Sales Order - Definition & Meaning
What is Sales Order?
Sales Order is a confirmation document created by the seller for a customer before delivering the goods or services. First, the prospective customer accepts the quote and sends a purchase order communicating that he wants to buy the product and then a sales order is created.
A customer may also confirm the purchase in form of a call or a letter instead of a purchase order. The seller notes down the information of the consumer such as the name, product, quantity and mode of payment etc. A sales order is used to generate the request to remove the remote from inventory and to prepare it for the delivery. After that, a sales invoice (bill to the customer) is generated and when the customer pays, the item is shipped. These documents are used by most of the businesses and can be generated manually or sometimes by using a computer.
Sales Order is an internal document used for the flow of information within different departments after getting a confirmation from the consumer’s purchase order. Nowadays, sales order are avoided on paper and mostly sent electronically using the company’s intranet.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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