Ministry of Education

New World School

DLC work
Subject: The Order

Class: 10th
Class: MCG
Shift: Morning
Course: Accounting and Management

Teacher
Sundays

30-05-13
Members of the Group

Adilson
2. Adelaide Anuarity Armanda Garden
3. Albino Miguel Zamba
4. Carlos Moco
5. Chirley Veloso
6. Angela Lourenço
7. Anilde Matos
8. Cinzia
9.
10.
Index

1. INTRODUCTION

2.1 NOTA OFENCOMENDA.....................................................................................................3

2.1.1QWHEN IS A PURCHASE ORDER WRITTEN.............................................................. 3
2.1.2 O WHAT SHOULD AN ORDER NOTE CONTAIN..................................................................... 4
2.2 ERECOMMENDATIONSFALADAS ....................................................................................................4
2.3 millionMETHODDThePONTODEERECOMMENDATION5

2.3.1 PRAZODE APROVISIONING.............................................................................................. 5

2.3.2 CGUSTOS OFERECOMMENDATION................................................................. 5
2.3.3 CUSTOAANNUALDELADVANCEDASERECOMMENDATIONS.................................................................. 6
2.3.4PRODUCTION ON DEMAND.................................................................................................. 7
2.4 CICLO DEUMAERECOMMENDA 7

3 CONCLUSION ..................................................................................................................9

4 ATTACHMENT EXAMPLE ORDER NOTE............................................................10

5 BIBLIOGRAPHY ..............................................................................................................11

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1. Introduction

In business or commerce, an order is a declared intention, whether

spoken or written, to engage in a business transaction of goods or services
specific. From the perspective of a buyer who expresses the intention to purchase, it is
purchase order call. From the perspective of a seller expressing the
the intention to sell is referred to as a sales order. When the order of
the buyer's purchase and the seller's sales order agree, the orders
of commerce become a contract between the buyer and the seller.
Within an organization, the order is a term that can be used for
referring to a work order for manufacturing, a maintenance order
preventive, or an end to making repairs for an installation.
In many companies, orders are used to collect and report costs and
the recipes according to well-defined purposes. So it is possible to show that
the costs of purposes have been incurred.

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 In business, several business documents are used to record the
negotiation of a purchase and sale agreement, recording the agreement itself, and of

compliance with the registration agreement and contract closure. An agreement of

buying and selling is a form of contract.
There are five basic requirements for the existence of a contract between two parties:
agreement, voluntary, consideration, capacity and legality. A sixth requirement of "for
"written" sometimes applies.
The main concern for commercial orders is that there must be an agreement.
(offer and acceptance) for the purpose of being a contract. Before that, companies often
sometimes register the details of negotiations through a quotation request, order of
offer, sales quotation or sales offer. The quotations are non-binding and part of
negotiation process. A request for an offer can be binding or non-binding,
dependendo dos termos da oferta.

2.1 Purchase Order Note

When the consumer cannot immediately take possession of the purchased item,
the seller writes, with the consumer's agreement, an order invoice. What is an
purchase order? The purchase order is the written document in which the seller and
the consumer registers their agreement on the object and the price of the sale, when the
the consumer cannot immediately take the purchased good.
The order note may or may not be signed by the consumer, but in both cases
the cases can constitute a contract. As soon as there is an agreement, the parties are, in

principle, obliged to realize the purchase and sale, in the legal sense of this term. The
the fact that payment and delivery occur later does not change anything, especially in the
called traditional purchase and sale. Therefore, the order note is proof of
promise of purchase and sale. Generally, the legislation does not provide for the possibility of
cancel the purchase order except in certain sales modalities or when the
consumer and seller establish conditions for this cancellation.

2.1.1When is a purchase order written

A nota de encomenda é redigida quando o consumidor e o vendedor chegam a

agreement on the acquisition of a good or service not available at the time of acquisition or
contracting. It must establish all the conditions, and in the case of a down payment the
the consumer must request proof of payment.

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 An order note is made when the seller and consumer reach an agreement.
agreement on the terms of sale and when the product or service cannot
immediately taken because:

It is very bulky (furniture, dishwasher,...)

2. Not available immediately (car...) ;
3. These are services that cannot be performed immediately (organized trip, contract for work

a property...)
In the case where the good or service is very expensive, all conditions must be established.
with care.

2.1.2 What should an order note contain

The order note must contain exact information regarding the seller; to
product to be acquired and/or service to be provided; the price, quantity, applicable fees; date
the delivery deadline; date on which it was written, and the seller's signature. It may contain
still other information such as the paid signal or special characteristics to be contracted.
The order note must be established in writing and include the aspects
following:
1. The identification of the professional: the name and/or the corporate denomination, the

address, the tax identification number and possibly the number of

commercial register
2. The date and the order number of the purchase order;
3. The description of the product or service (model, color, material, accessories,
dimensions,...);
4. The unit price, quantity and total price, as well as the VAT rate
applied, if not included in the price;
5. The amount of the down payment (if it has been paid);

6. The amount remaining to be paid, and the date and method of this payment;
7. The signature of the professional and possibly of the consumer;
8. The data or the delivery deadline of the product or service provision.

2.2 Spoken Orders

Businesses such as neighborhood stores, restaurants, and gas stations carry out
business with your clients, accepting orders that are spoken or implied by

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buyer's actions. Taking a shopping cart of goods for a
A checkout counter is an implicit intention to buy the merchandise. Put a
take-out or eat in at a restaurant is a spoken purchase order.
Putting gasoline in a tank at a gas station is an implicit order.
the seller usually expects immediate payment in cash, check, or card
credit for these purchases, and the seller offers the buyer a receipt for the
payment. In legal terms, this form of business order is an "implied contract"
In fact.

2.3 Reorder Point Method

The Reorder Point method consists of ordering a quantity

fix, called Economic Quantity, as soon as the stock reaches the level of
replenishment called Reorder Point, is characterized by ordering
fixed quantities on variable dates.

2.3.1 Supply Deadline

The lead time for provisioning an item is the actual total time that elapses from
the communication of the need until the availability of the item, means that besides the
the deadline set by the supplier requires joining:
the different administrative deadlines before the launch of the orders:
registration of the request, market consultation, examination of the proposals, negotiation and

supplier selection, drafting of the order;

receiving period, which runs from the arrival of the item at the warehouse until its
entry registration in stock. It includes the qualitative reception period and of
quantitative reception.

2.3.2 Order Costs

They are the administrative costs of the services that make the placement and

monitoring of orders and the costs of quantitative and qualitative reception

classificatory. The portion of fixed order costs can be assessed
roughly: dividing the cost of purchasing and reception services (plus others)

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costs considered relevant) by the number of orders placed annually.
These costs are independent of the quantity ordered.

2.3.3 Annual Cost of Order Launch

The launch expenses of an order should be sought in all

the services that intervene in the purchasing process: User Services (Production,
Maintenance), Purchasing Service, Reception and Warehouse, Accounting. In each
It is necessary to determine the expenses that are considered proportional to the number
of orders. At the level of the Purchasing Service, the transfer (launch) of a
the order incurs administrative expenses related to the search for possible
suppliers, to the negotiation and drafting of orders and to the resubmission of suppliers
delayed.
The annual cost of placing orders includes:
The operational cost of purchasing services (salaries, rents,
office furniture
The costs of printing, mail, and telephone
The travel costs of buyers
The cost of receptions, rehearsals, and analyses
The cost of the procedures carried out by the User Services
The cost of accounting procedures: checking invoices,
classification and registration, payment.
The knowledge of this cost allows for the calculation of the average launch cost of
an order.
Being:
the shipping cost of an item
b- quantity of each order of this item
annual consumption of the item
The average annual cost of placing orders for a certain
article, is obtained by multiplying the number of annual provisions (S/Q) of that
article by the unit cost of passage, namely:

If the annual consumption is constant, the greater the quantity of each

order, the fewer the number of annual orders and the lower the average cost of
launch per unit of the article.
Example of the Cost Evaluation for Order Launching
1 to 2% of the total amount of orders placed (in value on the
number of orders placed

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 Regarding an order, this cost can represent values between
15,000 to 20,000 AKZ/article (if we consider an average number of
items by order between 2 and 3. we can say that the cost per
the order may vary between 30,000 and 60,000 kz.

2.3.4made to order production

In custom production, the company only begins the production process after
upon receiving an order. Upon receiving the order, a budget or quotation is prepared
for the client who, if approved, will serve as the basis for what will be produced.
The following information can be included in the budget or quotation:
Necessary raw materials.
Team of professionals that will be allocated to the project.

Production process or schedule of all the activities that will be

developed.
The production by order is generally more used for very products
complex and expensive, which are not purchased in quantity, such as: large engines,
ships, airplanes, buildings, machines and custom-made equipment.
Normally, custom-made products require the movement of
many parts and specialized professionals, and so it is not possible to produce them for
inventory, given the high cost and often the very dimension of the product.
There are simpler cases of production on demand, for example: If someone
she wanted a shoe lined with the same fabric as her dress. She hardly finds any.
in a single store the dress and the shoes. Surely she will need to go to a shoemaker,
taking the fabric of the dress, to make your order.

2.4 Order Cycle

The order cycle time encompasses all basic elements of the service
to the client that are controllable and are part of the total delivery time of the
order. Its definition is the time elapsed between the moment of the order of
clientthe purchase order or therequestof the service and the moment of delivery of
product or service provision to the customer. The independent elements of a cycle of
Order are the times of transmission, processing and assembly, availability
ofexistences,time ofproductionand delivery time. These elements can be
controlled or not, according to the company's policy regarding the method of

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shipment of the order, of the policies ofinventory managementof processing
the orders, of metransportation modesand the methods of programming.
The shipping time of the order is made up of several elements. If it is
efectuado através do vendedor, the transmission time includes the order and the time
in which it is retained by the seller and by the office; if it is carried out directly by the
client, the transmission time will only last as long as a phone call or the sending of
email
The processing and assembly time of the order is also important in
cycle time, as it includes activities such as preparing the documentation of
embark, update the stock records, approve the credit, confirm the
order to avoid errors, maintain customers and the various sectors of the company
involved informed about the order situation and forward information
para os sectores de vendas, produção e contabilidade. A montagem pode ser um
lengthy process and in case of no stock it may also include your
production. The processing and assembly are carried out almost entirely,
at the same time, the time spent on these two activities is much higher than what
these will represent the order cycle time.
The availability of inventory has a significant share of the cycle time.
because it often causes the flow of products and information to occur outside
of the established channel. For example, a certainwarehouseit can be the supplier
normal of a customer, but if there are not enough stocks, an alternative may be used
alternative warehouse.
The delivery time is an element that is directly controlled by
logistics professional and represents the time required to transport the order from
origin to destination.
Regardless of who the client is, the delivery time of the order
presents a bimodal frequency distribution of time and results from the distributions
independent of each of the elements of the order cycle. The cycle time
can be statistically recorded through theaveragedostandard deviationand in the way of
distributionof the frequency.

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3 Conclusion

Technological advances play a significant role in service delivery.

orders. Barcodes, optical readers, and computers have brought enormous
benefits for these activities. It is estimated that these technologies have allowed for a reduction,

substantially, the total spending of companies in their logistics chains.

The handling of orders underwent a major change with the use of
of computers, which replaced the counting of inventories and transcription actions
manuals. In this way, the order cycle temples were greatly reduced.

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4 ATTACHMENT EXAMPLE ORDER NOTE

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5 Bibliography

[Link]
A3o/Order Processing/Order Service

[Link]

[Link]
order_entry

[Link] –(Wiki)
27/02/2013

[Link] (Wiki) 24/04/2013

[Link]
6&Itemid=270

[Link]
order#ixzz2SVDAphrP

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