Sales Contract for Supply Commitment

Sales Contract for Supply Commitment

Sales contract in Sparrow ERP is provided to manage customer supply agreement over a period of time. Sales Contract covers the scenario where you have to ship an agreed number of quantity of a product on the specified date.

Suppose you have a customer who wants to get supplied a total 1000 assembled board every 15 days till next six months then we have an ideal scenario for the sales contract.

In Sparrow ERP’s sales contract module, you can add products to be supplied to the customer with quality and agreed ship date. You can also add a number of days before the raw material procurement should start. Based on this information system will automatically generate purchase inquiry (if there is not enough stock) just on the procurement date. The system will keep monitoring the contract and also generate sales order (if the product is of BUY and SELL route. Also known as Source-and-Sell); a manufacturing order will be generated (if product is of STOCK/MAKE and SELL route. Also known as Make-to-Order).

Overall status of each line of product to be supplied is maintained to get an overview of the execution of a contract. The system will stop monitoring contract at the end of the expiration. The advantage of this method is starting the procurement and stocking process exactly when it is required. This feature also allows you to monitor a supply agreement in a complete overview.

We have made a video demonstration of highlights of the Sales Contract module in Sparrow ERP. Do watch.