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Lesson 22 of 48 – Sales Order
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📝 Sales Order in Tally Prime

A Sales Order is a document created when a customer places an order for goods or services. It confirms the customer's requirements before the actual sales invoice is generated.

Lesson Objective Learn how to create, manage and track Sales Orders in Tally Prime and understand their role in inventory and sales management.
1. What is a Sales Order?

A Sales Order is an order received from a customer requesting the supply of goods or services.

Contains Example
Customer Name ABC Traders
Products Laptop, Printer
Quantity 15 Units
Rate ₹42,000 per Laptop
Delivery Date 30 July 2026
Payment Terms 45 Days Credit
2. Why is a Sales Order Important?
  • Records customer orders officially.
  • Helps reserve inventory.
  • Tracks pending deliveries.
  • Improves customer service.
  • Reduces billing mistakes.
  • Supports delivery planning.
  • Provides order history.
  • Improves sales management.
A Sales Order is created before the Sales Voucher. It is an order document, not an accounting entry.
3. Features of Sales Order
Feature Benefit
Customer-wise Orders Easy order management
Pending Order Tracking Monitor undelivered orders
Partial Delivery Deliver goods in multiple shipments
Automatic Voucher Conversion Convert Sales Order into Sales Voucher
Inventory Planning Reserve available stock
4. Example of a Sales Order

XYZ School orders 25 Desktop Computers from Soopro Computers.

Item Quantity Rate Total
Desktop Computer 25 ₹30,000 ₹7,50,000
The business accepts the order and prepares goods for delivery on the agreed date.
5. Sales Order Workflow
  1. Customer places an order.
  2. Create Sales Order.
  3. Confirm product availability.
  4. Prepare goods for dispatch.
  5. Deliver goods.
  6. Create Sales Voucher.
  7. Generate Invoice.
  8. Receive Payment.
A Sales Order does not affect Accounts or Inventory. Inventory is updated only when the Sales Voucher is created.
6. How to Enable Sales Order in Tally Prime

Sales Order is an optional inventory feature in Tally Prime. Before creating Sales Orders, you must enable Order Processing.

Steps
  1. Open Tally Prime.
  2. Press F11 (Features).
  3. Select Inventory Features.
  4. Enable Use Sales Orders.
  5. Press Ctrl + A to Save.
Once enabled, the Sales Order Voucher becomes available in Voucher Entry.
7. Steps to Create a Sales Order
  1. Open Voucher Entry.
  2. Select Sales Order.
  3. Choose the Customer (Party Ledger).
  4. Enter the Sales Order Number.
  5. Select the Stock Item.
  6. Enter Quantity.
  7. Enter the Selling Rate.
  8. Specify the Delivery Date.
  9. Add Payment Terms and Narration if required.
  10. Press Ctrl + A to Save.
The Sales Order can later be converted directly into a Sales Voucher after the goods are delivered.
8. Sales Order Status

Every Sales Order passes through different stages until it is completed.

Status Description
Open Order received but no goods delivered.
Partially Delivered Only some items have been delivered.
Completed All goods have been delivered.
Cancelled Customer cancelled the order.
You can monitor pending Sales Orders using Tally Prime's Order Outstanding Reports.
9. Important Fields in Sales Order
Field Description
Order Date Date of Sales Order.
Order Number Unique Sales Order Number.
Customer Ledger Customer Name.
Stock Item Product Ordered.
Quantity Ordered Quantity.
Rate Selling Price.
Delivery Date Expected Delivery Date.
Godown Warehouse from which goods will be supplied.
Payment Terms Cash, Credit or other agreed terms.
Narration Additional Remarks.
Complete and accurate Sales Order details improve customer service and delivery planning.
10. Common Mistakes While Creating Sales Orders
Common Mistake Correct Practice
Selecting the wrong Customer. Verify the Customer Ledger before saving.
Incorrect Quantity. Confirm the customer's actual requirement.
Wrong Selling Rate. Verify the latest price list.
Incorrect Delivery Date. Enter the mutually agreed delivery schedule.
Missing Sales Order Number. Maintain a proper order numbering system.
Not mentioning Payment Terms. Clearly specify cash or credit terms.
Saving without verification. Review all order details before pressing Ctrl + A.
Ignoring Pending Orders. Regularly monitor Order Outstanding Reports.
An incorrect Sales Order may result in delayed deliveries, customer complaints, incorrect invoices and stock shortages.
11. Real Business Case Studies

Let's understand how Sales Orders are used in different businesses before goods are delivered.

Business Customer Order Action
Retail Shop Customer ordered 100 Grocery Items Created Sales Order
Medical Store Hospital ordered Medicines Created Sales Order
Computer Institute School ordered 30 Computers Created Sales Order
Electronics Shop Office ordered 20 Printers Created Sales Order
Furniture Showroom Company ordered Office Furniture Created Sales Order
Manufacturing Company Dealer ordered Finished Goods Created Sales Order
Sales Orders help businesses reserve stock, schedule deliveries and improve customer satisfaction.
12. Sales Order vs Sales Voucher vs Purchase Order
Sales Order Sales Voucher Purchase Order
Customer places an order Goods are sold Business orders goods from supplier
No Accounting Entry Accounting Entry No Accounting Entry
Before Delivery After Delivery Before Purchase
Customer Document Sales Invoice Supplier Document
Inventory Planning Inventory Reduced Inventory Planning
Easy Trick
  • 📝 Customer Orders Goods → Sales Order
  • 🛒 Goods Sold → Sales Voucher
  • 📦 Business Orders Goods → Purchase Order
13. Professional Tips & Customer Order Management
  • Always confirm stock availability before accepting an order.
  • Verify customer details carefully.
  • Clearly mention delivery dates.
  • Record agreed payment terms.
  • Track pending orders daily.
  • Convert completed Sales Orders into Sales Vouchers promptly.
  • Cancel inactive orders after customer confirmation.
  • Maintain proper order numbering.
  • Keep customer communication records.
  • Review outstanding Sales Orders regularly.
Professional businesses usually require manager approval before processing high-value Sales Orders.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Create a Sales Order for a Laptop.
  2. Create a Sales Order with multiple products.
  3. Create a Sales Order for a credit customer.
  4. Modify an existing Sales Order.
  5. Cancel an unwanted Sales Order.
  6. Convert a Sales Order into a Sales Voucher.
  7. Check Pending Sales Order Reports.
  8. Verify Order Outstanding Report.
Interview Questions
  1. What is a Sales Order?
  2. Why is a Sales Order created?
  3. Does a Sales Order affect accounts?
  4. Does a Sales Order affect inventory?
  5. Difference between Sales Order and Sales Voucher?
  6. Difference between Sales Order and Purchase Order?
  7. Can a Sales Order be modified?
  8. Can a Sales Order be cancelled?
  9. What is a Pending Sales Order?
  10. What is Partial Delivery?
  11. Can one Sales Order contain multiple products?
  12. What information should a Sales Order contain?
  13. Why is Order Number important?
  14. How are Sales Orders tracked?
  15. How do Sales Orders help inventory planning?
  16. What happens after goods are delivered?
  17. How do you convert a Sales Order into a Sales Voucher?
  18. Why should delivery dates be mentioned?
  19. How do Sales Orders improve customer service?
  20. Why are Sales Orders important for business?
15. Lesson Summary
  • Learned the purpose of Sales Orders.
  • Created customer order requests.
  • Understood the Sales Order workflow.
  • Tracked pending and completed orders.
  • Learned customer order management.
  • Converted Sales Orders into Sales Vouchers.
  • Compared Sales Order, Sales Voucher and Purchase Order.
  • Learned professional order management practices.
  • Completed practical exercises.
  • Prepared for accounting interviews.
Congratulations! You can now confidently create and manage Sales Orders in Tally Prime for customer order management, inventory planning and timely delivery.

🧠 Quick Quiz

Which statement is correct about a Sales Order?



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