1. The Fulfillment Process

2. Lecture Introduction A few state and OFBiz status notes
Behavioral interaction diagrams
Sequence and state chart
The sales process in detail

3. A Review of UML Diagrams

4. Introduction to State
We have talked about a system’s structure through class diagrams
We have described system behaviors through use case and activity diagrams
Some objects and their processes have a state

5. UML And State
An snapshot of attribute values and relationships between objects at an instance in time
A purchase order is awaiting approval
A purchase order is approved
Some attribute do not affect state
Events take place causing state transitions
And order is received triggering accounting transactions to be posted

6. State and the Sales Objects
Four parts to the order-to-cash process
Ordering
ORDER_STATUS
Shipping
SHIPMENT_STATUS
Invoicing
INVOICE_STATUS
Payment
PMNT_STATUS

7. ORDER_STATUS

8. SHIPMENT_STATUS

9. INVOICE_STATUS

10. PAYMENT_STATUS

11. Magic Occurs Here

12. Steps in the Fulfillment process
The fulfillment process involves
Creating customers
Creating sales orders
Receiving purchase orders from customers
Shipping orders
Sending and processing invoices
Processing payments
Managing credit

13. Master Data (Customer)
Contains all information about a customer
Every customer must have a master record
General data (name, address, account number)
Contact information
Shipping information, contact, etc.
Login information (access to catalog)
A store

14. Master Data (Material)
Remember that vendors sell us materials
These are the same materials discussed in the previous chapter
Trading goods
We make materials for resale too
Finished goods
We don’t work with them here but there are also consignment goods

15. The Fulfillment Process
Presales activities (these are optional)
Quotations
Outline agreements
Sales activity
Generate sales order
Shipping
Picking documents, packing, delivery, goods issue
Invoicing and payment

16. Pre-sales Activities Sales support and CRM Quotation
It’s our offer to the customer to supply selected products at a specific price with specific delivery instructions

17. Sales Order
It’s the acceptance of binding contract between our company and the customer
Created though
Internet orders
Existing contracts
Sales quotations (just discussed)

18. Sales Order (Contents)
Customer specific
Contains customer information, pricing, and material information
Order specific
Pricing
Shipping point
Material information
Delivery information
Credit limit check
MRP transfer

19. Delivery Scheduling Orders don’t necessarily ship immediately
We must often request a delivery date
This delivery date must be “possible”
The system helps perform the delivery scheduling and availability determination
Scheduling is performed using backward and forward scheduling rules
More in the topic of warehouse management

20. Shipping and Routing Information
Determines the shipping point for each line item (material)
An order can be shipped from multiple warehouses
The route determination is used to define the transit time from the shipping point to the destination
We will not talk much about route determination

21. Order Pricing
Contains all pricing information for each specific material
Taxes and freight can be calculated automatically based on internal rules

22. Shipping (Deliver)
The process begins when the sales order delivery documents are created
The process is make up of
Picking
Packing
Loading
Confirmation (post goods issue)
More detail on this process later when we get to warehouse management

23. Picking Quantities are based on delivery note
Assigned date when picking should begin
Supports serial number/lot number tracking and batch management

24. Packing and Loading
Identifies and updates accounts associated with returnable packaging
We will not work with returnable packaging
Tracks the packed product by container
Insures weight/volume restrictions are enforced
All packed items are assigned to the required means of transportation

25. Shipping (steps) Generates packing proposal
Calculates weight and volume
Checks scheduling
Considers partial deliveries
Updates route assignment
Assigns picking location
Updates sales order
Determines batches
Quality check (if needed)

26. Goods Issue
It’s the change of ownership of our products from our company (Inventory) to their company
(FI) Goods are transferred from inventory to cost of goods sold
GL accounts are updated
The shipping process ends

27. Billing (Introduction)
The data is gathered from the sales order and delivery documents
Types of billing
Order-based billing
Delivery-based billing
Outcome is the customer’s invoice
Credit status is updated

28. Common Billing Methods
Delivery-based
1 invoice per delivery
Collective-based
1 invoice for several deliveries
Split invoicing
Multiple invoices for one delivery

29. Billing Documents When posted,
Accounts receivable is debited
Revenue accounts are credited
The document is passed to financial accounting (FI) awaiting payment

30. Payment
Payment is the final step in the sales order process, this step is managed by the Financial Accounting department.
Final payment includes:
Posting payments against invoices
Reconciling differences between payment and invoice
Payment will create a posting clearing the liability in the A/R account and increases your bank account