What impact does a sales order have on accounts until fulfillment occurs?

When a sales order is created in NetSuite, it typically does not create any immediate financial impact on the accounts until the items associated with that order are actually fulfilled or shipped. During this period, the sales order serves as a commitment to sell products or services but does not yet affect cash flow, accounts receivable, or inventory accounts. It essentially acts as a record of a pending transaction.

Fulfillment triggers the financial entries, such as recognizing revenue and creating an accounts receivable entry. Until that fulfillment occurs, the sales order primarily affects inventory and sales forecasting but does not alter the accounts’ balance or available credit. Therefore, the absence of immediate account impact until items are shipped accurately reflects standard accounting practices concerning sales orders.