customers tell us they want to buy our merchandise by sending us a sales order a sales order is a
document that the customer sends us to formally request the merchandise this means that it's a
document that asks us to ship the merchandise to the customer a sales order is very simple
to make a sales order is like any other document in QuickBooks a sales order represents an event
that must be recorded if the customer formally requests merchandise that's a financial event
that must be recorded in your QuickBooks records however a sales order is not a transaction because
it is not a transaction recording a sales order will not show up in the journal it will not show
up in the accounts and the trial balance and it will have no effect in your general ledger
chart of accounts sales orders have their own separate reports that help you manage which ones
have been filled and which ones are waiting to be filled an open sales order is a sales order that
we have received from the customer but not yet shipped out to the customer the best report to
see all open sales orders is the open sale open sales orders by item report from the main menu
click reports sales open sales orders by item notice all has already been chosen in the date
pulldown choice and it has a column for everything you need to manage your sales orders regarding
quantity invoice backordered and so on to see this clearly we will record these three sales
order June 10 and order 15 apples from the main menu click customers create sales orders June 10th
customer is Alan RB 15 apples the item is apples and the quantity is 15 push tab to save the field
that's 750 dollars save and new and the next order is June 11th Betty ordered 35 bananas so
we go Betty Boop June 11th bananas quantity 35 save and new and the last sales order we enter
will be June 12th Allen ordered 95 bananas so June 12 Allen RB bananas 95 push tab on the last one we
click Save & close and this is what it looks like in the open sales order by item report notice it
has the quantity of each sales order it shows how many we invoiced how many we sent a bill for which
we have none and how many were backordered when we ship the merchandise to the customer we send
the customer an invoice with the merchandise this will remind the customer to pay let us imagine
that we shipped out some of those sales orders so please record these two invoices June 13th we ship
the 15 apples to Allen from sales order number 1 let's record the invoice customers create invoice
June 13th notice what happens at the moment we choose customer Allen QuickBooks knows we have
open sales orders for Allen so if we put his name on an invoice QuickBooks asks us to choose which
open sales order we are filling we are filling number one so we click in the row of number 1
when we click OK QuickBooks asks us are we putting all of the products and merchandise that were on
the sales order onto this invoice or or are we only putting some of the merchandise that Alan
ordered onto this invoice in this case we are shipping out all of order number one so since
this invoice will match the sales order exactly we choose the top choice create invoice for all
of the sales order when we click OK all of the information from sales order number 1 has been
put into invoice number 34 we don't have to do anything but choose the date and the customer
when we click Save and close we can take a look now at the open sales order by item
and we notice that order number 1 has disappeared from the open sales order report because it is no
longer an open sales order let us now imagine on June 14th we shipped only five of the 35 bananas
to Betty from order number two let's take a look customers create invoice choose June 14th at the
moment we choose Betty QuickBooks knows there's an opening or order open sales order for Betty
since there's only one we can only choose this one we click in the row and the checkmark goes
into the margin now when we click OK QuickBooks is asking us will all of the items on the sales
order go into the invoice or only some of the items we will click create invoice for
selected items click OK and here we have only bananas but the ordered here is 35 to invoice
to invoice is the amount that we are physically shipping out so we are invoicing 5 out of the
35 that are ordered and this is the field that you change when we click okay QuickBooks only
invoices for five of these bananas making a sales price of $500 and the other 30 are clearly stated
to the customer as on backorder now when we click Save and close we can look at the open
sales order by item and we can see invoiced five backorder 30 for sales order number two