Difference Between Purchase Order And Invoice

Difference Between Purchase Order And Invoice

The major dissimilarities or difference between purchase order and sales can be pointed out as follows:

1. Introduction

Purchase Order: Document prepared by a purchaser and sent to a supplier ordering required goods and services. 

Invoice: Document prepared by a supplier and sent to a buyer describing the quantity supplied and the amount to be paid.

2. Prepared By

Purchase Order: It is prepared by buyer and sent to a vendor/supplier.

Invoice: It is prepared by a vendor/supplier and sent to a buyer

3. Content

Purchase Order: It contains date, description of needed product, quantity and quality of product, price, discount etc.

Invoice: It contains date, description and quantity of sold products, date of delivery and payment terms,

   

Also Read: 

Difference Between Purchase Order And Sales Order

4. Before/After

Purchase Order: It is prepared before invoice

Invoice: It is prepared after purchase order or sales

5. What Is It?

Purchase Order: It is a sales contract between buyer and a seller

Invoice: It is confirmation of sales. It indicates that sales are made.

Purchase Order Vs Invoice (Comparison Chart)

Basis	Purchase Order	Invoice
Prepared By	Buyer	Vendor/Supplier
Sent To	Vendor/Supplier	Buyer
Content	Date, description, quantity, quality, price, discount etc.	Quantity and price of good sold, date of delivery, price etc.
Before/After	Before Invoice	After Purchase Order
What Is It ?	Sales Contract	Sales Confirmation

I hope this post is helpful to understand the difference between purchase order and invoice and to make comparison between them.