ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION

TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

1 of 9

1.0

Purpose:

Creating and issuing sales order to plant

2.0

Scope :

To define the user requirement specifications for creating Sale Order

(Export + Local)

3.0

Process
Description :

(A)

EXPORT SALES ORDER

1. Contacting Factory:- Factory is informed about the Purchase Order
and also the date as to when the customer requires the material, on
the basis of which Factory gives a delivery date of the movement of
the material from the factory premises
2. Contacting Logistics Team :- On the receipt of the Purchase Order,
Export Dept. gets in touch with the Logistics Team to discuss
whether the said export order has to be cleared under Free Shipping
Bill or Under Licence. Licence can be DFIA, Advnace Authorisation
& DEPB. Copy of Licence is forwarded by the Logistics Team.
3. Contacting Freight Agents :- Export Dept gets in touch with the
Freight Agents in order to discuss about the Freight Charges for a
particular shipment for which an Inquiry is floated via email to the
Freight Agents to know the flight schedules or the vessel sailing
schedule and accordingly inform the works to move the material.
4. Exchange Rate :- Exchange Rate is required in case of Export Sales
in order to get a brief idea about the funds to be received in Rupees.
at present the Exchange Rate is fed in to the ERP system on monthly
basis. (Source is EXIM). Exchange Rate is also required for creating
FOB Calculation
5. Creation of FOB Calculation :- FOB Calculation gives the breakup of the cost of goods sold, wherein the Invoice value is divided
into three parts i.e
Invoice Value
:- --------- USD x Ex. Rate = Value in Rs.
(-) Freight Charges :- --------- USD x Ex. Rate = Value in Rs.
(-) Insurance
:- --------- USD x Ex. Rate = Value in Rs.
---------------------------------------------------------------------------------FOB Value
:- ---------- USD x Ex. Rate = Value in Rs.
FOB Value in Rs. x 10.30 % = Excise Payable in Rs. (Req. by
Factory). FOB Calculation is prepared in EXCEL SHEET.

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

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6. Shipping Marks & Label :- Purchase Order specifies the Shipping

Marks to be mentioned on the drums. In case if the Shipping Marks
is not specified in the Purchase Order, below mentioned Shipping
Marks is affixed on the Drums
(Customer Name, Airport of Destination, Country, Drum No. ---)
Label :- Label specifies the product name, Mfg. Date, Exp. Date,
Gross Wt., Net Wt., Tare Wt., Mfg. Site, Country of Origin, Drum
No., Drug Mfg. Lic. No.
Label and Shipping Marks is prepared in Word Document.
7. Preparation of Sales Order :- Sales Order is created with the above
Information in ERP System by the Export Dept.
However following documents are attached with the Sales Order so
as to enable Factory to have the complete information :a) Purchase Order
b) FOB Calculation
c) Shipping Marks & Label
d) Specifications (Incase of new customer)
(B)

Export Samples Sales Order :-

Sample Sales Order will be created from the respective sites where we select
the field as Sample.Rate is selected as per the present market price. Excise &
Cess is charged .Taxes will not be charged. Samples are normally sent on
free of cost basis to the customer. However only if the value of the product is
on higher side, we may request the customer to make the payment for the
said sample. The decision will be taken by the Management whether to send
free sample or to charge the customer for the same.
(C) Sales Order is also created for Merchant Exports by the Exports Dept.
where the material inward is shown in Bhiwandi Warehouse by the
Marketing Dept.
(D)

LOCAL SALES ORDER

Step 1: Contacting Factory :- Factory is informed about the Purchase
Order and also the date as to when the customer requires the material,
on the basis of which Factory gives a delivery date of the movement of
the material from the factory premises.
Step 2: Creation of Sales Order :- Local Sales Order is created with

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

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the above information in ERP System by the Export Dept. Purchase

Order is attached with the Sales Order so as to enable Factory to have
the complete information.
1. Types of Local Sales Order :a) Local Sales Order :- Local Sales can be divided in to two
parts :i) Within the State Sales :- This type of sales take place within
the state. (Exicse and Cess applicable) and Vat (Value Added
Tax) will be charged and the rate of VAT depends upon State to
State.
ii) Inter State Sales :- This type of sale takes place between two
states. (Excise and Cess applicable). If Customer gives Form
C then taxes will be charged at 2 % and if Form C is not
given then taxes charged will be as per local sales tax.
b) Sample Sales Order :- Sample Sales Order will be created
from the respective sites where we select the field as Sample
Rate is selected as per the present market price. Excise
& Cess is charged . Samples are normally sent on free basis to
the customer. However only if the value of the product is on
higher side, we may request the customer to make the payment
for the said sample. The decision will be taken by the
Management whether to send the sample on free basis or
to charge the customer for the same.
c) Inter-Branch Sales Order :- Inter Branch Sales Order is a
situation where Sales Order is created for the transfer of the
material from the Manufacturing Site to the Depot for the
onward sales to the customer. In this case Mfg. Site will charge
Excise and Cess but taxes will not be charged because depot will
issue Form F to the manufacturing site. Then again a Sales
Order will be created from Depot for the onward sales.(Excise +
Cess will be same as charged by the Mfg. Site while transferring
the material to the Depot.) and the VAT will be as applicable
For eg :- If our Mfg. Site is at Hyderabad and our Depot is at
Bhiwandi to sell the material to our Customer who is located at
Bhiwandi.
d) Deemed Exports :-A Deemed Exports is a situation wherein the

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

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goods/commodities do not move physically out of country. It is

supplied to a licence holder, who instead of importing it from
outside, sources internally. In this case the customer gives us the
Invalidation Letter and the details of the same has to be
mentioned in the Sales Order and the same will also appear on
the Invoice. Excise + Cess + Taxes will be as applicable
EXCEPTIONS / VARIATIONS :1) In Case of AVON, instead of Sales Order a Despatch Order
(Export) and Despatch Order (Local) is issued in Word Format.

4.0

Process flow
Diagram

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

5 of 9

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

6 of 9

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010
0

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

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Requirements:

Sr.No.
URS/SD/001/REQ-001

Requirements

URS/SD/001/REQ-002
URS/SD/001/REQ-003
URS/SD/001/REQ-004
URS/SD/001/REQ-005
6.0
Reports:
Sr.No.
URS/SD/001/REP-001

Reports

URS/SD/001/REP-002
7.0
Output:
Sr.No.
URS/AA/XXX/OUT-001
URS/AA/XXX/OUT-002
URS/AA/XXX/OUT-003

5.0

Reports

Requirements:

Sr.No.
URS/SD/002/REQ-001

Requirements

URS/SD/002/REQ-002

Modification Rights is required in Sales Order.

While Printing Sales Order, it should be in one page and in vertical form.

URS/SD/002/REQ-003

Commission has to be captured in the Sales Order along with Agents Name

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010
URS/SD/002/REQ-004

VERSION No. : 01

SUPERSEDES: NIL

PAGE:

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FOB Calculation is required.

URS/SD/002/REQ-005

6.0
Reports:
Sr.No.
URS/SD/002/REP-001

Reports
Sales Order Report with the following fields :Sales Order No., Date, PO No., Date, Party Name, Product, Quantity,
Despatch Date, Quantity Despatched, Balance Quantity to be despatched.

URS/SD/002/REP-002

7.0
Output:
Sr.No.
URS/SD/002/OUT-001
URS/SD/002/OUT-002
URS/SD/002/OUT-003

Reports

8.0

Abbreviations :

9.0

Revision History:

Change Control No./ Date

Version No.

Effective date

Reason for Change.

ARCH PHARMALABS LIMITED

USER REQUIREMENT SPECIFICATION
TITLE : CREATION OF SALES ORDER
DOCUMENT NO.: URS/SD/002
EFFECTIVE DATE :
07/06/2010

VERSION No. : 01

SUPERSEDES: NIL
NAME & DESIGNATION

PAGE:

9 of 9

SIGNATURE &
DATE (DD/MM/YYYY)

PREPARED BY:

Ms. Anupama S. Shenoy

CHECKED BY:

(Asst. Mgr. Exports)

Mr. Ravi Mangalth

REVIEWED BY:

(DGM Exports)
Mr. Govind Joshi

AUTHORISED BY:

(GM IT)
Mr. S.R. Surve
(AVP QA & Regulatory)

10.0

Approval: