You are on page 1of 9

How To Guide

Order Holds

Table of Contents

OVERVIEW ..................................................................................................................... 2
SETUP ............................................................................................................................ 2
ORDER HOLD CODES .................................................................................................................................. 2
ACCESS CODES .......................................................................................................................................... 2
USER SECURITY.......................................................................................................................................... 3
HOLD TYPE ................................................................................................................................................. 4
GROSS MARGIN PERCENTAGE ..................................................................................................................... 4
GROSS MARGIN HOLD CODE ....................................................................................................................... 4
ALLOCATION CONTROL ................................................................................................................................ 5
FUNCTIONAL ................................................................................................................. 5
SALES ORDER PROCESSING ........................................................................................................................ 5
Manual Holds ........................................................................................................................................ 5
Gross Margin Hold................................................................................................................................ 8
SHIPMENT PROCESSING .............................................................................................................................. 9
DIRECT ORDER PROCESSING ...................................................................................................................... 9

April 2010 Sage Page 1 of 9


Order Holds

Overview
Sage ERP provides a method for holding an individual line on a sales order. This functionality has been
extended to allow a user to easily place an entire order on hold. Holds are classified as either manual or
automatic. Manual holds are those that are applied by a user in the normal process of performing their
job. Automatic holds are applied by the system and may require special security or actions to be
released (ex: gross margin).
Placing an order on hold allows a user to take an order (book) but block it from processing. The ability to
hold or release a hold within order entry is provided by a new button within sales order function. When
an order is placed on hold, the user must specify a hold reason code. This provides visibility into why the
order is suspended. The creation user, date and time of the hold is stored with the order in the event that
follow up is required.
The order hold logic includes a control by hold code allowing you to determine if an order is de-allocated
when held. This setting allows for the rule to be processed based on the hold reason and your business
needs.

Setup
Order Hold Codes
You may define as many manual order hold codes as desired. These hold codes are defined using the
new Hold Code Maintenance function (GESXOH).

Access Codes
The ability to release an order hold is controlled by an optional access codes defined on the hold code. If
the user has all access codes or is authorized for the one tied a hold code, they can release a held order.
If the hold code does not have an associated access code, there are not restriction as to who can release
the hold.

April 2010 Sage Page 2 of 9


Order Holds

User Security
To release an order the user must have the access code associated with a hold code. In the example
below, user SAG has an access code that allows the release of order hold codes with the CRDMGR
access code.

This sample shows how the user access code relates to the hold code setup.

April 2010 Sage Page 3 of 9


Order Holds

Hold Type
There are two categories of hold types (manual and automatic). Codes that are defined with the setting
of manual are controlled by user activity. There is no system logic to automatically set these codes. You
can define as many manual hold codes as needed. Orders are placed on manual hold as a result of the
user accessing the hold/release button in sales order entry and selecting the hold code. Automatic holds
(gross margin and payment hold) are evaluated for applicability when an order is created and/or updated.

Gross Margin Percentage


A special gross margin hold can be placed on the order. This hold is controlled via a new parameter
that defines the target margin. If the order fails to meet this control, the order is placed on gross margin
hold.

Gross Margin Hold Code


This is a special hold code that is defined as type = GM Gross Margin. You can only have one gross
margin hold code.

April 2010 Sage Page 4 of 9


Order Holds

Allocation Control
The Allow Allocation field allows you to determine if you want to allow allocation to an order assigned to
the hold code. This provides flexibility based on the hold codes that you define. A setting of yes will
preserve the standard allocation logic associated with an order. A value of no triggers the de-allocation
of the order when placed on hold. This provides flexibility based on the type of hold. You may or may not
want to reserve inventory for the order. This setting is important if you are utilizing the real-time
allocation feature within Sage ERP X3.
A couple of important notes regarding order holds and inventory allocation. The parameter only controls
the behavior when an order is placed on hold. Allocation is not part of the hold release process.
Released orders requiring allocation must go through allocation independent of the hold release.

Functional
Sales Order Processing

Manual Holds
The ability to put an order on a manual hold has been provided via a new button, [Hold/Rel], in sales
order entry.

This button is also the mechanism for releasing an order from hold. It functions as a toggle. So it either
holds or releases the order (provided the user has release access) depending on the current status. An
order can have a hold status (excluding customer and credit holds) as follows:

April 2010 Sage Page 5 of 9


Order Holds

On Hold
Partial Hold
Released
The hold status is available to viewing on the Misc. tab.

The status of partial hold is due to the fact that the hold actually occurs at the line level and each line may
have different activities. The partial may be the result of attempting to process an order that has lines that
are in process (being shipped, shipped or invoiced). In that event, the activities that have advanced
beyond the order are not blocked and only the lines that are still at the order state are held.
Pressing the [Hold/Rel] button triggers the hold reason window.

April 2010 Sage Page 6 of 9


Order Holds

The entry of a hold code is mandatory. The list of hold codes that are available is limited to those that are
flagged as manual. Automatic hold codes cannot be manually assigned.
The user may override an automatic hold with a manual hold. This is done by checking the Override
Auto Hold with Manual Hold flag. Once checked, the user is prompted to enter a manual hold code.
The example shown below is for an order that is on Gross Margin hold and the user is going to place it on
manual hold.

Note: This is possible since the orders are always evaluated for the automatic hold upon creation or
update. So when the order is released from the manual hold it is re-evaluated against the automatic hold
criteria.
The options that are available to the user are based on the order status. If the order has a released
status, pressing the button initiates the hold process. Checks are performed to determine the orders
eligibility for hold processing. To be placed on hold, a line must meet the following criteria.
Not closed on cancelled
Not on hold for another hold reason
Quantity is not in process of being shipped
Not shipped
Not invoiced
If it fails any of these checks, the user is warned and can either abort or continue. When an order is held
the following occurs:
Order is de-allocated (dependent on hold code setup)
Hold code is added to the line
Hold code is added to the header
Header status is updated appropriately
User who placed the order on hold is recorded
Date/time of the hold is recorded
When orders are held, it is recommended that the X3 workflow functionality be used to notify the
appropriate party for resolving/clearing the hold. This type of activity is typically associated with an
automatic hold where another party manages the release (ex: gross margin).
Pressing the [Hold/Rel] button, for a held order, triggers the release process. Prior to releasing an
order, a check is performed to ensure the user has release authorization. When an order hold is
released, the order is updated in the following manner.

Line delivery warehouse set from the header delivery warehouse


Line hold code cleared
Header hold code is cleared
Header status updated
Release User is logged

April 2010 Sage Page 7 of 9


Order Holds

Release Date/time is logged

The holds release information for the hold is recorded.

The holds that can occur in the system have a hierarchy in that some occur automatically. Clearing a
manual hold does not necessarily clear an automatic hold. An order may be removed from a manual
hold and be placed on automatic hold.
When an order is on hold, the activities of editing the order may be impacted. For example, any new lines
that are created are automatically assigned the hold code from the header. The user may not override
these settings. This ensures the integrity of the hold processing.
Note: If an order is on a manual hold and an automatic hold is detected and set, the release of the
automatic hold will result in the order reverting back to manual hold status.

Gross Margin Hold


To maintain controls over the orders and also sales staff that have the ability to edit prices, a gross
margin hold has been instituted for sales orders. Standard Sage ERP provides gross margin checks at
the line level. The gross margin hold check is applied at the sales order level. This allows discounts and

April 2010 Sage Page 8 of 9


Order Holds

credits applied at the order level to be factored into the calculation. To determine the gross margin the
following must be defined.
New Parameter Gross Margin Minimum
Valuation Method Gross Margin Source (cost basis)

The gross margin for an order will be calculating the extended cost and sales price for each line. Any
additional discounts from the footer will be deducted from the total sales amount to come up with an
adjusted sales amount. The margin % will calculated as follows:
Gross Margin % = ((total sales total cost discounts)/total sales) * 100
If the calculated Gross Margin % < Gross Margin Minimum parameter, the order is placed on gross
margin hold. The gross margin check is performed when the order is created or updated. A gross margin
minimum value of zero means that the gross margin check/hold is not in use. When a gross margin order
is released, the gross margin % and total sales amount is saved. If subsequent updates to the order
result in a margin that is less than the amount released, the order will be returned to the gross margin
hold and will go through the approval process again.

Note: When calculating the gross margin percentage lines that are direct ship are excluded. Direct
shipment lines doe not necessarily have a cost (if they are always direct shipped to the customer)
and the inclusion in the calculation would result in an inconsistency.

Shipment Processing
The Shipment functions block the creation when the source sales order is on hold. Orders are not eligible
until the hold is released. This applies to the following methods for generating shipments.
Shipments
Order Deliveries
[Delivery] button in Sales Order Entry

Direct Order Processing


Lines that are flagged with a source for shipment value of PO Direct to Customer and PO Recv and
Ship are not processed when the sales order line is associated with an order that is on hold. This
applies to the following methods for generating either purchase orders.
Direct Orders
Direct Order drop-down in Sales Order Entry

April 2010 Sage Page 9 of 9

You might also like