Sales order
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is sales order?
A sales order is the distributor’s own record of a customer order in its ERP, listing the items, quantities, prices, ship-to address and delivery terms. It drives everything that follows: committing stock, picking, shipping and invoicing.
How it works
A purchase order and a sales order describe the same purchase from opposite sides. The customer issues the PO; the distributor creates the sales order from it.
Sales order example
When a customer accepts a quote, the CSR converts it to a sales order, which commits stock at the nearest branch and prints a pick ticket in that branch’s warehouse.
Related terms
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Order entryOrder entry is putting a customer’s order into the ERP as a sales order, matching each item to the right SKU, quantity, unit of measure and price.
- Open orderAn open order is a sales order or purchase order that hasn’t yet been fully shipped, received or closed.
- Available inventoryAvailable inventory is the quantity of an item a distributor can sell right now: the stock on hand minus the stock already committed to open orders.
- Pick ticketA pick ticket is the warehouse’s instruction to pull the items for an order, listing each item, its quantity and its bin location.
