C1 - Section 6 Sales order.

Question 1

Define Sales order.

Answer 1

A seller generated document that authorises a sale to a customer, issued on receipt of a purchase order.

Question 2

Why are sales orders produced?

Answer 2

Sales orders are sent to the buyer to help avoid confusion, even though a purchase order has been received.

Sales orders confirm:

• Quantity and type of goods or service.
• Date of supply.
• Delivery address.
• price and payment terms including any discounts given or offered.

Question 3

why information can be commonly found on sales orders?

Answer 3

• Name and address of business making the sale.
• Delivery address.
• Delivery date.
• Name/Address of customer.
• Sales order number.
• Details of goods/service.
• Quantity to be supplied.
• Unit price (excl VAT).
• Discount offered.
• Authorisation signature.