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Overview

A Sales Order is a commercial document that is created when a customer places an order with a company for products or services. It serves as a formal agreement between the buyer and seller, detailing the products, quantities, and agreed prices. Sales orders are critical for ensuring that both the customer’s needs and the company’s inventory and processing systems are aligned.

Key Elements of a Sales Order​

A typical sales order includes the following details:

  • Document No: A unique identifier for the order.
  • Document Header: Details about the overall of the sales order, such as document no, description, and total amount.
  • Order Status: A part of document header whether the order is DRAFT, WIP, VOID or COMPLETE.
  • Customer Information: Details about the customer, such as their name, address, and contact information.
  • Item Details: A list of products or services requested, including quantities, descriptions, and prices.
  • Item Pricing: Any discounts or special pricing applied to the order.
  • Payment Terms: Information of customer tenure.

Sales Order Workflow​

The process of handling a sales order typically follows these steps:

  1. Order Creation: The customer places an order, and the sales team enters it into the system.
  2. Multidivision: The customer able to choose to create sales order using single or multi division.
  3. Order Confirmation: The company confirms the order details, including product availability and pricing.
  4. Fulfillment: The order is processed, products are picked from inventory, and shipment is prepared.
  5. Shipping: The order is shipped to the customer.
  6. Invoice: An invoice is sent to the customer for payment based on the terms.
  7. Order Closure: Once payment is received and the order is completed, the sales order is closed.

Importance of Sales Orders​

Sales orders are essential for managing customer expectations, coordinating with inventory systems, and ensuring that the business fulfills its commitments accurately and on time. They help businesses streamline their operations, reduce errors, and maintain clear records for auditing and reporting.

By capturing all the relevant details in a structured format, sales orders ensure that the company and the customer are on the same page throughout the transaction.