After SO is created and PA (Purchase Agreement) is generated by Salesperson, Purchasing person will send the PO (Purchase Order) to Vendors for a Request for Quotation. Purchasing person will upload the prices to the relevant SO and send a task to Salesperson to notify prices have been uploaded.
This SOP will list the steps of how to add Quoted prices and Renegotiated prices to SO.
• Quoted Prices: Prices from Vendors when Requesting for Quotation
• Renegotiated Prices: Final and negotiated prices from Vendors after the Customer has confirmed the order.
How to update SO with PO Quoted Prices
1. Locate the relevant SO in Sales module.
2. Make sure the Exchange Rate Date is selected and below the real date exchange rate by around $0.1. The order exchange rate will be pulled from the date Salesperson selects as Exchange Rate Date.
Current Exchange Rate
Note:The Order Date Exchange Rate should notbe higher than the current exchange rate. If it is, Salesperson must change the Order Date Exchange Rate to the current exchange rate. See SOP for Updating Exchange Rate in SO. If the Order Date Exchange Rate is lower, Salesperson does not need to change it.
3. Click Edit.
Note: Make sure to edit SO in Quotation stage. When SO is in Sales Order stage products, quantities and prices are uneditable.
4. Choose the product in SO Table.
The following options are available for cost origin of the product:
• Pricelist,
• Quoted Price,
• 'Quoted Price + Pricelist',
as Cost Origin in the displayed pop-up.
Note:Pricelists are only reference prices and Quoted Prices are the first prices that were uploaded by Purchasing person.
Note:Quoted Price + Pricelist option only indicates a merged table of quoted prices and pricelists for the product.
a) Select Quoted Price option
b) Click Search More in RFQ Order Line dropdown of the displayed pop-up.
c) Locate the PO lines with prices for the selected product. Salesperson needs to check the following columns: Vendor, Quote (pack) - price per box, Quote (piece) - price per piece, Quantity, Port of Loading - for USD prices will indicate transportation to which port is included.
Note:By default the System displays only the POs connected to the current SO. To see prices connected to other SOs Salesperson needs to remove the filter 'Original SO' on top.
Note: It is very important the Salesperson checks and compares the Quoted Prices to see if the prices make sense. If a price does not make sense or there is an error, Salesperson must send task to Purchasing person to check and revise. Wrong prices need to be revised or deleted in the system so another Salesperson does not use that price.
After the Salesperson has chosen a price, the following situations might occur:
Below are the details about how and why these situations will happen.
Product Quantity update. Picking PO line might trigger automatic change of the quantity in SO. When this happens, the new quantity will get a green underline and 'RFQ Order Line' text will turn green to make it easier for Salesperson to notice the change.
How and why was the quantity changed. Quantity will change only if PO Quoted or Renegotiated has a different quantity - price was quoted based on quantity different from SO. This feature can be useful when SO doesn't have any particular quantities and Salesperson needs to get MOQ prices. That way, Salesperson doesn't need to update MOQ manually in each product line, but it will be pulled from PO automatically. Another use of this feature is to find out that quantity in SO is below MOQ - which means Salesperson needs to inform Customer that quantities they want are too low. And the price given by Purchasing Dept. in this case will be based on the minimum quantity Vendor can do. However, with the above being said, Salesperson needs to be very careful with this feature and make sure to notice the change of quantity.
Cartons Qty notification. Picking PO line might also trigger a notification related to the number of cartons needed to pack the total number of boxes/pieces of a specific product. If quantity of the product is not divisible by quantity of boxes in one carton -> quantity of cartons is not an integer value, meaning one last carton is not full, the System will show a notification with suggested quantity to fill the last carton. Salesperson can then choose to change the quantity to fill the carton or keep it as it was.
How and why Cartons Qty notification will appear. This notification will appear if the CBM information for this product/packaging and Vendor is filled out. CBM information per product contains carton dimensions and quantity of boxes in one carton. Total quantity of a product divided by quantity of boxes in one carton will give the quantity of cartons. If the value is not integer, the System will give a notification and suggest to increase the quantity to fill the carton. This notification is useful for Salesperson to know that they need to add quantity before quotation is sent to the Customer, as opposed to waiting for Purchasing person to send a task with this information after the order is confirmed. However, with the above being said, Sales person needs to be very careful with this feature and make sure to notice the warning of cartons quantity.
Changing product quantity based on Cartons Qty notification. If Salesperson decides to follow the suggestion to increase the quantity of the product in behalf to have an exact number of cartons, then this update must be notified to the Customer. Later on, Purchasing person needs to be notified about the Customer's decision of accepting the increased product quantity (exact Cartons Qty) or keeping the old product quantity (as a decimal value of Cartons Qty). It is important to notify Purchasing Dept. about the new product quantity for Quoted and Renegotiated prices.
Additional Fees notification. Picking PO line might trigger a notification related to the additional fees (printing fees) related to a specific product. When this happens Salesperson needs to check Additional Fees tab of the product pop-up and decide whether it is need to add the fee to SO.
How and why the Additional Fees notification will appear. This notification will appear if the System detects existing additional fees (printing fees) related to the specific product of SO. The fees are also displayed in the Additional Fees tab in the product pop-up. Additional fees depend on the product, packaging, Vendor, quantity of boxes, bags or colors. Additional fees are maintained by Purchasing Dept. The notification is created so that if a product has printing fees Salesperson can find out about it with the help of the System rather than relying on the memory of a Purchasing person to send a task about it. It is important not to miss this information as it might cause a certain loss if Salesperson forgets to charge the Customer these fees. Additional Fees functionality will be explained in detail in a separate SOP.
5. When Quoted Prices are picked, Salesperson must edit Profit field in the SO product pop up. This field reflects the profit margin for the product. If the Customer has ordered this product before, check the previous purchase price, exchange rate and quantities to determine the profit %.
Note: Additionally, there is a field called 'Foreign Exchange Buffer' which is a fixed value used to prevent fluctuation of the exchange rate. This filed will only be visible when purchase prices are provided in different currencies from the currency of the SO (for example, purchase prices are in RMB while SO is in USD).
6. Click SAVE.
Note: To edit more products repeat the steps above.
After Salesperson saves the price in the displayed SO pop-up, the following situation might occur:
• SO line color painting;
There are 2 colors that can be displayed after a purchase price is selected for a product.
•Green
•Black
Below are the details about how and why this situation will happen.
SO line in Green Color. Saving the SO line with a PO quoted price of the same SO might trigger automatic change of the color of the line into Green. This happens, to make it easier for Salesperson to recognize that the product is using Quoted Prices for the same SO.
SO line in Black Color. Saving the SO line with a PO quoted price from a different SO or with a VPL Pricelist might also trigger automatic change of the color of the line into Black. This happens, to make it easier for Salesperson to understand that the product is using references prices like Quoted Prices from a different SO or Pricelists.
Note: When a product does not have a selected purchase price, then the SO line remains in Redby default.
7. Click SAVE.
8. Click 'UPDATE PA' .
Note: If Salesperson forgets to click 'UPDATE PA' Purchasing Dept. will not know about any changes made in the SO. Purchasing Dept. does not have access to SO. It is Salesperson's responsibility to update PA every time something is changed in SO.
9. Salesperson must send task to Purchasing person to provide the CBM of the goods in order to know the container occupancy of the order. Most customers will want to ship the goods in a full container. This is the time to inform the Customer of the CBM to add more quantities or add more products to fill the container.
10. In order to confirm the quoted prices and provide the customer with them, the prices must be confirmed by Sales Manager. If Salesperson needs to send any information related to margins (such as product margins, shipping cost margins, any fee margins) for Sales Manager to provide or approve, it should be sent in SO chatter not Project task chatter. (Other Departments shall not have any access to this information).
Note: Any inquired product has to be checked not only with previous orders of the product, but also with RFQs. For locating previous orders Salesperson can refer to “APO Excel” which only consists of successfully completed orders of the inquired product.
In order to find reference prices given with previous issued quotations, Salesperson needs to use “Product History”.
How to confirm margins of products with Sales Manager
In order to confirm the quoted prices, Salesperson needs to check on the prices given to the customer previously. As mentioned above, it can be a completed order which means that the price/quantity were acceptable to the customer or just an RFQ which has not materialized into an order.
The salesperson needs to prepare the reference prices in order to make a decision based on the prices' history on what margin is to be added to the product in the current SQ. The data has to be arranged in the according Tab in “Client Status” Excel under the Customers Code.
This tab not only serves the purpose of making the right decision on the products margin, but also keeping the data consolidated in one place for future reference.
How to work with “Product History”
Locate “Product History” in SO:
In a newly open window, in a search bar, there are multiple filers available for the search of the data Salesperson needs to find the reference to:
If the filter “Customer” is selected, it will only show the products quoted to that Customer. If the filter “Customer” is removed, it will show all SOs for any customers grouped by the selected option (normally, “product”)
In Filters options, the following SO Statuses can be chosen (or multiple): Quotation/Sent/Order/Cancel.
To locate the product once the filters are selected, press Ctrl+F and type in the product name to show the grouped lines for the product search
The corresponding results will be highlighted:
Click on > to unwrap all data lines under the searched product:
The lines of different SO status will be shown as follows:
By opening the grouped lines, the following information needs to be checked:
● SO number
● Customer
● Product and its packaging
● Quantity
● Cost (quoted price)
● Profit (will be shown if the product was ever quoted)
● Unit price
● Margin
● Subtotal (for the product)
● Order Date (the date when the product was quoted)
● Salesperson (Salesperson who issued the quotation)
The product history must be checked when Salesperson prepares any quotation and researched data shall be added to the reference tab under the customer tab in the excel “Client Status Sheet”, otherwise the margins cannot be confirmed by Sales Manager.
11. When the prices for all products in SO have been uploaded and confirmed by the Sales Manager, the Salesperson is to send SQ to the Customer by email. In order to import SQ, the Salesperson needs to choose the option in “Print” section -> Quotation / Order.
12. After the email has been sent to the Customer with the Sales Quotation, click SEND BY EMAIL. This feature is still under construction and does not allow Salesperson to send SQ to Customer from the system to Customers email directly. SQ is to be sent manually by email. The purpose of this feature is to save the existing SQ in the system.
Clicking SEND BY EMAIL will open the below window:
13. Salesperson MUST DELETE the automatically added Customers contact from Recipients line.
After “sending”, the SQ will be saved in SO chatter:
14. The exported SQ has to be sent in the according RFQ folder on the server (For example: GoogleDrive/Shared drives/AdvaCare Cloud Server/RFQs/2022/SO1125 - SES - Turkmenistan - Iana/OFFER).
15. After SQ has been sent to Customer, the stage of OPP can be changed from EVALUATION to “PROPOSITION” in order to reflect the stage in pipeline accordingly.
To change the stage, locate the OPP in SO Task:
16. Click on OPPXXX to open the below window and move the stage to PROPOSITION.
Note: When Customer replies to provided SQ and the order has not been yet confirmed, the stage has to be updated to “NEGOTIATION. As soon as the order has been confirmed, the stage must be updated to “WON”.
How to update SO with PO Renegotiated Prices
After the Customer has confirmed the products in the SO and signed the Sales Contract, Salesperson will send a task to Purchasing person to inform that the SO is confirmed.
Note: If the Customer is new, Salesperson should wait until the down payment has been received before informing Purchasing person the SO is confirmed. Purchasing person will negotiate prices with the Vendors and upload as Renegotiated Price.
1. Locate the relevant SO in Sales module.
3. Check the Exchange Rate Date and Order Exchange Rate of the SO and the current exchange rate on the top right corner of the blue banner of the page.
Order Date Exchange Rate
Current Exchange Rate
Note: The Order Date Exchange Rate should notbe higher than the current exchange rate. If it is, Salesperson must change the Order Date Exchange Rate to the current exchange rate. See SOP for Updating Exchange Rate in SO. If the Order Date Exchange Rate is lower, Salesperson does not need to change it.
3. Click Edit.
Note: Make sure to edit SO in Quotation stage. When SO is in Sales Order stage products, quantities and prices are uneditable. Also, make sure that a down-payment has been received previously from Customer, before update the specific SO with renegotiated prices.
4. Choose the product in SO Table.
The following options are available for cost origin of the product
• 'Renegotiated Price'
as Cost Origin in the displayed pop-up.
Note: Renegotiated Prices are the final negotiated prices for the confirmed Sales Orders (orders for which down payment from Customer was received).
a) Select Renegotiated Price option
b) Click Search More in RFQ Order Line dropdown of the displayed pop-up.
c) Locate the PO lines with prices for the selected product. Salesperson needs to check the following columns: Vendor, Quote (pack) - price per box, Quote (piece) - price per piece, Quantity, Port of Loading - for USD prices will indicate transportation to which port is included.
Note: By default the System displays only the POs connected to the current SO. To see prices connected to other SOs Salesperson needs to remove the filter 'Original SO' on top.
5. When Renegotiated Prices are picked, Profit field is uneditable, as by the time Salesperson needs negotiated prices the sales prices are already confirmed with the Customer so the Profit % will be adjusted automatically according to the final Unit Price.
Note: Additionally there is a field called 'Foreign Exchange Buffer' which is a fixed value used to prevent fluctuation of the exchange rate. This field will only be visible when purchase prices are provided in different currencies from the currency of the SO (for example, purchase prices are in RMB while SO is in USD).
6. Click SAVE.
Note: To edit more products repeat the steps above.
After Salesperson saved the price in the displayed SO pop-up, there is no SO line color painting.
7. Click 'UPDATE PA' .
Note: If Salesperson forgets to click 'UPDATE PA' Purchasing Dept. will not know about any changes made in the SO. Purchasing Dept. doesn't have access to SO. It is Salesperson's responsibility to update PA every time something is changed in SO.
8.
There will be a green tag to show the order is under production. Salesperson needs to add the label “PRODUCTION” once the order is confirmed by the customer.
Changing quantities after renegotiated prices have been updated
If the confirmed Customer quantities are different from the initial, they cannot be changed when the product has been quoted with renegotiated prices already (product line is in pink). In order to change the quantity and keep the renegotiated price to reflect the correct cost from Vendor, the SQ has to be moved to the “Quotation stage” and the product has to revert back to the “Quoted price” first.
1. Click EDIT. Take a screenshot of the table before going back to the “Quoted Price” to reference the unit price and other information.
2. Choose the “Quoted Price”. After the quoted price is selected, it is important to make sure the unit price remains the same, and only quantities and margin percentage have been updated. Salesperson can change the quantity and click SAVE.
3.
4. Click EDIT again in order to choose the product line and select the renegotiated price. The profit margin will be updated automatically. The quantity will be updated with the revised quantity. Salesperson must check the unit price is the price provided to the Customer.
5. Click SAVE.
Note: To edit more products repeat the steps above.
After Salesperson saved the price in the displayed SO pop-up, there is no SO line color painting.
6.Click 'UPDATE PA' .
Note: If Salesperson forgets to click 'UPDATE PA' Purchasing Dept. will not know about any changes made in the SO. Purchasing Dept. doesn't have access to SO. It is Salesperson's responsibility to update PA every time something is changed in SO.
