Order proposal and stock check

Within Profit, you have four stock check options for an article and five options for using the order proposal. Each combination is possible but not every combination is useful. A correct method of stock management results in a low stock level (low costs) and a high delivery reliability.

Which combination is the best depends on the nature of the article (price, delivery time, shelf life, etc.) and your stock policy (do you want to hold as little stock as possible, always hold more than enough, etc.). The various combinations are explained below.

Profit also provides stock profiles that already contain the most common combinations. If the stock profiles do not meet the requirements of your stock policy, you can choose to create your own combinations (ad hoc for an article or as your own stock profile for a group of articles).

If you need more information, first read the explanation of the stock check options without the order proposal options.

The options for order proposals in the case of sales for an article are:

  • Always (entire order line processed via purchase order)
  • Never (no action required after sales order)
  • Remainder (order line stock deficit)
  • Always ask (regardless of stock shortage)
  • Ask in case of stock shortage

Combinations of stock check and order proposal you can set manually include:

 

Order proposal

Stock check 

Always

Never

Remainder

Always ask

Ask if stock shortage

Check for available stock (sales order and packing slip)

1

2

3

4

5

Check for economic stock (sales order)

 

6*

 

 

 

Check for available stock (packing slip)

7

8

9

10

11

No stock verification

12

13

14

15

16

In addition to these options, you can also enable stock replenishment and allocation. This actually means that 40 scenarios are possible.

General note:

  • If serial number, lot or cumulative entry articles are involved, the actual stock is examined when delivering.

    Note:

    Except for this point, the check on economic stock and the check for available stock in which the actual stock is examined are identical. The check on economic stock will not be covered.

    Economic stock = actual stock + on order - reserved

1. Check for available stock (sales order and packing slip) and always an order proposal

This situation frequently occurs and matches the Never in stock stock profile. The article is not (or never) in stock and is ordered based on an order proposal after a sales order is created. With this setup, there is also a link between purchasing and sales. You do not use stock replenishment A check for available stock for a sales order or packing slip is particularly applied for articles that are very expensive or infrequently ordered.

You use this combination, for example, for customer specific articles or articles that represent a great value. Gold, medical equipment.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The order line does not go to a pending order.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • If, by chance, there is stock available then this is not taken into account for the order proposal.

2. Check for available stock (sales order and packing slip) and never an order proposal

This situation rarely occurs because it only allows you to enter a sales order if there is stock or if the order line goes to a pending order. This means either manual purchasing or (in most cases) working with stock replenishment.

You use this combination, for example, for one-off articles, seasonal articles or articles that are being taken out of the product range.

Advantages:

Disadvantages:
  • You can only create a sales order if there is actual stock. You can deliver the actual stock.
  • (Firm) reservations for the actual stock.
  • To build up stock, you must work with stock replenishment or purchases must be made manually.
  • There is no link between the sales order and the purchase order.
  • Sales order lines go to a pending order and you must restore them manually when there is stock.

3. Check for available stock (sales order and packing slip) and an order proposal for remainder

This situation frequently occurs. This combination matches the Order in case of stock shortage stock profile. The article is not (never) in stock and is ordered based on an order proposal after a sales order is created, taking into account any stock. For example, if 10 units are in stock and a sales order for 15 units is placed, an order proposal for 5 units is created and the 10 units in stock are also reserved for this order. With this setup, there is a link between purchasing and sales.

You use this, for example, for valuable articles that are part of your default product range.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • You are not purchasing more than is absolutely necessary.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.

4. Check for available stock (sales order and packing slip) and always ask about an order proposal

The situation is similar to situation 1. When a sales order is created, you are asked if an order proposal should be created. If no order proposal is created, the line is transferred to a pending order. An important point here is that if you answer ‘Yes’, Profit places the entire line in the order proposal. That means that here Profit does not take the actual stock into account. If you do want to use the stock, then enter two lines.

If you use this option, you should really work with stock replenishment and set it to ‘0’.

You use this, for example, for customer-specific articles, articles that you would prefer not to have in stock.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • For each order line, you can determine whether or not an order proposal line is created.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • Pending order lines mean manual work.

5. Check for available stock (sales order and packing slip) and ask about an order proposal in case of a stock shortage

In this situation Profit automatically creates an order proposal if there is insufficient stock. If there is insufficient stock then you are asked if an order proposal line should be created. The order proposal line will then be for the entire quantity from the sales order line. If no order proposal line is created then the sales order line goes to a pending order. For example, if there are 10 pieces in stock and a sales order of 15 pieces is placed, an order proposal for 15 pieces is created and the 10 pieces in stock continue to remain available. If no order proposal line is created then the sales order line of 15 pieces is transferred to a pending order.

If you do however want to use the existing stock, then enter two lines in this case as well.

With this option you should really work with stock replenishment and set this to ‘0’ (zero).

You use this, for example, for articles in the shop where you want to be certain that the shelf remains full.

Advantages:

Disadvantages:
  • Unlike in option 4, in this case the question is only asked if there is insufficient stock.
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • You purchase more than is needed, because there is stock available.

6. Check for economic stock (sales order) and never an order proposal

In this situation, Profit never creates and order proposal and you must use stock replenishment or purchase manually. When creating an order, Profit determines if enough economic stock is present. No message is displayed. If there is not enough stock, you are asked if, in spite of the stock shortage, you still want to reserve. If you answer 'Yes' the order line is passed on. So at this point, you have a problem with the delivery because there is insufficient stock.

If you answer 'No, you are asked if you want to transfer the entire line to a pending order.

If you answer 'Yes' then the line is transferred to a pending order.

If you answer 'No' you return to the line and the following message is displayed: There is not enough economic stock. Do you want to make a reservation for this order line anyway?'.

Now you have to make a decision in order to proceed with the order.

Advantages:

Disadvantages:
  • Even if there is no stock, you can still add orders.
  • Profit does not really reserve the stock; the packing slip that is created first takes precedence when there is not enough stock.

7. Check for available stock (packing slip) and always an order proposal

This situation regularly occurs. The article is not (never) in stock and is ordered using an Order proposal after a sales order is created. The person entering the order is not subjected to difficult questions that require thought. With this setup, there is also a link between purchasing and sales. If you do not want this link then work with stock replenishment that is triggered by '0'.

You use this, for example, for articles for which you want to hold a base stock.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The order line does not go to a pending order.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • If, by chance, there is stock available then this is not taken into account for the order proposal.

8. Check for available stock (packing slip) and never an order proposal

This situation occurs regularly in combination with stock replenishment. This matches the supplied High turnover rate / Bulk purchase stock profile. In practice, this is the situation for many wholesalers.

You use this, for example, in combination with a stock replenishment greater than ‘0’, if you do not want to say 'No' to your customers and want to have short delivery times.

Advantages:

Disadvantages:
  • You can always add a sales order, irrespective of whether there is stock or not.
  • The person adding the sales orders does not have to answer any further questions from Profit.
  • You can only deliver if there is actual stock.
  • To build up stock, you must work with stock replenishment or purchases must be made manually.
  • This means there is no link between the sales order and the purchase order. You can, however, use Order planning.
  • Larger stock, so more stock costs.

9. Check for available stock (packing slip) and order proposal for remainder

This situation occurs regularly. The article is not (never) in stock and is ordered based on an order proposal after a sales order is created, taking into account any stock. For example, if there are 10 pieces in stock and a sales order of 15 pieces is placed, an order proposal for 5 pieces is created and the 10 pieces in stock are reserved for this order. With this setup, there is a link between purchasing and sales.

Advantages:

Disadvantage:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is reserved (firm reservations) for the part in the order proposal.
  • You are not purchasing more than is absolutely necessary.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.

10. Check for available stock (packing slip) and always ask about an order proposal

The situation is similar to situation 11. When you create a sales order, you are asked if Profit should create an order proposal. This means that here Profit does not take the actual stock into account. If you choose not to have an order proposal created, a problem arises with the delivery because there is no stock. This combination matches the supplied Small qty in stock, purch large orders immediately stock profile, in which replenishment is enabled to ensure stock is still available if the question is answered with ‘No'.

Advantages:

Disadvantage:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • For each order line you can determine whether or not Profit must create an order proposal line.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy, but it is possible via allocation.

11. Check for available stock (packing slip) and ask about an order proposal in case of stock shortage

In this situation, Profit can automatically create an order proposal if there is insufficient stock. If there is insufficient stock, you are asked if Profit should create an order proposal line. The order proposal line will then be for the entire quantity from the sales order line. For example, if there are 10 units in stock and you add a sales order for 15 units, Profit creates an order proposal for 15 units and the 10 units in stock continue to be available.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • While there is stock freely available, more is purchased than is required.

12. No stock check and always an order proposal

This situation frequently occurs. The article is not (never) in stock and is ordered using an order proposal after a sales order is created. With this setup, there is a link between purchasing and sales. This option is frequently used in situations where the goods receipt is entered later. The packing slip (issue) has already been made.

You use this, for example, for articles with a very high turnover rate.

Advantages:

Disadvantages:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The order line does not go to a pending order.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • If, by chance, there is stock available then this is not taken into account for the order proposal.

13. No stock check and never an order proposal

This situation frequently occurs for wholesalers. This type of customer frequently works with stock replenishment to obtain the desired stock levels. This matches the supplied Always in stock stock profile.

Advantages:

Disadvantages:
  • You can always create a sales order, even if there is no stock. Available stock can be delivered.
  • The available stock is reserved (but not with firm reservations).
  • To build up stock, you must work with stock replenishment or purchases must be made manually.
  • This means there is no link between the sales order and the purchase order.
  • With deliveries there is a real problem: the packing slip can be produced even when there is no stock.

14. No stock check and order proposal for Remainder

In this situation, the article is often in stock and is ordered based on an order proposal after a sales order is created, taking into account any stock. For example, if 10 units are in stock and a sales order for 15 units is placed, an order proposal for 5 units is created and the 10 units in stock are also reserved for this order. With this setup, there is a link between purchase and sales for the part of the order for which there is an order proposal.

Advantages:

Disadvantage:
  • Since there is no stock, stock costs can be low.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • You are not purchasing more than is absolutely necessary.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.

15. No stock check and always ask about an order proposal

The situation is similar to situation 16. When a sales order is created, you are asked if an order proposal should be created. The available stock is not taken into account.

Advantages:

Disadvantage:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • For each order line you can determine whether or not Profit must create an order proposal line.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.

16. No stock check and ask about an order proposal if stock shortage

In this situation Profit automatically creates an order proposal if there is insufficient stock. If there is insufficient stock then you are asked if an order proposal line should be created. The order proposal line will then be for the entire quantity from the sales order line. For example, if there are 10 pieces in stock and a sales order of 15 pieces is placed, an order proposal for 15 pieces is created and the 10 pieces in stock continue to remain available.

Advantages:

Disadvantage:
  • Since there is no stock, there are also no stock costs.
  • A view from sales to the purchase order.
  • The stock is (hard) reserved.
  • The stock reservation is fixed and not very flexible; transferring to another order is not easy.
  • While there is stock freely available, more is purchased than is required.

Extras for stock replenishment:

Via Purchase contact item code, you can record a minimum purchase quantity. You can also specify a different purchasing unit per supplier.

Configuration example

The minimum stock is 30 pieces. The stock must be replenished to 120 pieces. You must buy 50 each time from a supplier. In the most extreme case, this results in a purchase order of 150 pieces.

If you have also recorded that you do not want to order in pieces but per box (another unit), then this has substantial consequences.

Configuration example

You are a wholesaler in office products, incl. a small shop. Articles you sell include:

  • Pens of which there must always be at least 30 in stock in the shop -> Option 8 and use stock replenishment.
  • Flip-charts of which you really do not want to hold stock -> Option 5, if applicable in combination with Check on economic stock.
  • A customer can buy a golden fountain pen that is not in stock and must be ordered -> Option 1, stringent stock check and always an order proposal.
  • Paper on pallets of which you want to hold as little stock as possible and where you each time consider using the current stock because the customer is in a hurry or ordering for a week later -> Option 10, always ask about an order proposal. If applicable, in combination with stock replenishment where you specify that there must be at least 1 pallet in stock.

Directly to

  1. Configure the order proposal
  2. Configuration
  3. Create a preferred purchase contact
  4. Order proposal / stock check combinations
  5. Set up an order proposal from a sales order per article
  6. Set up an order proposal from stock replenishment per article
  7. Cost estimate
  8. Import order proposal settings for an article