Dealer sales and credit

Cement dealers buy on agreed terms, from a price list in their entity’s currency, and often in more than one unit, such as bags and bulk tonnes. Each Dealers record holds the legal name, billing address, default payment terms, price list, credit limit and credit currency, with ordering, billing and delivery contacts kept in dealer contacts. A Sales Representative builds Quotes and quote lines from the active price lists version and picks a product unit from product units, so the base quantity is converted once and stays on the line. Line and header discounts are allocated into the net amount of each line. A price below the minimum net price in price list entries is an exception for the Sales Manager to approve before the quote goes out.

When the dealer accepts, the acceptance evidence is stored on the quote and the Sales Representative raises sales orders with lines, ship-to address, title rule and payment terms. Before the Sales Manager accepts the order, a credit reviews record compares the dealer’s current exposure and the order’s proposed increase with the credit limit as of a stated date.

• Separate preparation from acceptance. The Sales Representative prepares the quote and the order. The Sales Manager records the acceptance decision in Approvals and cannot be the person who requested it.
• Treat credit as its own decision. A review marked exception required waits for a credit exception approval from the Finance Manager, and the order stays on hold until that decision exists.
• Freeze what was accepted. Accepted quantity, net amount, tax and the original promise date stay on sales order lines. A revised promise date sits beside the original so late deliveries remain visible.

Agree the price list for each entity and currency, the units you sell in with their base conversions, and the minimum net prices. Set each dealer’s credit limit, credit currency and default terms, and agree who approves discount and credit exceptions. Decide whether title passes at dispatch or at delivery, because that rule controls when the dealer can be invoiced.

A dealer with an open balance asks for a large order ahead of the building season. The Sales Representative quotes from the current price list, applies the agreed scheme discount and sends the quote after the Sales Manager approves the discount exception. The dealer accepts, and the order is submitted.

The credit review shows the order would take exposure above the limit, so the review is marked exception required. The Finance Manager looks at the dealer’s receivables and approves a bounded exception, and the review becomes exception approved with the decision attached. Only then does the Sales Manager accept the order, and stock reservations are created for the accepted lines.

During the pilot, run the same order with the credit exception rejected. The order should stay on hold with no reservation, and the accepted quote should remain available.

• Open dealer orders — accepted orders in progress, with ship-to address, title rule and value for each dealer.
• Sales orders awaiting acceptance — submitted orders with their credit review, ready for the Sales Manager’s decision.
• Dealer credit exceptions — reviews that need, or have received, a Finance Manager exception.

• Dealer order to delivery: Quote, credit review, order acceptance, route release and delivery to the dealer site.
• Invoice to cash: Invoice the delivered quantity, approve the invoice and apply the dealer’s payment.

Check the data model before importing dealers and price lists.