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Hi there. I’m reading the FA1 booklet and am trying to understand this sentence:
“In businesses selling to other businesses, the sales representatives (sales men and sales women) will be responsible for encouraging customers to place sales orders.”Why do B2B sales reps want to encourage customers to place sales orders, and not purchasing orders?
I will answer your question, but it should be in the Paper FA forum and not in the Paper MA forum 🙂
Although the customer will call it a purchase order (because they are purchasing something), when we receive it we will call it a sales order (because we are selling something).
We will have two files – one will be called ‘purchase orders’ and will contain all the purchase orders that we have sent to suppliers. The other will be called ‘sales orders’ and will contain all the purchase orders that our customers have sent to us.
(I remember when I first joined an accountancy firm to train, and first went on an audit, I was very confused examining a file called ‘sales orders’ because all the orders in it had (obviously) been prepared by the customers and so had ‘purchase order’ typed at the top of each one 🙂 )
Thank you John. I see the terms are flexibly used depending on the perspective of the side saying it. Your experience at the accountancy firm was funny to read 🙂
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