In this industry Change Orders are inevitable. Change orders may also be called variations, variation orders, discrepancies or punch lists. Any modification or change to the work or product order agreed to in the contract is treated as a variation. How you handle these variations within e-manage can differ depending on the situation (i.e. dealer mistake, client taking on additional charges, etc.). We will explore the Change Order process by options so you can decide internally how to best handle each unique Change Order situation. In some cases you may need to use a combination of options.
Option #1: Go back Back to the source Source (BOM) to make adjustment(s) and reRe-process the Order entirely
This option may be necessary to ensure all aspects of the Project & Order are lined up for clarity and costing is necessary when the project and order need complete alignment for clarity, costing, and customer pricing purposes. Essentially, this is process involves starting over.
Steps:
If Purchase Orders
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or Customer Invoices have
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been generated
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, delete them first:
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Make the necessary
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adjustments in the Bill of Materials
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(BOM).
Send the required Action Item.
Re-process the Order in Order Entry: How to re-process
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Re-generate the Purchase Orders (note: e-manage|ONE will only produce lines
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that have not already been generated).
Follow your dealership workflow as normal
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.
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Option #2: Make
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Adjustments Directly in Order Entry
This option may be necessary in addition to Option #3 dependent on how you need the costing to reflect. This one is used in most cases where ONLY is commonly used when only the customer order (customer invoicee.g., Customer Invoice) is affected. You would use this Option alone if the Dealership is “eating the cost”. See here for how
Steps:
Modify the Order directly in the Order Entry module: How to modify an Order
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If necessary, manually add a line in
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Order Entry
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rather than going back to the BOM
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: How to manually add a line in Order Entry
Note: The BOM/Estimate will differ from the Order
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when this method is used. This is acceptable but important to keep in mind.
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Re-generate the Customer Invoice if
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needed.
Utilize Action Items for effective communication where applicable.
Note: Again, if If a Customer Invoice has already been generated, you will need to must delete the invoice to make changes to in Order Entry.
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Option #3: Make
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Adjustments Directly on a Purchase Order
This option is ideal when the Vendor Order/Costing requires adjustment. Use this method:
In addition to Option #2, if both the sale and cost need adjustments.
By itself, if only the Vendor Order/Costing requires adjustment and the dealership is absorbing the cost.
Steps:
Make manual adjustments to the Purchase Order: How to adjust a Purchase Order
Manually add a line to a Purchase Order if necessary: How to manually add a line to a Purchase Order
Consider revising the Purchase Order to track changes effectively.
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Important Notes for All Options
Preserve Original Costs for Costing/Commission Purposes: If you want the original cost to remain in the project for reporting purposes, do not delete the original Purchase Order. This ensures all incoming bills/vendor costs can be applied.
Punch List Protocol: If the Change Order is a "Punch List" item, follow the recommended guidelines here: Punch List Guidelines.
BOM Changes Post-Processing: If changes are made to the BOM after the Order has been processed in Order Entry, re-send the “Process Order” Action Item with detailed notes to communicate changes to your Order Processing team.
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Tip: For "Punch List" changes, create a new option and process an additional Customer Order following the Punch List protocol: Punch List Instructions. |