How To Create A Sales Order Using QuickBooks

To create a sales order means to generate a document or a  record with the details of purchase done by the buyers and lists the details of the sales done, this is known as a sales order. This sales order generally prepared by the seller is in relation to the sales done of the product and purchase done by the buyer, this document has details of the product, the quantity of purchase, buyers shipping address, product price, billing details, mode of payment and also the terms and conditions including any return policy. It also indicates that no further production efforts will be put into that particular product.

How is sales order different from purchase order?

When the buyer sends the order to the seller with details of the product to be purchased this is called the purchase order. After receiving the receipt of the purchase order,  the seller creates a sale order. After getting the purchase order it becomes easier for the seller to create a sales order.

How and when to create Invoice?

Mainly a sales order is created by the supplier to make sure to the customer that a specific product available or particular service will be provided to the customer by the seller. but the invoice is generated in the end when the deal is done between the supplier company and the customer. Sales order is prepared before the purchase where as the Invoice is handed to the customer by the company once the product is purchased by the seller 

What are the steps to follow to create a sales order ?

  1. A quote is sent by the seller to the customer
  2. When the customer accept the quote, customer send a purchase order to the seller
  3. After receiving the purchase order the seller creates a sales order based on the purchase order details.
  4. Copy of the sales order is shared with the buyer to verify the details of the product, its price, quantity , terms and delivery details.
  5. The buyer then verify and sign the sale order and do the payment
  6. Once the product is sent or handed over to the buyer an invoice of the sale order is created.

What is the importance and benefits of creating a sales order?

Sales order is very important to maintain the inventory and companies business accounting. After the purchase order , when the sales order is created the company or the supplier agrees to provide the product or the service corroding to the details mentioned in the sales order.

Purchasing department and the billing department refers to the sales order to check and verify the details before generating the invoice at the end by the company.

  • Sales order helps in minimizing the work time, by preparing sales order the seller saves time and efforts as the same sales order can be used by other departments to verify the price, quantity and other details of the purchase.
  • Sale order document improves the customer service by keeping record of the customer’s information on the system and the seller has the information of the buyer quickly when needed to create sales order
  • The product information is available on the system, and if a customer has any query with the purchased product sales order helps in letting the seller address customers quickly and efficiently.

Steps to create a sales order using QuickBooks

  1. In Quickbooks open the company file and sign in as an Admin 
  2. Go to Edit Menu and select Preferences
  3. Choose the Sales and Customers option from the left panel
  4. Select the Company Preferences tab.
  5. Select Enable Sales Order and select OK checkbox.

Creating a sales order from blank file 

  1. Open Quickbooks and go to Customer Menu
  2. Go to Create Sales Order
  3. Select Customer Job from the drop-down, if not there click Add New
  4. Add details and information like Date,  S.O.No.
  5. Select the items in the Details area
  6. Click Save and Close

Create a sales order when estimate is provided

  1. Open the Estimate Form file
  2. Go to the top of the estimate form and select Create Sales Order 
  3. Edit the information in the Sales Order form
  4. Select Save and Close 

FAQ’s

Q1. When should we make a sale order?

A1. Once the purchase order is done then we can create a sales order

Q2. Can we create a purchase order using QBO?

A2. A purchase order or PO referring to the details of the purchase you intend to buy from another vender can be easily prepared using QBO

Q3. What important information should not be missed in a sale order?

A3. Product Price, quantity, customer’s details and shipping address and date of shipping should not be missed

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