UK Sales Journal ? Sales Order ? Which first?

[Thomas Wong]

Good day to you.,

How Sales Journal and Sales Order relate to each other?
I cannot get the whole picture of the process flow.
I would like to know how Sales Journal and Sales Order come into picture in a Sales procedure.
I am in Singapore.
Please help.

 

[smallbushelp]

Well, to me, a sales order is a single transaction and the sales journal keeps track of all of the sales orders. When a sales person makes a sale, he/she will record the sale via a sales order form that identifies the items sold, the quantities and the price of each item. It may also include information on the payment terms and shipping arrangements. The sales order is then input into the accounting system and the record of all of the sales makes up the sales journal.

When accounting was actually done by hand with hard cover books, the sales journal was a separate book. These days, with the advent of accounting software, the sales journal is made up of all of the credits to the income accounts.