HomeIndustriesRetailWhat is Sales Order and Its Benefit for Your Company

What is Sales Order and Its Benefit for Your Company

According to Wikipedia, a sales order is a document issued by a business or sole trader to a customer. Sales order documents contain information about the item sold or services rendered, the price, and the number of items purchased.

Some sales orders also include the buyer’s data. Such as shipping address, billing address, payment method, also terms and conditions. Generally, cross-company transactions go through the following steps:

  • The seller sends a quotation letter to the buyer
  • If accepted, the buyer sends a purchase order to the seller
  • Sellers make sales orders based on the purchase order
  • There is a possibility the buyer wants to see the sales order’s contents, but this rarely happens
  • The seller issues an invoice based on the sales order after they finish the delivery process

Creating a sales order sounds very complicated and confusing if you do it manually. If the demand for sales orders is small, it will be easy to do it. However, if sales are high, you will certainly have trouble making it manually. It will be easier to automate sales orders, use a CRM System to quickly create sales orders.

sales order

The importance of sales orders for companies

Many companies think that a sales order and a purchase order are the same things. The truth is, these two documents have different functions. A purchase order is a document issued when your company wants to purchase something. Whereas a sales order is a document with the purpose to confirm sales.

These errors can lead to more complicated issues in the long run, especially in purchasing and financial departments. Misperception between sales orders and purchase orders can lead to accounting errors.

That’s why a lot of companies start to automate this process by using sales management software. The main objective is to avoid human error. But other benefits can be learned, here are some of them:

Time-saving

It is undeniable that paperwork is the most time-consuming job. Retrieving data from purchase orders to make sales orders requires accuracy so that data input errors can be avoided.

sales order
Source: freepik

By using a sales management system, human errors can be avoided. The software will handle the document-making process will not only increase the data accuracy but also saves the time needed to create the document.

Improve customer service

Manually recording sales data does not only affect your company’s purchasing and finance divisions. It will also affect your customer service department. They won’t able to show their best performance when serving customers.

Source: freepik

Imagine how troublesome it is to find a single piece of data from a ton of sales order documents, while your customers grumble impatiently on the other end of the telephone line.

Sales management software can help your CS teamwork better. With just a few clicks, the desired data can be obtained easily and quickly.

A sales order can grow with your company

Another advantage of using sales management software is that you can scale up or scale down your business without having to add more staff. You can’t do this of course if you still manage your sales manually.

Source: freepik

With the help of the system, you don’t need to add more staff when orders suddenly start pouring. With sales management software, one or two staff are more than enough to manage your sales documents.

After the sales order is complete, you have to process the bookkeeping to keep track of the company’s finances. Automate your company’s bookkeeping with the best accounting software.

Access sales order information from anywhere and anytime

With cloud system support, you can access the information you need from anywhere, as long as you are connected to the internet. This way, enable you to make better decisions quickly without any obstacles.

This also applied to your sales staff. Whenever they need data, they can access it anytime from their cellphone. Your customers will be happier with your customer service speed.

Source: freepik

Conclusion

Automation brings many benefits to the company. Businesses will perform more efficiently with technological advancement. Furthermore, this automation provides the speed your customers need. Sales management software can cut 50% of the time needed to process the required documents. Moreover, you can use ERP software to streamline your business processes and increase productivity in the company’s operational activities.

sales order

For other tips and tricks about sales management, you can click the following link.

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