Difference between Cash Sales and Rush Order
Key Difference: Cash sales refers to sales made by cash; here the customer goes to the store, orders, picks up and pays for the goods immediately. In a customer places an order and then the customer picks up the goods or the goods are delivered on the same day as the order is placed.
We live in a consumer society, which means that everyone one buy things they need; even if they are going to produce or manufacture things by themselves, they will still require to purchase the raw materials and other goods they may need. However, while there are many ways to place an order, two popular ones are cash sales and rush order.
Cash sales refers to sales made by cash; here the customer goes to the store, orders, picks up and pays for the goods immediately. This is one of the most common ways to make purchases. For example, when a person goes to a store and buys fruits and vegetables, pays for them when leaving the store, and takes those fruits and vegetables home with them.
Rush Order, on other hand, is something slightly different. In a rush order, a customer places an order. This order can be placed in person, on the phone, or via a website. The order is then created and the goods are gathers. The customer can now either go pick up the goods, or the store will ship the goods on the same day as the order is placed.
Some other differences that should be noted includes the fact that the billing in cash sales is done immediately, as the customer pays and picks up the devices, whereas the billing in a rush order is done later when the customer picks up the goods or the goods are delivered.
The two types of sales are often used as part of Systems, Applications, Products (SAP). In the system cash sales are labeled as ‘type cs’, while the shipping condition is immediate, while the lead time is 0 days. The delivery is immediately created.
Comparison between Cash Sales and Rush Order:
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Cash Sales |
Rush Order |
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Description |
A type of sales made in cash |
A types of sale that is rushed to the customer |
|
Goods |
The customer orders, picks up and pays for the goods immediately |
The customer picks up the goods or the goods are delivered on the same day as the order is placed. |
|
Delivery |
Delivery is processed as soon as the order has been entered. |
Delivery is automatically created |
|
Billing and Invoice |
A cash invoice can be printed immediately from the order and billing is related to the order. |
Billing is related to the delivery. |
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Receivables |
Receivables do not occur for the customer as they do for rush or standard orders, because the invoice amount is posted directly to a cash account. |
Receivables occur |
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Credit |
No Credit Available |
Credit Available |
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SAP |
Cash Sales - Type CS Shipping Condition - Immediate Lead time in Days - 0 Delivery - Immediately Created Billing - Order Related Invoice - Printed immediately and given to customer Posting - made to cash account |
Rush Order - Type RO Shipping Condition - Immediate Lead time in Days - 0 Delivery - Immediately Created Billing- Delivery Related Invoice - Sent to customer later Posting - Made to Accounts Receivable |
Reference: CareerRide, SAP Functional, All Interview, Go To Things Image Courtesy: pacificunion.com, laserengravedmemories.com
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