A sales order is a document that records the confirmation of an order from a customer. Once you’ve sent the customer a quotation, they will revert with a purchase order, and then you can create a sales order referencing the purchase order. If a customer has placed an order that requires delivery of goods and services over a long period of time, you can also create a blanket order.

A sales order contains details about the customer, like their billing address, shipping address , contact person details. It also includes a detailed item list with quantities, rates, shipping charges, taxes, discounts and payment terms. It is an all-inclusive document used for confirmations, references, and records.

A sales order also acts as communication to various teams in your organisation. For example, it tells your organisation’s delivery and manufacturing teams what items they need to procure and manufacture, when and where to ship the materials. It also provides details to the accounting team in your organisation regarding payment terms decided.