Every order you create in details carries an Order Type — and it’s the single most important setting on the order. This article explains what an Order Type actually does, so you can pick the right one with confidence.
► Overview
The Order Type controls one business event: what happens to stock, and whether an invoice gets created. Two roles matter here — the Account, who’s receiving the goods (a shop, a distributor, or one of your own warehouses), and the Stock Account, where the goods are coming from (usually your own warehouse). Every Order Type answers two questions at once: does stock move, and if so from where to where — and does it produce an invoice?
► Where to Find This
You choose the Order Type in the “Type” dropdown when creating an order (see our article on creating a new order), under Distribution → Orders. You can see it afterwards in the order’s header, alongside the account and stock account.
[Screenshot: Type dropdown in the New Order pop-up]
► How It Works
Order types fall into two broad groups:
- On account — Invoice Order, Return Credit Note, Defects Note, and Price Adjustment. These handle both the money and the stock quantity together: once goods move under one of these types, they’re sold to and owned by the recipient.
- Commission — Consignment, Consignment Return, Defects Consignment, and Invoice Consignment. These track quantity only, until a later invoice settles it. The stock has physically moved, but it isn’t owned or billed to the recipient yet — think of it as being on loan.
Two types sit outside both groups: Promo Order (stock goes out for promotional use — press, in-store — with no invoice) and Return to Vendor (returning goods to your own supplier, e.g. in case of overstock — moves stock, but isn’t invoiced or tracked as consignment).
[Image: “On Account” vs “Commission” diagram — see attached on-account-vs-commission.png]
► Step-by-Step
A quick way to land on the right type:
- Selling goods that change ownership right away and need an invoice? Use Invoice Order.
- Crediting a return? Use Return Credit Note if the goods physically come back, or Defects Note if you’re crediting defective goods with no return.
- Sending goods to a shop or distributor to sell on your behalf, without invoicing yet? Use Consignment.
- Getting unsold consignment stock back? Use Consignment Return. Once it’s actually sold and you invoice for it, use Invoice Consignment.
- Sending stock out for promotional use (press, in-store)? Use Promo Order.
- Writing off faulty consignment goods that won’t be returned or credited? Use Defects Consignment.
- Correcting a price without moving any stock? Use Price Adjustment.
- Returning goods to your own supplier, e.g. overstock? Use Return to Vendor.
► Tips / Notes
- Invoice Order – a standard sale: stock goes out, an invoice is created.
- Consignment – a consignment delivery: stock goes out, no invoice yet.
- Return Credit Note – a credit note after a physical return: stock comes back in.
- Consignment Return – unsold consignment stock coming back: no invoice.
- Promo Order – a promotional shipment (in-store, press): no invoice.
- Defects Note – a credit note for defective goods, no return needed.
- Defects Consignment – defective consignment goods, written off with no credit note.
- Price Adjustment – a price correction: no stock movement.
- Invoice Consignment – invoicing consignment goods once they’ve sold.
- Return to Vendor – returning stock to your supplier: no invoice.
Not sure which type fits your situation? Get in touch with support and we’ll help you pick the right one.