Business Specific terminologies
Sales Order
A sales order is a document generated by the seller specifying the details about the product or services ordered by the customer. Along with the product and service details, sales order consists of price, quantity, terms, and conditions etc.
Components of sales order
A sale order usually carries information such as customer’s name, shipping address, transaction date, products ordered, descriptions, units of measure, quantities, prices, taxes, etc.
Types of sales order
Primary Order :
Secondary Order :
Purchase Order
A purchase order, or PO, is a legal document a buyer sends to a supplier or vendor to authorize a purchase. Purchase orders outline what the buyer would like to purchase and how much of it they would like to receive. These agreements help both the buyer and seller document transactions.
Types of PO
Standard PO, Planned PO, Blanket PO, Contract PO, Digital PO
Inventory
Inventory is the raw materials used to produce goods as well as the goods that are available for sale. It is classified as a current asset on a company's balance sheet. The three types of inventory include raw materials, work-in-progress, and finished goods. Inventory is valued in one of three ways, including the first-in, first-out method; the last-in, first-out method; and the weighted average method. Inventory management allows businesses to minimize inventory costs as they create or receive goods on an as-needed basis.
Product master
A product master is associated with a product dimension group and a configuration technology to specify the business rules. The product dimensions (Color, Size, Style, and Configuration) are a specific set of attributes that can be used throughout the application to define and track specific behaviors of the related products. These dimensions also help users search for and identify the products. Product Master hold the definition and rules that specify how distinct product are described behave in business processes. Based on these definitions, distinct products can be generated.
Distributor Master
Distributor master data refers to the central repository of information related to distributors that a business works with. This data typically includes basic information such as the name, address, and contact details of the distributor, as well as more detailed information such as:
Product data: Information about the products that the distributor carries and sells, including SKUs, pricing, and inventory levels.
Sales data: Information about the distributor's sales performance, including order history, revenue, and profitability.
Marketing data: Information about the distributor's marketing activities, such as campaigns, promotions, and events.
Financial data: Information about the distributor's payment terms, credit limits, and payment history.
Relationship data: Information about the history and status of the relationship between the business and the distributor, including any issues or concerns that have arisen.
Primary Sales & Secondary Sales
Primary sales: This refers to the sale of products from the manufacturer or supplier to a distributor or retailer. It is the first transaction in the supply chain, and it represents the transfer of ownership from the manufacturer or supplier to the distributor or retailer.
Secondary sales: This refers to the sale of products from the distributor or retailer to the end customer. It is the second transaction in the supply chain, and it represents the transfer of ownership from the distributor or retailer to the end customer.
In other words, primary sales represent the movement of goods from the manufacturer or supplier to the distributor or retailer, while secondary sales represent the movement of goods from the distributor or retailer to the end customer.
Both primary and secondary sales are important for businesses to track and manage, as they can provide valuable insights into sales performance and customer demand. By monitoring primary and secondary sales data, businesses can identify trends, optimize their supply chain, and make informed decisions about inventory management, pricing, and marketing strategies.
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