How to create a sales order in QuickBooks Online

For businesses that handle customer orders before payment is finalised, sales orders are an essential tool. While QuickBooks Online (QBO) doesn’t have a built-in sales order feature, you can still manage and track sales orders effectively using workarounds. This blog will guide you through creating and managing sales orders in QuickBooks Online, offering step-by-step instructions and best practices.

What is a Sales Order?

A sales order is a document created by a business to confirm a customer’s order for goods or services. It includes details such as:

• Customer information
• Item descriptions
• Quantities
• Prices
• Order date

Sales orders are useful for:

• Tracking pending orders
• Coordinating with inventory and fulfillment teams
• Ensuring accurate invoicing and delivery

Step 1: Enable Custom Transactions in QuickBooks Online

Since QuickBooks Online doesn’t offer a native sales order feature, the best workaround is to use a custom transaction form or estimates to mimic sales orders. Here’s how you can enable and customize forms:

1. Log in to QuickBooks Online:
   • Access your account with the appropriate permissions.
2. Navigate to Settings:
   • Click the gear icon in the top-right corner.
   • Under the “Your Company” section, select Account and Settings.
3. Enable Estimates:
   • Go to the Sales tab.
   • Turn on the Estimates feature by toggling the switch.
   • Save your changes.
4. Customise the Estimate Template:
   • Navigate to Custom Form Styles under the “Settings” menu.
   • Edit or create a new template for estimates.
   • Rename the title of the form to “Sales Order.”
   • Adjust the fields to include relevant information, such as delivery dates and terms.

Step 2: Create a Sales Order Using Estimates

With your custom template in place, you can now create a sales order by using the estimates feature.

Steps to Create a Sales Order:

1. Go to the Sales Menu:
   • Click on Sales from the left-hand menu.
   • Select Estimates from the submenu.
2. Create a New Estimate:
   • Click the New Estimate button.
3. Fill in Customer Details:
   • Select an existing customer or add a new one.
   • Ensure the delivery address, contact information, and other relevant details are accurate.
4. Add Products or Services:
   • Select items from your product/service list or add new ones.
   • Enter quantities, rates, and any applicable taxes.
5. Include Custom Fields:
   • Add fields for delivery dates, shipping methods, or order status if required.
6. Save or Send the Sales Order:
   • Save the sales order for internal use or email it to the customer for confirmation.

Step 3: Convert a Sales Order into an Invoice

Once the customer approves the sales order and you’re ready to bill them, you can convert the estimate into an invoice.

Steps to Convert:

1. Locate the Sales Order (Estimate):
   • Go to the Sales menu and select Estimates.
   • Find the relevant sales order.
2. Convert to Invoice:
   • Open the estimate.
   • Click on the Create Invoice button.
3. Review and Finalise the Invoice:
   • Verify that all details are accurate.
   • Add payment terms, notes, or any additional charges if applicable.
   • Save or send the invoice to the customer.

Step 4: Track Sales Orders Using Reports

To stay organised and track your sales orders, you can use QuickBooks Online’s reporting features.

Create a Custom Report:

1. Go to Reports:
   • Navigate to the Reports section from the left-hand menu.
2. Customize a Report:
   • Select a transaction report, such as “Estimates by Customer.”
   • Filter the report to display only open estimates (sales orders).
3. Save and Schedule Reports:
   • Save the customised report for future use.
   • Schedule it to be emailed to you or your team at regular intervals.

Alternative Workaround: Using Purchase Orders for Sales Orders

If your business already uses estimates for another purpose, you can repurpose the purchase order feature to act as sales orders.

Steps to Enable and Use Purchase Orders:

1. Enable Purchase Orders:
   • Go to Account and Settings > Expenses.
   • Turn on the Purchase Orders feature.
2. Customise the Template:
   • Rename the purchase order template to “Sales Order.”
   • Adjust fields to match sales order requirements.
3. Create a Sales Order:
   • Use the purchase order feature to generate sales orders.

Note:

Using purchase orders as sales orders may confuse inventory or expense tracking. Ensure your team understands the workflow.

Integrating Third-Party Apps for Sales Orders

For businesses with complex sales processes, integrating QuickBooks Online with a third-party app is an ideal solution. Popular options include:

1. Jobber: Ideal for service-based businesses that need scheduling and order management.
2. SOS Inventory: Best for inventory-heavy businesses with advanced order management needs.
3. TradeGecko (QuickBooks Commerce): Comprehensive sales order management for growing businesses.

Steps to Integrate:

1. Choose the Right App:
   • Identify an app that aligns with your business needs.
2. Connect the App to QuickBooks Online:
   • Authorise the integration via the Apps section in QuickBooks Online.
3. Use the App to Manage Sales Orders:
   • Create and track sales orders directly within the app.
   • Sync data with QuickBooks for invoicing and reporting.

Conclusion

While QuickBooks Online doesn’t natively support sales orders, its flexibility allows you to create and manage them using estimates, purchase orders, or third-party integrations. By implementing these workarounds, you can streamline your sales process, enhance customer satisfaction, and maintain accurate records.

Whether you’re a small business or a growing enterprise, QuickBooks Online offers the tools you need to manage orders effectively. Start by customizing templates or exploring third-party apps to find the best solution for your business. Have questions or tips on managing sales orders in QuickBooks? Share them in the comments below!