Differences Between Sales Order and Sales Receipts

What is the difference between Sales Orders and Sales Receipts?

Sales Orders Sales Receipts

Sales Orders:

  • Are designed to track orders that you have received but not yet shipped
  • Do NOT post to any ledger accounts or sales history reports in QuickBooks
  • Sales Orders can be turned into either a purchase order or invoice
  • Requires you to create an invoice once an order is complete and shipped to track the money that will be due at a later date
  • Sales Orders are onlyin the Premier and Enterprise editions of QuickBooks, this feature is not included Pro version.

Sales Receipts:

  • These are for immediate sales where payment is received at the same time the sale was made
  • Posts immediately to your ledger accounts and sales history when saved
  • Cannot be turned into a purchase order or invoice
  • Completely bypasses the “receive payment” screen in QuickBooks. The sales receipt records both the sale AND the receipt of the customer payment at the same time

Many businesses use a combination of both of these forms. They use sales orders for products/services/projects that can’t be shipped immediately and use sales receipts for those where there is immediate shipment AND payment.

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