IC Order Processing beginning
from an Outside Sales Order
It seems that everyone has a web store these days and it’s become a simple task to integrate the sales orders from these web stores into GP, but what if the outward-facing company with the web store isn’t the Microsoft Dynamics GP company that holds the inventory? What if the outward-facing company needs to buy inventory from another related company in GP? IC Order Processing can help automate the creation of the POP and SOP documents between the outward-facing company and the company with the inventory.
This entry in our IC Order Processing (aka POPSOP) series of blog posts is going to cover the scenario when initiating the POPSOP process from an outside sales order in the buying company. To learn more about the GP setups necessary to implement POPSOP or review the POPSOP setups, please see the other blog posts in our IC Order Processing series.
In this scenario, the web order comes into the buying company but the buying company doesn’t actually hold any inventory. All inventory is held in the selling company, so it is necessary to generate a purchase order in the buying company. If this purchase order in the buying company uses a POPSOP vendor, when the purchase order is released, POPSOP will generate a sales order in the selling company. When that sales order in the selling company is fulfilled and transferred to an invoice, POPSOP will create a purchase order receipt back in the buying company. Posting the purchase order receipt will then fulfill the original sales order from the web store.
Here’s how this looks in GP. For the purposes of this scenario, we’re going to assume that a customer has ordered inventory from a website and an integration has been run to bring that sales order into the buying company in GP, which is Aquila, although this process can also be run however a sales order is created in Aquila. Since there is no inventory in Aquila, the quantity requested is set to backorder on the Aquila sales order.
Using the Actions tab, a purchase order can be generated for this sales order. Selecting the vendor that’s been set up for POPSOP will cause POPSOP to create a sales order in the selling company, Ophiuchus, where all of the inventory is held.
Once the purchase order is released (automation options exist – for further details, please see the Configuring the IC Order Processing Setup Window), the POPSOP report will print, showing the buying company, the document type in the buying company, and the document number in the buying company (blue), as well as the selling company, document type in the selling company, and the document number in the selling company (orange).
POPSOP will generate a sales order in the selling company Ophiuchus. I’ll allocate and fulfill this sales order and transfer it to an invoice (please note that there are options discussed in the Notes on Configuring the IC Order Processing Setup Window blog entry that can automate the fulfillment and transferring the sales order to an invoice). In this example, multi-bin is enabled as well.
POPSOP will generate a purchase order receipt after generating a POPSOP report showing the selling company, the source document type, and the source document number (orange), and the destination buying company, the destination document type, and destination document number (blue).
Again, there are additional options that are discussed in Notes on Configuring the IC Order Processing Setup Window blog entry to automate the posting of the purchase order receipt. If the posting of the purchase order receipt is not set to be automated, it can be posted whenever we’re ready to do so.
After posting the purchase order receipt in the buying company, it will automatically fulfill the sales order that was created from the original web order in Aquila. At that point, the web order sales order can be transferred to an invoice and sent to the customer. Drop-ship options are available as well, and they can carry through from the original web order sales order through the purchase order and to the POPSOP-created sales order in the selling company.
Please see our other blog posts in the IC Order Processing series for more information on how to set up GP for POPSOP, how to set up POPSOP, and to learn more about other ways to initiate the POPSOP process.