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] Related articles on Designing Buildings Wiki
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
CIOB announces Saul Humphrey FCIOB as new President for 26/27 term.
A quick, simple, and zero-bills solution to prevent overheating.
The adaptive reuse of large industrial structures.
Promoting the circular economy by extending the life of buildings.
CIAT responds to Climate Change Committee report
An urgent wake-up call for both government and the built environment.
Construction Management, 24 June
FMB pilot aims to build pipeline of site-ready tradespeople.
A quick introduction.
CLC publishes Mental Health Joint Code of Practice.
A quick introduction to its uses and risks.
Construction Management, 17 June
Government rolls out digital planning tool to all local authorities.
Your views needed - a strategy for the professions, trades and occupations.
Confronting competency, codes, capacity and costs.
The hidden risk in modern construction supply chains.