Business glossary
Sales order
A seller-issued document confirming items, prices and terms for a customer order.
Example
A supplier confirms an order for 30 units at an agreed price and delivery date by issuing a sales order. A later invoice can reference that order after the agreed billing event.
How it differs from related terms
A sales order is issued by the seller to confirm the order. A purchase order is issued by the buyer to authorize a purchase. Neither by itself confirms that payment has been received.
Frequently asked questions
What is an example of sales order?
A supplier confirms an order for 30 units at an agreed price and delivery date by issuing a sales order. A later invoice can reference that order after the agreed billing event.
How should sales order be interpreted?
A sales order is issued by the seller to confirm the order. A purchase order is issued by the buyer to authorize a purchase. Neither by itself confirms that payment has been received.