Difference between purchase order and invoice

Both the invoice and purchase order related terms are with the purchase/sale records of different companies. These are the business records that are carefully handled by buyers and sellers. People mix both terms and often use them as synonyms, but both terms are quite different. The purchase order is the statement made by the buyer, he has the sales contract, that is, details of the goods, terms and conditions, date of issue and name and address of his company. On the other hand, the invoice is the document raised by the seller, it has the information regarding the payment of the delivered merchandise. The invoice also has the purchase order number written along with the price,

Comparison chart

The purchase order is also known as a PO or contract of sale, the buyer uploads it to the seller. It mainly indicates the number of different products that a buyer orders from the seller. The concept of this document is mainly seen between the two companies, as one offers goods to the other company so that it can sell more of them while maintaining its profit margin. The seller in this case is above all the large wholesaler or the trader, who offers his products to small businesses and shops. The purchase order indicates the information on the name and address of the buyer and requests the quantity of different products with the subject to the tariff provided by the seller. When negotiation or different terms and conditions are selected with respect to price, delivery and payment option,

What is the invoice?

The invoice is the document that the seller raises to the buyer after the merchandise or the requested order is delivered to the requested destination. It contains complete details about the products, including price, payment due date and purchase order number. In other words, we can say that the invoice is the invoice of the products sent by the seller to the buyer after the issuance of the delivered products, while the purchase order is the demand made by the buyer to the seller after accepting the terms. and conditions. . The invoice is the complete document in terms of price and payment method between the seller and the buyer compared to the purchase order, as it contains detailed information about taxes (if any), discounts (if any), the payment due date and the payment method. It also reports on the quantity of products delivered to the seller’s destination. The purchase order number is also prominently written on the invoice.

Purchase order vs. invoice

• Purchase order is the document that contains information about the demand and other terms and conditions by the Buyer, while the invoice is the document that is an invoice of the products delivered by the seller to the buyer.
• The purchase order is a document issued by the buyer and sent to the seller. On the other hand, the invoice is issued by the seller and sent to the buyer.
• The purchase order indicates the information on the name and address of the buyer and requests the quantity of different products with the subject to the tariff provided by the seller. Rather, the invoice contains detailed information about taxes (if any), discounts (if any), payment due date, and payment method.