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Sales Order: Order placed by the customer into supplier system, A supplier can be producer of the items or can get items from another supplier. There will be different setups for item inventory , delivery and supplier details.
Types of sales order
Incomplete Order: or Back Order is when you try to release an order for picking in your warehouse and the inventory is out f stock for delivery to customer. When pick release is unsuccessful.
Drop Shipment: When we fulfil our order through 3rd party, Vendor directly ships the order to the end customer.
Back To Back Order: The shipment process is completed through Order Management. It is standard order where the item has a Purchase Order associated with it.
Back to Back order and Drop Shipment Difference
In back to back when the order is created and demand is made , Item will be procured Hence source will be internal and material will be taken from inventory. In drop shipment the material will be directly supplied to end customer through third party hence order source will be external.