Task 3: Select a Sale Status

Sales can be created as either Estimates, Orders or Invoices.

Estimates are used if you need to give a quote to a customer but there is no commitment that the sale may or may not eventuate.  No deposit or payment can be recorded against an Estimate, and it is not recorded in the General Ledger but can be viewed in the Sales Register under the Estimates tab.

Orders are used where the customer has placed an Order but has not yet taken delivery.  A deposit or a customer payment can be recorded against an outstanding Order, and when the customer takes delivery of the goods the Order can be changed to an Invoice.  An Order is not recorded in the General Ledger but can be viewed in the Sales Register under the Orders tab.  Once a payment has been recorded against an Order it is critical that the Sale is converted to an Invoice as soon as possible, because the payment will be applied to the General Ledger and until the Sale is converted to Invoice there will be no corresponding Sale in the GL.

An Invoice indicates the customer has taken delivery and the transaction is recorded in the General Ledger.  An Invoice cannot be changed to an Order or an Estimate.