01/26/2024 | Press release | Distributed by Public on 01/26/2024 10:13
You have a customer who's ready to buy (hurray!). Before you can ink the deal and cash your commission check, you need to outline the details of product delivery and payment in a sales order. After all, the last thing you want is for the customer to buy one thing but get something else because you didn't document the details.
If you're unfamiliar with sales orders - or have struggled with the right way to draft one - don't worry. We'll go over the different types, their benefits, and how to create one that works for you and your customers.
What you'll learn:
Learn 3 ways to sell faster with Salesforce CPQ
See how Salesforce CPQ helps sellers close faster, and companies launch new revenue models in days, not months.
What is a sales order?
A sales order is a document that provides the details of an order and the terms of the transaction. It's created by the seller after a buyer submits a purchase order. If a purchase order is not involved in the sale, the seller creates the sales order after the customer agrees to purchase a product.
An order document typically includes customer information, product details, pricing, and delivery information. Because it is not a binding contract, either party can revise the details of the order after the sale is complete.
When carefully drafted, sales orders allow companies to confirm a deal's accuracy before shipping. After a sale is complete, they provide records of transactions for sellers.
What's the difference between a sales order and a purchase order?
While both documents contain similar information, there are two big differences:
A sales order is an internal document for record-keeping and order fulfillment. It is created by sellers and their teams.
A purchase order is a legally binding document issued by the buyer to the seller indicating an intent to purchase. A customer creates a purchase order and sends it to the seller, who then creates a sales order based on purchase order details.
What's the difference between a sales order and an invoice?
An invoice is a request for payment and is sent to the customer after the sales order has been processed and (typically) after the order is fulfilled. Payment terms and type of payment are typically included on invoices but not in the sales order document.
While sales orders are internal documents for sales teams only,invoices are financial documents for both the buyer and seller. Customers can use invoices for tax purposes as proof of a business expense. Sellers need to keep invoices for audits to confirm revenue and proof of tax collection.
What are the benefits of sales orders?
Order documents can provide benefits beyond the sales and fulfillment processes, including:
Types of sales orders
Sales orders are not "one size fits all." Rather, there are four different types:
Get articles selected just for you, in your inbox
Sign up nowHow to use a sales order in the sales process
If you've never used an order in your sales process before, it's easy to create one for your organization. Follow these best practices to get started:
Sales order template framework
Generally speaking, a sales order should include the following:
Software for order creation
Because the sales order process is critical to delivering a smooth customer experience, it's important you get it right. Use the tools below to help automate some of the manual work involved, and to ensure all of your information is up to date:
Improve your efficiency with well-drafted orders
Processing sales involves different people and methods, which can get messy. By creating sales orders that contain every deal's details, your organization can provide clearer outcomes for customers and employees. Ultimately, this will improve the experience for customers and make your selling motions more efficient.