How to Close an Undershipped Sales Order
Overview
In the world of business operations, sales orders may not always go as planned. Sometimes, customers order a specific quantity of goods, but for various reasons, the business is unable to deliver the full amount. This scenario is known as undershipping. When this happens, it's important to know how to properly close an undershipped sales order in CustomBooks™, so that your financial records accurately reflect the transaction.
What is an Undershipped Sales Order?
An undershipped sales order occurs when the quantity of goods or services delivered to the customer is less than what was originally ordered. There are several reasons why this might happen, including:
- Insufficient stock levels
- Discontinued products
- Errors in inventory management
- Customer agreement to accept partial delivery
When an undershipped sales order occurs, it’s important to correctly manage the order in CustomBooks™. Failing to do so can result in inaccuracies in inventory, revenue recognition, and financial reporting.
Steps in Closing the Undershipped Sales Order
Since the sales order was undershipped, you need to adjust the order to reflect the actual quantity delivered. This will ensure that your records are accurate. To do this:
- Open the Sales Order and adjust the ordered quantities to reflect the actual amount shipped or invoiced. For example, if the customer ordered 50 units but only 25 were shipped, change the quantity on the order to 25 units.
- Save the order. Once saved, the Sales Order will now show as Closed.
You can also directly close the undershipped sales order without adjusting the order quantity by clicking on the Order Status then click Close.
Closing an Undershipped Sales Order