A Sales Delivery Order (abbreviated D/O) is intended as an external document from a Sales Department or the Credit Control Department to the Store or the Warehouse Consignee, or an owner or his agent of freight Carrier which authorizes and orders the final release of the transportation of cargo from the Warehouse or the Store Keeper .
The Sales Delivery Order clears the particular consignment of all credit checks and other watch points from the point of the entity delivering the cargo or goods .
On the ERP framework it is however an internal document which may be required between the Sales Order and the Sales Delivery Note . This can be configured on the Document Referencing chart .
Please note that legally speaking the Delivery Order is not a negotiable document, nor does it evidence receipt of goods, nor does contain the provisions of the transport contract under which the goods are shipped.
Salesman receives a sales order from a Customer . The Sales Order however needs to be authorised in terms of the material to be delivered and various other credit checks .
The Sales Delivery Order is the document which needs to be issued from the Sales Department responsible for this . The Sales Delivery Order authorises and orders the storekeeper to issue the material both as per the original Sales Order and Sales Delivery Order.
Salesman has a godown and a manager is being hired for the lookout of the godown. Now once the Store Keeper / Store Manager receives authorisation of Sales Order in terms of a issued Sales Delivery Order to the manager of the godown despatch of the materials as per the Sales Order .
The Store Manager when he releases the goods from the godown issues a Sales Delivery Note ( Sales Challan or Delivery note) . These Sales Delivery Note will be with reference to Sales Order or the Sales Delivery Order. Sales Invoice may or may not be issued along side of the Sales Delivery Note .
With this process one can control the stock out position. Stock will not be released until the proper checks and balances are made. Good Credit Control reduces Bad Debt .