Why do companies create a sales order?

Question

What is so important about it?
Why not just sell once you've got the Purchase order from the buyer?

Answer 1

Sales orders are issued by a seller in response to a purchase order received from a buyer. The sales order will typically show details of the goods being ordered date, quantities, agreed prices, and also refer to the purchase order from the buyer.



The original sales order is sent to the buyer, and a copy of the sales order is retained by the seller.

Answer 2

to have a number to track it by

Answer 3

A sales order gives a reference # and paper trail for internal control. Using the customer's PO # would be impractical, given the difference between customers' numbering schemes.

Answer 4

Companies which are keeping track of inventory use Sales Orders to essentially reserve those products so they aren't oversold.  If a customer says they want 20 wigdogs and they won't get you the PO until tomorrow, you don't want to sell your last 20 and piss off this long time customer who was told no problem 10 hours before.