Conventional processes related to sample management in the chemical industry in the ERP system

 

1. Sample management of chemical companies

Samples in the chemical industry are usually designed to demonstrate the performance, quality and appearance of the product and attract the interest and trust of potential customers. Depending on the value, quantity and customer relationship of the sample, chemical companies may adopt different strategies in deciding whether to charge sample fees. There are free and paid samples in the chemical industry. Generally speaking, if the sample value is low, the quantity is small, or the customer is a long-term partner or a new customer with great potential, the chemical company may choose to provide free samples. On the contrary, if the sample value is high and the quantity is large, or the customer is a short-term partner or a new customer without clear intentions, the chemical company may choose to charge a certain percentage or the full sample fee.

2. Sample management process of chemical companies

Whether it is free or paid samples, it is a cost investment for chemical companies. Therefore, different types of samples need to be differentiated and processed correctly in the ERP system. ERP systems usually have specialized financial modules to manage these businesses. Here's a possible course of action:

 

1. Sample application: Sales staff apply for samples through the ERP system according to customer needs. When applying, you need to fill in customer information, sample name, quantity, specifications, whether to charge or not, and other information. If it is a paid sample, you also need to fill in the price, payment method, invoice type and other information.
2. Sample approval: Financial personnel review sample applications through the ERP system. During the review, it is necessary to determine whether to agree to provide samples and whether to charge a fee based on factors such as company policies and customer credit. If it is a paid sample, you also need to confirm whether the price is reasonable, whether the payment method complies with regulations, whether the invoice type is correct, etc. After passing the review, the financial staff generates a sample order in the ERP system and notifies the production department and warehouse department.
3. Create material master data: Create a special material type (Material Type) or material group (Material Group) in the ERP system to identify chemical samples. In the Sage X3 ERP system, you can create a material group named SAMPLES. Create a corresponding Material Number or Item Code for each chemical sample in the ERP system, and fill in the relevant attributes in the Material Master Data or Item Information, such as Specifications, units, prices, etc.
4. Maintain prices: Maintain a price condition record (Condition Record) or price list record (Price List Record) for each chemical sample in the ERP system, and select the corresponding price condition type or price code according to the actual situation. For example, in the Sage X3 ERP system, if a certain chemical sample is provided to customers for free, select FREE SAMPLES as the price condition type in the price condition record and set the amount to 0; if a certain chemical sample needs to be charged to the customer If a certain amount is required, select other suitable price condition types in the price condition record and set the amount to the corresponding value.
5. Create order: Create a separate sales order type (such as ZS) in the ERP system to represent sending samples to customers. Enter the customer number, material number, quantity, price and other information in the sales order, and select the corresponding price conditions according to whether to charge sample fees (for example, ZP01 means free, ZP02 means partial charge, and ZP03 means full charge). Select the delivery method (e.g. Express) and enter shipping information in the sales order.
6.  Sample production: The production department arranges the production plan based on the sample order in the ERP system, and receives the required raw materials and auxiliary materials from the warehouse. Various cost data need to be recorded during the production process and entered into the ERP system. After production is completed, the finished product is returned to the warehouse and the inventory information is updated in the ERP system
7. Generate an invoice: After saving the sales order, the system will automatically generate an invoice and associate it with the sales order.
8. Sales issue: Confirm the issue of materials in the delivery note, and print the issue note and invoice (if necessary). Send materials and related documents to customers, and update the logistics status in the ERP system.
9. Invoice accounting: According to the price conditions and invoice amount, the corresponding financial vouchers are generated in the ERP system and recorded in the general ledger.
10. Sample settlement: If it is a free sample, no settlement is required; if it is a paid sample, settlement is required. There are two settlement methods: one is to pay first and then ship the goods, and the other is to pay after the goods are shipped. For the case of payment first and shipment later, after the financial staff approves the sample application, an invoice will be issued to the customer. After receiving the payment from the customer, the payment information will be confirmed in the ERP system and the production department and warehouse department will be notified; For the case of shipping first and paying later, after the warehouse department completes the outbound delivery, an accounts receivable note is generated in the ERP system and the customer is regularly urged to pay. After receiving payment from the customer, the payment information is confirmed in the ERP system. , and issue an invoice.

3. Different cost accounting methods for sample management

In this process, the ERP system will perform cost accounting in different ways based on different types of price conditions:

In this way, the ERP system can realize differentiated processing and cost accounting of different types of samples, thereby improving the chemical industry's ability to manage and control the input and output effects of samples.