Collins Computing, Inc.

What’s a Transaction and Why Should You Care?

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In most cases, transactions are very important to your business.  Transactions pertain to all of the data that is created and shared within your enterprise resource planning (ERP) software solution, including monetary- and order-related transactions.  If you’re a distributor, transactions take place every time an order goes through and your ERP is what makes it easier, and more accurate, to track customer orders from cradle to grave.

Most distributors employ an ERP software solution to track customer orders.  An order is usually entered by a sales team member or customer manager into the system.  The order may have specifications on the product requested, a shipping deadline, customer-specific pricing, and other data specific to each customer.  Once an order is generated, a notification is sent to the employees responsible for fulfilling that order and a notification could also be sent to accounting to get a draft invoice generated to be shipped with that order.  On occasion, an order may require modification.  The customer may call with changes to the order, maybe an item is on backorder, or the order can’t be completed per specification.  Microsoft Dynamics® ERP software solutions use security features that only allow certain staff to use the features of the ERP software that is required for their job responsibilities.  This feature protects data integrity, as well as customer privacy.  When changes are made in the software, as in a customer order, an electronic signature, and a date and time stamp are created in the software.  Alerts can be created to notify the sales manager when changes are made in the order so the manager can validate the changes and take action if needed.  For example, if a sales order has an order quantity of 100 items and an employee accidentally changes that to 100,000, then a notification can be sent out for validation or approval before a customer receives more of the product than they ordered.

Multiply the number of customer orders and the number of items that a distributor might offer their customers and you can quickly see why monitoring order transactions is far more efficient in an ERP software solution.  Tracking orders to make sure that customers are receiving the products in the quantity and description as requested is important.  Equally important is using that data to improve inventory control, financial management, sales goals, and the other metrics you use to drive business growth.  Contact Collins Computing for more insight on monitoring transactions and how you can use your data to improve customer satisfaction levels, as well as improve the bottom line.

By Collins Computing, California Microsoft Dynamics GP Partner

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