Quotation

A customer comes to a supplier and asks for a proposal for the delivery of product or service. The supplier then issues a commitment to provide the product or service with the following details:

• quantity
• price
• delivery date
• delivery process (if applicable)
• date of quotation
• expiry date of quotation

Sales Order

This is considered potential revenue to the organization. An example is when a customer wants to purchase a laptop from a vendor (example: BestBuy). The vendor produces a sales order to the customer until the order is fulfilled. Once the order is fulfilled, then the sales order is converted into a sales invoice and is sent to the customer.

Sales Invoice

This is also known as the Customer Invoice. Once a "Sales Order" is fulfilled, it is converted into a Sales (or Customer) invoice.

Sales Receipt

When a Sales Invoice is paid by the customer, then the customer becomes entitled to a Sales Receipt.

Purchase Order

This is considered an expense to an organization. Taking the laptop as an example, if someone orders a laptop with special requirements from BestBuy, then BestBuy must order parts from another supplier (example: Dell, Lenovo, etc). BestBuy get a purchase order from their supplier which they must pay.

Purchase Invoice

In the above example, once a supplier delivers parts to BestBuy, then the organization receives a Purchase Invoice from the supplier. This is also referred as a Payable Invoice.

Inventory Control Journal

After an inventory count is made, an adjustment is made with the actual count.