You are on page 1of 5

ORDER

A. MEANING AND DEFINITION


order can simply be interpreted as a request ,but In business or commerce, an order is a
stated intention, either spoken or written, to engage in a commercial transaction for specific
products or services. From a buyer's point of view it expresses the intention to buy and is
called a purchase order. From a seller's point of view it expresses the intention to sell and is
referred to as a sales order. When the purchase order of the buyer and the sales order of the
seller agree, the orders become a contract between the buyer and seller.
Within an organization, it may be a work order for manufacturing, a preventive
maintenance order, or an order to make repairs to a facility.
In many businesses, orders are used to collect and report costs and revenues according to
well-defined purposes. Then it is possible to show for what purposes costs have been
incurred.
1. SPOKEN ORDER
Businesses such as retail stores, restaurants and filling stations conduct business
with their customers by accepting orders that are spoken or implied by the buyer's
actions. Taking a shopping cart of merchandise to a check-out counter is an implied
intent to buy the merchandise. Placing a take-out or eat-in order at a restaurant is a
spoken purchase order. Putting gasoline in one's tank at a filling station is an implied
order. The seller usually expects immediate payment by cash, check or credit card
for these purchases, and the seller provides the buyer with a receipt for the payment.
In legal terms, this form of business order is an "implied in fact contract".

2. STEP IN COMMERCIAL ORDER


In commerce, various business documents are used to record the negotiation of an
agreement to buy and sell, record the agreement itself, and record compliance with
the agreement and closure of the contract. An agreement to buy and sell is a form of
contract.
There are five basic requirements for a contract to exist between two parties:
agreement, voluntary, consideration, capacity, and legality. A sixth requirement of "in
writing" sometimes applies.
The main concern for commercial orders is that there must be agreement (offer and
acceptance) for the order to be a contract. Prior to this, businesses often record the
details of negotiations by using a request for quotation, request for bid, sales
quotation, or sales bid. Quotations are non-binding and part of the negotiation
process. A request for bid can be binding or non-binding, depending on the terms of
the bid.
Once an agreement or contract is in place, businesses record these as confirmed
purchase orders and confirmed sales orders.

Commerce Buyer's Action[2] Seller's Action


Buyer wanting the
Search for vendors (sellers) of the
product and seller selling Marketing and advertising
product
the product

Check product pricing,


Request for Quotation or Request
availability, specifications, Sales quote or bid created
for Bid
delivery costs

Buyer and seller agree to


Purchase order recorded Sales order recorded
transaction

Packing slip, pro
Product is shipped from
forma invoice for certain
seller to buyer
international shipments

Packing slip and product is checked


Buyer receives product
with purchase order; product is
from seller
checked for good condition

Match packing slip with purchase


Record sales order in
Seller sends invoice to order and invoice; record purchase
financial accounts
buyer in financial accounts under accounts
under accounts receivable
payable

Pay by cash, check or electronic Receive cash, check or


Buyer pays seller payment; record payment on electronic payment; record
purchase order payment on sales order

3. UNIFORM COMMERCIAL CODE


In the US, Article 2 of the Uniform Commercial Code covers commercial contracts,
and section 2-103 gives definitions of terms under this code.Section 2-106 describes the
difference between a present sale (recorded as a sales order) and a sale (recorded as a
transfer of title to the buyer).
“ (1) In this Article unless the context otherwise requires "contract" and "agreement" are
limited to those relating to the present or future sale of goods. "Contract for sale" includes
both a present sale of goods and a contract to sell goods at a future time. A "sale" consists
in the passing of title from the seller to the buyer for a price (Section 2-401). A "present sale"
means a sale which is accomplished by the making of the contract. “
4. AGGREGATE LEVEL OF ORDER
In their "Advance Monthly Sales for Retail Trade and Food Services", the US Census Bureau
publishes estimates of US retail and food services sales.[4] These "sales" are orders that have
been filled; payment has been made or is an account receivable. In their "Preliminary Report on
Manufacturers' Shipments, Inventories and Orders", the US Census Bureau publishes statistics
for "new orders", shipments, "unfilled orders" and inventories for manufactured durable goods.
This gives an indication whether trade is increasing or decreasing for manufactured durable
goods in the US.

Example ;
Bibliography
https://dictionary.cambridge.org/dictionary/english/order
https://en.wikipedia.org/wiki/Order_(business)#:~:text=In%20business%20or%20commerce
%2C%20an,for%20specific%20products%20or%20services.
https://www.myjourney.id/contoh-surat-pesanan-dalam-bahasa-inggris/

You might also like