Sales Quote Line Item Cancellation

I recently took a training for users on GP SOP. Training was a success. There were couple of users who are already into GP for quite sometime now (4 years precisely).

Interestingly, when I was explaining about Quantity Quoted Vs. Quantity To Order Vs. Quantity Cancelled, one user said they had never used Quantity Cancelled at all to record any line item cancellation. That was quite a surprise to me.

Consider this scenario: A customer enquires about couple of products and we prepare a quote and send it to them. Out of two products, they confirm only one and we are to transfer this quote with only product. There are three ways we can adapt:

1. Delete that unwanted product line on the quote and transfer this quote to an order (Bad Approach).
2. Transfer the quote in totality and from Sales Order delete that unwanted product line. (Bad Approach).

Above two approaches do not give us the fair picture on quote conversion. Considering the fact that GP SOP do not maintain a revision history of each document, it’s not advisable to follow above steps.

3. Cancel the quantity, by removing “Quantity To Order” and entering “Quantity Cancelled”. Transferring this quote will not transfer unwanted product to Sales Order.

By doing this you are retaining originally quoted products list and transferring only those which your customer wanted, also for your self-assessment on how you have performed in winning the quotations. Most recommended approach.

Of course, we would be forced to add/remove product lines from Sales Order for some reasons. But at least, quote conversion would give us facts at the time when we won the quote for that particular customer.

UPDATE: Siva has written a post which expands my post into different modules and how we can maintain records for better and painless auditing.



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