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Sales Quote

A sales quote is a document sent to a potential customer, offering to sell goods or services at a certain price under specified conditions. It allows buyers looking for specific products to get an estimate of the cost involved in completing the purchase.

Customer Service Representative (CSR) creates a quote for the customer with list prices and assigns the appropriate discount (based on customer relationship). If the discount is not yet in the system, the CSR creates the discount. After the customer approves the quote and sends the purchase order, a sales order is created from the quote.

Business Purpose

A sales quote is to let a customer know the cost of goods or services before they decide to purchase them. It can help the customer to decide what products or services they want to buy, at the best price.

There are a number of items that should be considered when preparing a quotation for a customer:

  • Products List

  • Discounted Rates

  • Time Period etc.

Actors

  • Customer

  • CSR

Scenarios

The three scenarios of the Sale Quote process are:

  1. Create Sales Quote

  2. Update Sales Quote

  3. Convert to Order

Create Sales Quote

Customer contacts CSR, with a request for a Quote for specific products and quantities for each. CSR records request for Quote, creates a Quote and sends it to the Customer. After getting approval from Customer and before the creation of the Sales order the CSR needs to update the Status of the Created Quote.

Diagrams

Level 1

Level 2

Level 3

Update Sales Quote

A sales quote can be updated by the CSR due to any reason such as bulk orders, special privilege discount or one to one negotiation on price etc.

Quote updating process includes:

  1. Add/Remove items from existing Quote

  2. Update product quantity

  3. Update price of items

Diagrams

Level 1

Level 2

Level 3

Sales Order

A sales order is an agreement between a business association and a customer concerning the delivery of products or provision of services. This process involves order capturing, order status management, payment terms and method setup etc.

A customer can place an order from the storefront or a customer service representative (CSR) can place the order on behalf of a customer from the back end.

Business Purpose

A Sales Order from the customer notifies the business of customer wants. It tells the business who is the customer, what are the products or services ordered, what is the payment term and method, what are the billing and shipping addresses, any special instructions for delivery, order priority etc.

Sales Order document is created in the system with a unique reference number that comes in handy for better customer service afterward. It enables a business to offer the customer to have a choice to change ordered items. The customer also gets the details of the order which can be accessed through his profile on the storefront at any time if registered or else can use the order reference number while contacting the business for reporting any issues.

Order status transitions help business to filter orders based on status (Created, Approved, Rejected, Completed etc.) Current order status tells the state of order in the system at any given time which is used effectively by CSRs while communicating with customers over the phone.

Order payment terms and method tells the business how the order payment is going to be processed. It helps in timely fulfillment of orders, which is key to success for any business. Same is with billing and shipping information on the order, it tells the business which address to be used for invoicing and which one for shipping. Having an effective order capturing process helps to engage your customers.

A customer always provide shipping method details to let the business know about his shipping preference to ship the order and in other ends, CSR always captures shipping method along with special instructions for delivery.

Scenarios

  1. Create Order
  2. Update Order
  3. Order Status 
  4. Payment terms and methods

Create Order

CSR creates a sales order for the customer from the backend as per the given information like personal details, contact information, billing and shipping information, and payment terms and methods. A customer can create a sales order from the storefront as well. 

Diagrams

Sales Order from Backend

Level 1

Level 2

Level 3

Update Order

A CSR can edit or update in order to make changes in it based on customer requests or can add notes for handling. 

Diagrams

Update Sales Order

Level 1

Level 2


Level 3

Order Status

An Order Status is an easy visual indication to alert business about the orders requiring actions or not.

An Order can have the following status:

  • Created

  • Approved

  • Processing

  • Sent

  • Held

  • Rejected

  • Completed

  • Cancelled

Diagrams 

Manage Order Status

Level 1

Level 3

Payment Terms and Method

Payment Terms are conditions agreed between business and customers for the payment of invoices. Selecting Payment Terms and Methods are key things in fulfillment of any order process.

Various payment terms in OFBiz are:

  • Financial
  • Payment Net Days
  • Late Fee (percent)
  • Penalty for Collection Agency
  • Non-compete etc.

Various payment methods in OFBiz are:

  • Billing Account
  • Cash
  • Cash on Delivery
  • Certified Check
  • Company Account
  • Company Check
  • Credit Card
  • Electronic Fund Transfer
  • Financial Account
  • Gift Card
  • Gift Certificate
  • Money Order 
  • Offline Payment
  • Paypal
  • Personal Check etc.

Payment Terms

Level 1

Level 2

Payment Method

Credit Card

Billing Account








 



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3 Comments

  1. Shivangi, Nice work and thanks for the great initiative. Much Appreciated.

    Here are some points that I've noticed during the review :
    1. Just a thought, we can replace "Sold-to-party" with "customer" to make it simple and consistent, as we have used customer across the document.
    2. Please use Customer Sales Representative (CSR) in the very first statement and then use abbreviation across the document.
    3. In business purpose, Customer always provide shipping method details to let the business know about his shipping preference to ship the order and in other ends, CSR always captures shipping method along with special instruction for delivery, so we can add this information to make it more complete.
    4. Please add space before "Having an effective order" text.
    5. We can change Sales Order from backend to Sales Order from Backend.
    6. Level 1 diagram:
    i) We should use Add item(s) to cart as a customer can add more than one item to cart.
    7. Level 2 Diagram:
    i). Created Sales Order title is in different font size. Please make it consistent with others.
    ii). Please add another decision box with condition "Add More Products?", if yes then the user should be directed to choose product step else to direct her to set shipping address step.
    8. Level 3 Diagram:
    i). We can represent that user can add more than one product to cart.
    ii). After "Apply Coupon Code" should direct to Create Order in the diagram.
    9. General Observations:
    In Diagram and document we are using multiple ways to write following :
    - Create Order/Create order
    - Payment terms and methods
    - Set Product Store
    - Create Customer
    Please use capitalization in headings, box text etc.

    1. Thank You Ratnesh for the valuable feedback. It surely helps me learning and doing things correctly.

  2. Hello Ratnesh,  Thanks for the input. I have resumed this documentation effort and resolved all the comments suggested by you. Please review and provide your feedback.