What is Sales Order and how to use it?

[Zoho Books] What is Sales Order and how to use it?

As a business owner, accountants, and procurement department, must be familiar with the client Purchase Order (PO). But during the daily work, keeping track of each POs is a very tiring and tedious job, especially for the procurement department. However, if you are a Zoho Books user, there is a sub-module called Sales Order

Sales Order is a sub-module that was created by Zoho to help business owners and accountants keep track of their PO. This - have 2 main purposes - Invoicing Progression, and Sales Stock Reservation. However, not all users are familiar with this sub-module, especially those who are involved in the distribution and manufacturing business.

1) INVOICING PROGRESSION

Sales Order acts as an agent who keeps track of the invoicing progress. This progress usually happens when a project invoicing is based on milestones or the project is based on man-days.

In a normal situation, accountants or account executives need to calculate manually how much balance they have before they invoice their client. This normal process can lead the person to miscount it. In other situations, the company doesn't keep track of how much the PO is left. When comes to the invoicing period, the customer PO may be depleted or expire.

In Zoho Books, Sales Order helps the business owners and accountants to keep track of all their PO that they received from the client. Every time the user creates an invoice from the Sales Order module, it will show how much the balance of the PO is and helps the user to request an additional PO from their client or decide either to extend the business or not.

2) STOCK RESERVATION

Dealing with stock always causes a lot of trouble especially for those who work in the manufacturing industry. Every month, the staff needs to do the stock count process and calculate how much the stock is left. Sometimes when a Salesperson wants to sell a product, they need to check with the company either the product that the customer wants to purchase is available or not.

In Zoho Books, stock reservations can be done by using the Sales Order module. By creating a Sales Order, some stock will automatically be reserved for the customer until the items have been sold or cancelled. Plus, if the stock reaches a certain quantity, it will trigger the re-order point notification to the user. If the user received this notification, they can decide either to purchase new stock, or ask the operator to increase the production.

I hope this short article will help the user to understand the function of Sales Order.


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