sales order

[Former Member]

hi

In sales order why we need to maintain Purchase order number? is it necessary?

reply

regards

murali

[Former Member · Accepted solution]

Hi Murali

A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating the type, quantities and agreed prices for products or services that the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a once-off contract between the buyer and seller so no contract exists until the PO is accepted.[1] POs also usually specify additional conditions such as terms of payment, incoterms for liability and freight responsibility, and required delivery date

A purchase order usually contains: PO number, shipping date, billing address, shipping address, terms of payment (usually in the form of NET 30, NET 45 and NET 60 depending on requirements set by the seller), and a list of services/products,often including specifications and reference or part numbers of the items to be purchased, with quantities and prices. When accepted by the seller it forms an agreement between buyer and seller.

A sales order is an internal document of the company, meaning it is generated by the company itself. <b>A sales order should record the customer's originating purchase order which is an external document</b>. Rather than using the customer's purchase order document, an internal sales order form allows the internal audit control of completeness to be monitored as a sequential sales order number can be used by the company for its sales order documents. <b>The customer's PO is the originating document which triggers the creation of the sales order</b>. A sales order, being an internal document, can therefore contain many customer purchase orders under it. In a manufacturing environment, a sales order can be converted into a work order to show that work is about to begin to manufacture, build or engineer the products the customer wants.

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Message was edited by:

narendran vajravelu

[Former Member]

Hi Murali,

Bascially, based on the Purchase Order received by the customer will create a sales order in the system for which the Purchase Order Number will be their in the Customer Purchase Order.While creation of Sales Order will give the Purchase Order Number as Reference.but if creating the Sales Order No need to enter this P.O Number.Its not Compulsory.

Hope this Clarifies your Doubt and Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Lakshmipathi]

Hi Murali

It is not necessary to maintain customer PO in sales order. But if you want to print the same in billing document, you have to maintain. Moreover, for statists purpose also, this will help.

Thanks

G. Lakshmipathi