Hi all,
I have always a confusion regarding he INVOICE and SALES ORDER.
Does these two released at the same time(to customer) or is there any difference and what exactly are these two please help me out
thanx,
Ramarao
Invoice and sales order
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ramaraomovva
- Posts: 13
- Joined: Mon Jun 25, 2007 4:38 am
- Location: India
Hi,
Sales Order as explained earlier is a kind of agreement between the company and its customer that company would send a particular item on a particular date, on a particular price as desired by customer.
Once the items are received by the customer, he needs to pay to the company. Company sends a bill to the Customer, which is known as Invoice. This is basically payment transaction.
Invoicing is done in AR module (Accounts Receivable module) module where company sends the invoice to customer.Orders are booked in Order Management module.
Invoice done in Accounts payable is quite different. A company purchases certain things from his supplier. Once its done with its purchasing it needs to pay to its supplier. This payment transaction is taken care through Accounts Payable module, whereas in case of Order managment it is selling goods to customer and receiving payment from them.
Sales Order as explained earlier is a kind of agreement between the company and its customer that company would send a particular item on a particular date, on a particular price as desired by customer.
Once the items are received by the customer, he needs to pay to the company. Company sends a bill to the Customer, which is known as Invoice. This is basically payment transaction.
Invoicing is done in AR module (Accounts Receivable module) module where company sends the invoice to customer.Orders are booked in Order Management module.
Invoice done in Accounts payable is quite different. A company purchases certain things from his supplier. Once its done with its purchasing it needs to pay to its supplier. This payment transaction is taken care through Accounts Payable module, whereas in case of Order managment it is selling goods to customer and receiving payment from them.
HI Ramarao,
For the two queries which you have posted I think you are confused with the term invoice,below explaination should help:
First of all the term invoice is related to two modules for AR and AP
In AR you create a transaction(Invoice) to Bill your Customer,
In AP you record a invoice for the goods or services which you have received from the supplier.
In AR you create a Invoice for the goods and services which you sold to the customer where as in AP you create an invoice for the goods or services which you purchased from the supplier.
Thanks,
Murali.
For the two queries which you have posted I think you are confused with the term invoice,below explaination should help:
First of all the term invoice is related to two modules for AR and AP
In AR you create a transaction(Invoice) to Bill your Customer,
In AP you record a invoice for the goods or services which you have received from the supplier.
In AR you create a Invoice for the goods and services which you sold to the customer where as in AP you create an invoice for the goods or services which you purchased from the supplier.
Thanks,
Murali.
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