what is the difference between an invoice and a purchase order?
An invoice and a purchase order are two different documents used in the process of buying and selling goods or services:
1. Purchase Order: It is a document issued by the buyer to the seller, indicating the details of the products or services that the buyer wants to purchase. A purchase order typically includes information such as the quantity, description, price, and terms of the order. It serves as a legally binding agreement between the buyer and the seller, outlining the buyer's intent to purchase.
2. Invoice: It is a document issued by the seller to the buyer, requesting payment for the goods or services provided. An invoice usually contains details such as the quantity, description, price, and terms of the sale, along with any applicable taxes or discounts. It acts as a bill or a payment request from the seller to the buyer.
In summary, the key differences between an invoice and a purchase order are:
- Purchase order is sent by the buyer to the seller to initiate a purchase, while an invoice is sent by the seller to the buyer to request payment.
- A purchase order is prepared before the goods or services are delivered, while an invoice is prepared after the delivery has taken place.
- A purchase order is more of an agreement to buy, while an invoice is a request for payment for the goods or services already provided.