Sales Quote

A sales quote is a document sent to a potential customer, offering to sell goods or services at a certain price under specified conditions. It allows buyers looking for specific products to get an estimate of the cost involved in completing the purchase.

Customer Service Representative (CSR) creates a quote for the customer with list prices and assigns the appropriate discount (based on customer relationship). If the discount is not yet in the system, the CSR creates the discount. After the customer approves the quote and sends the purchase order, a sales order is created from the quote.

Business Purpose

A sales quote is to let a customer know the cost of goods or services before they decide to purchase them. It can help the customer to decide what products or services they want to buy, at the best price.

There are a number of items that should be considered when preparing a quotation for a customer:

• Products List

• Discounted Rates

• Time Period etc.

Actors

• Customer

• CSR

Scenarios

The three scenarios of the Sale Quote process are:

1. Create Sales Quote

2. Update Sales Quote

3. Convert to Order

Create Sales Quote

Customer contacts CSR, with a request for a Quote for specific products and quantities for each. CSR records request for Quote, creates a Quote and sends it to the Customer. After getting approval from Customer and before the creation of the Sales order the CSR needs to update the Status of the Created Quote.

Diagrams

Level 1

Level 2

Level 3

Update Sales Quote

A sales quote can be updated by the CSR due to any reason such as bulk orders, special privilege discount or one to one negotiation on price etc.

Quote updating process includes:

1. Add/Remove items from existing Quote

2. Update product quantity

3. Update price of items

Diagrams

Level 1

Level 2

Level 3

Sales Order

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A sales order is an agreement between a business association and a customer concerning the delivery of products or provision of services. This process involves order capturing, order status management, payment terms and method setup etc.

A customer can place an order from the store front storefront or a customer service representative (CSR) can place the order on behalf of a customer from the backendback end.

Business Purpose

A Sales Order from the customer notifies the business of customer wants. It tells the business who is the customer, what are the products or services ordered, what is the payment term and method, what are the billing and shipping addresses, any special instructions for delivery, order priority etc.

Sales Order document is created in the system with a unique reference number that comes in handy for better customer service afterward. It enables a business to offer the customer to have a choice to change ordered items. The customer also gets the details of the order which can be accessed through his profile on store front the storefront at any time if registered or else can use the order reference number while contacting the business for reporting any issues.

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A customer always provide shipping method details to let the business know about his shipping preference to ship the order and in other ends, CSR always captures shipping method along with special instructions for delivery.

Scenarios

1. Create Order
2. Update Order
3. Order Status 
4. Payment terms and methods

...

CSR creates a sales order for the customer from the backend as per the given information like personal details, contact information, billing and shipping information, and payment terms and methods. A customer can create a sales order from the store front storefront as well. 

Diagrams

Sales Order from Backend

Level 1

Level 2

Level 3

Update Order

A CSR can edit or update an in order to make changes in it based on customer requests or can add notes for handling. 

Diagrams

Update Sales Order

Level 1

Level 2

Level 3

Order Status

An Order Status is an easy visual indication to alert business about the orders requiring actions or not.

An Order can have the following status:

• Created

• Approved

• Processing

• Sent

• Held

• Rejected

• Completed

• Cancelled

Diagrams 

Manage Order Status

Level 1

Level 3

Payment Terms and Method

Payment Terms are conditions agreed between business and customers for the payment of invoices. Selecting Payment Terms and Methods are key things in fulfillment of any order process.

Various payment terms in OFBiz are:

• Financial
• Payment Net Days
• Late Fee (percent)
• Penalty for Collection Agency
• Non-compete etc.
  

Various payment methods in OFBiz are:

• Billing Account
• Cash
• Cash on Delivery
• Certified Check
• Company Account
• Company Check
• Credit Card
• Electronic Fund Transfer
• Financial Account
• Gift Card
• Gift Certificate
• Money Order 
  
• Offline Payment
• Paypal
• Personal Check etc.

Payment Terms

Level 1

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Level 2

Payment Method

Credit Card

Billing Account

Sales Return

Sales Return is merchandise returned back to the seller by a customer. Sales return is a common concept used in sales and purchase terminology. The main purpose of the sales return is to provide easy returns to the customers to maintain long relationships with them.

A sales return can be created for one of the following Reasons:

1. Excess quantity shipped

2. Excess quantity ordered

3. Defective Goods

4. Goods shipped too late

5. Product specifications are incorrect

6. Wrong items shipped

Sales Return types can be: