Re: Sales Invoice vs. Sales Order

[Michael Richardson <..hidden..>]

>>>>> "Brian" == Brian Wolf <..hidden..> writes:
    Brian>    Not knowing much about accounting, can someone explain the
    Brian> difference between a Sales Invoice and a Sales Order in
    Brian> LedgerSMB ?

Not being an accountant either...

A sales order is what I write down when you want to buy something from
me.  You ask me to ship you 10,000 staples next week.
When I actually *do* ship you the 10,000 stables, I generate an invoice
to go with it.  Before I ship, I have no receivable asset, but I have
10,000 stables.  After I ship, I have a receivable asset posted, but I
don't have the 10,000 staples.

If this happens between 10am and 2pm, not a huge difference.
If it happens between noon on Dec. 31 and I ship on Jan 4, the next
year, this might matter.

Unless I post the order, my factory floor might not actually produce the
10,000 staples, or they shipping department might ship the last 10,000
staples to someone else.

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