If a customer submits a written purchase order, there is no need to prepare a sales order.Select one:TrueFalse

Analysis of the Statement

1. Understanding Purchase Order and Sales Order:

   • A purchase order (PO) is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services.
   • A sales order is created by the seller upon receiving the purchase order, confirming that the seller has accepted the buyer's order.

2. Interdependency:

   • Even if a purchase order is submitted, a sales order is often necessary for the seller to internally process the order, manage inventory, and track the sale. It serves as a formal acknowledgment of the order and helps in fulfilling the customer's request accurately.

3. Process Flow:

   • Upon receiving a purchase order, the seller typically creates a sales order that reflects the details in the purchase order. This helps maintain clear records for both parties.

Final Answer

False: A sales order is still needed even if a purchase order is submitted to facilitate the seller's internal processes and confirm the acceptance of the order.