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150 CHAPTER 5 The Fulfi llment Process

Figure 5-23: Elements of a sales order

In our example, RMB has received a quotation from GBI and several
other suppliers. It has decided to place the order with GBI. Accordingly, RMB
prepares a purchase order using its procurement process and communicates it
to GBI via e-mail, fax, or other means. Note that had RMB selected another
supplier, then the quotation that it received from GBI would have expired on
the valid-to date with no impact on either GBI or RMB. The PO represents a
commitment to purchase the stated materials under the specifi ed terms and
conditions. When GBI receives the purchase order, it will retrieve the quota-
tion that was previously sent to RMB and create a sales order using the data in
the quotation. As part of this process it will verify that the data in the quotation
match the data in the purchase order.

Data
If you compare Figure 5-21 with Figure 5-24 below, you will notice that much of
the data contained in the sales order is also found in the quotation. In addition,

Figure 5-24: Data in a sales order

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