Sales Orders

Overview

Sales Orders are used to process confirmed customer purchases and initiate fulfillment activities within Microsoft Dynamics 365 Business Central.

Sales Orders represent the official customer order and are used to:

• Reserve inventory
• Schedule shipments
• Generate warehouse shipments
• Create invoices
• Update inventory and financial records

According to Microsoft Business Central standard functionality, Sales Orders may be created directly from Sales Quotes while preserving pricing and customer information.

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Sales Order Process Flow

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Methods of Creating Sales Orders

Sales Orders may be created using three methods:

Method 1 – Convert Sales Quote

Benefits:

• Preserves pricing
• Preserves discounts
• Preserves delivery information
• Reduces manual entry

Method 2 – Create from Blanket Order

Used for long-term customer agreements.

The system consumes quantities from the Blanket Order.

Method 3 – Manual Creation

Used when:

• No Sales Quote exists
• Customer places immediate order
• Special circumstances apply

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Creating a Sales Order

Step 1 – Open Sales Orders

1. Open Business Central
2. Search for Sales Orders
3. Select Sales Orders
4. Click New

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Sales Order Header Fields

The Sales Order Header contains customer and shipment information.

Customer No. / Name

Select the customer.

When selected:

• Address populates automatically
• Payment terms populate automatically
• Shipping information populates automatically

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Promised Delivery Date

Specifies planned delivery date.

Used by:

• Customer Service
• Production
• Shipping Department

Received Date

Date customer order was received.

Used for:

• Order tracking
• Customer service reporting

External Document No.

Enter customer purchase order number. This is a mandatory field.

Example:

PO-45872

Used for customer reference.

Shipping Agent Code

Select shipping company. we use FPC codes for our company shipping

Examples:

Customer Pickup
UPS
FedEx
Purolator

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Sales Order Lines

Sales Order Lines define the products being ordered.

Available Line Types

Item

Used for:

• Powder Products
• Finished Goods

Charge (Item)

Used for:

• Freight Charges
• Additional Charges
• Surcharges

Comment

Used for:

• Customer Instructions
• Internal Notes

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Line Fields

No.

Select item number.

Example:

01-XXXXX
02-XXXXX

Location Code

Select warehouse location.

Before entering quantity, users should verify:

Item Availability by Location

This ensures sufficient inventory exists.

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Quantity

Enter required quantity.

Verify:

• Customer request
• Available inventory
• Pricing requirements

Sales Order Validation Rules

The system automatically validates orders before release.

Valid Price Check

Business Central verifies:

• Customer pricing exists
• Quantity meets pricing requirements

If valid pricing does not exist:

Result

Order cannot proceed.

User must:

1. Create a Sales Quote
2. Generate approved pricing
3. Create the Sales Order again

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Custom Item Tolerance

Custom manufactured products allow quantity tolerance.

Tolerance:

±10%

Example:

Quoted Quantity:

100 KG

Allowed Sales Order Quantity:

90 KG to 110 KG

This prevents unnecessary quote revisions.

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Blanket Order Requirement

If customer has a Blanket Order for the item:

Required Field

FP Blanket Order No.

must be entered.

The system uses this field to:

• Link order to Blanket Order
• Consume available quantity
• Validate releases

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Additional Sales Order Fields

Several custom FAM fields are available.

Is Sample

Used for sample shipments.

When enabled:

Unit Price = 0.001

Purpose:

• Product samples
• Customer testing
• Evaluation orders

Last Purchased Version

Displays:

Customer’s most recently purchased version.

Purpose:

• Reduce ordering errors
• Improve version tracking

FP Blanket Order No.

Defines Blanket Order source.

Required for Blanket Order customers.

No Additional Price

Available only to authorized users.

When enabled:

• Additional Freight Charges are skipped
• Partial Box Charges are skipped

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UOM and Currency Conversion

The system automatically supports:

Unit of Measure Conversion

Examples:

KG
LB

Pricing recalculates automatically.

Currency Conversion

The system uses exchange rates when currency code is selected.

Example:

CAD
USD

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Stock Quantity Controls

Special controls apply to stock products.

If order quantity is lower than the quantity used for pricing:

Result

The system blocks release.

User must:

• Correct quantity
• Correct pricing

Purpose:

• Protect pricing integrity
• Prevent under-quantity pricing abuse

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Releasing Sales Orders

Before release verify:

✓ Customer Information

✓ Delivery Dates

✓ Quantities

✓ Pricing

✓ Shipping Method

✓ Blanket Order Information

✓ Freight Charges

✓ Additional Charges

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Approval Rules

The system may require approval when:

Credit Limit Exceeded

Customer exceeds normal credit limit.

Maximum Credit Limit Exceeded

Customer exceeds maximum allowable credit.

Customer On Hold

Customer account has hold status.

Advance Payment Terms

Customer payment terms require advance payment.

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Warehouse Shipment Creation

After releasing the Sales Order:

1. Select Create Warehouse Shipment
2. Warehouse Shipment document is created
3. Warehouse team prepares products
4. Shipment is scheduled
5. Customer receives shipment

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Warehouse Shipment Hold Functionality

FAM Powder Coating uses a custom Warehouse Hold feature.

Field:

On Hold - FPC

Available on Warehouse Shipment documents.

Purpose of On Hold

Used when shipment should not proceed.

Examples:

1. COD Payment Pending: Customer payment not received.

2. Customer Account Issues: Credit or account problems.

3. Approval Required: Management approval needed.

4. Shipping Issues: Carrier or logistics issues.

5. Operational Issues: Any condition preventing shipment.

System Behavior

When On Hold – FPC is enabled:

Warehouse Shipment Appears Red

Provides visual warning.

Shipping Is Prevented Warehouse staff cannot process shipment.

Customer Signature Blocked Shipment completion is prevented.

Warehouse Staff Are Alerted Shipment remains on hold until resolved.

Removing a Hold

Once issue is resolved:

1. Order Desk removes hold
2. Shipment becomes active
3. Warehouse proceeds normally

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Roles and Responsibilities

Sales Team

Responsible for:

• Accurate Sales Orders
• Pricing verification
• Quantity verification
• Delivery date confirmation

Order Desk

Responsible for:

• Managing approvals
• Releasing orders
• Managing shipment holds
• Coordinating warehouse activities

Administration

Responsible for:

• Pricing maintenance
• Permission control
• Surcharge management
• System configuration

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Lesson Summary

After completing this lesson, users should be able to:

✓ Create Sales Orders

✓ Understand Sales Order fields

✓ Validate pricing

✓ Use Blanket Orders correctly

✓ Understand custom FAM fields

✓ Release Sales Orders

✓ Create Warehouse Shipments

✓ Manage Shipment Holds

✓ Understand approval requirements

✓ Process customer orders from acceptance through shipment