Saturday, March 16, 2019

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,

   
difference-purchase-order-invoice

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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.