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How to create a Sales Order?
How to create a Sales Order?

In this article, you'll learn about the flow of sales order and how to create one in ProfitBooks

Harshal Katre avatar
Written by Harshal Katre
Updated over a week ago

Sales order is created when a bulk order is received, and it is executed across multiple deliveries. One can generate multiple delivery challans and generate an invoice for each delivery challan or one invoice for more than one delivery challan.

In general practice, below steps are followed by the businesses:

  1. Estimate/Quote is sent to the potential customer.

  2. If accepted, customer sends a purchase order (PO).

  3. Customer may request a Sales Order (SO) to view exact details of the products, price, terms and delivery dates.

  4. When products are shipped, an invoice is created from SO for billing purpose.

Once the Sales Order is created, Inventory manager can have a look at it to know what needs to be delivered/shipped and when.

Let's see how to create Sales Order in ProfitBooks.

Please go to Income > Sales Order.

1) You can view Executed, Draft and Cancelled sales orders while opening the Sales Order window.

2) Click on the ‘+ New Sales Order’ button to create a new Sales Order.

3) Customer Name – Select from existing list or you can also create a new one

4) Enter the Date of Sales Order

5) Please fill in Product Name, Description, Quantity, Unit Cost, Discount & Tax. Add more products by clicking on ‘+ Add New Row’ button

6) Enter additional charges such as shipping, loading, etc by clicking on ‘+ Add other charge’ button

7) Enter customer notes where details about delivery and terms can be specified

8) Once the Sales Order is created, you can create a ‘Delivery Challan’ and ‘Invoice’ from it. These details are shown at the bottom of SO if you view it later.

Stages of a Sales Order

Sales Order goes through different stages and has a specific status during each stage.

  • Open & Unbilled – When Sales Order is just created, it's in open status.

  • Partially Executed – When delivery challan has been created for partial quantity

  • Executed, Billed, Cancelled and Draft depending on the actions taken on the Sales Order

What Next?

Once you create a sales order you can do following things:

  • Create and print delivery challans when you deliver the goods or services.

  • Create invoices from delivery challans. You can even combine multiple delivery challans and create one invoice from it.

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