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Re: Sales Invoice vs. Sales Order





On Fri, Sep 21, 2012 at 6:48 AM, Brian Wolf <..hidden..> wrote:
Not knowing much about accounting, can someone explain the difference between a Sales Invoice and a Sales Order in LedgerSMB ?

The simple one:

Sales order:  Customer wants to buy something.
Sales invoice:  Customer owes for goods and services delivered.

Business-flow-wise, typically you take an order before everything is done necessary for the transaction to hit the books, and convert it to an invoice when everything that has been done for the income to be realized has happened.  This typically means:

1)  Goods or services are delivered
2)  Any approval/error checking the business requires has happened

One big thing in 1.4 is that approval for invoices is possible so instead of two steps you can actually have three (goods ordered, invoice pending approval, and approved/posted to the books).

Best Wishes,
Chris Ttravers