be implemented by a consultant who is Certified to Implement MYOB Advanced Business. As mentioned previously, MYOB Advanced is highly configurable, this training covers the basic business processes you need to know when selling to your customers.

What do I need to know?

When businesses sell goods and/or services they usually raise a sales order, sometimes the sales order is created after a quote has been raised. We will cover the basic sales cycle in MYOB Advanced, should you want to know any additional information, please see the help pages of MYOB Advanced or ask your Business Partner.

 

Sales Order Preferences

After review of your company’s needs, your implementing partner will go through and set up the preferences for the Sales Orders module. Preferences include numbering sequences for customer documents, validation requirements for sales orders and shipments, approval and mailing settings, and the default freight expense account and subaccount.  These are set up in the Sales Order Preferences form (SO101000).

You should only make changes to any settings in Preferences after talking to your Business Partner.

Activity 1 – Sales Order Preferences

  1. Go to the Sales Order Preferences form (SO101000; Sales Orders > Preferences (Full Menu)).

 

Sales Order Preferences

The General Settings tab holds the default settings of the Sales Order module.

 

The Validate Shipment Total on Confirmation in the Shipment Settings checkbox allows you to choose whether a Control Quantity: field is displayed on the shipment. The Shipped Quantity and Control Quantity fields must be the same before you can save the document.

 

Sales Order with Control Quantity

Approval

  • Outside the scope of this course. The Approval tab is shown when the Approval Workflow feature is enabled. If you would like this feature for your business contact your Business Partner.

 

The Mailing Settings tab is where you can list the predefined mailings used for sending documents by email.

Other Preferences

FOB Points

  • Outside the scope of this course. At FOB Points, the supplier delivers the goods and pays for the freight to that point. The freight and other expenses for the goods from that point are paid by the customer.

 

Shipping Terms

  • Outside the scope of this course. Shipping terms are used to define the shipping, packaging, and handling costs, depending on the shipment amount.

 

Shipping Zones

  • Outside the scope of this course. Shipping zones used to calculate freight charges when your company ships goods to customers.

 

Ship Via Codes

  • Outside the scope of this course. A ship via code denotes a possible method your company uses to ship goods to customers.

 

Boxes

  • Outside the scope of this course. You use this form to create and maintain the list of boxes used by your company for shipping goods. Settings such as box dimensions, weight, and maximum weight capacity are used for freight calculation for shipments.

 

Receivables Preferences

We are now going to move away from the Sales Order module to the Receivables module.

As part of your implementation, your Business Partner will configure MYOB Advanced to your needs and import master records, such as Customers. Once you are working with MYOB Advanced, you will need to be able to add to these records when you need to add a new Customer.

The Receivables module is defined on this form Accounts Receivable Preferences (AR101000). You can specify the default customer class associated with the Receivables module, to provide some settings when a new customer is added.

We will go over the Receivables module during our Finance training, for now we will look at this module’s role with the Sales Orders module.

Activity 2: Accounts Receivable Preferences

  1. Go to the Accounts Receivable Preferences form (AR101000; Receivables > Preferences (Full Menu)) and review the settings.

 

Accounts Receivable Preferences –  General Settings tab

To raise a quote or a sales order, a customer must already be in the Receivables module.

 

Activity 3: New Customer

  1. On the Receivables Menu, add a new customer by clicking on the tile New Customer. This will open the Customers form (AR303000; Receivables > Profiles) and add a new customer with the following details.

 

Figure: Customer General Info tab

 

 

  1. On the Delivery Settings tab enter the following information and then save .

 

Figure: Customer Delivery Settings tab

  1. From the Contacts tab, add 2 new contacts with the following information then save.

 

Figure: Contact 1

 

Figure: Contact 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We let the Customer Class, DEFAULT update the record, except for the credit limit of $100,000.00.

Some of the defaults that came from the customer class include:

  • Terms

  • Statement Cycle

  • Payment Method

  • Country

  • Tax Zone

  • Default General Ledger Accounts

  • Default Mailing Settings

The Sales Orders module helps you organise and control the selling process, manage quotes for customers who purchase your goods and services.

In our training we will be going through the selling cycle, covering all the above steps except for the Receivables Payment which is covered in the Finance topic.

As mentioned previously, MYOB Advanced is highly configurable, and not all functions are available in all MYOB Advanced Business editions; for example, Custom Order Types are only available in the Enterprise Edition.

 

In MYOB Advanced there are a few steps from Quote to final Invoice.  Although you will be working through all these steps, just take a moment to review who would be entering or processing the documents in your company. Each step may be done by different people or a combination of people in your company.

Quotes and Sales Order Process

We enter Quotes on the Sales Order form. The transaction behaviour on this form is controlled by the Order Type.  In our training, we are going to enter the following Order Types.

  • QT – Quote

  • SO – Sales Order

  • CM – Credit Memo

  • RC – Return for Credit

  • IN – Invoice Order

 

There are other Order Types available.  For more information on these types please refer to the Help or ask your certified consultant.

Activity 4: Order Type QT (Quotes)

Our new customer would like a quote for a Wireless Solar Keyboard.  They need the quote because of their purchasing rules.

  1. On the Sales Orders Menu, add a new quote by clicking on the tile New Quote. This will open the Sales Order form (SO301000; Sales Orders > Transactions) and add a new quote with the following details and save .

 

A Quote uses the Sales Order form with the Order Type: QT:

  1. The quote has been accepted, copy the order from the Actions dropdown list on the form toolbar

 

Copy Order feature under Actions dropdown

  1. Choose the Order Type: SO and save

 

Copy To dialogue box

The sales order will appear on the screen.  We can then email the sales order to the customer, also from the Actions dropdown list.

Sales Order Processing

The good will be shipped to the client after the sales order is converted to a Shipment. Follow the steps below to ship the goods to the client and email and release the invoice.

  1. From the Actions dropdown list on the form toolbar select Create Shipment

 

Create Shipment feature under Actions dropdown

  1. A dialogue box will appear for you to Specify Shipment Parameters. Accept the defaults displayed and OK.

 

You will be taken to the Shipments form (SO302000).

  1. From the Actions dropdown list on the form toolbar select Confirm Shipment, you can then print the pick list so the goods can be ready for delivery.

 

Confirm Shipment feature under the Actions dropdown

  1. From the Actions dropdown list on the form toolbar select Prepare Invoice.

 

Prepare Invoice feature under the Actions dropdown

You will be taken to the Invoice form (SO303000)

  1. On the Invoice form from the Actions dropdown list on the form toolbar select Release this will post the transactions to the general ledger, you can now email the invoice to the customer.

 

Release feature on the Actions dropdown on Invoice form

Back Orders

Our customers Euro Hair Fashion and Elevation Computers both want the 4.2GHz as5 Processor, Euro Hair Fashion has ordered 10 and Elevation Computers 20 units.  We want to order enough stock to fill the orders.

Activity 5

  1. On the Sales Orders Menu, add a new sales order by clicking on the tile New Sales Order. This will open the Sales Order form (SO301000; Sales Orders > Transactions) and add a new sales order with the following details and save.

 

Sales order marked for Purchase to Order

  1. Create another Sales Order with the following details and Save your changes with the Status of Open:

 

Now we have saved the two sales orders, and marked them for PO, we can generate a purchase order.

  1. Open the Create Purchase Orders form (PO505000; Purchases > Process) and select the two SO to Purchase created earlier in the form grid.

  2. Then enter the Supplier for the orders, Shenzhen Jackren Technology Co. Ltd if they are not already showing, then Process the SO to Purchase orders.

 

Two purchase orders selected for processing with supplier added.

  1. A Purchase Order combining the two SO to Purchase is created.

 

Purchase Order created

  1. Take the order off Hold.

  2. From the form toolbar select Email Purchase Order from the Actions dropdown list.

  3. You will be able to see the sales orders that belong to this purchase orders by selecting View SO Demand on the grid toolbar.

Purchase Order attached to email sent to supplier

  1. In a few days, the CPU00005 – 4.2 GHz as5 Processors are received.  Find the purchase order to Shenzhen Jackren Technology Co. Ltd and from the Actions dropdown list select; Enter PO Receipt, enter the Supplier Ref.: 99898. To put the goods in stock so you can ship them to your customer, Release the generated receipt.

 

Now it’s time to ship the orders to our customers.

  1. Go to the Process Orders form (SO501000); Distribution > Sales Orders > Processes > Daily and select the two purchase orders from the previous activities. Process these Sales Orders with the Action: Create Shipment.

 

Process Orders with sales order ready to be shipped.

  1. We now need to confirm the shipment and then invoice the customers. Go to the Process Shipments form (SO503000); Distribution > Sales Orders > Processes > Daily and select the two sales orders. Process the Shipments with the Action: Confirm Shipment.

 

Process Shipments form

You should get an error when trying to process the shipments.  When the Sales Order preferences were setup, it was decided that all shipments need to be validated before they can be confirmed. The feature Validate Shipment Total on Confirmation is ticked on the Sales Order Preferences.

This means you must go into each of the Shipments and update the Control Quantity to the Shipped Quantity on each of the shipments.

 

Error on process of Confirm Shipment

  1. Find the shipment for the CPU00005 for Elevation Computers. Enter 20 in the Control Quantity as shown below.

 

Control Quantity updated to allow the shipment to be confirmed.

  1. Now you can select Confirm Shipment from the Actions dropdown list on the form toolbar.

  2. Find the shipment for Euro Hair Fashion for the CPU00005 and repeat the two steps above but enter 10 as the Control Quantity.

 

Confirm Shipment action item.

Our final task to complete the sale to our customers is to now prepare the invoices.

  1. From the Actions dropdown list on the form toolbar of both shipments, select Prepare Invoice.

 

Prepare Invoice action item.

  1. You will be taken to the Invoices form where you can Release both Invoices from the Actions dropdown list on the form toolbar.

 

We are now going to enter two sales orders; a Credit Memo and a Return for Credit.  These are created when customers reject or return goods to us.

Credit Memo Order Type

Elevation Computers wants to return 1 UNIT of inventory CPU00005 from the order just created.

Activity 6

  1. Open the Sales Order search form (SO3010PL; Sales Orders > Transactions).

  2. Go to the Sales Order raised in the previous activity for Elevation Computers and on the form toolbar select Copy Order from the Actions dropdown list.

  3. In the pop up, select the Order Type: CM.

  4. On selecting OK, a Credit Memo Order Type will be created based on the previous order.

  5. Change the Quantity to 1, take the CM order off Hold and Save.

  6. From the Action: dropdown list, select Prepare Invoice and then Release the Credit Memo.

 

Return for Credit

In this activity, you will search out an existing order and receive the goods back from and issue a credit.

Activity 7

  1. Open the Sales Order search form (SO3010PL; Sales Orders > Transactions), then search for the Sales Order for Euro Hair Fashion for 10 4.2GHz as5 Processors and bring this sales order to the screen. On the form toolbar select Copy Order from the Actions dropdown list.

  2. In the pop up, select the Order Type: RC

 

Sales Order Copy

On selecting a will be created based on the previous order

  1. Change the Quantity to 1 and from the Actions dropdown list, select Create Receipt.

  2. From the Actions dropdown list, select Prepare Invoice. This will create the Credit Memo.

  3. Again, from the Actions dropdown list, select Release. This will complete the transaction.

Invoice Order

Sometimes you might want to directly invoice your customer without raising a sales order or creating a shipment. An IN type of sales order is the preferred way of doing this.   

Activity 8

  1. On the Sales Orders Menu, add a new sales order by clicking on the tile New Sales Order. This will open the Sales Order form (SO301000; Sales Orders > Transactions).

  2. In the Order Type field select the IN Invoice and update with the following details;

 

New IN type sales order

  1. You want to check the stock levels in the different warehouses for the stock items starting with CPU.  Click on the  from the grid toolbar.

  2. In the Inventory Lookup dialogue box that appears enter CPU in the Inventory field, you will see the quantities available for the items across the different warehouses.  Select 10 of the CPU00005 and 5 of the CPU00006V both from the MLB warehouse.

 

Inventory Lookup

  1. From the Actions dropdown on the form toolbar, Prepare Invoice

  2. Go to Shipments and click on the Invoice Nbr. Hyperlink.  The Invoice you just prepared will show on the screen.  From the Actions dropdown, Release the invoice.

 

Invoice from IN order

As mentioned, by using the IN order type, we do not need to process the sales order or create and confirm the shipment.

  1. To see the general ledger journal that was created when we released the invoice, go to the Financial Details tab and click on the Batch Nbr. hyperlink.

Sales Prices

MYOB Advanced provides the following ways to maintain sales prices:

  • Default prices: You define and maintain a price for each individual item. The default price is used for sales. You can use discounts with these prices. There is no history of price changes when using Default pricing only.

  • Price lists: You can setup different pricing strategies by defining a base price list, price lists that apply to a group of customers and a customer, promotional price lists, and prices that depend on the quantity of the product.

 

To show how both ways work, you will now add a new stock item and sell this to a customer using both default prices and a price list.

Activity 9

  1. Open the XRL-120 Laptop in the Stock Items form (IN202500); and review the Price/Cost Info tab note the Default Price.

 

Stock Item

  1. Open the Sales Prices form (AR202000; Sales Orders > Profiles) and review the Price Type of BASE for the Laptops.

 

Sales Prices filtered for Price Type of Base

  1. Open the Customers form (AR303000) and locate your customer ABCSTUDIOS. On the Delivery Settings tab under Default Location Settings, is there a Price Class linked?

Customers – Delivery Settings tab

  1. Create a sales order – Order Type: SO, for Customer ID: ABCSTUDIOS for 1 x Inventory Item X043RL0120 and save the sales order with the Status of OPEN.

  2. Which price did the sales order take?

  3. From the form toolbar, delete the sales order and go back to the customer ABCSTUDIOS. On the Delivery Settings tab, under the Default Location Settings, update the Price Class ID to A, then Save your changes.

 

Price Class ID: A

  1. Open the Sales Prices form (AR202000; Sales Orders > Profiles) and search for the X043RL0120 stock item, then enter yesterday’s date as the Expiration Date on the current sales price for Customer Price Class A.

  2. Enter the new of for the with a of $2,400.00 then your changes.

 

Customer Price Class for Xbox

  1. Create a Sales Order – Order Type: SO, for Inventory ID XBOX for Customer ABCSTUDIOS. 

  2. Which price did the sales order take?

Discounts

We are now going to look at two ways of using discounts in MYOB Advanced:

  • Line-level discounts that apply to a document line: These discounts may be based on the line amount or quantity of the line, they can be a percentage or fixed amount. Line-level discounts can be applied to the price of item or extended price of the item (line amount), depending on the option selected on the Price/Discount Calculation tab of the Accounts Receivable Preferences (AR101000) form.

 

Accounts Receivable Preferences – Price/Discount Calculation

  • Document-level discounts that apply to the document total: These discounts may be based on the document total, and they can be expressed as percentages or fixed amounts.

 

Activity 10

We are now going to create two Line Discount Codes (customer and inventory) for 10% and 20% respectively.

  1. Open the Discount Codes form (AP209000; Receivables > Preferences) and create 2 Discounts with the following details.

 

Discount Codes

  1. Open Discounts; Receivables > Profiles

  2. On the Discounts search form (AR2095PL); click on the add new record  button on the form toolbar and enter the following discount for Discount Code A01 and Save your changes.

 

Discounts- Discount Breakpoints tab

  1. On the Customers tab add ABARTENDE.

 

Discounts – Customers tab

  1. From the form toolbar select Update Discounts to apply the new discount rules. The values will move from the Pending to the Actual columns.

  2. Add another discount by selecting the Add New Record  button on the form toolbar. Setup Discount Code A02 with the following details and Save your changes.

  3. On the Items tab add X043RL0120.

 

Discount

  1. From the form toolbar select Update Discounts to apply the new discount rules.

  2. Create a Sales Order- Order Type: SO, for Inventory ID XBOX for Customer ABARTENDE.

Customer Delivery Settings tab
Customer General Info tab
Contact 1
Contact 2
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