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