SOP vs RM

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what are the benefits of using sop or rm for receivables? do they have difference strong points? currently we are using rm, but in one of my prior questions someone suggested sop would be better because of the use of "sales line items". we are using gp2010

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soma 24,410 on at

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RE: SOP vs RM

Yes. SOP is better option if you using sales items such as Sales Inventory, Discontinued, Kit, Misc Charges, Services and Flat Fee. Otherwise you can use RM receivable invoices for creating customer invoices.

Note: SOP is not only using for creating invoices. This is also used to creating Sales Quote, Orders, Back Orders, Return and Fulfillment Orders.

Hope this helps!!!

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Richard Wheeler 75,848 Moderator on at

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RE: SOP vs RM

To add to what Soma mentions, with RM you basically have a document that says someone owes you money, the date and the dollar amount. With SOP you add the detail of why that money is owed plus you tie into inventory. So if you sell items SOP is the way to go.

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Mahmoud Saadi 32,738 on at

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RE: SOP vs RM

Sales Order Processing and Receivable Management are two different modules with different functionality. Although, they both manage Account Receivables and customers transactions.

The core difference I see between the two is to track line items, which can be either Sales Inventory Items or Service Line Items. I will try to distinguish the difference through few business scenarios

Scenario One

In a manufacturing business, Finished Goods items are recorded in the both the Inventory and Manufacturing modules. In such a case, Sales Order Processing (SOP) is the ultimate choice in order to track both (account receivables and inventory sales in line items).

Scenario Two
Suppose you run a training center, the main function that is provided by the business is "Training". In such a case, you can either work on Account Receivables module or Sales Order Processing. Each could provide different functionality.

Account Receivable: for each student, an AR invoice will be recorded with the total amount due. No line details are recorded.

Sales Order Processing: you can create "service items" on the inventory modules, such as training hours for the different subjects provided in the training center. For each student, you can record an SOP invoice including the line details provided for the student such as (40 hours German Language Course, 35 hours English Language Course, two curriculum materials..etc ). Several features related to inventory such as suggest sales item, price lists can be utilized with the sales order processing.

Additionally, Sales Order Processing provide a complete sales cycle as mentioned above. You can issue a quotation, which can be transferred later on to an order (to allocated inventory items), then an invoice to record the customer due amount

The following graphs illustrate the integration and data flow for SOP and AR modules;

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