Blanket and Quote Orders

Transcription

1 This chapter from our 1,000 page JD Edwards Sales Order manual is being made available as a sample of our training manuals. Please contact Sandy.Acker@ERPtips.com if you have any JDE training needs, or visit for more information. Written by Andy Klee and Jane Perry With contributions from many other Mastery Level consultants Published by Klee Associates, Inc. Copyright Klee Associates, Inc Blanket and Quote Orders Blanket and Quote orders are special orders that have a very short life. Blankets are generally used to reflect an agreed price or quantity with a customer while Quotes are used to communicate pricing and quantity to a customer. Blanket Orders Blanket Orders are typically used when there is an agreement with a customer that he/she will buy X amount of product over a specified period of time at a specified price. For example, if Customer 3001 wanted to set up an agreement to buy 500 of the 210 bicycles over the next 12 months, at a price of $17,000 each, we would set up a blanket order. (Remember the price is so high because of the Superanium alloy we use.) As shipment requests are received from the customer, we would do a call off against the blanket order, creating a sales order, and reducing the open quantity on the blanket. Once the blanket order quantity is 100% released, the price reverts back to the regular price. The blanket order does not affect today's availability. We will look at the following steps: Setup necessary for blanket orders Entering a blanket order The effect of a blanket on item availability Two methods of releasing a sale against a blanket What occurs when a release exceeds the quantity available on the blanket Cancel Date functionality in the blanket order Automatic Release when there is more than one blanket order Sales Order 8.12 Rev. 03/19/09 1 JDEtips Sample Training Chapter Sales Order Blanket Orders.doc

2 Blanket and Quote Orders Klee Associates, Inc. What happens in Batch Order Creation How to see all the releases against a blanket Pricing implications of Blanket Orders 2 Rev. 03/19/09 Sales Order 8.12

3 Klee Associates, Inc. Blanket and Quote Orders Setup Necessary for Blanket Orders The first question is: What setup makes a blanket order different from a regular sales order? Since the basic difference lies in the fact that the order is not committed against today's available stock, let's look at the commitment processing options first. From the Sales Order Processing menu (G4211), select Blankets (P4210) and review the Processing Options. On the Commitments tab, option 2 is set to 1 to commit to Other Quantity 1. Sales Order 8.12 Rev. 03/19/09 3

4 Blanket and Quote Orders Klee Associates, Inc. On the Process tab, note option 7 is blank. It is important that the actual Blanket Order Entry application is set this way. This option is used by standard order entry to release quantities from blankets. If this option is turned on for Blanket Order entry, you will actually consume existing blankets! If you had to make changes, click OK. Otherwise, Cancel back to the menu. 4 Rev. 03/19/09 Sales Order 8.12

5 Klee Associates, Inc. Blanket and Quote Orders Let's go to menu G4241 and select Branch/Plant Constants. Find Branch 10 and Row exit to Availability. Verify that Other Quantity 1 is not subtracted from On Hand. As you can see, Other Quantity 1 is not subtracted from the On Hand. Sales Order 8.12 Rev. 03/19/09 5

6 Blanket and Quote Orders Klee Associates, Inc. That's the only real difference between a blanket and a normal sales order. We typically use a different order type to distinguish between Blankets and Sales. Item Availability Use Summary Availability (G41112) to confirm the current available quantity on hand. Your availability might be different. Just note your current availability. Scroll to the right to view the Other Quantity 1 field. Currently zero. 6 Rev. 03/19/09 Sales Order 8.12

7 Klee Associates, Inc. Blanket and Quote Orders Leave this application active. Enter Blanket Order From the Sales Order Processing menu (G4211), select Blankets (P4210). Click Add. Sales Order 8.12 Rev. 03/19/09 7

8 Blanket and Quote Orders Klee Associates, Inc. Enter an order as follows: Ship To 4242 Cancel Date 90 days from current date Quantity Ordered 500 Item 210 Unit Price Click OK. Click Cancel to return to the Customer Service Inquiry form. Click Close to return to the menu. Item availability Check Summary Availability again. 8 Rev. 03/19/09 Sales Order 8.12

9 Klee Associates, Inc. Blanket and Quote Orders You'll see that the on hand, committed, and available numbers haven't changed. But if you scroll to the right you'll see a quantity of 500 in the Other Quantity 1 column. Two Methods of Releasing a Sale Against a Blanket The first method involves setting up Sales Order Entry to do blanket order release. The customer calls up and places a sales order. Order Entry needs to tell us that there is a blanket order to be released against. Sales Order 8.12 Rev. 03/19/09 9

10 Blanket and Quote Orders Klee Associates, Inc. From menu G4211, select Sales Order Detail and review the Processing Options. On the Process tab, there is an option (as we mentioned before) that allows this version of Order Entry to consume existing blankets. You have a choice to make to tell the system how to look for blanket orders. 10 Rev. 03/19/09 Sales Order 8.12

11 Klee Associates, Inc. Blanket and Quote Orders When you use blanket or quote order processing, the system locates applicable blanket or quote orders from which you can create either multiple sales orders for partial quantities, or a single sales order when you release the complete quantity. Valid values are: Blank The system does not use blanket or quote order processing 1 The system processes blanket/quote orders based on Ship To address 2 The system processes blanket/quote orders based on Sold To address 3 The system processes blanket/quote orders based on Sold To address and Customer PO 4 The system processes blanket/quote orders based on Ship To address and Customer PO Sales Order 8.12 Rev. 03/19/09 11

12 Blanket and Quote Orders Klee Associates, Inc. 5 The system processes blanket/quote orders based on Deliver To address. 6 The system processes blanket/quote orders based on Deliver To address and Customer PO Xe only has options 1 and 2 available. Set the value to 1. Scroll down to options 16 and 17. These options were added post Xe as well. Option 16 is used to specify whether the system will manually or automatically release a selected blanket order if more than one blanket order is available. Valid values are: Blank The system will not release a blanket order when more than one blanket order is available. You will need to manually select and release blanket orders. 1 The system will select and release the blanket order with the earliest cancel date. If more than one blanket order has the same cancel date, the system will process releases based on the earliest requested date. Option 17 is used to specify whether the system will manually or automatically release a selected blanket order if only one matching blanket order exists. Valid values are: Blank The system will release a blanket order if only one matching blanket order exists. 1 The system will not release a blanket order if only one matching blanket order exists. You will need to manually select and release blanket orders. For now leave these two options blank. Click OK to continue into Order Entry 12 Rev. 03/19/09 Sales Order 8.12

13 Klee Associates, Inc. Blanket and Quote Orders Click Add. Enter a Sales Order for 5 of the 210s to Ship To customer We got our price! Accept the order and re-inquire in Customer Service Inquiry. Select the order and Row exit to Order Additional Information. Sales Order 8.12 Rev. 03/19/09 13

14 Blanket and Quote Orders Klee Associates, Inc. The released sales order references the original blanket order. Cancel back to Customer Service Inquiry. Let's look at the Summary Availability form to see the effect of doing the release. 14 Rev. 03/19/09 Sales Order 8.12

15 Klee Associates, Inc. Blanket and Quote Orders As we expect, 5 have been soft committed. Scroll over to the right: The quantity committed against Other Quantity 1 has been reduced by 5. Since the total quantity committed against Other Quantity 1 could be comprised of more than one blanket order, it's important to know how to look at the blanket order itself and know how many have been released. Let's inquire on the blanket order: Sales Order 8.12 Rev. 03/19/09 15

16 Blanket and Quote Orders Klee Associates, Inc. There's no evidence on the blanket itself that a release has been done. Here's a neat little trick. Type 0 in the Quantity Ordered field and arrow down to the next line: The error message says: Error: Qty can't be less than qty released 5. So we know the system is keeping track on each blanket of the quantity released. Let's go look at the F4211 file to see how the system is keeping track. 16 Rev. 03/19/09 Sales Order 8.12

17 Klee Associates, Inc. Blanket and Quote Orders Type UTB in the Fast Path box. Click File, Open Table. Type F4211 in the Table field. Click OK. In the QBE line, type your Blanket Order Number in the column labeled SDDOCO. Press Enter. Scroll about 1/3 of the way over to the right, until you see the SDQTYT field: You will see 5 in the SDQTYT field. This is where the system tracks the quantity released against each order line. Sales Order 8.12 Rev. 03/19/09 17

18 Blanket and Quote Orders Klee Associates, Inc. UDC 40/BT You might be wondering how the system knew to look for SB orders to do the release against when we entered the SO. There's a User Defined Table (40/BT), which stores blanket order types. If you have your own blanket order types, you'll have to put them in this table; otherwise, the automatic release process will not work. This UDC contains blankets and quotes for the sales order system as well as blankets and quotes for the procurement system. Release Blankets Another way to see what has been released, and another way to do releases is through the Release Blankets program (P420111) on the Additional Order Processes menu (G4212). Review the processing options. 18 Rev. 03/19/09 Sales Order 8.12

19 Klee Associates, Inc. Blanket and Quote Orders On the Version tab, make sure that the versions are all blank. Click OK. Click Find. Scroll over to the right, and you'll see the Quantity Ordered and Quantity Ship To Date: Sales Order 8.12 Rev. 03/19/09 19

20 Blanket and Quote Orders Klee Associates, Inc. Select your order, and we'll do another release against the blanket. Let's just release 10 more, so change the release quantity to 10 and click OK. Note that you can also enter the Request Date. Notice the asterisk in the Qty Ind column. 20 Rev. 03/19/09 Sales Order 8.12

21 Klee Associates, Inc. Blanket and Quote Orders If you were doing multiple releases for the same customer, the system could aggregate the releases into one sales order. Now, click the Form exit for SO Generation: Notice in the top right corner, there is a number and document type in the Added Order fields: The advantage of using this program over Sales Order Entry to do releases is that if the client calls and says I want to order this item but not do a release against the blanket, then you can't use the automatic process in order entry at all. You will need to do all your releases with the Release Blankets program. What Occurs When a Release Exceeds the Quantity Available on the Blanket We have a quantity of 485 available on the blanket order. Let's try entering a regular sales order for a quantity of 550: Sales Order 8.12 Rev. 03/19/09 21

22 Blanket and Quote Orders Klee Associates, Inc. We get a green check mark on the left. This is our signal that we need to take the Row exit labeled Blanket Orders. Using the Show All Columns format, you can scroll to the right, and you'll see a check mark in the Blankets Exist column. There are several other conditions that could generate a green check mark on the left side of the order, so you can't always assume it's because there's a blanket order. Click the Row exit for Blanket Orders. This form is telling us that we only have 485 left on the Blanket. Go ahead and enter the 550 in the Quantity Ordered field. Click OK to confirm that we want to exhaust the blanket order. 22 Rev. 03/19/09 Sales Order 8.12

23 Klee Associates, Inc. Blanket and Quote Orders The line was split with the 485 at the blanket price and the remaining 65 at the standard price. Not such a good deal for this customer huh? Click OK to accept your order. Do you think that fully releasing the blanket order should bump the status of the blanket to 999? Go to the Blanket Order program on the Sales Order Processing menu (G4211) and find your order. Looks like the blanket is fully consumed and closed. Cancel Date Functionality in the Blanket Order We haven't mentioned the fact that Sales Orders can have a cancel date. The reason we haven't mentioned it yet, is that there is no functionality associated with the cancel date, except with regard to blanket orders. Sales Order 8.12 Rev. 03/19/09 23

24 Blanket and Quote Orders Klee Associates, Inc. Once the system date is past the cancel date, you cannot do any blanket releases. Let's test this by creating a blanket order with a cancel date of yesterday. Enter a quantity of 100. Click OK to accept. Cancel back to Customer Service Inquiry and find your order. To view the cancel date and all other dates associated with the order, select the detail line and Row exit to Order Dates. 24 Rev. 03/19/09 Sales Order 8.12

25 Klee Associates, Inc. Blanket and Quote Orders Now, let's try to do a release against the blanket by entering a regular sales order. We can tell right away that the blanket was not found the unit price is not the price from the blanket. Check out Blanket Order Release to see if it checks the cancel date. Find your order and select the line for release. Error on cancel date! Sales Order 8.12 Rev. 03/19/09 25

26 Blanket and Quote Orders Klee Associates, Inc. Earlier releases of Xe did not completely check the cancel date. Be sure to test this functionality if you use cancel dates on your blanket orders. Automatic Release When There Is More Than One Blanket Order If there is more than one blanket order for a given customer and item, what do you think the system will do? On your own Enter two blanket orders for customer One for 100 of item 210 at each and cancel date of 90 days from current date One for 100 of item 210 at each and cancel date of 60 days from current date Enter an order for 50 of the 210. You get the green check mark again. The system will not decide which blanket to use. You must manually select. Just cancel this order and return to the menu to review the Processing Options. 26 Rev. 03/19/09 Sales Order 8.12

27 Klee Associates, Inc. Blanket and Quote Orders On the Process tab, scroll down to options 16 and 17. You can see why the system was not relieving any blankets; the option told it not to. Set option 16 to use cancel date. Now enter the same order. The system selects the order with the earliest cancel date. Sales Order 8.12 Rev. 03/19/09 27

28 Blanket and Quote Orders Klee Associates, Inc. What Happens in Batch Order Creation and EDI? Batch Order Creation is used by clients who have outside systems that feed data to JDE that is then used to create sales orders. The EDI suite has its own batch order creation program. Both programs will do releases against blanket orders. But what happens when there is more than one blanket order? Or if the ordered quantity exceeds what is available on the blanket? Since this is a manual process in Online Order Entry, the batch order creation program does not find any blanket orders if more than one could be applied. How to See All the Releases Against a Blanket This is a nice to know tip. Simply inquire in the Customer Service Inquiry using the Original Order number field on the Additional Selections tab: This will bring up all orders released against a particular blanket order. Pricing Implications of Blanket Orders Normally, blanket orders have manually entered prices. Orders released against these blanket orders have their Price Override flag set. This is what we would expect, because we wouldn t want repricing to override the price on a release against a blanket that had a manually-entered price. The Price Override flag is also set in the released order this prevents repricing from incorrectly changing the price to the regular (non-blanket) price. An example of when this might not be a good way to price blankets is in the Home Heating Oil industry. Blanket Orders represent the contracted quantity that the customer agrees to buy over the cold season. We may not want to enter a price manually, but rather have the system look up a special blanket price based on the customer type (Residential vs. Commercial). The only way to do this is to set up the base price as the first price adjustment in Advanced Pricing, and to base it on an order detail group that includes document type as a driver field. 28 Rev. 03/19/09 Sales Order 8.12

29 Klee Associates, Inc. Blanket and Quote Orders If we didn't do this, then we'd have to enter the price manually every time we enter a blanket order. Plus, we'd lose other adjustments such as per gallon taxes. However, if a blanket order is entered without overriding the price, then releases against that blanket do not have the Price Override flag set, and they may be repriced. This is especially dangerous if your blanket price was automatically derived from quantity breaks, because the release would be repriced using the quantity on the released order, and would not benefit from the original quantity break on the blanket order. Previous versions of both World and EnterpriseOne did not carry forward any price history from the blanket order. So be aware that if you are not on EnterpriseOne Xe, even if you do not manually override the price when the blanket is entered, the blanket order releases may appear to have no Price History (F4074) records. The records are actually in the file, but they have their Price Override flag set. You may need to create a batch job to blank out the Price Override flag prior to Invoice Print. Other Blanket Release Processing Combinations You have the option of releasing blanket orders with a direct match on fields other than just the Sold To and Ship To. On your own Enter several blanket orders with combinations Customer PO and Sold To; Ship To, and Deliver To. Change the processing options for each combination and release against combination. Quote Orders Quotes are used when a customer requires a formal price quote but is not ready to commit to a sales order. Sales Order 8.12 Rev. 03/19/09 29

30 Blanket and Quote Orders Klee Associates, Inc. Entering a quote and converting a quote to a firm order is very similar to the blanket order handling we just looked at. Quote Orders, generally: Affect Other Quantity 2 instead of current availability May be released two ways, either automatically in Order Entry, or through a Quote Release program May also be converted to a sales order via the copy function. Since we have already covered the first two bullets, let's concentrate on the third option convert to a sales order via the copy function. From menu G4211, select Quotes. Review the Processing Options. On the Commitment tab, Option 2 should be set to Commit quantities to Quantity 2. ClickOK. 30 Rev. 03/19/09 Sales Order 8.12

31 Klee Associates, Inc. Blanket and Quote Orders Enter a quote order for Customer 4242 for 1000 of Item 210 at a price of 18,000. Check Item Availability to see that Other Quantity 2 was updated with the 1000 units. Sales Order 8.12 Rev. 03/19/09 31

32 Blanket and Quote Orders Klee Associates, Inc. From menu G4211, select Sales Order Detail. Find the quote order, select it, and click Copy. 32 Rev. 03/19/09 Sales Order 8.12

33 Klee Associates, Inc. Blanket and Quote Orders Change the quantity to 100, blank out the extended price, and click OK. From Customer Service Inquiry, find the new order. Select the grid line and Row exit to Orders Additional Information. Sales Order 8.12 Rev. 03/19/09 33

34 Blanket and Quote Orders Klee Associates, Inc. The original order information is updated with the Quote order number. Let's just check and see if the 100 units of the quote were consumed. From menu G4212, select Release Quotes. 34 Rev. 03/19/09 Sales Order 8.12

35 Klee Associates, Inc. Blanket and Quote Orders Find your order. Uh oh copy function does not relieve the Quote. All of the rest of the functionality associated with Blankets applies to Quotes. Sales Order 8.12 Rev. 03/19/09 35

36 Legal Speak: Purchase of this book or acquisition at a JDEtips class, constitutes an implied agreement by the purchaser to a limited, license granted to the purchaser by Klee Associates, Inc., specifically for purposes limited to improving your personal knowledge of JD Edwards software which does not in any way compete with Klee Associates. This manual is protected by copyright law, and is sold or is part of a JDEtips class with the following conditions: The manual will be used for your personal professional development. The manual will not be physically copied for distribution to other individuals or converted to an electronic copy for distribution to other individuals, unless copyright permissions for copying have been acquired from Klee Associates, Inc. The manual will not be used to conduct training classes by the you or other individuals, without the written permission of Klee Associates, Inc. Inclusion of the concepts in this book in any internal client training material is allowed if the source of the concepts is acknowledged as follows: Copyright All rights reserved. Used with permission. Klee Associates, Inc. NO WARRANTY: This documentation is delivered as is, and Klee Associates makes no warranty as to its accuracy or use. Any use of this documentation is at the risk of the user. Although we make every good faith effort to ensure accuracy, this document may include technical or other inaccuracies or typographical errors. Klee Associates reserves the right to make changes without prior notice. JDEtips is a valued resource for thousands of clients and consultants worldwide. Visit our web site for more information about upcoming training, books, and newsletters. Sales Order 8.12 Rev. 03/19/09 36 JDEtips Sample Training Chapter Sales Order Blanket Orders.doc