Sales orders are used to track customer orders or pre-sales orders for items that you don't have in stock or are not yet ready to invoice for. This is especially useful for out-of-stock items, items that you build to order, or special order items.
Sales orders can be based on other sales information entered into QuickBooks. You can also use sales orders to create other information in QuickBooks, such as generating invoices. Specifically:
You can create a sales order from an estimate. After providing an estimate to a customer, you can then
create a sales order to show a sales commitment.
You can create an invoice from a partial or complete sales order. You can bill your
customers when the entire order is fulfilled or as you fulfill portions of the order.
You can create a purchase order from a sales order. You can use the purchase order to purchase
items from vendors to fulfill the sales order.
Can I invoice a customer as I fulfill a sales order?