Operations:

Operations performs an initial assessment (for each line item on the Order) to determine one of two conditions:  material matching the demand on the Sales Order is not available in inventory, or material matching the demand on the Sales Order is available in inventory.

 

IF material matching the demand on the Sales Order is available in inventory:

Shipping Record – A Sales Order may be ordered to be Fulfilled All Concurrently, meaning to the Organization “don’t ship any until you can ship all”. Reasons for a customer to choose this may include protection of or lack of intermediate storage space or preventing the unnecessarily early incursion of payment liability (triggering Payment Terms or timers) when a partially fulfilled order is not of sufficient use. Other times, the design of the line items will communicate the fulfillment strategy. 

Depending on the design of the fulfillment strategy listed on the Sales Order, there may be one or many shipping events, each with a record of the event.

 

 

 

IF material matching the demand on the Sales Order is not available in inventory:

Operations performs an additional assessment to determine one of three conditions: material matching the demand on the Sales Order may be purchased, material matching the demand on the Sales Order may be transferred from another inventory, material matching the demand on the Sales Order may be built. 

IF material matching the demand on the Sales Order is to be purchased:

Purchase Order – After a Purchase Order is created and filled out, it is routed for Approval. The approval process is the sign-off process from the Organization to Purchasing. It is the process of agreement to the obligations that the Organization will incur by placing the order. From here the flow has a branch, with one new flow starting in Finance, while the main flow continues when the Purchase Order ( or parts of it ) are fulfilled. When the Purchase Order ( or parts of it ) are fulfilled, material will be brought into inventory.

Finance:

Supplier Invoice – Depending on the Payment Terms that are listed on the Purchase Order, Supplier Invoices may be due immediately upon the Purchase Order being ordered or they may be offset from the Date Ordered by some period or they may be held as Drafts until the Purchase Order ( or parts of it ) are fulfilled, or by some offset from that

Receiving Record – A Purchase Order may be ordered to be Fulfilled All Concurrently, meaning to the supplier “don’t ship any until you can ship all”. Reasons for an organization to choose this may include protection of or lack of intermediate storage space or preventing the unnecessarily early incursion of payment liability (triggering payment terms timers) when a partially fulfilled order is not of sufficient use. Other times, the design of the line items will communicate the fulfillment strategy. Depending on the design of the fulfillment strategy listed on the Purchase Order, there may be one or many receiving events, each with a record of the event. 

When a Receiving Record has been Completed, material is placed into Inventory.

OR

IF material matching the demand on the Sales Order is to be transferred from another inventory:

Inventory Order – After an Inventory Order is created and filled out, it is routed for Approval. The approval process is the sign-off process from the Organization to Purchasing. It is the process of agreement to the obligations that the Organization will incur by placing the order.

And Inventory Order places demand for material on another department within the Organization, which will have to perform an initial assessment to determine one of two conditions: (for each line item on the Inventory Order) material matching the demand on the Inventory Order is not available in inventory, or material matching the demand on the Inventory Order is available in inventory. The Department will then follow the same flow for bringing material into it’s inventory if necessary, until the Inventory order can be fulfilled.

Picking Record – An Inventory Order may be ordered to be Fulfilled All Concurrently, meaning to the Department “don’t fulfill any until you can fulfill all”. Reasons for a department to choose this may include protection of or lack of intermediate storage space. Once material matching the demand on the order has been picked from the originating inventory it will need to be accepted, or placed, into the destination inventory.

Placing Record – When a Placing Record has been Completed, material is placed into Inventory.

OR

IF material matching the demand on the Sales Order is to be built:

Work Order – And Work Order places demand for material on the Organization, which will have to perform an initial assessment to determine one of two conditions: (for each line item on the Work Order) material matching the demand on the Work Order is not available in inventory, or material matching the demand on the Work Order is available in inventory. The Organization will then follow the same flow for bringing material into it’s inventory if necessary, until the requirements of the Work Order can be fulfilled.

Picking Record – 

When a Work Order has been Completed, material is placed into Inventory.