Catering to the customer’s needs and wants are what drives us to excel in the field of business that we’re into. Convenience, personalization, and providing customers a variety of delivery options allows us to keep them in the long run. And along with sales order forms to match it, the possibility of keeping loyal customers is readily available. Enabling you and your business to weather any storms that may come along the whole length of the journey.
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What are Sales Orders?
Sales and purchases go hand in hand in the course of business transactions in the field of commerce. Otherwise known as the incessant exchange between a buyer and a seller, sales and purchase are interactions between two parties wherein goods and services are exchanged. And sales orders, in this case, are made in response to a purchase order by a customer or client.
Sale orders are executed right after the customers made a purchase order and have paid for it. Like purchase orders, a sales order is essentially a request for a specific product or service that the customer needs. Things such as furniture, supplies, and services, such as repair and maintenance, are all communicated through a purchase order form and relayed to the production department with a sales order form. They’re also used to formalize, record, and track sales and purchase transactions.
To Sales Order Forms: The Ways to Fulfill Them
Sales order forms are drafted right after a prepaid purchase is made. That means that once a customer places a purchase order or an order request is sent from the sales department; a sales order form is then drafted immediately. Sales order forms often function similarly like other sales documents such as an invoice or a receipt, since most sales orders are prepaid transactions.
With the diverse nature of different industries existing in the world of business, the varieties of how sale orders are fulfilled in paperwork are equally diverse as well. From products ordered straight from your existing inventory to detailed sales orders built to the client’s specifications, sales order forms are not just rigid forms for a rigid purpose but a versatile tool for the dynamic and often unpredictable world of business. Listed below are some of the common types of sales order forms:
- Standard Order: Kitchen appliances, cars, and other everyday necessities are things that we usually acquire through orders. Standard orders are orders coming straight from the seller’s existing inventory and stocks. After a customer confirms the purchase, a sales order, along with a delivery order, is drafted to finalize the transaction.
- Build-to-Order: Industries of similar nature are not entirely made from the same fabric and are unique in their own way. Factors such as the conditions that they operate in determine the specifications of equipment, tools, and materials that they would use. Build-to-order transactions happen when a client places a product order specific to their needs.
- Engineer-to-Order: Like build-to-order transactions, engineer-to-order transactions are also done to meet the client’s special requirements. The difference, however, lies in how the client places the order itself. In a build-to-order transaction, the client only presents the design plans of a specific product while the whole design process is required in an engineer-to-order transaction.
- Consignment Order: The buy-and-sell business often requires capital to build your inventory. Consignments, however, allow enterprising individuals the ability to acquire products and paying for them after they’re sold. Consignment orders are very commonly used by distributors and manufacturers to retailers such as online sellers and shop owners.
- Build to Stock: Companies such as car manufacturers often produce more cars than it can sell within a year. That is so as to anticipate future order requests from dealerships as well as from its outlets. Building to stock is a manufacturing strategy adopted by companies whose products have a high rate of demand among retailers and consumers alike.
Are Sales Order Forms Useful in E-Commerce?
E-commerce is widely adopted by retail and wholesale businesses today. Also known as online shopping, e-commerce lets you buy a wide variety of products from around the globe with just a click of a button. Easy and convenient, it’s no wonder why most people prefer to shop at online shopping sites such as Alibaba, Amazon, and eBay. With over “2.14 billion people” expected to shop online in 2021—and more in the future—the e-commerce industry is expected to grow exponentially, as well.
Sales orders are used in retail and wholesale transactions, more especially in e-commerce. Way back then, orders are usually reserved for all sorts of things that are not within arms reach or too bulky to be hand-carried, and often requires a lot of paperwork to fulfill. Aside from that, the idea of offering products and services to order usually requires a huge amount of capital, so the use of sales order forms are somewhat seen as too formal and unfit for small enterprises. With the rise of paperless payment transactions and affordable shipping options catering to small and medium enterprises being more available, the use of sales order forms is surely helpful for sellers, big or small.
How Do You Use Sales Order Forms
Sales order forms are created in response to a purchase order made by a customer. It means that once a customer confirms the purchase of a product, a sales order will then be sent to the warehouse or the production department. Wholesale and retail businesses use sales order forms to formalize, record, and track sales and purchase transactions. And whether you’re engaged in made-to-order furniture business or an online seller on amazon, using a sales order form will help you widen the gap between you and bankruptcy. To help you create your own sales order form, here are the ways on how you can do it.
Step 1. Get a Sales Order Form Template
Perhaps you’re a small business owner who’s just starting to receive orders from your customers and is in need of a sales order form to track each and every one of them. For you to create a sales order form, selecting from a gallery of templates that we offer will help you create one without doing it from scratch. And once you’ve done that, all you have to do is to personalize it a little and print it afterward.
Step 2. Copy The Information Inside The Purchase Order Form
Once you’ve made your sales order form, the next thing to do is to fill it out. To do that, all you need to do is copy all that is written in the purchase order form. That includes the buyer’s name, address, and contact information, as well as the product description, price, and quantity. And in doing so, make sure not to miss every detail nor omit some, and be sure to write it clearly.
Step 3. Make a Receipt If Necessary
Orders, depending on the object of the transaction, will often make the issuance of a receipt necessary. Receipts are documents that record the transaction between the buyer and the seller. And, it is also inside a receipt that the final amount payable is written as well. Although all of those are already reflected in the sales order form, the amount payable inside it doesn’t constitute the actual amount the customer has to pay. Value-added tax, as well as shipping or delivery costs, added on top of the total price are what makes the final amount payable.
Step 4. Draft a Delivery Order
Orders, regardless of the thing involved, are usually delivered to the customer for them to be fulfilled. And as with every task within transactions, deliveries needed to be documented before they could even proceed. Delivery orders are documents that record every aspect of delivering an item like destination, time, and even vehicle number. These are documents that dispatchers use to authorize the sending off of delivery trucks or others of the same function.
Sales and purchase transactions are sometimes fulfilled through order requests. Today, however, more and more transactions are beginning to lean on order requests than the usual over the counter exchange. With mobile apps that allow us to order what we want and need in the comfort of our homes and offices are providing us with more convenient shopping options. Food, clothing, gadgets, and other stuff, all of those are readily accessible with just a click of a button. With that being said, businesses in the future would rather take this path not just to give their customers convenience and flexibility but also on their part as well. Apart from that, sales order forms will also be widely used in the future.
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