A shop order is a work order used to authorize and track the production of parts and products through the shop. Same as production order.
Work order meaning
Work order is a document that gives a complete picture of maintenance tasks and outlines the process to complete that task.
It contains many details such as the scope of the job, assignee of the job, authorized person of the job, etc.
The customer will issue shop orders to an organization. It can be issued by one department to another department of the organization internally.
It gives details about the products to be purchased or manufactured and the work to be done.
Sometimes this shop order or work order acts as an invoice.
How does a shop order act as an invoice?
Let us assume that a maintenance company receives a shop order internally through phone or e-mail from the customer.
In this case, the person who does maintenance work for that customer takes a printout of the shop order to take to the working location.
Once he has done with the work or service, the customer checks his work, immediately signs the shop order, and pays for the service.
Suppose the customer cannot pay the amount on the spot. At that time, this shop order converts into an invoice.
Shop order form
Following are the field details.
- Company name and logo: Here company name or logo will be mentioned.
- Shop Order No: It is the unique work order number that helps to identify work.
- Date: Issued date of the shop order
- Job: This field describes the work to be done with complete details.
- Bill to: Name and address of the customer who has to pay the bill for the work done.
- Ship to: Some times bill to address is different from the shipping address. In that case, the ship-to field indicates the shipping address of the final product.
- Quantity: It is the number of hours spent on the work or the number of products manufactured.
- Taxed: It indicates the item or job is taxable or not.
- Tax rate: Indicates tax rate for a particular job or product.
- Special instructions: You can mention any special instructions here about discounts or something like that.
Get more definitions about Shop order and other ERP-related terms here.