QuickBooks Enterprise is a popular accounting solution used by multiple industries all over the world, but most of them are not fully aware of its capabilities. They often tend to overlook one of the essential features – Order Management.
It is an important component of QuickBooks Enterprise designed especially for manufacturers, distributors, wholesalers, etc. After all, a smooth sales and order process is the key to ensure customer satisfaction.
What is order management, and why is it used?
Order management is the process of acknowledging a purchase that will be delivered in the future. It is used to keep track of the items purchased by the customers. For instance, you may face a situation where a customer has purchased an item, and it is on backorder. So, you need to provide an acknowledgment of the order to the customer.
When Can You Use Order Management?
There are two situations in which order management is widely used:
- If you have a regular customer, there is no need to generate an invoice with every purchase. You can send a sales order with the purchase and send an invoice at the end of the week.
- If you do not have the item(s) that the customer has ordered, you can list everything in the sales order and send an invoice for the in-stock items. This way, both the parties will be able to track the items that are yet to be shipped.
How To Use Order Management?
To use order management, follow the below-mentioned steps:
When you receive a purchase order, entering a sales order in QuickBooks Enterprise is an acknowledgment that the sale is promised. This means that the revenue has not been generated yet, and the stock has not been released.
This shows that the item will be ‘sold in the future’ so that the company can track whether they will be able to deliver the item or not. If not, they can start the process to procure the item based on the sales order. QuickBooks Enterprise also helps to generate reports showing the stock levels of in hand, promised, and ordered items.
You can complete one or multiple orders at a time. If you wish to complete multiple orders at once, use the Sales Order Fulfillment Worksheet. Otherwise, you can use individual sales order forms.
Completing the order means to pick, pack, and ship it. It means that the inventory is released, but the revenue has not been generated yet. QuickBooks helps in documenting all the steps mentioned above.
This step is where QuickBooks gets to know that the inventory number has changed and records revenue generation. This is also where it creates an amount that is owed by the customer.
When you use order management in QuickBooks, you can bill multiple orders in one invoice. It is beneficial for streamlining the invoicing process for customers who order regularly.
Benefits of Using Order Management
- Partial Invoices – Order management is the perfect way to create partial invoices. For instance, the customer had ordered 100 pieces of an item, and you could deliver 60 pieces only, you could create a sales order for 100 pieces and generate an invoice for 60 pieces.
- Track Backorders – In the example above, there is a backorder of 40 pieces. You can easily track and deliver such backorders with the order management feature.
- Sales Order Fulfillment Worksheet – Use this feature to get a transparent look at all your orders and manage them.
QuickBooks Enterprise comes loaded with features that make it a complete business management solution. Just like the order management feature discussed above, it is packed with several other similar features that make it Intuit’s flagship product.
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