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1. Orders should not be recorded upon receipt of a customer purchase order or other evidence (EDI, facsimile or documented phone conversation) documenting the customer’s initiation of the order.
2. A formal credit approval process should be completed prior to acceptance of customer orders for new customers.
3. Pre-numbered sales orders or their equivalent should be used to ensure all orders are processed and recorded.
4. Only goods or services specified by a purchase order or alternative documentation should be shipped to customers. Change orders must be approved and documented by management.
5. Orders must be properly documented and fully edited before they are released to production and/or shipping.
6. All export orders must be processed in accordance with export compliance procedures.
7. Management approvals are required for discounts or allowances.
8. Access to open order files must be safeguarded from unauthorized inquiries and/or alterations.
9. Policies and procedures should be established and documented for the review and approval of sales and contracts prior to their acceptance.