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Create a QuickBooks Sales Order in No Time with These Steps

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A QuickBooks sales order comes in when your business wants to note down a sale that you wouldn’t be fulfilled immediately but you hope to do so soon. In these circumstances, you can’t make an invoice.

Perhaps you usually don’t document an order until you are sure you are going to fulfill it and then create an invoice right away. Or it can be that your inventory never runs out, and you create an invoice as soon as the customer places an order. Depending on how you do business, you may or may not need to create a sales order.

If you do need to create a sales order in QuickBooks Desktop, you must first enable them in QuickBooks. This guide will get you started with QuickBooks sales orders and how to create them in QuickBooks Desktop.

Before You Create a Sales Order in QuickBooks

Before you go ahead and create a sales order in QuickBooks, you should get to know some basic things about it. This will help you understand the significance of sales orders in accounts receivable processes.

What is a Sales Order?

A sales order is a document the businesses create when the customer places an order. They use sales orders to schedule product shipping, create an invoice for it, track it, and more. In many companies, creating a sales order is a part of the A/R workflow.

Information Sales Orders Contains

A sales order contains the following details related to the product and the buyer such as:

  • Name of the product ordered and quantity
  • Price of the product
  • Shipping address
  • Billing information
  • Return policy
  • Other applicable terms and conditions

QuickBooks Versions Sales Order is Available On

Sales order is only available on a handful of versions of QuickBooks Desktop. It is available in

  • QuickBooks Desktop Premier
  • QuickBooks Desktop Enterprise.

Sales Order Vs. Estimates

Sales orders and estimates are two different things. An estimate is a customer-facing document, a quote that you provide to the customer. It is an estimate of the cost of your services. Sales orders are, however, only registered when the customer places an order for the products and services.

Estimates are off the book and are not included in the income.

Sales Order Vs. Invoices

Let us look at the difference between sales orders and invoices in QuickBooks. A sales order and an invoice are not the same things. Invoices are documents created to record a sale from the customers.

If you look at the accounts receivable workflow, a sales order is followed by an invoice. An interested customer must place an order for the product or services. When you are finally equipped to reciprocate this request, you create an invoice.

Why You Must Know How to Create a Sales Order in QuickBooks

Creating a QuickBooks sales order is an important accounting task for small businesses that use this application to prepare invoices and manage accounts. The significance of sales orders in QuickBooks or, for that matter, any accounting software can be understood by the fact that sales orders help in shipping, invoicing, and tracking the product.

Let us look at a few situations where you need sales orders.

  • The instance where a customer orders frequently and you don’t want to create an invoice for every item. Instead, you can create a sales order for each item and keep track of them. You can collectively create an invoice for all these items at the end of the month.
  • The instance when a customer orders an item, and you are missing it in the inventory. You cannot create an invoice right away, as although you hope to fulfill it in the future, you can’t register a sale right now. Therefore, you can create a sales order to keep track of the order and invoice it when you replace the product in inventory and are ready to deliver it to the customer.

How to Enable Sales Orders in QuickBooks Enterprise Solutions

To use QuickBooks sales orders in QuickBooks Enterprise Solutions, you must first enable this option.

Here is how you can enable sales orders in QuickBooks Enterprise Solutions:

  • Sign in to QuickBooks company file as administrator.
  • Navigate to Edit.
  • Click on Preferences followed by Sales & Customers.
  • Choose Company Preferences.
  • You will see a checkbox corresponding to the Enable Sales Order option.
  • Select the checkbox.
  • Once done, press OK and close.

How to Create a QuickBooks Sales Order from Estimates

If you provide an estimate to your customers, you can use the same to create a sales order. Here are the steps for creating sales orders from estimates.

  • Find the estimate you wish to create a sales order from.
  • At the top of the estimate form, you will see an option for Create Sales Order.
  • Now, the sales order will appear.
  • Edit the details accordingly.
  • Once done, click on Save & Close.

How to Create a QuickBooks Sales Order from Scratch

If you don’t provide your customers with an estimate or want to create a sales order from scratch, this section is for you. Follow the steps listed below to create a sales order from absolutely nothing.

  • Go to the Customer menu.
  • Choose Sales Orders/Create Sales Orders.
  • You will see a dropdown for Customer: Job. Choose the right customer.
  • If the name of the customer doesn’t show on the Customer: Job list, click on Add New to create a customer.
  • Enter the required details, such as the date and serial number.
  • Select the items you wish to include in the sales order. As per the description and price you entered when you set these items, the amount and description will appear on the sales order.
  • You can also modify or delete these items or add a new item.
  • If you want to provide a discount to the customer, you will need to create and apply a discount item if the item is not on the list.

(For that, move on to the next section, and only after applying the discount item click on Save and Close)

  • After applying all the items, click on Save and Close.

How to Create a Discount Item for Sales Order in QuickBooks

In the last section, we saw how you might need to apply a discount item when creating a sales order. Thus, it is important to create a discount item and keep it handy.

Follow the steps listed below to create a discount item that you can use in sales orders and invoices.

  • Navigate to the Lists menu in QuickBooks.
  • Choose Item List.
  • Right-click on anywhere in the empty space and select New.
  • Now, in the window that appears, choose Type drop-down.
  • To create a discount item, click on discount.
  • Fill in the details for the Item name or a number and a description.
  • If you want to create a discount for a fixed percentage, you can enter the percentage or amount here.
  • If you want to make a discount with a variable amount and percentage, leave the percentage blank and enter the amount in the sales order.
  • Now, you need to choose the income account you wish to use to track the discounts. Select that account in the Account drop-down menu.
  • Choose a suitable Tax Code for the discount item.
  • Once done, click on OK.
  • Finally, click on Save and Close.

How to Turn On Sales Orders in QuickBooks Point of Sales (POS)

Sales order, work order, and layaway are different customer order types available in QuickBooks Desktop Point of Sale Pro and Multistore Editions.  Customers can use sales orders to reserve an inventory item that they wish to buy in the near future.

Your customer can place a QuickBooks sales order. However, for that, you need to enable customer orders. Here is how you can enable customer orders in  POS.

  • Navigate to the File menu.
  • Choose Preferences followed by Company.
  • Select the checkbox in the General section for “I create Customer Sales Orders”.

You can also check the boxes for “I create Customer Layaways” and “I create Customer Work Orders” if you want to enable these customer order types.

  • Once done, click on Save.

How to Add a Non-Billable Expense to a Sales Order

Sometimes, you would need to add a non-billable expense to a sales order. Here is how you can do so:

  • Go to the Customer menu.
  • Choose Sales Orders/Create Sales Orders.
  • Now, add an item or create a new item. Make sure the amount is zero at the end.
  • When you are done, click on Create Purchase Order (PO) option.
  • Click on OK and check the Purchase Order details.
  • Finally, click on Save.

Wrapping It Up

The above blog shall guide you on how to create a sales order in QuickBooks. For any query regarding QuickBooks sales orders or other QB aspects, contact our QB ProAdvisors. Our ProAdvisors are available round the clock to cater to your QB-related issues in real-time. Dial +1(800) 580-5375 now.

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