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What is the difference between purchase order and Invoice?

what is the difference between purchase order and Invoice?

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تم إضافة السؤال من قبل Wilfredo Quito , Accounting Manager , DDC LAND INC.
تاريخ النشر: 2016/10/22
Ahmed Mostafa
من قبل Ahmed Mostafa , Manager, Forensics , KPMG ME

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 

kamran khalid
من قبل kamran khalid , Head Of Finance , Pace College

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. 

Ahmed mohsen
من قبل Ahmed mohsen , Senior Accountant , Main Poly Clinic

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.

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

Mohammed Asim Nehal
من قبل Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

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" 

MOHAMED IDRIS
من قبل MOHAMED IDRIS , SENIOR EXECUTIVE - CREDIT CONTROL , ETA MELCO ELEVATOR CO LLC

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.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
من قبل Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

purchase order  it using to reserve the material  to the customer

invoice to be delivered to him to let him to pay  

Jaweed Akber
من قبل Jaweed Akber , Finance Manager , Dream Asas Real estate Investment Co.

Purchase Order is a commercial instrument used for ordering goods from the supplier. An Invoice is a commercial instrument indicating the payment 'due' against goods sold.

Ebrahim Abdo Farhan Ali
من قبل Ebrahim Abdo Farhan Ali , General Accountant , Grand Motors Co. Ltd. - Agent of GMC, Chevrolet and Cadillac cars

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.

Almutaz Bakry Sidahmed
من قبل Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

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.

Haider Tareen ACCA
من قبل Haider Tareen ACCA , Finance Manager , ARABIAN SANDS REAL ESTATE LLC

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.

Majid Wangade
من قبل Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )

Purchase order is a document indicating types, quantity of products and services being sold. It details the items the buyer agrees to purchase for a certain price. It also includes the payment terms, shipment, other associated terms and conditions.

 

Invoice a list of goods sent or services provided, with a statement of the sum due

 

 

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