Consuming Sales Contracts from Sales Orders

By Levridge staff | Published: Apr 21, 2022 | Accounting | read

In the 2022 R1 Levridge release there is a new feature enabling the consumption of sales commodity contracts from sales orders. Having the option to consume the contract through sales orders does not prevent you from consuming the sales contract via standard commodity processes, it adds an option. With this option, you can create a sales contract with multiple delivery periods. Each delivery period can have alternate delivery lines. The alternate lines can have different commodities (if desired), different delivery addresses and different pricing. All of which, allows you to charge based on what you deliver to different addresses.

For example, on a sales contract with a single customer you have a base price established for 2 tons of flour shipped to a given address on each delivery period. The alternate lines for each delivery period can have items like 10 lb or 50 lb flour prepackaged bags going to different locations (like smaller bakeries) each with different pricing.

Alternate delivery pricing under delivery period details

Once the contract has been established, you create a sales order for your customer, select a delivery address, an item to ship and the sales contract you want to consume. When the contract is selected on the sales line, the price for that item and delivery address are pushed from the contract to the sales line and on the contract the quantity is displayed as “on order”.

Sales order

When you invoice the customer, that quantity is considered delivered/shipped and the remaining quantity on the contract is reduced. You continue consuming the contract quantity through commodity processing or through sales orders until all of it is consumed. You are prevented from overconsuming the contract from sales orders because once the contract has been fulfilled, you are not allowed to select the contract on sales orders.