Purchase Order vs Invoice – What’s the Difference?

[kuldeep]

I often get confused between a purchase order and an invoice when dealing with business transactions. Can someone explain the key differences between the two? Who issues each document, at what stage in the process, and how do they affect accounting or payment tracking?

 

[robertwilliam]

A purchase order (PO) is a document through which a buyer formally asks the seller to deliver goods or services, while an invoice represents the seller's request for payment after the goods have been delivered.

 

[BlissCore]

A purchase order (PO) is created by the buyer to request goods or services from a seller, outlining what they need and at what price. An invoice, on the other hand, is issued by the seller after the goods or services are delivered, requesting payment from the buyer. In short, the PO starts the transaction, while the invoice closes it.

 

[Emly]

A Purchase Order (PO) is issued by a buyer to request goods or services, outlining what they want to buy. An Invoice is sent by the seller after delivery, requesting payment for those goods or services.

 

[peterkavinsky]

A purchase order (PO) is issued by a buyer to request goods or services from a seller, outlining details like quantity and price. An invoice is sent by the seller to the buyer after delivery, requesting payment for those goods or services.