Sales Module

Order management, quotations, and customer fulfillment in iDempiere

The Sales module in iDempiere provides comprehensive order-to-cash capabilities, from quotation through order processing, shipment, and invoicing.

Overview

iDempiere’s sales management system streamlines the entire sales process with integrated quote management, order processing, fulfillment, and invoicing. The module supports complex sales scenarios including drop shipments, partial deliveries, back orders, and multi-currency transactions.

Quotations

Create and manage customer quotes and proposals

Sales Orders

Process customer orders with credit checking

Order Fulfillment

Pick, pack, and ship orders to customers

Invoicing

Generate and manage customer invoices

Sales Quotations

Create professional quotations and convert them to orders.

Quote Process

1. Create Quote

   Navigate to Sales Order and set the document type to “Quotation”

2. Select Customer

   Choose the customer or prospect, which loads their default price list and terms

3. Add Products

   Enter line items with products, quantities, and pricing

4. Apply Discounts

   Add line-level or order-level discounts as needed

5. Complete Quote

   Complete the quotation to lock pricing and make it available to customer

6. Convert to Order

   When customer accepts, use Copy From to create sales order from quote

Quote Features

• Multiple Quotes - Create unlimited quotes per customer
• Quote Validity - Set expiration dates for pricing
• Alternative Products - Offer product substitutions or upgrades
• Configurable Products - Build complex product configurations
• Quote Versions - Revise quotes while maintaining history
• Quote Analytics - Track quote win/loss rates

Link quotations to CRM opportunities to track conversion rates and sales pipeline velocity. Use quote templates for commonly requested configurations.

Sales Orders

Manage customer orders from entry through fulfillment.

Order Entry Process

1. Navigate to Sales Order

   Go to Sales Order and click New

2. Select Customer

   Choose the customer, loading their price list, payment terms, and delivery settings

3. Credit Check

   System automatically checks customer credit status and available credit

4. Enter Order Lines

   Add products with quantities, which automatically prices from customer price list

5. Set Delivery Details

   Specify ship-to address, delivery date, and shipping method

6. Review Totals

   Verify pricing, taxes, and total amount

7. Complete Order

   Completing reserves inventory and makes order ready for fulfillment

Order Types

iDempiere supports various sales scenarios:

• Standard Order - Regular sales with inventory shipment
• Drop Shipment - Vendor ships directly to customer without inventory
• POS Order - Point-of-sale cash transactions
• Prepay Order - Payment required before shipment
• Warehouse Order - Transfer between warehouses
• Credit Order - Return merchandise authorization (RMA)

Order Features

• Multiple Lines - Unlimited products per order
• Partial Shipments - Ship and invoice in multiple deliveries
• Back Orders - Automatically manage out-of-stock items
• Promised Dates - Track customer requested vs. committed delivery dates
• Order Reservations - Reserve inventory for specific orders
• Change Management - Modify orders before shipment with audit trail

Completing a sales order reserves inventory for the customer and prevents other orders from allocating the same stock.

Pricing and Discounts

Implement flexible pricing strategies.

Price Lists

Manage customer-specific pricing:

• Base Price Lists - Standard pricing by currency
• Customer Price Lists - Special pricing for specific customers
• Volume Pricing - Quantity break discounts
• Promotional Pricing - Time-limited special prices
• Multi-Currency - Prices in multiple currencies

Discount Management

Apply various discount types:

• Line Discounts - Product-level discounts
• Order Discounts - Overall order percentage off
• Volume Discounts - Automatic quantity-based discounts
• Customer Discounts - Fixed discount by customer group
• Promotional Discounts - Campaign-based special offers
• Discount Schemas - Complex multi-tier discount rules

Price Calculation

1. Base Price

   System starts with product’s base price from customer’s price list

2. Volume Discount

   Apply quantity-based discount if thresholds are met

3. Customer Discount

   Apply customer-specific discount percentage

4. Promotional Discount

   Add any active promotional discounts

5. Manual Override

   Salespeople can manually adjust pricing within authorization limits

6. Final Price

   Calculate net price and extend by quantity

Price overrides below cost or outside approval limits may require manager authorization. Configure pricing approval workflows to prevent margin erosion.

Credit Management

Control customer credit and minimize risk.

Credit Checking

Automatic credit verification on order entry:

• Credit Limit - Maximum outstanding balance allowed
• Credit Used - Current receivables plus new order
• Credit Available - Remaining credit capacity
• Credit Status - OK, Watch, Hold, or Over Limit
• Payment Performance - Historical payment behavior

Credit Actions

• Credit OK - Order proceeds normally
• Credit Watch - Warning but order allowed
• Credit Hold - Order blocked pending approval
• Over Limit - Prevent order completion until resolved

Credit Management Process

1. Review Credit Status

   Credit manager reviews held orders and customer payment history

2. Collect Payment

   Contact customer for payment or payment commitment

3. Adjust Credit Limit

   Increase limit if justified by payment history or business need

4. Release Hold

   Manually release order from credit hold

5. Approve Order

   Order continues to fulfillment process

Set credit limits proactively based on payment history and business relationship. Review and adjust limits quarterly to align with customer growth.

Order Fulfillment

Pick, pack, and ship orders efficiently.

Fulfillment Workflow

1. Order Release

   Completed orders appear in fulfillment queue

2. Pick Generation

   Generate pick lists for warehouse staff

3. Inventory Picking

   Pick items from warehouse locations

4. Packing

   Pack items and create shipment document

5. Shipping

   Generate shipping labels and update carrier tracking

6. Shipment Confirmation

   Complete shipment to reduce inventory and trigger invoicing

Shipment Management

Create and manage customer shipments:

• Create from Order - Generate shipment lines from sales orders
• Pick Confirmation - Confirm picked quantities and locations
• Serial/Lot Selection - Choose specific units or batches to ship
• Packing Slip - Print packing documentation
• Shipping Labels - Generate carrier shipping labels
• Tracking Numbers - Record carrier tracking information

Partial Shipments

Handle incomplete fulfillment:

• Ship Available - Ship in-stock items immediately
• Back Order - Automatically create back order for remaining items
• Split Delivery - Ship from multiple warehouses
• Substitute Products - Offer alternatives for out-of-stock items

Drop Shipments

Manage vendor direct shipments:

1. Create Sales Order

   Enter sales order marked as drop shipment

2. Generate Purchase Order

   System creates PO to vendor with customer ship-to address

3. Vendor Ships

   Vendor ships directly to customer

4. Record Receipt

   Create drop ship receipt when vendor confirms shipment

5. Invoice Customer

   Generate customer invoice from drop ship receipt

Drop shipments bypass your warehouse, saving handling costs and reducing delivery time. The system still tracks the transaction for proper revenue recognition.

Customer Invoicing

Generate and manage customer invoices.

Invoice Generation

Create invoices from orders or shipments:

1. Navigate to Invoice

   Go to Invoice (Customer) and create new invoice

2. Select Customer

   Choose customer and billing details

3. Create from Shipment

   Use Create From > Shipment to invoice shipped goods

4. Verify Amounts

   Confirm quantities, pricing, and extended amounts

5. Add Charges

   Include freight, handling, or other charges

6. Complete Invoice

   Completing posts revenue and creates receivable

Invoice Types

• AR Invoice - Standard customer billing
• AR Credit Memo - Credit for returns or adjustments
• Prepayment Invoice - Invoice before shipment
• Recurring Invoice - Automated subscription billing
• Adjustment Invoice - Corrections or price adjustments

Invoice Features

• Multiple Shipments - Consolidate multiple shipments on one invoice
• Partial Invoicing - Invoice portion of order with remainder later
• Payment Schedule - Split payments over multiple dates
• Dunning - Automated collection reminders for overdue invoices
• Invoice Templates - Custom invoice layouts and formats

Payment Collection

Record customer payments:

1. Create Payment

   Navigate to Payment and create new payment record

2. Enter Payment Details

   Specify customer, amount, payment method, and bank account

3. Allocate to Invoices

   Use Allocate Payment to distribute across open invoices

4. Apply Discounts

   Automatically apply payment discounts if within terms

5. Complete Payment

   Completing posts cash receipt and updates invoice balances

Enable automatic payment reminders for invoices approaching due dates. Configure dunning levels for progressively firmer collection messages.

Returns Management (RMA)

Handle customer returns and exchanges.

Return Process

1. Create RMA

   Create a return authorization documenting return reason and approval

2. Issue Return Number

   Provide RMA number to customer for shipment tracking

3. Receive Return

   Create customer return shipment when goods arrive

4. Quality Inspection

   Inspect returned items for restocking, repair, or scrap

5. Process Credit

   Issue credit memo to customer for approved returns

6. Restock or Dispose

   Return acceptable items to inventory or dispose of damaged goods

Return Scenarios

• Defective Products - Quality issues or damage
• Wrong Items - Shipped incorrect products
• Buyer’s Remorse - Customer cancellation
• Warranty Returns - Repair or replacement under warranty
• Exchanges - Return one product and order another

Restocking Fees

Apply charges for non-defective returns:

• Percentage Fee - Percentage of original price
• Flat Fee - Fixed restocking charge
• No Fee - Waive for defective or company errors
• Tiered Fees - Variable by reason or time since sale

Sales Analytics

Analyze sales performance and trends.

Key Metrics

Sales by Period

Revenue trends by day, week, month, quarter, or year

Sales by Product

Top-selling products and category analysis

Sales by Customer

Customer ranking and concentration analysis

Sales by Salesperson

Individual and team performance metrics

Performance Analysis

• Order Backlog - Outstanding orders not yet shipped
• On-Time Delivery - Percentage shipped by promised date
• Order Cycle Time - Average days from order to shipment
• Fill Rate - Percentage of orders shipped complete
• Quote Win Rate - Quotes converted to orders
• Average Order Value - Mean order size by customer or period

Sales Forecasting

Project future sales:

• Historical Trends - Analyze past sales patterns
• Seasonality Analysis - Identify seasonal demand variations
• Pipeline Value - Weighted opportunity value
• Growth Rates - Calculate period-over-period growth
• Customer Trends - Individual customer purchasing patterns

Point of Sale (POS)

Process in-person sales and cash transactions.

POS Features

• Quick Product Search - Fast lookup by code or description
• Cash Register - Cash drawer integration and management
• Multiple Payment Types - Cash, card, check, or mixed
• Receipt Printing - Customer receipt generation
• End of Day - Cash reconciliation and deposit preparation

POS Order Processing

1. Open POS Terminal

   Start POS session and verify opening cash amount

2. Scan Products

   Scan or enter products for sale

3. Apply Discounts

   Add promotional or manual discounts

4. Collect Payment

   Accept payment and provide change

5. Print Receipt

   Provide customer receipt

6. Close Terminal

   Reconcile cash and close POS session at day end

POS orders are immediately completed, shipped, and invoiced in a single transaction. This creates instant revenue recognition and inventory reduction.

Order Automation

Automate repetitive sales processes.

Recurring Orders

Automate subscription and regular orders:

• Frequency - Daily, weekly, monthly, or custom schedules
• Start/End Dates - Control subscription duration
• Automatic Processing - Generate and process orders automatically
• Quantity Adjustment - Allow customer modifications
• Auto-Renewal - Extend subscriptions automatically

Standing Orders

Maintain ongoing customer commitments:

• Blanket Orders - Master order with periodic releases
• Call-Off Schedules - Planned delivery schedules
• Contract Fulfillment - Execute against customer contracts
• JIT Delivery - Just-in-time shipment coordination

Sales Commission

Calculate and manage sales commissions.

Commission Configuration

• Commission Rates - Percentage or fixed amount per sale
• Tiered Rates - Increasing rates for higher volumes
• Product-Specific - Different rates by product or category
• Split Commissions - Divide among multiple salespeople
• Override Rules - Adjust rates for special situations

Commission Processing

1. Define Commission Rules

   Set up commission rates and calculation methods

2. Assign Salespeople

   Link sales representatives to customers or orders

3. Calculate Commissions

   Run commission calculation process for period

4. Review and Adjust

   Verify calculations and make manual adjustments

5. Generate Payments

   Create commission payment records

Best Practices

Order Management

• Implement quote templates for standard configurations
• Require credit checking before order completion
• Use order reservations to prevent over-commitment
• Configure approval workflows for large or discounted orders
• Monitor order aging to identify delayed shipments

Pricing Control

• Maintain current price lists by customer segment
• Require approval for discounts exceeding thresholds
• Use discount schemas for consistent volume pricing
• Review pricing regularly against costs and competition
• Document price override reasons for audit trail

Fulfillment Efficiency

• Process orders in batches by ship date or region
• Use warehouse locations strategically for fast movers
• Implement barcode scanning to reduce pick errors
• Ship partial orders rather than holding entire orders
• Integrate with carrier systems for automated shipping

Customer Service

• Provide accurate promised dates based on inventory
• Communicate proactively about back orders or delays
• Process returns quickly to maintain customer satisfaction
• Use dunning processes consistently for collections
• Monitor metrics like on-time delivery and fill rates

Related Modules

CRM

Manage customer relationships and opportunities

Inventory

Track stock levels and fulfill orders

Accounting

Record revenue and manage receivables

Manufacturing

Produce made-to-order products