1С: Trade Management 8

The “Trade Management” configuration of the “1C: Enterprise 8” system of programs is a mass-produced solution permitting comprehensive automation of tasks related to current and management accounting and the analysis and planning of trade operations, ensuring effective management of modern trade businesses.

The key trend in new solutions is the development of powerful functionalities designed for the analysis, planning and management of effective trade operations. Specifically, these are:

  • sales management;
  • shipping management;
  • sales and purchasing planning;
  • warehouse management;
  • order management;
  • management of relations with contractors;
  • analysis of company turnover;
  • price analysis and price policy management;
  • monitoring and analysis of trade activity effectiveness.

Sales Management

The sales management subsystem allows for the solution of needs for operational planning and price control in both kind and financial terms. It includes the following units:

  • sales planning;
  • purchase order management.

The subsystem contains methods for the analysis of orders and is designed to provide support for making management decisions regarding operations with clients and to help identify inventory “bottlenecks”.

Sales Planning

To ensure that company management personnel obtain information not only on actual, but also on planned activity indicators, a sales planning subsystem is provided. Planning is conducted both on separate types of goods as well as on their groupings; the configuration allows for selecting separate categories of buyers (by region, activity, etc.) and setting up separate plans for each one.

Plans are compiled with separate time specifications (from one day to a year); in that way, the configuration provides the capability of developing both strategic (quarterly, annual) and working plans for one and the same period. For example, an annual plan can be set up at the beginning of the year, and then monthly plans can be approved to correspond with it.

Sales planning for both the entire company and divisions or groups of divisions is provided for. This provides executives and sales managers with the capability of setting up sales plans incorporating their own goals. Divisional plans are consolidated in an overall plan for the organization.

Plan-Fact Analysis

The configuration provides comprehensive means for comparative analysis of information on planned and actual sales in order to monitor plan performance. Specifically, the following needs can be served with their help:

  • plan-fact analysis of sales for a specific period;
  • comparative analysis of sales for different periods, e.g., for the current period and the same period for the previous year;
  • comparison of sales plans with the same specifics for different periods of time, e.g., monthly plans for December of the current and previous year;
  • comparison of plans with different specifics for the same period, e.g., quarterly and monthly plans for the first half of the current year.

In this regard, the data can be presented for each division, grouped by comparison by specific characteristics of product mix and buyer, making it possible to conduct a comparative analysis of sales volume by product mix with specifics entered in for one given region for different periods of time, to identify seasonal variation.

Sales Procedures

The configuration provides various procedures for the sale of goods. A sale can be made with the goods ordered in advance or otherwise (from existing inventory). In addition, the capability for the purchase of advance orders of goods from suppliers under special order from the client is incorporated. Such options as credit or full (partial) prepayment by the client are permitted.

For sales of goods on commission, the capability of automatically accounting for the consignor’s commissions is included, allowing various plans (percentage of profits, percentage of total sale). The total commission can also be entered manually. The goods can be transferred on consignment to the consignor. After obtaining a receipt from the consignor for the sale of the goods, the commission is automatically calculated for him.

Purchasing Management

A functionality of the subsystem ensures managers of trade companies will receive information required for them to make timely decisions on inventory replenishment and value engineering of purchased products. The “purchasing management” subsystem includes:

  • operational purchasing planning;
  • preparation of orders for suppliers and monitoring their execution;
  • a cash outflow payment schedule.

Supplier Order Management

A subsystem designed for procurement planning and preparation of orders for suppliers in compliance with an operational inventory replenishment strategy and operations involving buyer purchases. The subsystem provides for the automation of such operations as:

  • arranging orders for suppliers based on incoming orders from customers;
  • monitoring payment and delivery of goods by order;
  • correcting and closing orders for suppliers.

Customer Order Management

The subsystem for managing customer orders permits a business to develop the most efficient strategy for the service of customer orders, such as a strategy for the minimization of inventory required in order to service orders. The capabilities of the customer order management for trade companies have been designed using the following operational schemes:

  • ex warehouse work;
  • custom work;
  • alignment of strategies.

Monitoring of Supplier Prices

The price-building mechanism in the configuration permits the recording and comparison of supplier prices, selection of the best supplier and minimization of inventory replenishment expenses. A mechanism for automatic updating of supplier prices when regular deliveries are recorded has been developed for convenient price tracking. It provides automatic capability for the recalculation of ex factory prices based on new supplier prices and a given mark-up.

Company Inventory Accounting

The configuration provides detailed current inventory accounting, ensuring total inventory control for wholesale and retail businesses. All inventory operations are recorded using their respective documents: receivables, movement, sales, taking inventory, etc.

The configuration allows for accounting of goods at a number of warehouses (storage facilities).

It supports accounting of goods in various sizes (packaging). It provides separate accounting of company goods, goods received and transferred on consignment, goods received for safekeeping, and also accounting for returnable packaging.

The configuration makes it possible to conduct inventory at the warehouse. Based on the results, it automatically calculates the difference between the accounted (recorded in the database based on receipt and shipping documentation) and the actual amount of goods identified when taking inventory. It then prepares write-off documentation (if there is a shortage of goods) or a posting (if there is a surplus).

Company Division Orders

This configuration permits internal ordering for company divisions (warehouses, sales outlets), i.e. ordering goods from other divisions to stock their own inventory. The current system is basically designed for the preparation of orders by retail outlets (warehouses) for delivery of a variety of goods, but it can also be used by wholesale outlets or just by warehouses to ensure that a variety is in stock. In sales and purchasing planning internal orders are serviced the same as customer orders, using the same algorithms. Posting of the order to the respective warehouse is considered placement of the internal order.

Overhead Accounting

The configuration provides for accounting of various forms of overhead expenses – transport expenses, storage, payment of duties and excise taxes, services provided by in-house facilities and third parties, etc. These expenses can be attributed to product costs. Depending on the nature of the overhead costs, their distribution by line item can be assigned in proportion to the cost, weight or number of the arriving goods. Overhead costs can be set on arrival of the goods (by specific contract or by order).

Analysis Reports

The “Trade Management” configuration includes a universal reporting system that provides a powerful and flexible means of analyzing practically all aspects of the company’s sales activity and sales volume. The user can obtain information on the status of inventory, ordering, sales and payments from any angle, with the detail required (e.g. data on sales of goods of a certain group by regions) and by trend (e.g. tracking the sales trend for a certain period with a daily breakdown).

For managers that need to have operational information on the current status of the firm and trends in a compact, easily readable format, the configuration provides the “Monitor of Basic Indicators” report. It contains key information on the company’s current working capital reserves (funds, settlements with dependant entities and contractors, inventory balance), sales volume, fund movement, budgeted income and payments, overdue orders and deliveries, etc.

The following may be selected as key indicators for daily analysis of the situation:

  • cash balance;
  • status of accounts with dependant entities;
  • status of accounts with contractors;
  • inventory balance;
  • fund movement;
  • sales of goods and sales margin;
  • budgeted income and payments;
  • overdue customer orders and supplier deliveries.

The composition, display and update periodicity of the information is set by the user, allowing each manager to determine the volume and update periodicity of the data that he specifically needs to monitor the situation. Any indicator in the report can be broken down for detailed analysis of its component parts if needed.

The user can individually set the level of breakdown, the grouping parameters and the data selection criteria in the reports, in conformance with the specifics of the current tasks. The individual settings (actually, the specialized reports designed by the user) can be saved for later use.