Ability to Close Sales Order

Sales custom transactions can close the sales order. When setting up a sales custom transaction, you have two options

Check the Ability to Close Sales Order Box

Uses the custom transaction in the sales workflow instead of the invoice. Sales custom transactions can close the sales order only if the transaction is of debit type and if it's posting. To specify that the Sales custom transaction is of debit type and is posting:

• On the Accounting subtab, clear the Credit box.

• On the Statuses subtab, check the Posting box, or add a status and check the related Posting box.

When you transform the standard sales order transaction to a custom transaction, the results are as follows:

• The sales order transactions are marked as billed, which effectively closes the sales order.

• A standard link of type Order Bill/Invoice is created between the two transactions. The relationship between the order bill and invoice transactions is, therefore, the same as the relationship between a standard sales order and standard invoice.

• A standard item fulfillment transaction is created as part of this flow to cover the Cost of Goods Sold (COGS) impact for the inventory items sold. The custom transaction does not handle the COGS impact.

• For revenue recognition on the sales order transaction, the custom transaction is considered as a billing event for recognizing the revenue.

Clear the Ability to Close Sales Order Box

The custom transaction should be a stand-alone transaction or an additional transaction to be used within the existing sales workflow. The results are as follows:

• A generic Transformation link type is created between sales orders and custom transactions. This link recognizes only the created from relationship. In this case, the custom transaction behaves as a stand-alone transaction.

• If you sell an inventory item, COGS is covered on the custom transaction because there's no link to the item fulfillment.

General Notices