Key takeaways
- The buyer issues a purchase order; the seller issues a sales order.
- A sales order confirms one purchase and starts delivery and billing.
- Errors on the sales order carry through to delivery and the invoice.
What is the difference between a sales order and a purchase order
A purchase order comes from the buyer and a sales order comes from the seller. The buyer's purchase order says what it wants to buy and authorises the spend. The seller's sales order confirms it will supply those items on the stated terms and tells its own teams to deliver.
The two should match line for line. When they do not, the gap is usually a price, quantity or reference number, and finding it before delivery saves an invoice dispute later.
What does a sales order include
A sales order includes enough detail for delivery and finance to act without asking the seller anything. Most templates carry the same core fields.
- The sales order number and the buyer's purchase order number.
- Buyer and billing details, including the delivery address or account.
- Each product or service, with quantity, unit price and any discount.
- Delivery or start dates and payment terms.
- Any special conditions agreed in the deal.
Where does a sales order fit between quote and invoice
A sales order sits after the agreement to buy and before the invoice. The usual order is: the seller sends a quote, the buyer returns a purchase order, the seller raises a sales order, the goods or service are delivered, and the seller invoices.
Here is an illustrative example. An invented training company quotes a client for a two-day workshop for twelve people. The client sends a purchase order for that amount. The training company raises a sales order that books the trainer and the dates, then invoices once the workshop has run.
Who creates the sales order
The seller creates the sales order, often a sales operations or order management person rather than the account executive. In many companies the finance or order system creates it from the won deal, which is why clean deal records matter.
Where Pebbles Ai fits
Common questions
Is a sales order legally binding?
A sales order confirms a purchase under the terms already agreed, so whether it binds depends on those terms and the law that applies. Check with a legal adviser for your case.
Is a sales order the same as an invoice?
No. A sales order confirms what will be delivered; an invoice asks for payment, usually after delivery or on a set schedule.
Do service businesses use sales orders?
Many do. A sales order can book people, dates and hours just as it books physical goods, and it gives finance a clear record to bill against.
About this page. Written by the Pebbles Ai team for people who run sales, marketing and growth. Last updated .
