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Theoritically, in a nutshell, you sell a finish good to me, then you raise a Sales Order against me and invoice it. Thats Sales Order.
Service Order is typically comes after service or if you are offering services rather a finish product sale, then thats a Service Order.
Service Order is an Order for performing a service on an Item. It contains a Service Job for each task to be performed. Service Job is the type of generic task to be performed - like Install, Repair, Clean, Inspect, etc.
Sources: https://community.dynamics.com/nav/f/microsoft-dynamics-nav-forum/205339/difference-between-sales-invoice-and-service-invoice?pifragment-96486=1
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