An order book is used to record orders received from new and existing customers. It helps a business track what a customer ordered, when the order was received, the agreed price, dispatch status, payment terms and pending quantities.

Order books are commonly used by:

• Medical representatives
• Sales representatives
• Pharma distributors
• PCD and franchise companies
• Third-party manufacturers
• C&F agents
• Stockists
• Wholesalers
• Retail businesses
• Office and dispatch teams

An order book may be maintained manually, in a printed format, in Excel or through order-management and inventory software.

Quick Answer

An order book is a physical or electronic record containing customer and product-wise order details.

A good order book should answer the following questions:

• Who placed the order?
• When was it received?
• Which products were ordered?
• What quantity was ordered?
• What rate was agreed?
• Has the order been confirmed?
• Has it been invoiced and dispatched?
• Is any quantity still pending?
• Has the payment been received?

What Is an Order Book?

An order book can be defined as:

A document or electronic register in which customer orders are entered, processed, tracked and maintained from receipt to completion.

It may record orders received through:

• Field representatives
• Telephone calls
• WhatsApp
• Email
• Company website
• Distributor portal
• Purchase orders
• Online marketplaces
• Direct office communication

An order book should not be treated merely as a notebook. When maintained properly, it becomes an important sales, inventory and customer-service record.

Why Is an Order Book Important?

An order book helps a business:

• Avoid missed orders
• Reduce dispatch mistakes
• Track pending products
• Check previous customer purchases
• Maintain agreed rates
• Coordinate sales, billing and dispatch
• Monitor representative performance
• Estimate stock requirements
• Follow up on pending payments
• Analyse frequently ordered products
• Resolve customer disputes

For pharmaceutical companies, an order book is especially useful because one order may include several brands, pack sizes, schemes, free goods and batch-specific requirements.

Difference Between an Order Book and a Purchase Order

These terms are related but not identical.

Purchase Order

A purchase order is generally issued by the customer to the supplier. It contains the items, quantities, prices and commercial terms requested by the buyer.

Order Book

An order book is maintained by the supplier or sales team to record and track orders received from customers.

The purchase order is the customer’s instruction, while the order book is the company’s internal order record.

Difference Between an Order Book and an Invoice

An order book records the customer’s requirement before billing.

An invoice is generated after the company confirms the products and quantities being supplied.

An order may be:

• Fully invoiced
• Partly invoiced
• Kept pending
• Cancelled
• Modified
• Rejected because of credit or stock issues

Therefore, order-book quantity and invoice quantity may not always be identical.

Important Parts of an Order Book

The format may differ according to business requirements, but a complete order book generally contains the following sections.

1. Company Details

The top section may include:

• Company name
• Company logo
• Registered or marketing address
• Contact number
• Email address
• Website
• GSTIN
• Drug licence details, where relevant

2. Order Details

Every order should have a unique identity.

Include:

• Order number
• Order date
• Order-received time
• Mode of order
• Sales representative’s name
• Expected dispatch date
• Order priority

A unique order number makes follow-up and record searching easier.

Example:

ORD-2026-000125

3. Customer Details

Include relevant customer information such as:

• Customer or firm name
• Contact person
• Mobile number
• Billing address
• Delivery address
• City or station
• State
• GSTIN
• Drug licence number, where applicable
• Customer code
• Customer category
• Transport details
• Preferred bank or payment mode

Customer categories may include:

• Distributor
• Stockist
• PCD franchise partner
• Retailer
• Hospital
• Institution
• Third-party manufacturing client

4. Product Details

The product section may contain:

• Serial number
• Product code
• Brand name
• Generic name or composition
• Dosage form
• Packing
• Ordered quantity
• Free quantity
• Total quantity
• Rate
• MRP
• Discount
• Scheme
• GST rate
• Taxable value
• Remarks

For third-party manufacturing orders, additional fields may include:

• Batch size
• Product specification
• Packing specification
• Artwork status
• Advance received
• Production status
• Testing status
• Expected completion date

5. Commercial Terms

A good order book should clearly mention:

• Advance payment
• Credit period
• COD
• Bank payment
• Transport charges
• Freight responsibility
• Insurance
• Scheme or free goods
• Special discount
• Minimum order condition
• Delivery commitment

Commercial terms should not remain dependent on verbal discussion.

6. Order Status

Order status allows the team to understand the current stage of every order.

Common status options include:

• New
• Under review
• Awaiting payment
• Confirmed
• In production
• Ready for billing
• Partly invoiced
• Fully invoiced
• Dispatched
• Partly dispatched
• Delivered
• On hold
• Cancelled
• Closed

7. Footer Section

A printed order book may include:

• Customer’s signature
• Representative’s signature
• Order-entry staff signature
• Approval signature
• Date and time
• Special instructions
• Company terms and conditions

Types of Order Books

Order books can be classified into three main types:

1. Manual order book
2. Printed order book
3. Electronic order book

1. Manual Order Book

A manual order book may be a diary, register, notebook, pad or plain paper used to note customer orders.

Advantages

• Simple to start
• No software required
• Low cost
• Useful during field visits
• Can be used without internet or electricity

Disadvantages

• Higher risk of missing information
• Difficult to search old orders
• Handwriting may be unclear
• Pages may be lost or damaged
• Difficult to analyse sales
• No automatic calculation
• Duplicate entries may occur
• Pending orders are difficult to monitor

A manual order book may be suitable for a very small business, but it should eventually be transferred to an electronic register.

2. Printed Order Book

A printed order book follows a fixed format prepared according to the company’s business requirements.

It may contain:

• Original copy for company
• Duplicate copy for customer
• Triplicate copy for accounts or dispatch

Carbonless or NCR paper can be used to generate multiple copies.

Advantages

• Professional appearance
• Standard information on every order
• Easier for representatives to use
• Customer receives written confirmation
• Signatures can be obtained
• Reduces missing fields

Disadvantages

• Requires printing expense
• Corrections may look untidy
• Old orders are difficult to search
• Data still has to be entered into billing or inventory software
• Updated formats require reprinting

3. Electronic Order Book

An electronic order book may be maintained using:

• Microsoft Excel
• Google Sheets
• ERP software
• CRM software
• Inventory-management software
• Mobile sales application
• Distributor-management system
• Accounting software

Advantages

• Easy searching and filtering
• Automatic calculations
• Faster reporting
• Status tracking
• Easy sharing between departments
• Customer purchase history
• Pending-order analysis
• Stock planning
• Reduced duplicate work
• Data backup
• Sales representative analysis

Disadvantages

• Requires training
• Incorrect formulas may create errors
• Access control is necessary
• Data may be lost without backups
• Software may involve a subscription cost
• Internet may be required for cloud-based systems

Types of Order Books According to Business Use

Different businesses require different order-book formats.

Field Sales Order Book

Used by sales representatives during customer visits.

Common fields:

• Customer name
• Product
• Packing
• Quantity
• Rate
• Scheme
• Signature
• Expected supply date

Office Order Register

Used by office executives to record orders received through calls, email or WhatsApp.

It should include:

• Customer code
• Order source
• Payment status
• Stock status
• Billing status
• Dispatch status

Pharma Franchise Order Book

Used for PCD and monopoly franchise partners.

Additional fields may include:

• Territory
• Monopoly status
• Promotional-input requirement
• Free goods
• Credit limit
• Pending payment
• Transport

Third-Party Manufacturing Order Book

Used to manage manufacturing orders placed by marketing companies.

It may include:

• Product name
• Composition
• Batch size
• Quantity
• Packing type
• Artwork approval
• Packing-material status
• Advance payment
• Manufacturing schedule
• Quality-control status
• Dispatch date

Institutional Order Book

Used for hospitals, government institutions, tenders and bulk buyers.

It may include:

• Purchase-order number
• Tender number
• Contract rate
• Delivery schedule
• Required documents
• Inspection status
• Supply deadline

How to Prepare a Printed Order Book

Step 1: Identify the Users

First decide who will use the order book:

• Medical representative
• Area sales manager
• Office executive
• Distributor
• Manufacturing department
• Dispatch team

Step 2: List the Required Fields

Do not add unnecessary fields. Include only the details required to process the order correctly.

Step 3: Decide the Number of Copies

Common options are:

• Original plus duplicate
• Original plus two copies
• Original plus three copies

Step 4: Design the Layout

Keep the format clean and provide sufficient writing space.

The product table may contain:

S. No.	Product	Packing	Quantity	Free Qty.	Rate	MRP	Remarks

Step 5: Add Terms and Signatures

Include:

• Payment terms
• Freight terms
• Delivery conditions
• Customer signature
• Representative signature

Step 6: Number Every Order Form

Use pre-printed serial numbers to prevent missing or duplicated order forms.

How to Prepare an Order Book in Excel

Maintain one Master Order Register and use filters, pivot tables or separate reports to view each customer’s orders.

Step 1: Create a Master Order Sheet

Create the following columns:

Column	Field
A	Order Number
B	Order Date
C	Customer Code
D	Customer Name
E	City
F	Sales Representative
G	Product Code
H	Product Name
I	Packing
J	Ordered Quantity
K	Free Quantity
L	Rate
M	Discount
N	Taxable Value
O	GST
P	Total Value
Q	Payment Status
R	Order Status
S	Invoice Number
T	Dispatch Date
U	Transport
V	Pending Quantity
W	Remarks

Each product in an order should preferably be entered as a separate row while keeping the same order number.

Step 2: Create a Customer Master

Prepare another worksheet containing:

• Customer code
• Customer name
• Contact person
• Phone number
• Billing address
• Delivery address
• GSTIN
• Drug licence number
• State
• Credit limit
• Payment terms
• Transport preference
• Sales representative

Step 3: Create a Product Master

Include:

• Product code
• Brand name
• Composition
• Packing
• MRP
• Trade rate
• GST rate
• Current stock
• Minimum stock
• Product status

Step 4: Use Drop-Down Lists

Use Excel Data Validation to create drop-down lists for:

• Customer name
• Product name
• Representative
• Payment status
• Order status
• Transport
• Priority

Drop-down lists reduce spelling differences and reporting errors.

Step 5: Add Basic Formulas

Total Quantity

Ordered Quantity + Free Quantity

Taxable Value

Ordered Quantity × Rate − Discount

GST Amount

Taxable Value × GST Rate

Order Value

Taxable Value + GST Amount

Pending Quantity

Ordered Quantity − Invoiced Quantity

Step 6: Add Order-Status Colours

Conditional formatting can help the team identify:

• New orders
• Pending payments
• Partly dispatched orders
• Delayed orders
• Completed orders
• Cancelled orders

For example:

• Pending payment: highlighted
• Delayed dispatch: highlighted
• Completed order: highlighted
• Cancelled order: highlighted

Step 7: Apply Filters

Filters allow you to view orders according to:

• Customer
• Date
• Representative
• City
• Product
• Payment status
• Dispatch status
• Pending quantity

Step 8: Create a Dashboard

An order dashboard may show:

• Number of new orders
• Total order value
• Orders awaiting payment
• Orders awaiting dispatch
• Partly supplied orders
• Cancelled orders
• Top customers
• Top products
• Representative-wise orders

Step 9: Protect Important Cells

Lock cells containing formulas and master data to prevent accidental changes.

Step 10: Maintain Backups

Keep:

• Daily backup
• Weekly backup
• Cloud copy
• Restricted user access

Business order data should not remain on only one computer.

Sample Order-Book Format

Company Information

Company Name: __________________________
Address: _______________________________
Phone: _________________________________
Email: _________________________________

Order Information

Order No.: _____________________________
Order Date: ____________________________
Representative: ________________________
Expected Dispatch: _____________________

Customer Information

Customer Name: _________________________
Contact Person: ________________________
Phone: _________________________________
Billing Address: ________________________
Delivery Address: ______________________
GSTIN: _________________________________
Drug Licence No.: ______________________
Transport: _____________________________

Product Information

S. No.	Product Name	Packing	Qty.	Free Qty.	Rate	MRP	Remarks
1
2
3
4

Payment Terms: _________________________
Freight Terms: _________________________
Special Instructions: __________________

Customer Signature: ____________________
Representative Signature: ______________

Recommended Order-Processing Workflow

A proper order book should connect the sales, accounts, inventory and dispatch departments.

Stage 1: Order Received

The order is entered with complete customer and product information.

Stage 2: Commercial Verification

Check:

• Rate
• Discount
• Scheme
• Outstanding payment
• Credit limit
• Advance requirement

Stage 3: Stock Verification

Confirm whether:

• Full stock is available
• Partial stock is available
• Product is out of stock
• Product is under production

Stage 4: Order Confirmation

Send the customer a confirmation containing:

• Confirmed products
• Confirmed quantity
• Rate
• Expected dispatch
• Payment terms

Stage 5: Billing

Generate the invoice against the confirmed quantity.

Stage 6: Dispatch

Record:

• Dispatch date
• Transporter
• LR or tracking number
• Number of boxes
• Freight details

Stage 7: Delivery Follow-Up

Confirm whether the order was delivered safely and completely.

Stage 8: Closure

Mark the order as closed after:

• Complete supply
• Delivery confirmation
• Pending-item resolution
• Payment reconciliation

Important Controls for Pharma Order Books

Pharmaceutical order records may also need to consider:

• Customer drug-licence details
• Valid GST details
• Restricted-product handling
• Prescription-drug categories
• Batch and expiry details
• Cold-chain products
• Product returns
• Breakage and leakage
• Expired or near-expiry stock
• Schedule-specific records
• Recall communication

The order book should support—but not replace—mandatory sales invoices, purchase records and statutory registers.

Common Mistakes While Maintaining an Order Book

Avoid the following mistakes:

• Accepting an order without a customer code
• Not recording the agreed rate
• Missing payment terms
• Writing unclear quantities
• Confusing ordered and free quantities
• Not checking previous outstanding payments
• Not assigning a unique order number
• Deleting cancelled orders
• Failing to record partial supply
• Not updating dispatch details
• Maintaining different order records in different departments
• Depending only on WhatsApp messages
• Not keeping backups

A cancelled order should not be deleted. Its status should be changed to “Cancelled” along with the reason.

Advantages of an Electronic Order Book

An electronic order book allows a company to:

• Check pending orders quickly
• View customer purchase history
• Track dispatch delays
• Check old rates
• Estimate future demand
• Analyse fast-moving products
• Monitor representative performance
• Identify inactive customers
• Reduce manual calculations
• Prepare management reports
• Coordinate between departments
• Reduce the risk of lost order slips

Is Excel or Software Better?

Excel Is Suitable When:

• The business is small.
• The number of daily orders is limited.
• One or two employees handle orders.
• Inventory integration is not essential.
• The team understands spreadsheets.

Order-Management Software Is Better When:

• Several employees process orders.
• The business has multiple locations.
• Orders come through several channels.
• Live stock visibility is required.
• Billing and inventory must be integrated.
• Customer-wise credit control is important.
• Management requires dashboards and alerts.

A small business can begin with Excel and move to ERP or CRM software as order volume increases.

Final Thoughts

An order book is much more than a place to write customer requirements. It is the starting point of the complete sales and supply process.

A properly maintained order book helps connect:

• Customer requirement
• Sales approval
• Payment verification
• Stock planning
• Billing
• Dispatch
• Delivery
• Customer follow-up

Small businesses may begin with a printed format or Excel sheet. As the company grows, a centralised electronic order-management system becomes more useful.

The best order book is not the one with the most columns. It is the one that records all essential information and is updated consistently by every responsible department.

Frequently Asked Questions

1. What is an order book in sales?

An order book is a manual or electronic record used to enter and track orders received from customers.

2. Who uses an order book?

It may be used by sales representatives, medical representatives, distributors, office executives, billing staff, manufacturers and dispatch teams.

3. Is an order book the same as an invoice?

No. An order book records the customer’s requirement, while an invoice records the products that are actually billed and supplied.

4. Can an order book be maintained in Excel?

Yes. Excel is suitable for small and medium businesses when a properly structured master order register, customer master and product master are maintained.

5. Should every customer have a separate Excel sheet?

It is usually better to maintain one master order table and filter it by customer. Separate worksheets for every customer become difficult to manage as the business grows.

6. What is the most important field in an order book?

Every order should have a unique order number. Customer details, product quantity, rate, status and dispatch information are also essential.

7. Should cancelled orders be removed?

No. Cancelled orders should remain in the register with the status and cancellation reason recorded.

8. How can pending orders be tracked?

Include columns for ordered quantity, invoiced quantity, dispatched quantity, pending quantity and order status.

9. Can WhatsApp messages be treated as an order book?

WhatsApp may be used to receive orders, but the details should be transferred to a controlled order register or software for processing and tracking.

10. What is an order book for third-party manufacturing?

It records product specifications, quantity, batch size, artwork approval, packing-material status, advance payment, production progress and expected dispatch.

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