FAQs: Sales Order Processing

Two profit values are calculated for sales orders; estimated and realised.

The profit percentage is calculated using:

• The Issue value for each order line. This is the selling price multiplied by the line quantity.
• The Cost value for each line. This is the cost price multiplied by line quantity.

Sales profit can be calculated as a percentage of revenue or as a percentage of cost. This depends on the options you have chosen in the Stock Control settings Options tab.

If you have chosen:

• Calculate as percentage of revenue.

  The profit percentage is calculated in the following way:

  100 * (issue value - cost value) / (issue value).

• Calculate as percentage of cost.

  The profit percentage is calculated in the following way:

  100 * (issue value - cost value) / (cost value).

Profitability is calculated on a line by line basis. For this reason, profitability figures reflect line discounts, but not order or invoice discounts.

For more information, see Sales order profit.

If you have the correct user permissions, you can change the cost price of a stock item, when entering a sales order.

This amended cost price is only used to calculate the estimated profit for that item on the sales order. It allows you to base the estimated profit for an item on a cost value, rather than the cost price taken from the stock record.

For cost of sales calculations, the cost price is taken from the stock item product group Details tab.

You can only create a purchase order from a sales order if:

• The stock item has a preferred supplier (set on the Suppliers tab of the stock item).
• The fulfilment method for the stock item is set to From supplier via stock, or Direct to customer.

• You have not chosen to fulfil order lines from stock when saving the sales order.

  If you have enough items in stock when you save the sales order, you can choose to fulfil the sales order from your free stock rather than create a purchase order.

For more information, see Processing back-to-back sales orders.

No.

The purpose of the cash sales account is to record cash transactions from a number of different customers. For example, these transactions could be for a till in a shop or for trade counter. In these cases, there is no need to record the name and address details of the customer.

A VAT only invoice however, is a legal document which requires the name and address of the customer and their VAT registration number.

If you need to add VAT to a sales order for a cash customer to correct an error, you can:

• Cancel the sales order and create a new one with the correct VAT amount.

• Advise the customer to pay the full amount of the sales order plus the VAT. Then, enter a Sales Ledger invoice for the cash sales account, for the amount of the VAT. To do this:

  1. Enter the goods total as 0.00.
  2. Enter the relevant VAT amount and tax code.
  3. Allocate the receipt to the sales order invoice and the sales ledger tax only invoice.

This depends on the options you choose when you enter the payment.

• If you choose Invoice with payment immediately when entering the Payment with Order details, the invoice and the payment are posted using the current system date.
• If you do not choose Invoice with payment immediately when entering the Payment with Order details, the payment is posted using the invoice date.

You can make sure that traceable stock items that have the oldest Use by or Sell by date are allocated to sales orders first. To do this, choose Use by or Sell by as the stock fulfilment method.

Once set up, a stock item that has passed its use by or sell by date, cannot be allocated to a sales order.