What a sales order is for
A sales order (also called an order confirmation) records a customer’s order after they say yes and before you deliver. It protects both sides: the customer knows what they will receive, when and for how much, and you have a signed record before you buy materials, start production or reserve stock. It is especially useful for custom work, large orders and anything paid in instalments.
What to include
- An order number and the order date.
- The customer’s details and the delivery address.
- Each item with quantity, price and amount, and tax if you charge it.
- The promised delivery date.
- The deposit already paid and the balance due.
- The customer’s own reference or purchase order number, if they have one.
- Your terms on deposits, changes and delivery.
- A signature line for the customer to accept.
Deposits and balances
Add the deposit paid under the items. The totals show the order total, the deposit taken off and the balance due in bold. If the deposit covers the full amount, the status changes to “Paid in full”. When you later make the invoice from the sales order, the deposit already paid is taken off as its own line, so the customer is only asked for the balance.
Sales order or order confirmation?
They are the same thing. Some customers expect the words “Order confirmation”, so you can switch the title under Advanced settings, Document options.
What comes next
When the goods are ready, turn the sales order into a delivery note (same items, no prices) for the customer to sign. Then make the invoice for the balance. Each document links back to the sales order in Documents.
Sales order or purchase order?
A sales order is written by the seller. A purchase order is written by the buyer. When a company sends you a purchase order, reply with a sales order that quotes their PO number in “Customer reference”.
Common mistakes
- A delivery date before the order date (SmallKits warns you).
- Not recording the deposit, then invoicing the full amount.
- Starting work on a large order without the customer’s signature.
A worked example
A textile supplier receives an order from a beach hotel for 120 bath towels, 120 hand towels and 40 bathrobes, all with an embroidered logo. The hotel’s purchase order number is PO-7731. The supplier sends sales order SO-0012 quoting PO-7731 as the customer reference, with a delivery date three weeks away, a deposit of 1,500 already paid, and the balance due on delivery. The hotel’s purchasing manager signs it. Three weeks later the supplier turns the sales order into a delivery note for the driver, and then into an invoice that takes off the 1,500 deposit automatically.
Terms worth adding
- Deposit: whether it is refundable once production or purchasing starts.
- Changes: that changes after confirmation may affect price and delivery date.
- Delivery: what happens if the customer is not available to receive the goods.
- Balance: when it is due, and how to pay.
Choose ready-made wording from the terms menu under Advanced settings, then edit it to suit your business.
Sales order terms explained
- Customer reference
- The customer’s own order or PO number, so their accounts team can match your documents.
- Deposit paid
- Money already received towards the order.
- Balance due
- The total less the deposit: what is still to pay.
- Paid in full
- The deposit covers the whole order; nothing more is owed.
- Customer acceptance
- The customer’s signature confirming the order as written.
Good practice
- Send the sales order the same day the customer agrees.
- Do not start production or buy materials until it is signed and the deposit has arrived.
- If anything changes, issue a new version rather than editing by hand.
Who uses sales orders
Manufacturers and workshops making goods to order; wholesalers taking large orders from shops and hotels; tailors, furniture makers and printers taking deposits for custom work; and any business that wants a signed record of what was agreed before committing time and money.
Related free tools
- Free quotation generator: to price the order before it is confirmed.
- Free delivery note generator: for the delivery.
- Free invoice generator: for the balance.
One more tip
Send the sales order on WhatsApp straight after the customer agrees, and ask them to reply “confirmed”. A quick written confirmation is better than none if they cannot sign straight away.
Updated 2026-10-29