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Difference between sales order and sales receipt?

So based on my very limited knowledge, I thought I should create a sales order first to record a sale, but then realized that after creating a sales order I need to invoice the customer to close-out the sales order, otherwise the SO stays open. I sell online and collects payment as products are being sold through shopping carts and Paypal, etc. Should I not bother with creating sales order, and just go straight for "Enter Daily Sales" which is to create a sales receipt?

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Best answer 12-10-2018

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a sales order is a non-posting document that serves to re...

a sales order is a non-posting document that serves to remind you of what will eventually be a sale.  if you receive a legitimate order for immediate shipment, create either a sales receipt if you have received payment in full, or an invoice if you must wait for the payment to arrive.

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a sales order is a non-posting document that serves to re...

a sales order is a non-posting document that serves to remind you of what will eventually be a sale.  if you receive a legitimate order for immediate shipment, create either a sales receipt if you have received payment in full, or an invoice if you must wait for the payment to arrive.

Established Community Backer ***

You use SO to track orders desired by customers which giv...

You use SO to track orders desired by customers which gives you reporting on the Big Picture:

On order by customers (SO), on order from your suppliers (PO), in stock = management reporting.

SO also provides Fulfillment tools in some QB programs = tracking customer backorders (yet to deliver or fulfill).

If you don't need those tools, don't bother with SO.

Not applicable

Re: a sales order is a non-posting document that serves to re...

So how do I issue a receipt for payment received? Also, is there a way to setup an automatic payment receipt notification/email that the client receives after making a payment? I am a planner and I have clients who pay 50% deposits and I need to send them a receipt that reflects balance due.

 

Is there a way to setup a balance due reminder?

Thanks!

Established Community Backer ***

Re: a sales order is a non-posting document that serves to re...

Here is how a wedding planner might use QB:

 

We make an Estimate = scope of work for price, listing, for instance, Band and Venue, Food with quantity (# of people) and a Per Head price, Flowers, etc.

 

I want 50% up front. I make a Prepayment other charge type item linked to Income, for a cash basis entity; or to Liability, for an accrual basis entity or for the cash basis entity that is allowed or required to carry Liability. Ask your own Accountant, if you are not sure of your own Prepayment Accounting requirements.

 

I put that Prepayment Item on a Sales Receipt, because they signed off on the Contract and are paying my prepayment request. We are Not Charging for Half of a band, now; not for Half of the flowers, now. We are Justifying how much to charge, because of these details. The prepayment is Just Money, not Band or Flowers or Food.

 

Later, it is time to create the Actual Invoice.

 

I also make a Credit Memo to the customer for the same date as the invoice. I list the Prepayment here. I apply that to the Unpaid Invoice. That leaves the Actual Sale partially paid, so there is a Balance Owed. I can send a statement or the invoice showing their Credit Memo prepayment has been applied.

 

The Invoice and the Statement would show Balance Due.

 

You don't send a Balance Due Reminder. You send the Actual Invoice, because that is the Actual date of the actual sale of those goods and services. The prepayment was how to get Money. You were not paid for food or flowers or the band. You were Prepaid for an Amount.

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

If the sales order does not remove item count from quickbooks inventory. Does the inventory count get reduced during the "pick" or "pack" order fulfillment phase? If we are using Pick and Pack features from the  Sales Order Fulfillment Worksheet? Quickbooks Desktop Enterprise 2019 latest version.

Moderator

Re: a sales order is a non-posting document that serves to re...

I'd be delighted to assist you today, Bob1231.

You can track real-time status from the warehouse using the Pick and Pack features in QuickBooks Desktop.

 

While the sales orders are in the Pick and Pack process, the inventory count will be reduced. Your inventory will only be reduced once you create an invoice from the sales order.

 

This feature allows you to track sales order fulfillment progress.  As soon as there is an update from the warehouse via the mobile scanner, you will see an orange arrow notification indicating a picklist update.

 

To know more about this feature, check these recommended articles:

 

For additional help, you can also reach out to our QuickBooks Desktop Support.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

This should get everything back in working order. Please let me know if you have any other questions about sales order in QuickBooks.

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

Thank you Rose that is very helpful. We are wanting to use the Pick and Pack feature in Quickbooks desktop and we are using the quickbooks web connector to import our already paid for orders from our website. If we want to import these orders that are already paid for and still use the Pick and Pack features but also reduce inventory count, would we import these orders as a Sales Receipt or Sales Invoice? Thank you.

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

Thank you Rose that is very helpful. We are wanting to use the Pick and Pack feature in Quickbooks desktop and we are using the quickbooks web connector to import our already paid for orders from our website. If we want to import these orders that are already paid for and still use the Pick and Pack features but also reduce inventory count, would we import these orders as a Sales Receipt or Sales Invoice? Thank you.

Moderator

Re: a sales order is a non-posting document that serves to re...

Thanks for getting back to us, Bob1231.

I'd like to make sure you can use both Pick and Pack features and reduce inventory count at the same time via QuickBooks Desktop.

 

Both sales receipts and invoices record sales in QuickBooks but uses a different accounting method when it comes to the report. Invoices use an accrual basis while sales receipts record sales on a cash basis.

 

I cannot recommend what you can import since these transactions both reduces your inventory count. An invoice is used when your customer agrees to pay you later and a sales receipt is used when your customer pays you on the spot for goods or services.

 

You may find these articles:

 

For additional help, you can also reach out to our QuickBooks Desktop Support.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

If you require more information concerning inventory and invoices in QuickBooks, don't hesitate to let me know. Have a good one.

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

Ok thank you. These orders will already be paid for before they get send to the Quickbooks Desktop Enterprise so I am leaning towards importing as a Sales Receipt since they have been paid in full.

 

Can both Sales Invoice and Sales Receipt both be Pick and Packed using the Pick/Pack tabs in the Sales Order Fulfillment Worksheet? Or would I have to pick/pack these in a different area of Quickbooks? Thank you Rose.

 

 

 

 

QuickBooks Team

Re: a sales order is a non-posting document that serves to re...

I appreciate you coming back to us for additional support, @Bob1231.

 

Only the sales order transactions will show on the Pick and Pack tabs. Once the Sales Order is fulfilled, you can link to an invoice or sales receipt. The options to create them is under the Customers menu at the top.

 

For future help and reference, you can check the following links: 

I'm still here to help you more if you have other questions or concerns. Just leave a comment or mention my name. Wishing you all the best!

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

Ok thank you so once the Sales Order is fulfilled we can link the Sales Order to a Sales Receipt or Sales Invoice as both of these remove items from the inventory when created.

 

I can see that a Sales Invoice is needed for an order that has not been paid yet. A Sales Recepit is for an order that has been paid.  Is this correct?

 

What is the fastest & easiest way to remove items from Quickbooks inventory after we have fulfilled a Sales Order that has been Picked & Shipped and already paid in full? Thank you.

QuickBooks Team

Re: a sales order is a non-posting document that serves to re...

Hello Bob1231,

 

I appreciate you getting back here in the Community. I'd be glad to lend a hand with your concern about the Sales Order Fulfillment Worksheet in QuickBooks Desktop.


Yes, you're correct. You use an invoice if it's a deferred payment that your customer will pay in a later time while sales receipt is for immediate payment.

 

For your second question with regards to removing items, please know that it'll only deduct the quantity once you start creating an invoice. Since Sales Orders are the non-posting type of transactions, creating them will only show the amount from the Item List column.

 

Here's how:

 

  1. Click the Lists tab at the top menu bar.
  2. Click Item List.
  3. Below the On Sales Order column, check the amount.

Once you start creating and applying the sales order, it'll clear the amount on the Item List. I'm adding a sample screenshot for your visual guide:

 

 

For future reference into creating invoice from sales order and the fulfillment worksheet, you can visit this article:

 

Let me know if you need further information regarding creating sales orders. I'll be sure to get back to you.

Community Contributor *

Re: a sales order is a non-posting document that serves to re...

If a Sales Order comes in we are assuming it already been paid in full. So then at that point we would need to create a Sales Invoice for the Sales Order to remove items from Inventory?

 

However since the order has been paid in full should we create a Sales Receipt from the Sales order instead?

 

We just want an easy way to remove the items from inventory automatically during the pick/pack phase but I am guessing that it is not going to be that simple?

 

Anonymous
Not applicable

Re: a sales order is a non-posting document that serves to re...

Thanks for joining the conversation, @Bob1231,

 

I can share some clarification about the creating sales receipts from sales orders in QuickBooks.

 

Yes, you're right. To start the sales process, the system only allows you to create invoices instead of sales receipts to keep track of the quantity the customer ordered vs how many were sold. This method is part of the usual Accounts Receivable workflow in QuickBooks Desktop, and is used to record a sale that you plan to fulfill in the future.

 

Additionally, SR's are cash based transactions and will not update the inventory from a fulfilled SO. Record a sales receipt if you receive full payment at the time of the sale. This include payments by cash, check or credit card.

 

To know more about the workflow in QuickBooks, check out this link: Accounts Receivable workflows in QuickBooks Desktop.

 

Please feel free to update me any time if you have any more questions or need further assistance with this. You have me here to help you get back on track. All the best!

 

 

 

 

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