Step 9: Setting up Sales Orders, Invoices, and Returns

In this section we’ll cover the following:

  • Order Entry
  • Document Transfer & Shipping
  • Returns Processing
  • Sales Inquiry

Dynamics GP includes a very useful Sales Transaction Entry screen. The Sales Transaction Entry screen can be used to enter, view, edit and process various transactions types; including quotes, orders, invoices, and returns.

Sales Orders

Navigate to the Sales Transaction Entry screen: Sales >> Transactions >> Sales Transaction Entry

To enter an order, select Order from the Type drop down list.

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Once you’ve entered the Customer ID, you can click on the Customer Detail Entry tab. In this screen you can override the default values for a specific order if you want.

Along the bottom are several buttons you can click on to provide additional information about the customer. The Payments button pops up the Customer Payment Summary Inquiry screen that provides current credit information about the client.

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The User-Defined button opens a screen that allows you to enter and track additional information about the specific order.

Enter sales line items by entering or looking up an Item Number. For non-inventory items, just enter some text to identify the item being included on the order. Enter the quantity. The correct price should be automatically filled in from the Item Price List.

Click on the Item Detail Tab to reveal the Sales Item Detail Entry screen.
Let’s look at two important concepts here:

  1. Throughout Dynamics GP you will see data entry screens and inquiry screens that have 2 or 3 rows of field labels that correspond to the data rows in the grid below them. For example, in the screen below, the filed label, “QTY Ordered” is in the first row of field labels (there are three rows of field labels in this screen) and it relates to the first row of data. The field label, “Quantity to Invoice” is in the second row of field labels and it relates to the second row of data.
  2. There are various Quantity Types on a sales transaction that assists you in managing your sales transactions. The Qty Ordered will be the quantity of the item that is being ordered. If you’ve set up your system to automatically allocate and fulfill orders, the Quantity Fulfilled and the Quantity to Invoice will automatically be set equal to the Qty Ordered.

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If you enter an order quantity for an inventory item of which you do not have an adequate supply, the Sales Quantity Shortage Options screen will pop up. You will need to indicate how you want to resolve the difference. Your options are listed below. The Distribute option allows you to select another inventory location from which to supply the item quantity.

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When you’re done entering the sales order, save it to a Batch ID.

Invoices

Generally organizations using Dynamics GP will indicate that a sales order has been shipped by transferring the sales order to an invoice. The transfer process can be done at a batch level or on individual transactions.

To transfer an individual sales order to an invoice, select the sales order in the Sales Transaction Entry screen. Click on Options and select the Transfer option. This will open the Sales Transfer Documents screen. Select “Transfer to Invoice” and “Include Totals and Deposits”. Click the Transfer button.

This will transfer all the sales line items that have a Qty to Invoice quantity to a new Invoice type sales document. Dynamics GP maintains an audit trail for related sales documents. You can view the audit trail by clicking on the blue expansion arrow to the right of the Document Number field.

Here you can see the Invoice and Sales Order documents linked together with drill downs to views of each.

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After the invoice has been reviewed for accuracy it can be posted. When an invoice is posted, the inventory quantities will be relieved from inventory, an invoice will be posted to accounts receivable, and all the associated general journal entries will be created.

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Returns

The Sales Transaction Entry screen can also be used to post customer returns.

When a quantity is returned for an item, the Sales Return Quantities Entry screen will open. You must distribute the total quantity to be returned among the various Quantity Types.

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Quantities in inventory are maintained by Quantity Type. This view of the 128 SDRAM item shows the various quantity types and current quantities.

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The quantities in a return document are displayed as positive numbers.

When the item has been returned, you can post the Return document. When the return is posted, the inventory for the items will increase for the indicated quantity types, a credit will be created in accounts receivables, and all the associated general journal entries will be created.

Take a look at this video to see this in action: Sales Orders, Invoices, and Customer Returns in Dynamics GP