What is a Sales Order?
A sales order is a document made by the seller. A sales order is prepared based on the customer's demands. The seller issues this sales order to the customer, confirming that the ordered products/services will be delivered to the address desired by the customer. The seller specifies the details like a product ordered by the customer and other information such as quantity, price, additional terms and conditions, delivery date, etc.
Is Sales Order Different From Sales Invoice?
Yes, a sales order is different from a sales invoice or seller's invoice. Even though both are co-related, a sales order is made to process the order while the seller's invoice is made during the order's delivery. A seller's invoice consists of customer name, address, purchase order number and date; products ordered price, quantity and amount (in respective units), tax details. A seller's invoice is considered a financial document used to record in the accounting books. Even though a sales order has details like products, price, and quantity, it is mainly meant for processing the order. It is not considered for accounting purposes.
What Are The Components Of A Sales Order Form?
A sales order form consists of the following items:
Customer name and address: The customer's name and address should be mentioned here, along with the contact information.
Customer shipping address: The customer's shipping address has to be mentioned here. There is a difference in the customer's speech when the person ordering the stock is located in one place and wants it to be delivered to another location. Sometimes, both customer's contact address and shipping address will be the same.
Customer Order reference and date: A mention of the customer's order number and date will prove to be a good reference for future correspondence.
Product information: The information about the ordered product should be mentioned here.
Price: The negotiated price of the product should be mentioned here.
Quantity: The number of units ordered should be mentioned here.
Advance payment: The amount received from the customer towards advance payment should be mentioned here. This payment may be received in whole or part payment. The customer pays this payment before actually receiving the products.
Terms and conditions: Any other terms and conditions negotiated should be mentioned here.
Signatures of the concerned authorities: The person authorizing the transaction should sign here.
The seller can use the sales order template to speed up the process of filling out the sales order form. A sales order template is a predesigned document that can create various orders with minimum changes based on the customer's demands.
A sales order is an important document in any business transaction. By understanding the ins and outs of a sales order, you can ensure that your business dealings are conducted as smoothly as possible. If you're looking for help with fulfillment, be sure to get in touch with Simpl! Our team is experienced in helping businesses just like yours get their products out the door and into the hands of happy customers. Thanks for reading!
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