Lost Sales is a multi-faceted feature in the Epicor Prophet 21 enterprise resource planning (ERP) solution. With it, distributors can track orders that had items cancelled, and account for quantities edited to lost quotes.
Lost Sales areas range from “cancel order,” “cancel or edit the quantity on an order” or “shipment cancelled,” to editing the quantity on a pick ticket. Each Lost Sales area can be set to auto populate a reason code, or set to prompt for reason codes.
“Affecting usage” is a helpful function for Lost Sales reason codes. It can be used to adjust for mistake entries, or to reset to “not affect usage” for not having the quantity the customer expected. Here is how it works:
When an item is entered onto an order, the actual usage goes up in increments. If the order is cancelled, the usage will then go down in decrements. This cycle is referred to as “affecting usage.” This action does not matter if the system setting to capture usage is set to “invoice” or “order entry.” With that said, if the setting is on “order entry,” then a reason code can be set to not affect usage. This will account for reasons like “out of stock,” or “could have sold the item if we had it.” This reason code set to “not affect usage” will be half the full usage cycle; in other words, the code will not reduce the usage—instead, it will keep it up, just as if the order went through.
If using CRM and Opportunities, then Lost Opportunities can be tracked, as well, along with RMAs. Lost Opportunities can be tracked with reason codes when the opportunity is lost, meaning a competitor won the bid.
In summary, the report for Lost Sales can be used to separate out not just factors such as user entry error, but also reasons where the demand was not affected. Lost Sales is a good tool to look for trends such as “priced too high” or “returned material,” and more importantly, to use the available codes to ensure the material will be on the shelf the next time!
Posted by Neil VanWalbeck, Senior Professional Services Consultant at Epicor Software