Definition
A sales order is the seller's confirmed, internal record of what a customer has ordered, at what price and on what delivery and payment terms.
What is a sales order used for?
A sales order turns an accepted quotation or a customer PO into instructions the business can act on: reserve stock, pick and dispatch, then invoice. It isn’t sent to the customer as a bill; it’s the hub that deliveries and invoices are matched against, so you can see what has been shipped and billed and what is still open.
Example: a building-materials distributor confirms a sales order for 500 bags of cement at AED 18.50 a bag on 60 credit days, delivered from its main warehouse in two loads.
Sales orders are often confused with purchase orders: a PO is the buyer’s document, a sales order is the seller’s.
- Quotation (QT-2026-00118): Approved . Nothing posts.
- Customer PO (PO 7741) . Nothing posts.
- Order request . Nothing posts.
- Sales order (SO-2026-0042) . Nothing posts.
- Pick and dispatch . Nothing posts.
- Delivery note . Posts Dr COGS , Cr Inventory.
- Sales invoice . Posts Dr AR , Cr Revenue, VAT.
- Customer payment . Posts Dr Bank , Cr AR.