The document that defines the quantity of products and services being sold are purchase orders. An invoice is a document issued by a seller to the buyer indicating items sold, prices, date of shipment, delivery and payment terms. Both the purchase order and invoice are business documents for business transactions. The difference between the purchase order and invoice are worth mentioning. The purchase order is prepared by the buyer while the seller makes the payments to be received. The purchase order lists on the quantity while the invoice has its own price of goods or services along the terms and conditions and due date. The importance of purchase orders shows instant visibility of incoming stock, its due turn up and how much it is coming. The invoice processes indicate the amount of money the buyer owes to a seller. Both purchase orders and invoice have the same details except the technical mention for records.

1. Difference Between
a Purchase Order
and an Invoice

2. Introduction
1. Both, a purchase order and an invoice are important business
documents for business transactions.
2. Although they are quite similar, they have a few differences which
must be understood clearly.

3. Purchase Order
1. Purchase order is a document indicating types, quantity of products
and services being sold.
2. It details the items the buyer agrees to purchase for a certain price.
3. It also includes the payment terms, shipment, other associated terms
and conditions.
4. The customer sometimes creates a standing PO.
5. The standing or blanket PO allows a company to order the same
product multiple times using the same PO number over an extended
purchase period.

4. Purpose & Importance of a PO
1. Purchase orders are typically used when a buyer wants to purchase supplies or
inventory on account.
2. It is important as you and your team have instant visibility of incoming stock;
how much is coming and when is it due to turn up.
3. A properly managed purchase order system will quickly tell you what’s been
ordered, shipped and received but not invoiced and so on.
4. Besides that, creating POs in the system will help prevent ordering more of an
item than you may need.
5. You can also match the delivered goods against what was ordered, to prevent
wrong delivery.
6. Suppliers use PO’s to fulfil their orders and payment processing. An online
invoicing software makes it easy to send purchase orders to vendors online, in
pre-designed
7. templates.

5. 1. Invoice is a document issued by a seller to a buyer indicating items
sold, prices, date of shipment, delivery and payment terms.
2. It is also called as a “bill”, “statement” or “sales invoice”.
3. The term invoice indicates money the buyer owes to a seller.
4. The invoice is also specified with the period of time after which the
buyer has to make payment to the seller for the goods and services
they have purchased.
5. Modern-day invoices are transmitted online.
Invoice

6. Importance of an Invoice
1. Invoice is a document issued by a seller to a buyer indicating items
sold, prices, date of shipment, delivery and payment terms.
2. It is also called as a “bill”, “statement” or “sales invoice”.
3. The term invoice indicates money the buyer owes to a seller.
4. The invoice is also specified with the period of time after which the
buyer has to make payment to the seller for the goods and services
they have purchased.
5. Modern-day invoices are transmitted online.

7. Key Differences
1. The purchase order is what the buyer prepares, while the invoice is
what the seller makes in lieu of the payment to be received.
2. The purchase order lists the quantity and the due date of delivery of
goods, products or services purchased/ordered by the buyer, while an
invoice has, on it the price of the goods, products or services being
sold along with term and conditions and due date.
3. Both, purchase order and invoice have the same details except the
technical mention for records viz.a.viz the shipping details, invoice
number and purchase order number which is additional on the invoice.

8. Know More

9. Thank You