1.SO (sales order): SO refers to the order placed by the customer to the company, including the products to be purchased by the customer and related delivery requirements. So it is usually used in the standard sales process, involving the sales and delivery of products.
2.STO (Inventory Transfer Order): STO refers to the order to transfer products between different inventory locations, which is usually used for inventory transfer within a company or between different companies. The purpose of STO is to ensure the supply and deployment of materials between different inventory locations.
The main reason why they are different from STO is that their application scenarios and purposes are different.
As far as sales orders are concerned, SO is used to handle sales transactions with external customers, including product ordering, delivery and invoices. The purpose of SO is to meet the needs of customers and realize the growth of sales and income. On the other hand, STO is used to handle the inventory transfer demand within a company or between different companies. The purpose of STO is to allocate and manage material inventory within the company to meet the supply demand between different inventory locations.
In addition, sales orders and STO are different in processing flow, document requirements and voucher types. Therefore, it is usually necessary to generate sales orders, invoices and other documents, and it involves the collection and payment with customers. STO usually needs to generate inventory transfer orders, delivery orders and vouchers, which all involve the transfer and update of inventory.
In a word, there are obvious differences between SO and STO in application scenarios, uses and processing flows. Understanding these differences can help enterprises effectively manage sales and inventory, meet customer needs and internal material supply requirements.