What is Sales Order?
Sale order is the document which company creates to represent a specific order from a customer. It is used internally to keep track of the order since the customer sends the purchase order, production starts, complete, and invoice issued to the customer.
Sale order contains all information from the customer purchase order which includes product detail, quantity, and expected delivery date. It helps to ensure that all orders are kept track with the same format.
All information on the sale orders will be matched with the goods received note and reference to the invoice bill.
Content of Sale Order
It is very important for the sale order to record the important information necessary to speed up the procedure. Sale order should include the following:
- Customer Name: The customer name match with the purchase order and invoice.
- PO number: Sale order should contain the PO number which allows us to cross-check between what customer order and our production in case something goes wrong.
- Reference Number: It should have a unique reference for internal use to keep track of each order. This should be the same from sale order to goods received note, the invoice which is easy to keep track each work.
- Product name: The order must have the product name that the customer place order with us.
- Quantity Order: It is the quantity which we need to complete for customers. It can be split into several sale orders if the customer requires difference delivery date.
- Expected Delivery date: The delivery date helps the production team to shot the order to prevent missing the deadline.
What are the Importances of Sale Order?
|Important of Sale Order|
|Keep track of all order||The company is able to keep track of all orders place by the customers. It is like a tool to convert the PO from an external party to use within the company. One SO can flow from the beginning to the end of the selling process.|
|Prevent Double order||Each order place by the customer will create one unique sale order, so it will be able to prevent any double production.|
|Prevent Forget order||For the big company that receives hundreds of orders per day, it will be easy to miss the customer order. By using a sale order, all purchase orders will match the sale order so there is no missed order.|
|To assist the billing process||It is the key document to connect from PO to GRN and Billing. It will ensure the correct billing and prevent any miss billing.|
|Inventory Management||The company needs to check the SO outstanding to ensure that enough stock is available for the production or delivery to customers.|
|Improve Customer Service||It is very convenient to check each order status by looking at the system. So it is easy to respond if the customer wants to check the status of their orders.|
|Set KPI||The order will move from the sales department to production and to the delivery team. Management can pull all the data and set KPI for each department to improve the working process.|
Sale Order Template
Sale Order Procedure
- Customer sends a request for Quote
- Sale team send back the Quote
- Customer sends the PO if they decide to purchase base on the Quote price
- Sale Team receive PO and Create SO
- SO will be passed to the Production team
- Products are produce and package base on order
- Products are delivered to customer attach with GRN which state the detail of SO & PO
- Issue invoice base on the detail of SO and GRN
- Customer pay base on the invoice bill