Order Entry (Set Up) Features and Functions
Order Entry (Set Up): Order entry is not just about taking orders and subsequently shipping goods. There are a lot of other activities that need to be considered when an order entry system is set up. This series of questions lists some of those functions and activities.
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Industry Type Support
Primarily Designed for: Not all order entry systems are designed to handle all forms of business. Some may serve specific types of orders, and that is what this question is all about.
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Agent and Commission Structure
Agent and Commission Structure: In most instances the commission rates for manufacturers agents are not that difficult to calculate. The problem is where these people are defined. They are not salespeople because they are independent contractors. In actual practice they are more like vendors, but they supply nothing directly. This question asks where the commission structure and identity of a manufacturer's agent is defined.
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Commission Splits and Overrides
Commission Splits and Overrides: Although most systems support the calculation of sales commissions, many companies with multiple levels of salespeople have adopted fairly sophisticated commission structures. The inside salesperson may receive one rate. The customer field representative may receive a commission as well. That person's regional manager may receive an override. This question tries to determine the degree of sophistication that is built into the commission structure for each system.
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Commission Basis
Commission Based Upon: It seems as though every company has a different way it wants to calculate and pay commissions. Some base it on sales revenue while others wait until a customer has actually paid their bill. The commission may be based on sales revenue, gross margin, or net profit which includes overhead cost allocations or the profit made on a particularly large job. Some assign specific rates for specific items, while other companies set rates for individual salespeople. Finally, some companies require salespeople to achieve certain monthly targets before any commission will be paid or pay no commission if the order is too small.
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Commission Review
Commission Review: Although salespeople may not like it, some organizations prefer to review commission calculations prior to payment. Managers may spot an error, or a sale which does not qualify for commission, or an incorrect rate. If review and changes are necessary, the system should give users the ability to review each sale and then make any modifications which are required. Salespeople need to know why a sale was modified, so the system needs to support a routine whereby the sales manager can describe why a modification was made. The original and modified calculations as well as any accompanying notes should then be printed and forwarded on to the salesperson.
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Payroll Timekeeping
Supports Payroll Timekeeping: If the accounting system is tied into the sales floor, it does not make a great deal of sense for any process to require the manual input of information more than one time. Payroll is just such a process. Hourly employees should be able to prepare their time cards themselves, and there are any number of methods of accomplishing this. All of them involve the logging of time into the software on the retail floor. This information can then be checked for accuracy by the appropriate manager and transferred to the payroll department for processing. Some employees may be commissioned in part or in whole. Just as the system should have the ability to receive hours, it should have the ability to calculate commissions based upon the revenue calculated each time an employee prints an invoice or order.
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Warranty Handling System
Supports Warranty Handling System: When a customer calls in with a complaint concerning a possible warranty claim, users should not have to research manually any information concerning the original shipment or warranty terms. The system should support a special inquiry screen that lets people see the details concerning the original shipment as well as all warranty qualification information. This includes any warranties offered by the company itself as well as any original manufacturers warranties. In addition, users should be able to input any notes concerning the customer's claim, pass that information on to anyone else that might be involved in this claim, tie into an RMA (Return Material Authorization) system to issue an RMA, and finally notify the receiving department that a return is expected. One last feature should be present. Although most reshipments are not scheduled until the defective merchandise has been inspected, users should have the ability to issue a no-charge sales order to replace the merchandise immediately, rather than waiting until the material has been inspected.
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Order Entry (General)
Order Entry (General): While most of the questions under this order entry set up section can be grouped, this series of questins are more general and apply to the whole system rather than specific aspects of the application.
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Order Entry Features and Functions
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