The Sales Opportunities module in SAP Business One allows you to track and analyze your company's sales process. If your company has dedicate salespeople this functionality is a must. The reports that can be generated will give fingertip visibility on how their efforts are going. It will also help keep the salespeople organized and motivated.
Tracking Sales with Sales Opportunities
We are going to run through a hypothetical sales opportunity in this knowledge base post to give you a feel for the things you can do to track your sales process. Our customer is Earthshaker Corporation and our salesperson is Sophie Klogg. Earthshaker calls up one day and has landed a contract to supply computers for a large client. They are looking for parts and thought of us. They indicated that budget may be an issue but their focus is obtaining the highest quality parts possible for the money.
To get started, navigate on the main menu to Sales Opportunities -> Sales Opportunity. This will bring up the new entry screen for a sales opportunity. We're going to enter Earthshaker Corp into the form. SAP Business One will automatically fill in some details from the master data. Customize the contact person, sales employee, required dates, and opportunity name to your liking.
You will notice a series of tabs where all of the information about your sales opportunities are held.
The "Potential" Tab
The first tab on the sales opportunities window is called "Potential". This is where you can set some general educated guesses about your opportunity. As we progress through the sales process, we will link documents that will update these initial assumptions automatically. For now, we will value our new opportunity at $20,000 with an average gross profit of 38%. This information is just an estimate. We also note the date when Earthshaker Corp will require their parts and record their level of interest.
On the right side of the "potential" tab you'll see a place to record the customer's indicators of interest or interest range. Use your imagination and experience to figure out how to best use this section. SAP Business One is an open system where you can use functionality in ways SAP may not have intended. For example, if your company deals in many areas of business like real estate, rental homes, new builds, etc. you can list them on the interest range to let everyone know what your hot lead is most interested in.
We are going to select quality as our opportunities "primary" concern and affordability as our secondary factor of interest. See the screenshot to look over how I setup the sales opportunity in the potential tab. Click Add to add your sales opportunity to the SAP Business One system.
The Sales Opportunity "Stages" Tab
After you add the sales opportunity, go back into the document and find the "stages" tab. Here you will see that SAP has automatically added a line to record the hot lead. The stock stages in a sales opportunity are: Lead, 1st Meeting, 2nd Meeting, Quotation, Negotiation, and Order. These stages are what will automatically adjust the closing % metric displayed on the form. You can setup your company's sales stages and attach a closing % value.
Earthshaker Corp wants to have a meeting to talk about the deal. You load up and head on over to meet Bob McKensly. He let's you know that the deal has been expanded since you last talked and indicates the deal is now worth $50,000 to your company. Good news!
Let's record our meeting and update the sales opportunity with the new information. Head back over to the stages tab, right click the form and select "Add Row". We add the date we met with the client, selected the 1st Meeting stage and updated the potential amount to $50,000.
Since we've progressed the sales process to the 1st Meeting stage our closing % metric on the form automatically changed to 20%. This reflects the increased chance of closing the deal because we met with our client. Since we've changed the potential amount field to $50K the number also changes on the "Potential" tab, which is no longer an educated guess.
More Fun with Sales Opportunities
We're getting to the point in the sales process where we are going to quote our client and record that quote in the sales opportunities module. Sophie adds a sales quotation for 101 motherboards at just over the $50k. Then we link the quote to our sales opportunity. Bring up the opportunity document and head back to the stages tab.
Right click the form and select add row. Select the date of your quote, select the stage and document type to quotation. Next to the document type is a check box called "Show BPs Docs" and you will need to check it. Then pick the selector in the next field "Doc. No." and find your newly created quote. It will ask you if you'd like to update the opportunity to reflect the new amount of the deal. Select yes and it will import your quotation amount into the sales opportunity automatically. Notice that getting the sales process to this stage moves the closing % up to 60%!
You can continue with our example and experiment but I think this post gives you a good idea of how you might use sales opportunities in your company. Think of it as a centralized place to log and track your communications regarding the sales process. The reports that can be produced by this module are great for executives and sales managers to keep tabs on the health of the company.
Sales Opportunities are a big topic so I'm going to break this one up into a series of posts including pushing onward through the sales process and reporting. Please post if you have questions and may you always have abundant Sales Opportunities!