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Recording a sales order

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Helpful Hint!

If you are completing our software practice set, sales orders are to be recorded in the Sales - New Item window by selecting the ORDER option. The sales order is to be converted to an invoice when the inventory is delivered.

One of the first steps in the sales cycle is receiving an order from a customer. In general, there are two ways this information can be recorded. The first way is to immediately create a sales order and then to convert the sales order to a sales invoice when the items are delivered. Alternatively, if the items are to be delivered immediately, the second way is to not create a sales order and to just create the sales invoice for the sale.

The method chosen does have consequences as to when your MYOB software records the information from the sale into the general ledger accounts. The general ledger accounts are updated when the sales invoice is saved, not when the sales order is saved. When the sales order is saved, your MYOB software records the sales order information into the Sales Register - Orders tab. Entries in the Sales Register - Orders tab are not posted to the general ledger accounts. It is only when the sales order is converted to a credit sale (and a sales invoice is created and saved) that the general ledger accounts are updated to reflect the number of items shipped. You can learn how to convert a sales order to a credit sale (and how to view the sales orders in the Sales Register - Orders tab) in the Sales transactions page in this learning centre.

Sales orders are useful if, for example, you do not have the merchandise on hand to fulfil an entire order from a customer straight away. You can use the sales order functionality to track how much of the merchandise you have delivered and how much is still on order. This topic shows you where and how to enter sales order information into your MYOB software.

To record a sales order, open the Sales Command Centre and select Enter Sales.

Select Enter Sales

This displays the Sales - New Item window. Notice in the top left hand corner of this window there is a field that in this example currently says INVOICE. Click the arrow next to this field and select ORDER.

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Helpful Hint!

If you are completing our software practice set and the title of the window is not Sales - New Item, it is because your MYOB software is displaying a different layout for that window. To change this to the Sales - New Item window, click the Layout icon at the bottom of the window. In the Select Layout window that appears, select Item and click the OK button. The title of the window should automatically change to Sales - New Item.

Select ORDER from the drop down list

You should now notice that the colour of the window has turned from blue to yellow. It is here where you can enter the details of the sales order into your MYOB software. The following screenshots and reference table show step-by-step instructions on how to enter a sales order into the Sales - New Item window. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshots.

Sales order image 01 Sales order image 02 Sales order image 03
Sales order image 04
Step MYOB software field or icon Action
1 Customer Click the search icon to open the Select From List window where you can select the customer to which the order relates to. Click the Use Customer button to select the customer. Notice that when you select the customer, your MYOB software automatically populates certain fields with information about the customer that you entered when you added the customer into your MYOB software during the setup process. You can accept that information or manually change it for this sales order.
2 Ship To This field is automatically populated when you select the customer. You can accept this information or change the Ship To details if required by selecting an alternate address from those you have already set up for that customer.
3 Terms This field is automatically populated when you select the customer. You can accept this information or change it for this sales order by clicking on the zoom arrow.
4 Invoice # Accept the invoice number your MYOB software automatically assigns to this invoice or enter the invoice number you wish to use. Note that although we are entering a sales order, an invoice number is assigned now so the sales order can be matched to the invoice created when the goods are delivered to the customer.
5 Date Enter the date of the sales order.
6 Customer PO # Enter the customer's purchase order number in the Customer PO # field if known.
7 Ship Enter the quantity of the first item ordered.
8 Item Number Enter the item number of the item of inventory ordered. If you do not already know the item number, click into this cell to select the cell. You should notice that a box appears around the cell. You should then press <tab> on your keyboard to display the Select from List window where you can scroll through the list of inventory items. Click on the appropriate item of inventory to select it, then click the Use Item button.
9 Description When you select the item of inventory using the Item Number field, your MYOB software automatically populates this field with the longer description of the item of inventory. Read this description to check that you have selected the correct item. Then press <tab> on your keyboard to move to the next field.
10 Price,
Your MYOB software automatically populates these fields with the default information specified when that item of inventory was set up. You can either accept the default information or enter any changes directly into the appropriate field. Note that if you change the price, your MYOB software automatically calculates the new Total for that number of items. Alternatively if you change the amount recorded in the Total column, your MYOB software will calculate the percentage discount and record it in the Disc% column.
Helpful hint! You can enter additional items of inventory ordered by repeating steps 7 to 10 in a new row.
11 Promised Date Enter the date by which the goods are required to have shipped.
12 Record button Once you have reviewed the information entered for the sales order, remember to click the Record button to record the sales order.
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