What is Sales Order?
Sales Order
A promise made by the customer to ask for what, how much, and by when.
What it means
Ordering is where everything begins in the factory. Write down who (customer), what (item), how many (quantity), and by when (delivery date) requested. At the factory, it is also called “order”, which means receiving an order.
Only when an order is registered can we calculate what to make, how much material is needed, and when it should be completed.
At the pen factory
On day 1, Hanbit Stationery asks for 100 pens of black ballpoint pen by November 5th. Put these four things on your office PC and register order S-1101.
Why it matters
Orders received only over the phone or through notes are remembered differently by each person in terms of quantity and date. Once registered in the system, production, purchasing, and shipping all move based on the same number.
How this differs from Purchase order
An order is something a customer places with us, and an order is something we place with a supplier. The direction is opposite.