Order to Cash in D365 | Sales Order in D365

Updated: Feb 24

Below written article will provide great insight on Order to Cash or Sales Order process view in D365.


Order to Cash cycle covers the Revenue part means Cash IN. Here every aspect related to customer management, sales management, product delivery, customer invoices and Settlement.

Here Order to Cash cycle follow following business function that are accountable for company’s revenue which are as follows

  • Sales

  • Warehouse Product Issuance

  • Finance

  • Account Receivable

  • Bank Management

Order to Cash Cycle control and manages the business process of sales activities, customer orders, delivering of goods and collection from customer. There is specific document to handle such activities or process which are Sales order, the issuing process known as Packing Slip, and finally the Invoice document.




What is Sale?


A sale is process of selling of goods or service. In D365 for performing sales activities user need to create customer first and can define it type in customer group and then through Sales order can perform Sales activities in D365


Pre-Requisite

  1. Customer Creation

  2. Pre-Requisite

i. Customer Group

ii. Number Sequence

  1. Sales Order

  2. Pre-Requisite

i. Number Sequence

ii. Parameter Setup


Who is Customer?


A person is who buys goods or service from a shop or business. A customer is a reception of good, service from sellers in exchange of money.


In D365 user can create customer in Account Receivable Module or Sales and marketing but before that we must create Customer group, number sequence in Account Receivable Parameter.


Customer Group

Path: - Account Receivable > Setup > Customer Groups

Or

Path:- Sales and Marketing > Setup> Prospect>Customer Group


Number Sequence


In user to define the number sequence for customer account.

Path :- Account Receivable > Setup > Account Receivable Parameter

Number Sequence can be create.


Path :-Organization Administration > Number Sequence> Number Sequence



Here in Setup, to put continuous Yes is recommended but not necessary in General Tab.

After completing the setup now lets create the customer


Path :- Account Receivable > Customer > All Customers




Path :- Sales and Marketing > Customer > All Customers


User have to click on New and can create customer with basic mandatory details and after saving can update rest details.

Here in Type user can choose from Person or Organization and rest details can be filled


After Saving the form, user can see below form where user can add additional information



User can click on Contact to add additional information.



User can define the Charge group on Group Customer and on charge group can define the Auto Charge to be applied while creating sales order


For Charge Group, user can go to following

Path :- Account Receivable > Charge Setup > Customer Charge Group




Here in Charge setup menu user can set other types of charges also.

Now in

Customer charge group


Now user can define charge code to be applied on different types of Customer charge groups

Path :- Account Receivable >Charge Setup > Charge code


Charge Code


Now user can define Auto Chare code on the following

Path:- Account Receivable > Charge Setup > Auto Charges

Auto charge

Now if customer charge group will be applied on customer so whenever customer is selected for Sales Order Auto Charges Value will automatically will added to the sales order


Now Let’s create a Sales Order.

(Note: - Item or Service is a Pre-requisite which will be covered in another article)

Path: - Account Receivable > Order > All Sales Order

Path: Sales and Marketing>Sales Order>All Sales order

Sales Order

Sales Order will open where user will select the item and enter the quantity, Site and warehouse.



Here you can see after select price appear automatically in the sales order.

How?



Base Sales Price


Path :- Product Information Management > Products> Release Product > Sell>Base Sales Price>Price

Trade Agreement

View can be seen for specific select Product

Path :- Product Information Management>Products>Released Product>Sell Tab>View Trade Agreements


Hope you have understood how price works. Now again come back to sales order. Now user need to confirm the sales Order


Confirm Sales Order in D365




It will open below page where user will click on Ok to Proceed



Sales Order Confirmation can be viewed by clicking Sales Order Confirmation



It will open below page

Here you can see in Sales Lines Net amount is showing is 1,00,000 and sales order confirmation is showing “90,099”. Now we can check the details



Now we can close it and check charge tab




Now after confirmation, user need to packing slip


What is Packing Slip ?


A packing slip represent the physical issuance of products from the company ware house. This decrease the physical quantities in the inventory and reduces the quantities remaining in the sales order.


Packing slip


click on add


Here above we have seen that total quantity is 50 but for now we picking only 40 .


Now we take a look on inventory transaction



Transaction detail


Now we will post the packing list


Post Packing List



Post Packing Slip


Post packing Journal


Here user can correct or cancel the posting quantity also

Now Invoicing



Invoicing in D365


After the delivery of goods or services to the customer, the sales team issues a customer invoice, increasing the customer open invoices. This affects the customer statements and customer aging, in addition to revenue recognition and the cost of goods sold.


Invoice is posted. Now Journal can be seen


Sales Scenario


Now only 10 quantity is pending, now organization has decided to send 5 quantity and close the deal



Now post packing slip for picked quantity with close . it will short close the order



So system has thrown an error of under delivery




Message Error Detail


So now the question is where we can define the under delivery for this order.



Updating Under delivery to 10 %



Now we will post the Delivery slip with close


Now status will change from Open to Delivered


Close button has update the status that now no more inventory will delivered.


Now Invoicing



Invoice details


That's all for this article.


Thankyou











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