![]() ![]() Once you and the customer agree on the quote, then a sales order can be issued as confirmation of your newly formed contract. An estimate is merely an offer and not a sales contract. At this point, you and the customer are still negotiating the price, scope of the service, or quantity and quality of the goods. Sales Order vs QuotesĪ quote or estimate is given to customers who are interested in buying your goods or services. Once the customer receives an invoice, it means that the goods or services have been provided and the customer owes the business according to the payment terms of the invoice. On the contrary, a sales invoice is a request for payment. Sales Order vs InvoiceĪ sales order is a document that authorizes the sale and shipment of goods to the customer. These elements will help you and your employees in fulfilling the order by packing the correct inventory part number in the right quantity. Other important elements are the quantity, part number, description, and price. In your accounting records, the sales order number will serve as the reference number that will be mentioned in succeeding documents and records. The key element of a sales order is the order number. It’s what will be the basis of succeeding documents like packing slips, bill of lading, and sales invoice. Shipping term: free on board (FOB) shipping point or destinationĪn approved sales order is the document that starts the order management process.Total amount due, including selling price before taxes plus taxes, delivery charges, and insurance. ![]()
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