What Is the Definition of Sales Order Processing?

Sales order processing is the generation of an internal document within a business enterprise that authorizes the consummation of a sales transaction. Sales order processing occurs after receipt of a sales order from a customer.

Typically when sales order processing commences, the total amount due from the customer is fixed. Usually, no additional costs incur at this juncture on the overall sales process. In addition to establishing the final amount due for the goods or merchandise, sales order processing typically establishes the delivery date to the customer. Although more often associated with the sales of goods or merchandise, sales ordering processing is also applicable to the provision of a service.