Database Reference
In-Depth Information
Most companies use one of two methods to accept payments from customers: open items
and balance forward. In the open-item method, customers make payments on specific invoices.
An invoice remains on file until the customer pays it in full. In the balance-forward method,
customers have balances. When the system generates an invoice, the customer
341
s balance is
increased by the amount of the invoice. When a customer makes a payment, the system
decreases the customer
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'
s balance by the payment amount. Holt Distributors uses the balance-
forward method.
At the end of each month, the system updates and ages customers
ll learn
about month-end processing requirements and the update and aging processes in the following
sections.) The system prints customer statements, an aged trial balance (described in the report
requirements section), a monthly cash receipts journal, a monthly invoice register, and a sales
rep commission report. The system then removes cash receipts and invoice summary records
from the database and sets month-to-date (MTD) fields to zero. When the system processes the
monthly data for December, it also sets the year-to-date (YTD) fields to zero.
Transaction requirements. The following transaction requirements are required by Holt
Distributors:
a. Enter and edit territories (territory number and name).
b. Enter and edit sales reps (sales rep number, name, address, city, state, zip, MTD sales, YTD
sales, MTD commission, YTD commission, and commission rate). Each sales rep represents a
single territory.
c. Enter and edit customers (customer number, name, first line of address, second line of
address, city, state, zip, MTD sales, YTD sales, current balance, and credit limit). A customer
can have a different name and address to which goods are shipped (called the
'
accounts. (You
'
address). Each customer has a single sales rep who is located in a single territory. The sales
rep must represent the territory in which the customer is located.
d. Enter and edit parts (part number, description, price, MTD and YTD sales, units on hand,
units allocated, and reorder point). Units allocated is the number of units that are currently
present on some open orders. The reorder point is the lowest value acceptable for units on
hand without the product being reordered. On the stock status report, which will be
described later, an asterisk indicates any part for which the number of units on hand is less
than the reorder point.
e. Enter and edit vendors (vendor number, name, address, city, state, and zip). In addition, for
each part supplied by the vendor, enter and edit the part number, the price the vendor
charges for the part, the minimum order quantity that the vendor will accept for this part,
and the expected lead time for delivery of this part from this vendor.
f. Order entry (order number, date, customer, customer PO number, and order detail lines).
An order detail line consists of a part number, a description, the number ordered, and the
quoted price. Each order detail line includes a sequence number that is entered by the user.
Detail lines on an order must print in the order of this sequence number. The system should
calculate and display the order total. After all orders for the day have been entered, the sys-
tem prints order acknowledgment/picking list reports (see Figure A-18). In addition, for each
part ordered, the system must increase the units allocated for the part by the number of
units that the customer ordered.
g. The invoicing system has the following requirements:
1. Enter the numbers of the orders to be released. For each order, enter the ship date for
invoicing and the freight amount. Indicate whether the order is to be shipped in full or
in part. If an order is to be partially shipped, enter the number shipped for each order
detail line. The system will generate a unique invoice number for this invoice.
2. Print invoices for each of the released orders. (A sample invoice is shown in Figure A-19.)
3. Update files with information from the printed invoices. For each invoice, the system
adds the invoice total to the current invoice total. It also adds the current balance and
the MTD and YTD sales for the customer that placed the order. The system also adds
the total to the MTD and YTD sales for the sales rep who represents the customer. In
addition, the system multiplies the total by the sales rep's commission rate and adds this
amount to the MTD commission earned and the YTD commission earned. For each part
ship to
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