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what is the difference between purchase order and Invoice?
The PO is containing a direct order to the supplier and contains the details of the required goos in terms of quantity without pricing also the PO issuing from the purchaser and may it not complete ,The Invoice issuing from the seller and it have the quantity and the prices and refering to the PO and may the quantity be different than the PO and it is issuing after the selling and recieving date
Purchase Order - A Document generate by a Purchase company for the purpose of Make , Model , Rate & other details regarding the said product.
Invoices - A Documents issued by seller by to a purchase company according to contract of term & conditions.
Invoice is a document issued by a seller to a buyer indicating items sold, prices, date of shipment, delivery and payment terms. It is also called as a “bill”, “statement” or “sales invoice”. The term invoice indicates money the buyer owes to a seller.
A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers
PO is basic document for placing the order to buy and it contains....Description of items/goods , Quantity, Payment terms, supply terms, delivery schedule etc ....
Invoice is after supply document which confirms the supply made and it is a "PAYMENT CLAIM DOCUMENT"
Purchase order is a sort of undertaking document issued by buyer to supplier / seller confirming the rate, quantity and payment terms that are mutually agreed between the two parties before the delivery or accomplishment of the work /service.
Invoice is a document that is generated and submitted by the supplier / seller of the work / service once it is accomplished. It has the net claim value as per the purchase order agreement.
purchase order it using to reserve the material to the customer
invoice to be delivered to him to let him to pay
The bill is a legal document prepared by the seller endodontic proper accounting of any supplier in which order the buyer of any customer to pay the value of goods sold to him or the value of the services rendered to him. A) the invoice and legal document: the bill is considered a legal document is the proof of the details of the sale process and the conditions that usually remember in detail on the invoice
Purchase order: a request issued by the entity to approve the purchase of the concerned party and contains these data:
History - the serial number - the outgoing ones - the supplier - a statement supplied materials as set offer prices based - supply conditions - the warranty period, if any - the total amount and terms of payment - signature of the person authorized signatory of the supplier and the signature of the person in charge at the requesting party as well as seals supported.
Agree with most of the answers.
PO: issued by the purchaser (buyer) Company, it is an important control tools, as AP accountant insures that PO, invoice, and receiving report are matching before submitting payment to vendor.
Invoice: is issued by the seller (vendor), it is also a control tool.
Definition of Purchase Order:
A document used by the buyer to order required goods from the supplier is known as a purchase order. The order comprises of the list of products or services along with its agreed price the seller would offer. If accepted, it becomes a binding contract between both the parties. The purchase order is produced by the buyer and issued to the supplier for acceptance. A copy of purchase order is sent to the account payable department so that it can be matched with the invoice in the future.
It carries following details:
Date of issue
Purchase Order Number
Details of Goods
Name and Address of Buyer
Name and Address of Seller
Terms and Conditions
Signature of Issuing Authority
Definition of Invoice
When the goods have been delivered to the buyer, the seller issues a document to the buyer, to request for payment of the goods delivered. This document is known as the invoice. It is the indicator of indebtedness of the purchaser to the seller, i.e. goods of some value have been delivered to the buyer on which payment is still due. It creates a debtor-creditor relationship between buyer and seller.
Types of Invoice are pro forma invoice, commercial invoice, tax invoice, customs invoice, etc. It carries following details:
Date of Issue
Invoice number
Purchase Order number
Quantity of goods sold
Agreed Prices
Discount (if any)
Taxes (if any)
Total Amount Due
Name and Address of the buyer
Name and Address of the seller
Signature of the seller or his authorized agent
Conclusion
Purchase Order is a kind of proposal to the seller made by the purchaser for entering into a contract for sale. Issuing the purchase order is the beginning of the contract which completes on the final settlement of the transaction. When goods are sent to the buyer, the seller issues an invoice in which the details of goods delivered are specified. On the acceptance of the invoice the sale is confirmed, after that when the payment is made the deal is completed.
Also Key Note:
A purchase invoice is an itemized statement of the goods or services provided by a vendor or supplier. It indicates the quantity and price of each product or service provided or to be provided.
Normally the "finance" team is in charge of managing this stage of the chain, which usually comes after "Goods Receipts" booking and management.
Suppliers could send the corresponding purchase invoice/s together with the delivery note/s attached to the goods, that implies that a "Purchase Invoices" can been automatically generated
from the "Goods Receipt" window, but it could be that is not the case, therefore a purchase Invoice can also be created from scratch in the "Purchase Invoice" window.
The purchase expenses can be recognized as soon as the purchase invoice is accounted, however if an expense deferred plan is configured it is possible to deferred the expense recognition as required.
