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Sales Transactions

In Racko, sales transactions are managed through a unified form that allows you to create Sales Orders, Invoices, and Sales Receipts. This flexible approach streamlines your sales process and adapts to various business scenarios.

Overview​

  • Racko provides a unified interface for managing all sales transactions, including Sales Orders, Invoices, and Sales Receipts. This approach simplifies the user experience while maintaining data integrity behind the scenes.
  • The transaction type is determined by selecting the appropriate option when creating the document.
  • Each type serves a different purpose in the sales cycle but shares many common fields.

When to Use Sales Orders vs. Invoices​

Understanding when to use Sales Orders and when to use Invoices can help streamline your sales process. Here are some scenarios for each:

Creating a Sales Transaction​

To create a new sales transaction:

  1. Navigate to Sales > Sales Order in the main menu.

  2. Click on Add New on the top right.

  3. Select the transaction type on the top left:

    • Sales Order: For recording customer orders before fulfillment
    • Invoice: For billing customers for goods or services
    • Sales Receipt: For immediate sales with payment

  4. Fill out the form with the following information:

    • Date: The date of the transaction
    • Customer: Select the customer
    • Transaction Number: Automatically generated or manually entered
    • Payment Terms: Payment terms (optional)

  5. Add any additional information: You can switch to determine which additional fields to show by clicking on the gear icon on the top right.

    • Payment Terms: Payment terms (optional)
    • Due Date: Date when the estimate expires (optional)
    • Sales Rep: Assign a sales representative (optional)
    • Due Date: Expected date for order delivery (optional)
    • Ship Method: Shipping method (optional)
    • External Channel: Channel where the estimate is created (if applicable)
    • Class, Department, Project: Additional tags to categorize the estimate (optional)

  6. For each item or service:

    • Select the Item
    • Enter the Quantity
    • Specify the Unit Price
    • Add any Description if needed

  7. Apply any discounts, shipping charges, or taxes as necessary

  8. Add any additional notes or terms

  9. Click Save to create the transaction

Transaction Statuses​

Racko tracks the following statuses:

  • For Sales Orders:

    • Open: The default status for new sales orders
    • Closed: When the order has been fully shipped and invoiced
    • Cancelled: When the order is no longer valid
    • On Hold: When the order is temporarily paused
    • Backordered: When some items are not available for immediate shipment

  • For Invoices:

    • Open: Awaiting payment
    • Closed: Fully paid and closed
    • Canclled: Cancelled or voided transaction
    • Shipped: Shipped but not paid
    • Partial: Partially paid
    • Overdue: Payment is overdue

  • For Sales Recipts:

    • Open: Paid and waiting for Shipments
    • Closed: Fully shipped and closed
    • Cancelled: Cancelled or refunded transaction

Unique Features by Transaction Type​

Sales Orders​

  • Can be converted into shipments and invoices.
  • Used for managing backorders and partial shipments

Invoices​

  • Can be linked to one or more shipments
  • Support partial payments and credit memos

Sales Receipts​

  • Record both the sale and payment in a single transaction
  • Ideal for point-of-sale or online sales

When to Use Each Transaction Type​

Use Sales Orders when:​

  1. Pre-ordering: A customer orders products that are out of stock or need to be manufactured. Example: A retailer orders winter coats in summer for the upcoming season.

  2. Complex fulfillment: The order requires multiple shipments or a specific delivery schedule. Example: A construction company orders materials to be delivered in stages over several months.

  3. Customization required: The products ordered need customization before shipping. Example: A customer orders a computer with specific components to be assembled.

Use Invoices when:​

  1. Immediate billing: You need to bill the customer for goods or services already provided. Example: A law firm bills a client for legal services rendered in the previous month.

  2. Ready to ship: The items are in stock and ready to be shipped immediately. Example: An online bookstore fulfills an order from available inventory.

  3. Progress billing: You want to bill for a portion of a larger project or order. Example: An architect bills for completed project phases.

Use Sales Receipts when:​

  1. Point of sale: For immediate, in-person transactions where payment is received on the spot. Example: A customer buys groceries at a supermarket checkout.

  2. Online instant payment: For e-commerce transactions with immediate payment. Example: A customer purchases and downloads digital software.

  3. Service with immediate payment: For services rendered and paid for on completion. Example: A car wash service where the customer pays immediately after the wash.

Remember, Racko allows you to easily convert a Sales Order to an Invoice once the goods are ready to ship or the services are completed, ensuring a smooth transition from order to billing.

Best Practices​

  1. Choose the appropriate transaction type based on your sales process and customer requirements.
  2. Regularly review open sales orders and invoices to ensure timely fulfillment and collection.
  3. Use custom fields to capture additional information specific to your business needs.
  4. Set up automated notifications for important status changes or approaching due dates.
  5. Utilize reports to analyze sales performance, backorders, and accounts receivable aging.

For more detailed information on managing sales transactions, please refer to the specific sections in this documentation.