Sales Order Processing

Order Processing in NetSuite is a core function that allows businesses to efficiently manage the entire order-to-cash process, from receiving a sales order to delivering goods or services and invoicing the customer. NetSuite streamlines and automates this workflow to ensure accuracy, timeliness, and compliance with business requirements.

Key Steps in Order Processing in NetSuite

1. Sales Order Creation:

• Orders are created in NetSuite manually, via e-commerce integrations, or through external systems using APIs.

• Key Fields on a Sales Order:

  • Customer Information

  • Items Ordered

  • Quantities

  • Pricing (with discounts or promotions applied)

  • Shipping Address and Method

• Supported Sales Order Types:

  • Standard Sales Order

  • Sales Order with Deposit

  • Cash Sale Orders

2. Order Approval:

• Sales orders can be routed through an approval workflow based on predefined criteria (e.g., order size, credit limit, or account type).

• Automated email notifications alert approvers and customers about the status.

3. Inventory Allocation:

• NetSuite checks real-time inventory levels and allocates stock to the sales order.

• For backorders, NetSuite tracks unfulfilled orders and updates them once stock is replenished.

4. Pick, Pack, and Ship:

• Picking: Warehouse teams receive picking tickets with order details.

• Packing: Items are packed, and shipping details are updated in the system.

• Shipping: Integration with shipping carriers (e.g., FedEx, UPS) allows real-time tracking and label printing.

• NetSuite automatically updates the order with shipment tracking numbers.

5. Invoicing:

• Once items are shipped, NetSuite generates invoices automatically or manually.

• Invoice Types:

  • Standard Invoice

  • Pro Forma Invoice

• NetSuite supports multiple payment terms (e.g., Net 30, Net 60).

6. Payment Collection:

• Payments can be collected via integrated gateways (e.g., Stripe, PayPal).

• NetSuite applies payments to open invoices and updates customer balances.

7. Order Completion:

• The order status changes to "Closed" once fully processed (fulfilled, invoiced, and paid).

• All associated financial entries are posted to the general ledger.

Features of Order Processing in NetSuite

1. Real-Time Visibility:

   • Track the status of orders, inventory, and payments in real time.

2. Automation:

   • Automate order approval workflows, invoicing, and email notifications.

3. Multi-Channel Integration:

   • Integrate orders from e-commerce platforms (e.g., Shopify, WooCommerce) or marketplaces (e.g., Amazon).

4. Multi-Currency and Multi-Language Support:

   • Process international orders seamlessly with support for different currencies and languages.

5. Drop Shipping and Special Orders:

   • Automate purchase orders for drop shipping directly from the supplier to the customer.

6. Returns and Refunds:

   • Manage returns, exchanges, and refunds efficiently with a dedicated return authorization process.

7. Customizable Workflows:

   • Adapt workflows to match unique business requirements, such as approvals or notifications.

8. Reporting and Dashboards:

   • Get insights into order trends, pending orders, and revenue forecasts using real-time dashboards.

Benefits of Using NetSuite for Order Processing

1. Accuracy:

   • Eliminates manual errors through automated workflows and integrations.

2. Efficiency:

   • Reduces processing time with streamlined pick, pack, and ship operations.

3. Scalability:

   • Handles increasing order volumes as your business grows.

4. Customer Experience:

   • Improves customer satisfaction with real-time order updates and fast delivery.

5. Compliance:

   • Ensures tax compliance with built-in tax calculation engines like Avalara.

NetSuite Tools to Enhance Order Processing

1. Advanced Order Management (AOM):

   • Optimizes the fulfillment process for complex workflows, such as multi-location inventory.

2. SuiteCommerce:

   • Integrates online orders directly into NetSuite for seamless processing.

3. Shipping Integration:

   • Connects with major shipping carriers for automated label generation and tracking.

4. SuiteFlow:

   • Allows you to create custom workflows for order approval, notifications, and escalations.

Common Challenges Solved by NetSuite Order Processing

• Inventory Stockouts: Real-time inventory tracking ensures accurate stock allocation.

• Order Delays: Automations speed up the approval, picking, and shipping processes.

• Payment Errors: Integrated payment gateways reduce processing errors and simplify reconciliations.

• Data Silos: NetSuite provides a unified view of orders, inventory, and customer information.