When we say Opportunity Management in Dynamics NAV, we mean sales opportunities.
Opportunity Management Setup
A sales cycle is:
The course of time between the initial contact being made with a customer the transaction that completes the sale.
A measure of the efficiency of a sales department.
A breakdown of what happens in our sales processes in our sales cycle.
We can track the lifecycle of our opportunities in Dynamics NAV by using the sales cycle functionality.
You can create as many sales cycles as you want. You should leverage it with what you really do in your sales process.
To create a new sales cycle or to view an existing one, click Departments/Sales & Marketing/Sales/Setup/Opportunity/Sales Cycles.
A sales cycle exists out of different steps, and we call them Stages. To create stages for a sales cycle or to view stages of an existing sales cycle, selected the sales cycle and click on the Stages under Navigate tab.
Each of the stages represent percentage of completion of your sales cycle, specified in Completed % field. For instance, when we have initialized the sales process, we are 2% complete, when we understand the needs, it is 35% complete, and so on. These completed percentages can be later on used to calculate the value of your sales cycle.
You can also attach Activity Code for each step of the sales cycle, which represents a corresponding task. For example, set of to-do for specific representative. You can use the to-dos in combination with date formulas, so you can really plan when a to-do needs to be executed. These date formulas also serve a purpose for the Opportunity Details Report, where it displays planned activities on certain dates.
For some of the stages quotes are required. It means that in Dynamics NAV there is a sales quote for an opportunity available. If the Quote Required field is selected for a particular stage, you will not be able to proceed to the next stage, without first making a quote and assigning it to the opportunity.
If the Allow Skip field is selected, you can immediately jump to the next stage.
We can plan these stages with Date Formula, however if we already have Date Formulas specified in activity codes, we would prefer that, else we can use it in the sales cycle stages.
NOTE: You can Block a sales cycle, which means that you will not be using it anymore.
Closed Opportunity Codes
We use closed opportunity codes when we are closing our sales cycle, and usually that happens because we have either won the deal or we have lost the deal.
Closed opportunity codes are used to identify why we are closing an opportunity. Is it because we have won or lost a deal?
These codes will help us later to track the success factors of opportunities and we can measure our sales success.
Click Departments/Sales & Marketing/Sales/Setup/Close Opportunity Codes.
You will see a list of potential codes that we can use to close our opportunities and you can make as many as you want.
You have to divide them in either a Lost or a Won type and then you can give reasons, why we have lost or why we have won, for example, won because of a strong presales work, best price, best product, or lost because ineffective presale work or poor customer relations, and so on.
So these codes later on will give you an idea why we have won or lost specific deals.
You can also find here a calculated field with a number of opportunities that we closed because this or another reason.
Create New Opportunity
Open the contact card and click Opportunities on the Navigate tab.
Click Create Opportunity, to open a wizard.
Example: Create a New Opportunity
Use the wizard to create opportunity:
We have an opportunity not only to sell Tables but also to sell Chairs to the contact A. Gibson’s Law Firm.
Let’s say that the current data (work date) is the date for the opportunity.
The priority is normal.
The contact involved for this opportunity is specified.
We can link the salesperson involved with this opportunity, say Annette Hill.
Let’s say that this is an existing customer, a small one, so we apply the relevant sales cycle code.
You could also say that this is linked to a campaign, but in this case, we say it is not.
- Click Next.
We can immediately activate the first stage or we can do it later on. Let’s say we activate it.
We need to give it a certain value, say 1000.
Specify the percentage of success, say 50%.
Specify an estimate closing date, say we need to close this by end of the month.
You will notice that we have two opportunities, out of which the new one is about the chairs, that we just created.
Example: Update an Opportunity
Now, let us assume that a couple of weeks later, we want to update the opportunity because we have executed new steps in the process.
So select the opportunity, and under Actions tab click Update, which will open the Update Opportunity wizard.
Here we see that we are bringing this opportunity now to the second stage. Depending whether or not you are allowed to skip, you can select other stages if applicable.
The date of this change is today for example.
We might have new information that the value of this opportunity is higher (1,250) and probably our chances of success have increases as well (65%).
The estimated closing date can be a little bit later, may be couple of weeks.
You will now notice that the opportunity is in the second stage of the sales cycle.
Linking Sales Quotes to Opportunities
In Dynamics NAV, a sales quote can be created completely driven from opportunity itself. So the link between the sales documents and the opportunity is established and guaranteed.
This means that sales quotes for opportunities can directly be created from the opportunity itself. So we can have a sales quote created in the process of updating the opportunity, and that means that we also have at the same time established a link between both.
To be able to create a sales quote for an opportunity:
This opportunity must have the in-Progress status and no other sales quote is assigned to it already.
In case that you are using contacts that are not synchronized with customers, you also need to have customer template set up.
Example: Update Sales Quote for an Opportunity
Let us check the A. Gibson”s Law Firm contact.
Navigate to the Opportunities.
In this example, we have two opportunities (from previous steps), and Chairs is the most recent one. Let’s say that we want to update this opportunity and bring it to the next stage.
Click Update on the Actions tab.
Now, in this example if we wanted to bring it to a new stage, it will be the third stage, which is dedicated to a proposal.
In this case, Dynamics NAV will warn us, saying that we need to assign a sales quote. This is because of the configuration that we have done on the sales cycle level, here we have made a quote necessary for this stage.
So what can we do? well, from the opportunity window itself, we can assign a sales quote, by clicking Assign Sales Quote action.
You will see that we get a sales quote with a certain number for this contact, A. Gibson’s Law Firm.
You also see that in this sales quote, you have a field which is called opportunity, which is automatically filled up with the opportunity number because we started this process from the opportunity window.
So now if we close the sales quote, we will be able to update a bring our opportunity to the next stage.
Let’s say our chances of success are a little better (75%)
Maybe the amount has also changed after making the sale quote (1,750.00/-)
Now you see that the update to the third stage was successful.
At any time, we can always ask and check the quote which is in the system and is related to this opportunity, by clicking on Show Sales Quote action.
Note: You can assign opportunity to sales quote manually, by going to the sales quote, however, you need to make sure that the opportunity is not already assigned to any other sales quote.
Click Departments/Sales & Marketing/Marketing/Opportunities.
Here you can have an overview of all the opportunities in the system, instead of accessing opportunities from individual contacts.
You can select one of the opportunities and then start working with the same views & actions that you have available as if you would start from an individual opportunity.
When the negotiations are over, opportunities can be closed. While closing an opportunity, you need to specify the reason for closing it and to be able to specify this reason, you must first of course set up the closed opportunity codes.
You can also delete closed opportunities, for example, after you have concluded a deal or when the opportunity list window is overloaded with closed opportunities.
So, basically, we have two actions:
- Action: Close Opportunity
- Batch Job: Delete Closed Opportunities
Example: Close Opportunity
Open the contact A. Gibson”s Law Firm and Navigate to the Opportunities.
On the Opportunity List, select the opportunity (Chairs in this case), and click Close under Actions tab.
This will open a wizard, where you can specify why you want to close the opportunity? Let’s say we Lost.
Now specify the reason for closing the opportunity. Let’s say we have done ineffective presales (Choose PRES_L code from the list).
You have the option to cancel any of the existing open to-dos that might still exist.
Note that the opportunity is now closed and the status is Lost.
If you now go to the overview of all opportunities, you will see the closed opportunity here as well. You can sort and filter on this.
Also, when you open the opportunity card, you can see all the details, such as:
- The last action that was carried out.
- The opportunity is closed.
- The opportunity is Lost.
- Percentage complete is now 100%.
- Calculated Current Value has become Zero.
In your organization, opportunities will be closed all the time, which means that at a certain point in time you will have a lot of closed opportunities in your overview, and it is possible to think that you want to get rid of these closed opportunities.
So you need to do some data deletion or data clean-up. In Dynamics NAV you have a Delete Closed Opportunities batch job for this purpose.
Click Departments/Administration/IT Administration/Data Deletion/Marketing Activities/Delete Closed Opportunities (or search for Delete Closed Opportunities and select the relevant link).
You can bring in a number of filtering, for example you might not want to close all opportunities, but maybe opportunities from a certain date range, etc.
When you click Ok, the opportunity will be deleted.
You can view opportunity statistics from various places in Dynamics NAV:
On the Contacts list, select the contact and click Statistics.
On the Salespeople/Purchasers list, select the Salesperson and click Statistics.
On the Campaigns list, select the campaign and click Statistics.
Sales Cycle Statistics
On the Sales Cycles list, select the sales cycle and click Statistics to view opportunity related statistics.
Sales Cycle Stage Statistics
On the Sales Cycle Stages, select a stage and click Statistics to view opportunity related statistics.