Sales order

A sales order is a document generated by a seller for its internal use in processing a customer order. The document essentially translates the format of the purchase order received from the customer into the format used by the seller. The sales order is then used for a variety of purposes, including the following:

  • Approval of the order by the credit department
  • Initiation of a work order, if the product has to be constructed
  • Initiation of a picking operation, if the ordered items are stored in the warehouse

A sales order is stored as an electronic document, if a company has an electronic order processing system. This makes it easier for anyone in the company with authorization to access the record. If the system is manual, then multiple copies must be created and distributed around the company.