A sales order is a document that confirms a customer's intent to purchase certain items or receive specific services at approved prices, quantities and dates. The document makes stock reservation on specified products in the inventory and reduces the quantity available for sale. As far as services are concerned, sales orders make accounting entries regarding reserved services to the Trade accruals and prepayments journal.
For all goods recorded in the system, you can view reserved and available for sale quantities in the Inventory report. For a specific good, reserved and available for sale quantities are displayed in an item record created for the given good, under the Stock tab. Also, such quantity details are automatically provided for each good added to any of the sales documents.
However, the document does not result in a posting that makes value-related changes in the balance sheet or your financial statements.
The sales order is not an enforceable or legally binding document. Your company policies determine whether your company may manufacture products or deliver goods or services before a sales order has been created.
Usually, the sales order is issued after a customer accepts sales quotation. However, occasionally, a confirmation from a vendor regarding their ability to timely supply goods or services is required, and based on this confirmation recorded in a form of a purchase order, the sales order can also be created.
After issuing the sales order, the next step in the sales process is either creating a delivery or an invoice. Also, you can generate a number of invoices simultaneously based on all open sales orders with the aid of the Invoice Generator.
To go to the Sales Order:
- On the Codejig ERP Main menu, click the Sales tab.
- Under the SALES tab, click Sales Order.
Create Sales Process Documents
Sales Order: General Area
Sales Order: Items Section
Transactions Triggered by Sales Process Documents
Create Purchase Orders from Sales Orders