Functioning Importantly In Trade, What Is SO?

YOGYAKARTA - In the modern world of trade, various elements and mechanisms work synergically to ensure the smooth flow of goods and services, one of which is sales order or SO. So, what is SO?

However, what exactly is SO, and why is its existence so fundamental in today's trade and economic dynamics? This article will thoroughly explore the definitions, functions, and significance of SO in the context of trading.

As explained by Sales Force, Sales Order or sales orders are documents that provide details of an order and transaction terms. This document was made by the seller after the buyer sent the purchase order. If the purchase order is not involved in the sale, the seller makes a sales order after the customer agrees to buy a product.

Ordered SO documents usually include customer information, product details, prices, and delivery information. Because it is not a binding contract, both parties can revise the details of the order once the sale is complete.

When carefully compiled, the sale order allows the company to confirm the accuracy of the deal before delivery. After the sale is complete, this document provides a transaction record for the seller.

Although the two documents contain similar information, there are two big differences:

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In fact, it is a payment request and sent to customers after the sales order is processed and (usually) after the order is fulfilled. Payment provisions and types of payments are usually listed in the invoice but not in the sales order document.

Although the sales order is an internal document only for the sales team, invoices are financial documents for buyers and sellers. Customers can use invoices for tax purposes as proof of business spending.

Meanwhile, sellers need to store invoices for audits to confirm revenue and tax collection evidence.

Order documents or SOs can provide benefits that exceed the sales and fulfillment process, including:

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