Using draft orders in B2B

Shopify Plus

The B2B feature is only available to stores on the Shopify Plus plan.

Orders that customers send directly to you by phone or email instead of through the online store can be created as draft orders. If the draft order has a B2B customer and a company location assigned to it, then the prices, payment terms, and checkout options automatically reflect the settings for that company.

Creating a draft order for a company

If a company submits a purchase order with you outside of your Shopify store, such as by email or on the phone, then you can create a draft order for their purchase.

Create a draft order and collect payment immediately

Steps:

1. From your Shopify admin, go to Orders.

2. Click Create order.

3. Under Customer, select a B2B customer.

4. Select the company location that the order is for.

5. To add products, search for the product, and then click Add.

6. Enter the purchase order number, if applicable. Purchase order numbers can be added later from the Order Details page as well.

7. Click Collect payment.

8. Do one of the following:

   • If the customer uses a credit card as their payment method, then select Pay by credit card, enter the credit card information, and then process the payment.
   • If the customer uses a different payment method, such as a check, cash, or money order, then select Mark as paid.

Create a draft order and send an invoice to your customer for payment

Steps:

1. From your Shopify admin, go to Orders.

2. Click Create order.

3. In Customer, select a B2B customer.

4. Select the company location that the order is for.

5. To add products, search for the product, and then click Add.

6. Click Send invoice.

Create a draft order with payment terms

Note

If you are setting payment terms for a draft order that's in a different currency than your store currency, then you can only collect payment by credit card or by marking the order as paid. There's no option to send an invoice to the customer from the order page.

Steps:

1. From your Shopify admin, go to Orders.

2. Click Create order.

3. In Customer, select a B2B customer.

4. Select the company location that the order is for.

5. To add products, search for the product, and then click Add.

6. Enter the purchase order number, if applicable. Purchase order numbers can be added later from the Order Details page as well.

7. Click Payment due later, and then select a term in the Payment terms field. If a company location already has payment terms set, then the payment term is automatically set according to the company location.

8. Click Create order.

Requiring orders to be placed as draft orders

If you want to review orders before they're approved, then you can require that customers submit their orders as drafts before you accept them. When you select the Submit all orders as drafts for review option, customers for that company location have a Submit for approval button in the checkout process.

Orders from locations with this setting are found in the Drafts page of your orders. These orders aren't complete until you click Create order or the customer submits payment after you send them an invoice.

Steps:

1. In your Shopify admin, go to Customers > Companies.
2. Select a company location.
3. In the company information section, go to Checkout, and then click Edit.
4. Select Submit all orders as drafts for review.
5. Click Save.

Local currency

If you use Shopify Markets, then the local currency, pricing, duties, and taxes are determined by the market associated with the order. Alternatively, if you don't use Shopify Markets, then the currency is set and can be changed on the catalog.

When more than one market is activated, the shipping address of the customer determines the market for the order. Adding a customer updates the market for the order so invoices, product pricing, and payment information is displayed in that customer's local currency.

On draft orders that display a currency other than your default store currency, the foreign exchange rate is calculated when you create the draft order. This rate is fixed and used on the invoice regardless of whether the exchange rate changes. However, if you save the order as a draft and edit it afterwards, then pricing on the whole order is updated with the foreign exchange rate that's current at the time of the edit.

After an order is partially paid, if you edit the order items, then the current foreign exchange rate is used for the edited items.

Note

Rounding rules can't be applied to B2B draft orders.

If you want to use different pricing and currency for a draft order, then change the market, but first, review the following impacts of changing the market on an order:

• Taxes are included or excluded from item prices. For example, orders with a Unites States market exclude taxes from prices, while orders with a Great Britain market include taxes in prices.

• Tax rates vary by market.

  Note

  At checkout, if a customer changes the shipping address to an address that's outside the market, then the correct tax rate for the customer’s shipping address is charged, but the market on the order, with its tax included or excluded setting, is unchanged.

• If you use a third-party service to determine the foreign exchange rate for a market, then pricing on an order is determined by the service’s exchange rate. However, the rate that Shopify Payments uses to calculate your payout is based on the market that's selected in Shopify. Therefore, the amount charged on the order can differ from the amount you receive in payment. For more information, refer to currency conversions and exchange rates.

• Manufacturer Suggested Retail Price (MSRP): If you are obliged to sell a product at the MSRP in a customer’s market, then you could be in breach of contract if you switch markets and use an alternative market price.

Change the market for an order

If you use Shopify Markets, to change the pricing and currency on an order, change the market.

Before you change the market, review the impacts of changing the market on an order and review the following pre-requisites:

• To see the Market card on an order, a market other than your primary market must be enabled.
• To change to a particular market currency, that market must be enabled and local currency for the market must be enabled.

Steps

1. In your Shopify Admin, go to Orders > Drafts.

2. Select a draft order and open it.

3. On the Market card, select Change.

4. Select a country, and then select Change market.

5. Select Update draft order.

Order pricing is in the customer's local currency except while you're making the following custom changes to the order:

• If you add a custom discount, then the Discount value displays in store currency.
• If you add a custom shipping price, then the Price displays in store currency.
• If you add a custom item, then the Price displays in store currency.

After you make these custom changes, they are displayed on the order in the customer's local currency.

Local delivery or local pickup

If a draft order requires shipping, then you can choose a preset shipping rate, create a custom rate, or choose local delivery or local pickup.

If a shipping method is preselected when the draft order is created, then the customer can't modify that shipping method during checkout. This is the case for both business-to-business customers and direct-to-consumer customers.

If a shipping method isn't preselected when the draft order is created, then the customer can select from the available shipping rates at checkout, but can't select local delivery or local pickup. If you want your customer to pick up their order from one of your locations, then you must preselect a local pickup location when creating the draft order.