Chapter 10 Vocabulary - The Order Entry/Sales (OE/S) Process

Order Entry/Sales (OE/S) Process

An interacting structure of people, equipment, activities, and controls, that is designed to create information flows that support the repetitive work routines of the sales order department, credit department, and shipping department and the decision needs of those who manage various sales and marketing functions

Web 2.0

A set of tools that allow people to build social and business connections, share information, and collaborate on projects online. Tools include blogs, wikis, social-networking, and other online communities and virtual worlds

Cloud Computing

Often used to facilitate connections to customers, to improve customer service, to reduce costs, and to improve process timelines

Buy-Side Systems

Use the Internet to automate and manage purchases and the vendors from which these purchases are made

Electronic Data Interchange

The predominant technology in buy-side systems

Picking Ticket

A data flow—often a sales order copy—that authorizes the warehouse to “pick” the goods from the shelf and send them to shipping

Customer Acknowledgement

Sent to the customer to provide notification of an order’s acceptance and expected shipment date

Bill of Lading

A contract between the shipper and the carrier in which the carrier agrees to transport the goods to the shipper’s customer

Packing Slip

A shipping document that is included with a package and identifies the customer and the contents of the package

Customer Master Data

Contains a record of every customer with whom a company is authorized to regularly do business

Inventory Master Data

A file or table of data that contains a record of each item stocked in the warehouse or regularly ordered from a vendor

Sales Order Master Data

Records in the sales order master data are created on completion of a sales order

Bar Code Readers

Devices that use light reflection to read differences in bar code patterns to identify a labeled item

Optical Character Recognition

Data entry into a system using light reflection for pattern recognition of hand-written or printed characters

Scanners

Input devices that capture printed images or documents and convert them into electronic digital signals (i.e., into binary representations of the printed image or document) that can be stored on computer media

Digital Image Processing Systems

Computer based systems for capture, storage, retrieval, and presentation of images of objects such as pictures and documents

Customer Credit Check

A control process performed to ensure that an organization does not extend more credit to a customer than is prudent. Usually performed before accepting a customer’s order

Compare Picking Ticket to Picked Goods

An example of one-for-one checking that ensures that the correct goods are picked from the shelf and that any errors are detected and corrected in a timely manner (e.g., before the goods get to the shipping department)

Independent Shipping Authorization

This establishes, for the shipping personnel, that someone other than the warehouse personnel authorized the shipment. Typically this would be accomplished by sending a copy of the sales order from customer service directly to the shipping department or by giving the shipping personnel access to open sales order records on the sales order master data. Without this control, warehouse personnel could cause a shipment by simply sending goods to the shipping department. This control assumes a segregation of duties among sales, the warehouse, and shipping

Compare Shipment to Sales Order and Picking Ticket

An example of one-for-one checking that ensures that the shipment will be authorized and accurate. Any discrepancy among these items might indicate an unauthorized or duplicate shipment (no open sales order) or an inaccurate shipment (quantities to be shipped do not agree with the picking ticket or open sales order)

Independent Customer Master Data Maintenance

This assumes that there is a segregation of duties between the personnel who create the customer record (to authorize sales to the customer) and the personnel who create the sales order (execute the sale)

Review File of Open Sales Orders (Tickler Files)

By reviewing a file of open sales orders (i.e., shipments that should have taken place), we can ensure that all shipments are made in a timely manner