Difference between purchase order and invoice
A purchase order (PO) is a document that is issued by a buyer to a seller for the purpose of indicating their intention to purchase certain products or services. An invoice is a document issued by a seller to a buyer summarising the products or services that they have purchased (or have agreed to purchase).
Whereas POs are sent before delivery or payment, invoices can be sent before or after the delivery of products or services, and typically include a payment due date. An invoice can also be sent after a PO has been agreed.
An invoice becomes a legally-binding document, detailing a debt owed by the buyer to the seller, once it has been agreed to.
The details contained on a PO and an invoice are similar. The invoice will usually reference a PO number (if there has been one) to assist with record keeping and avoid confusion. However, an invoice will usually not include the technical details of the order might be included on a PO.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
When is there a right to light, and what happens if it is obstructed?
Infrastructure nationalisation
What would the nationalisation of economic infrastructure mean for GB?
A new guide to improving value by reducing design error.
We've reached 80,000 page views a day and 10,000 registered users. Why not join them?
A masterplan is a framework within which a location is encouraged to develop or change. Read our introductory article.
New consultation announced on a specialist Housing Court to settle landlord-tenant disputes.
Inclusive cities and transport
ICE responds to a transport consultation advising the government to make decisions enabling more inclusive cities.
BRE and Loughborough University complete first phase refurbishment of demonstration home.
How the risk of collapse of fibrous plaster ceilings is being addressed in theatres.
We’re looking for a full-time Editor
If you’re a great writer and have practical experience of the construction industry, it could be you.
Frustrated by long documents or technical jargon? Put off by sign-up forms or costs? Take this 5 min survey to help improve construction knowledge.