What is a sales order?

A sales order is a document created by a seller for a business which details all products and services that a customer has ordered. Sales orders will also include product condition, terms for payment, quantity intended to be purchased be a customer and how much each item cost plus the total amount owed.

The sales order normally includes the following information. Not all information is required. Requirements are based on a business’s needs.

Company Name and contact information
Customer Name and contact information
Billing information for the customer
Shipping information for the customer
Product and / or Service information
Before tax prices
Tax total
Shipping & delivery charges
Surcharges
Subtotal price
Total price
Terms & Conditions
Any relevant information such as notes, requirements by customer, or sales notes
Signature of customer

Sales orders are generally different than an invoice.