learner question on sales order and purchase order

[Former Member]

dear SDN,

I am a bit confuse about PO and Sales Order.

My understanding is a Sales order is a contract from customer to sales organization.

But a PO is also something like that am i right?

I learnt that to create a Sales order you need the customer number and PO number.

So, am i right to say that a Sales order is created by the sales organization after receiving the PO raised and issue by the customer?

So they are basically the same thing but created by different parties?

Is my understanding correct?

Best regards

MZ

[Former Member · Accepted solution]

Hi Markus,

I want to put an example like If I am a seller then customer will create a PO to purchase the material from me.

and I will create a sales order for selling the good to customer and for refrence I can assign the PO number in sales order

[Former Member · Accepted solution]

In Other words,

Lets consider we as a vendor to our customer.

our customer will place an order with us, requiring some materials and for his reference within his company he will refer a number which is called as purchase order. ( this PO number will be a reference for our activities like payment request etc. with our customer).

the Sales order is a copy of our internal tracking information, for the requirement raised by our customer. so with in our company we will refer this SO number while if we need to communicate something to the customer we will refer with his PO number as he may not be aware of our internal numbering system.

This should not be confused with the Sales Order & the Purchase Order within our SAP system.

Sales Order - Relation with the customer & company. (outgoing materials for a company normally)

Purchase Order - Relation between vendor & company ( incoming materials for a company normally).

Rgds

Ilango