What is Service Order

How Companies Use Orders

For businesses, 'orders' (sometimes called work orders, service orders, or task orders) are used to manage specific tasks or deliveries that fall under a broader contract or master agreement. Each order details a specific service, such as "January cleaning service," "equipment maintenance," "employee training session," or "email system setup" – with clear, defined terms.

What is an Order in Practice?

It is a document that:

1. clearly defines the specific goods or services to be provided,
2. establishes the scope of work, expected outcomes, timelines, and cost,
3. assigns responsibility, indicating who will perform the work and who will oversee its completion.

Unlike a master agreement, which sets the general terms and conditions, an order is specific, has a defined timeframe, and focuses on achieving a particular outcome.

How Companies Use Orders

1. Managing specific services within ongoing partnerships or larger projects: For instance, an IT firm might have a master service agreement (MSA) with a client. Each distinct project, such as "email system migration" or "VPN configuration," would then have its own specific order, or 
2. Ordering recurring services: For example, an office cleaning contract might involve issuing a new order each month, detailing the specific date, scope of work, and agreed-upon cost for that period.
3. Providing detailed documentation for billing and approvals: Individual orders often serve as supporting documentation for invoices. Prior to starting any work, each order typically requires approval, giving the company a clear record of exactly what was requested and the extent of the services provided.