Purchase order vs sales order in NetSuite

“Purchase order” and “sales order” describe the same deal from opposite sides, which is why they’re so often mixed up, especially in NetSuite, which has a separate record for each. Here’s the difference, how each one works in NetSuite, and where your customer’s purchase order fits.

The short answer

A purchase order (PO) is created by the buyer. A sales order (SO) is created by the seller. When your customer wants to buy from you, they send you their purchase order. You record it in NetSuite as a sales order. When you buy from your own suppliers, you raise a purchase order in NetSuite.

	Purchase order	Sales order
Created by	The buyer	The seller
Purpose	Requests goods or services and commits to pay	Confirms the order and drives fulfilment and billing
NetSuite record used for	Your purchases from vendors	Your customers’ orders to you
Typical NetSuite flow	Purchase order → item receipt → vendor bill	Sales order → item fulfillment → invoice
Affects	Payables and incoming stock	Receivables and outgoing stock

Your customer’s purchase order becomes your sales order

This is the part that trips people up. When a customer emails you their purchase order, you don’t create a purchase order record in NetSuite. You create a sales order, and record the customer’s PO number on it, in the sales order’s PO # field. That reference matters: it appears on your invoices and paperwork, and it’s how the customer’s accounts team matches your invoice to their order.

Creating a purchase order record by mistake puts the order in the wrong ledger entirely: it would look like you owe a vendor, rather than that a customer owes you.

How a sales order flows through NetSuite

1. Sales order. The customer, items, quantities, prices, ship-to address and the customer’s PO number are recorded. Depending on your setup, it may need approval first.
2. Item fulfillment. The warehouse picks, packs and ships against the sales order.
3. Invoice. The customer is billed, quoting their PO number.
4. Payment. The customer pays the invoice, closing the loop.

The purchasing side mirrors it: you raise a purchase order to a vendor, receive the goods against it with an item receipt, then enter the vendor’s bill.

When the two connect

Sometimes a customer’s order triggers a purchase of your own. With drop-ship or special-order items, a sales order can generate a linked purchase order to your supplier, so the goods ship directly or arrive specifically for that customer. The sales order still represents the customer’s side, and the purchase order represents yours.

Turning customer POs into sales orders without retyping

For most NetSuite businesses, the slowest step is the first one: turning each emailed purchase order into a sales order. Someone has to read the PO, find the customer, translate item codes and key every line.

APEX Document Processor automates that step. It reads the customer’s PO from the email, extracts the PO number, dates, ship-to address and every line, matches the customer and items in NetSuite, and creates the sales order with the PO number filled in once your team approves it. See how to automate sales order entry in NetSuite for the full range of options.

Frequently asked questions

Is a purchase order the same as a sales order?

No. A purchase order is the buyer’s document requesting goods, and a sales order is the seller’s document confirming and fulfilling that request. One transaction usually produces both: the customer’s PO and your sales order.

Where do I put the customer’s PO number in NetSuite?

On the sales order, in the PO # field. It carries through to the invoice so the customer can match it to their order.

Should I create a purchase order in NetSuite when a customer sends me one?

No. A customer’s purchase order is recorded as a sales order in NetSuite. Purchase order records are for what you buy from your own vendors.