Sales Cycle Guide: Quotation to Payment Entry

By Ahmed Mostafa on May 2, 2026

Intermediate

Overview

This guide covers the complete Sales Cycle at Tiba Pharma — from the initial customer quotation through to final payment collection. Each step links to the next, forming a fully traceable chain of documents.

Full Sales Cycle Flowchart

📈 Sales Cycle — Quotation to Payment

📞 STEP 1 — Quotation (Optional)
Prepare pricing offer for the customer

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📄 STEP 2 — Sales Order
Customer confirms order — stock is reserved

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📋 STEP 3 — Pick List
Warehouse picks items using FEFO batch selection

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🚚 STEP 4 — Delivery Note
Items physically dispatched to customer — stock deducted

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💵 STEP 5 — Sales Invoice
Accounts Receivable posted — customer is billed

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🏦 STEP 6 — Payment Entry
Customer pays — Sales Cycle Complete ✓

🔵 Sales Team | 🟠 Warehouse | 🟢 Finance

Step-by-Step Process

📞 Step 1 — Quotation (Optional)

Who: Sales team
Action: Create a Quotation with item prices, quantities, and validity period.
Result: Customer receives a pricing proposal. Can be converted directly into a Sales Order when accepted.

📄 Step 2 — Sales Order

Who: Sales team
Action: Create or convert a Sales Order once the customer confirms.
Result: Stock is reserved for this order. Procurement can see demand. This is the binding commitment.

⚠️ Key Rule: Do not proceed to Pick List until the Sales Order is Submitted.

📋 Step 3 — Pick List

Who: Warehouse / Store Keeper
Action: Generate a Pick List from the Sales Order.
Result: Warehouse staff collect items from shelves using the FEFO rule (earliest expiry first). Batch numbers are assigned here.

🚚 Step 4 — Delivery Note

Who: Logistics / Store Keeper
Action: Create a Delivery Note to record the physical dispatch of goods.
Result: Stock is deducted from the warehouse. A signed copy serves as proof of delivery.

📦 Note: In Intercompany scenarios, the Delivery Note auto-creates a Purchase Receipt on the buyer’s side.

💵 Step 5 — Sales Invoice

Who: Finance team
Action: Create a Sales Invoice from the Delivery Note.
Result: Accounts Receivable is posted. The customer’s balance is updated in the ledger.

🏦 Step 6 — Payment Entry

Who: Finance team
Action: Process the Payment Entry when the customer pays.
Result: Accounts Receivable is cleared. Sales cycle is complete.

Document Linkage Summary

Document	Created From	Who Creates It	Key Effect
Quotation	Manual	Sales Team	Pricing offer to customer
Sales Order	Quotation or Manual	Sales Team	Stock reserved
Pick List	Sales Order	Store Keeper	Items collected from warehouse
Delivery Note	Pick List / Sales Order	Store Keeper	Stock deducted, goods dispatched
Sales Invoice	Delivery Note	Finance	AR posted, customer billed
Payment Entry	Sales Invoice	Finance	AR cleared, cash received

Key Rules

Always use FEFO (First Expiry, First Out) when picking batches for pharmaceutical products.
A Sales Order must be Submitted before a Pick List or Delivery Note can be created.
The Delivery Note must be Submitted before the Sales Invoice can be raised.
Quotations have a validity date — do not convert expired quotations without re-confirming the price with the customer.
Returns are handled through a Sales Return (Credit Note) against the original Sales Invoice.

Tips

Use the Sales Analytics report to monitor revenue trends by item, customer, or period.
Set Credit Limits on customers to prevent over-exposure.
Link Delivery Terms to Sales Orders for clear shipment commitments.