Glossary
What is a sales order?
What a sales order is, where it sits between a quotation and a tax invoice, and how it keeps track of what is left to bill.
Updated
In short
A sales order records a confirmed customer order: items, prices and dates, before anything is invoiced. In SimpleERP a sales order can be billed in parts and always shows what is left to invoice.
A sales order is the seller's record of a confirmed customer order: what was ordered, at what price and by when. It sits between the quotation and the tax invoice. It does not move stock or post to the books; it tracks what has been promised, so the seller can deliver and bill in parts and always see what is still to be invoiced.
Sales order: a worked example
Oakfield Traders orders 40 steel racks at $499 each, $19,960 before tax, on SO-2026-0005. Harbour Steel delivers 25 now and bills them on INV-2026-0018 for $12,475 plus 20% tax of $2,495, a total of $14,970.
| Line | Ordered | Invoiced | Left to invoice |
|---|---|---|---|
| Steel rack 4 shelf | 40 | 25 | 15 |
| Value before tax | $19,960 | $12,475 | $7,485 |
FAQ
Questions, answered
What is the difference between a sales order and an invoice?
A sales order is a promise to supply; an invoice is the bill for what was supplied. Only the tax invoice records the sale, the tax and the amount the customer owes. One order can lead to several invoices if goods go out in lots.
Do I need sales orders if I invoice straight away?
No. If you deliver and bill in one go, skip the order and raise the invoice directly. Orders earn their place when delivery takes time, comes in parts, or you need to see everything promised but not yet billed.
Does a sales order reserve stock?
Not in SimpleERP. Stock falls when an invoice posts, so the order shows what is promised while the stock report shows what is on hand. Compare the two before you accept a large order.
What is the difference between a quotation and a sales order?
A quotation is an offer the customer may still decline. A sales order is what they have agreed to buy. In SimpleERP an accepted quotation converts to a sales order with every line copied, so nothing is typed twice.
Related
Keep reading
Quotation
A priced offer sent before a sale, with items, rates, tax, total and the date the prices hold until.
Read moreSales order format
A free sales order format in Excel, Word and PDF, filled in for a steel furniture order, and how the same order becomes invoices in SimpleERP.
Read moreInvoicing & tax
Tax invoices with VAT, GST or sales tax on every line, numbered by fiscal year and posted in one step.
Read more
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