There are a few cases where an order becomes cancelled:
• Customer confirmed Quotation as an Order, but failed to provide with signed Sales Contract and Down Payment.
• Customer failed to pay the Final Payment after the Order production completion.
In this SOP, we will look into both scenarios and how it has to be handled by Salesperson.
Customer fails to provide signed Sales Contract and Down Payment
If Customer has not responded to follow-up messages and calls (refer to Reference “No Reply”), the Order is considered cancelled and the following steps have to be followed:
1. Inform Customer of the order cancellation. Salesperson escalates this issue to Sales Manager and Sales Manager sends an email to Customer. It is in Sales Manager jurisdiction to claim Customer"s account at AdvaCare cancelled based on the cancellation of the Order.
2. Salesperson has to inform Accounting Department to cancel pending Invoices and cancel the order.
3. Salesperson has to inform Purchasing Department of the order cancellation.
4. SO will be cancelled in odoo and archived by Sales Director.
5. The order folder has to be moved to "Cancelled" by Sales Manager.
Note:Note: Sometimes, when Customer receives official notice of order cancellation, it can push Customer to actually reply and remit the payment/sign Sales Contract. However, due to the various scenarios, the tactic of behavior of Salesperson and Sales Manager can be discussed on a per order basis.
If Customer comes back asking for the same order to be restored, it has to be approved by Sales Manager and a new RFQ has to be created. DO NOT use the same SO which has been previously cancelled.
Customer fails to pay the Final Payment after production completion of the Order
If Customer has an open order which failed to be paid fully, there are 2 ways how to handle it. To begin with, Salesperson and Sales Manager have to check if there is a possibility to resell the produced products to other Customers. In order to inform Sales Department, a message in the channel #Sales Dept. + BD. Dept. has to be sent with the following information:
• SO#
• Products to be sold and their final quantities
• QC received and checked
• Exp. date
• The value of the products has to be discussed and confirmed with Sales Manager, depending on each market and actual due amount, the product"s price can be changed and does not necessarily have to be the same as in the cancelled SO
Normally, Sales Department sends an email to assigned Customers which might be interested in buying the produced product(s). Every Salesperson is to report of the replies of this letter to Sales Manager.
If there is a Customer who is ready to buy the produced product from the cancelled SO, the following steps have to be taken:
• Inform Accounting Department and Purchasing Department of the cancellation of the failed SO and provide a new SO created for the Customer buying the product. (This is important, as PO and Invoices have to be moved accordingly). If the Customer which agreed to buy the produced product has an ongoing order, the produced product can be moved to the current existing SO, where the Accounting Invoice will be generated accordingly (Refer to "Generating Accounting Invoices" SOP)
• If the cancelled SO has a paid value for the product, Accounting and Sales Manager will decide on the paid down payment. Depending on each Order/Customer unique situation, the paid amount can be determined as "Credit" for the next order or not.
• If any products from cancelled SO has been fully paid and delivered, the Salesperson will be closing the order based on the paid and delivered products only. (Refer to "Closing of an Order" SOP)
If the produced produce cannot be sold to any Customer, Salesperson is to follow the instructions from "Customer fails to provide signed sales contract and payment".
The stages of the OPP, SO, Project has to be updated accordingly:
SO: Has to be under “SALES ORDER” stage for the cancelled orders
Project stage: move to “CANCELLED”
OPP stage: move to “LOST” and select the reason (same as for the lost RFQs)
