ORDER MANAGEMENT POLICY

Prepared By:

Approved By:

Revision Date:

Effective Date:

PURPOSE

The purpose of this document is to provide policies and procedures to be followed by the customer service team
when processing orders.

SCOPE

This policy applies to customer service teams (CS) in all subsidiaries, U.S. and international.

POLICY

This document summarizes the preparation of documents, paperwork flow, and responsibilities of individuals and
departments when processing sales orders. All customer orders will be processed in an efficient and organized
manner in order to ensure accurate and prompt shipments.

Upon receipt of a customer purchase order (PO), it is the customer service team’s responsibility to ensure that:
• The PO is from a valid customer (If the customer is not in the customer master, the CS must follow up with the
sales representative in order to obtain a new customer add form.).
• The PO is complete and special pricing (if discounts or concessions exist) is approved.
• The customer is not in an embargoed or restricted country or on a government do-not-ship list.
• The customer is not on hold for any reason.

If applicable, a letter of credit (LOC) is on hand prior to processing the PO.

The procedures to follow for customer service are as follows:

• The sales rep will initiate the process of obtaining and reviewing documents and information from the customer
in order to complete the order. The validity and efficiency of the sales order entry process are dependent on
starting with accurate information. Ensure that the terms, conditions and configuration of the order are
accurate.
• The sales representative is responsible for obtaining all approvals for special pricing and discounts prior to
sending any documentation to the CS team.
• Payment terms for the customer should comply with the company's credit policies. If the customer requires
lease financing or bank line-of-credit (LOC) terms, the sales representative will work with the credit department
to obtain credit pre-approval and facilitate the processing of applicable paperwork, as well as obtain necessary
approvals for non-standard credit terms.

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• Customer service will be responsible for facilitating the sales order entry process and sales recordkeeping.
Upon receipt of a complete sales package with all supporting documentation from the sales representative,
customer service will prepare the sales order and a customer file with copies of all documentation and
customer correspondence.
• Upon completing the required information for the customer file, customer service will forward all documents
except for any lease financing documentation or other financing options to the credit department for processing
and approval of the sales order. If applicable, the lease financing documentation will be forwarded directly to
accounting/billing, where it will be held for processing upon receipt of the accounting copy of the completed
sales order (i.e., after shipment).
• The credit department is responsible for facilitating customer financing and sales approving terms in
accordance with company policies. If the customer finances the order, credit will process and forward all
applicable lease documents to the third-party financing source. If credit rejects the terms of the customer's
order, credit will notify the sales representative and the customer as appropriate.
• Credit will review the customer's order package and will authorize the order if the customer is approved. Upon
completion, the sales order and customer file will be forwarded to manufacturing/shipping.
• Upon receipt of the sales order, manufacturing will configure and route the product or equipment. All quality
control forms will be completed and forwarded to the system. If the equipment or product cannot be shipped
within the specified time frame after receipt of the order, manufacturing will notify the customer service
department, which will be responsible for either sending the customer a backorder notification or calling the
customer to inform them of the back ordered item(s) and anticipated shipment/arrival of these items.
• Upon obtaining the finished product, shipping will pack the items and verify that the customer's order is
complete. Shipping will complete the applicable areas on the sales order with the quantity shipped and all
applicable serial numbers. Shipping will be responsible for preparing all shipping documents (e.g., bill of lading,
COD tags, etc.) and determining the appropriate shipping method for delivering the equipment/product. If
shipping determines that a customer's order will not arrive by a requested delivery date, shipping will notify
customer service of the delay and approximately when the order will arrive.
• Upon completion of all documents and packing, shipping will attach the packing list of the sales order to the
packing boxes, complete the shipping log, and forward a copy of the sales order along with the customer file to
customer service and accounting/billing.
• Shipping will also prepare a sequential serial number log by product and customer name.
• Customer service will be responsible for post-sale customer follow-up and customer satisfaction surveys.
• Accounting/billing, upon receipt of the completed sales order, will prepare an invoice from the information
provided on the sales order (i.e., items shipped). Distribution of the invoice will be as follows:
− Copy 1: Customer
− Copy 2: Sales journal (accounting/billing)
− Copy 3: Customer file (customer service)
• In the event of backorders, the customer should only be charged for items shipped, except when otherwise
instructed.

RESPONSIBILITIES

Sales representatives are responsible for the following:

• Obtaining all relevant documentation prior to forwarding any sales order documentation to the customer
service team
• Obtaining approvals for credit, discounts and pricing for the deal

The customer service team is responsible for the following:

• Ensuring the completeness of documentation (including relevant approvals) provided by the sales
representative

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• Verifying that the sales order is for a valid customer already in (Insert System) (For any customers not in
[Insert System], customer service is responsible for obtaining relevant documentation prior to entering the
order into [Insert System].)
• Communicating any back-ordered items to the customer

The credit department is responsible for the following:

• Reviewing new customer creditworthiness
• Approving credit limits for new customers or changing credit limits
• Facilitating financing for any orders
• Approving sales orders after they are entered into (Insert System) by customer service

The shipping department is responsible for the following:

• Packing all products and shipping them in accordance with the prescribed shipping terms on the sales order
• Communicating any potential delays in shipping or back-ordered products to the customer service team

The accounting/billing department is responsible for the following:

• Maintaining documentation/support for any financing documentation
• Completing billing of all shipments

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