Why can’t I use sales orders in my accounting system?
Sales orders, including shipping and invoicing, is a manufacturing system application for the following reasons.
DBA is a closed loop, self-contained system. Sales order quantities and required dates provide the feedback needed for job generation and prioritization and are an essential element for MRP and shop control. Outside sales orders are not structured for manufacturing.
Furthermore, sales orders are highly integrated with manufacturing system tables and workflow processes. Sales orders utilize manufactured item specifications, including part numbers, descriptions, weight, volume, standard pack, lot and serial numbers, and item costs. One-off items and BOMs for custom manufactured items are generated within quotes and are ultimately converted to sales orders. Order picking updates inventory and tracks lot and serial numbers when needed. Item cost of goods sold depends on the absorption costing provided by DBA’s WIP accounting system.