Customer Order

A customer order is a formal order from the customer which provides details of the amount and due date for a customer’s requirement of products. It is a legal document specifying the orders made by the customer. In addition, it states the amount of money to be paid, the due date on which the funds can be expected, and the quantity of the product delivered.

Related b-op data entities

Once a purchasing contract between a customer and a supplier has been signed, one or multiple purchases can be done by the customer based on this contract. A purchase order is created on the customer side, which documents to the supplier that he is ordered to deliver goods based on the contract conditions. This purchase order by the customer creates the customer order object on the suppliers side. Based on this order the suppliers takes all actions, like fulfillment, production or procurement with sub-suppliers to fulfill the customer order.

Related data entities:

• Purchasing Contracts
• Purchase Orders
• Deliveries
• Production Orders
• Bills

A customer-order is an immutable object on which each change has to create a new customer-order which eventually references to the old customer order. If the order at the moment of change has been partially fulfilled or billed, all corresponding objects have to become re-associated with the new customer-order.

Basic flow of a Customer Order

Order intake phase

The order intake phase bears all process steps until the order is fully accepted by the supplier organization and the processing of the order may start.

Order creation process

From a suppliers perspective customer orders can be created by manual creation in the suppliers identity or through digital interaction on the b-op network. Obviously the way over the b-op network reduces the work on the suppliers side dramatically as no manual work has to be invested any more. And even more the supplier benefits from having a b-op digital to place orders:

• as all status updates can be automatically synced to the customer, this reduces the status request phone-calls or irritations when the delivery of the ordered goods is not progressing as expected.
• the supplier receives his money quicker as the bills can be sent over digitally to the customer where the bill checking process is no longer required at all.

Order acceptance processes

Once the order is created the supplier has to accept it. For trustworthy customers (not with a track record of unpaid bills) and orders under a certain threshold, this is typically set to automatic acceptance. Still you should define per customer certain thresholds above which you will be asked.

Order processing phase

The order processing describes all actions which are taken by the supplier to fulfill the order and afterwards bill for the delivered goods/bills.

Order fulfillment processes

Fulfillment process actions can range from simple shipment orders to be created, to production orders or procurement action at sub-suppliers. Since the fulfillment process might overlap with the billing process scenarios, the fulfillment and billing status is tracked only a the customer order position level. Please read up on the customer order status pages for further details.

Order billing processes

After goods have been shipped they immediately are cleared for billing which means that billable positions are created out of the shipped positions. Again in partial shipments (of the full order position quantity) also partial billing can occur. When all positions are shipped or the customer forfeited on the not shipped quantities, the customer order is receiving the status finished, which means that no further processing will occur.

Structure of a customer order

A customer order has a customer order header and positions as core tables. Please read up on the b-op trade ontology pages.

Related articles

• The trade sphere
• Purchasing and Sourcing
• Available default status of a customer order.
• Development background on changing a customer order