Online purchase order sysytem

What Is Purchase Order & Difference Between Purchase Order & Invoices?

Introduction  A purchase order (PO) is a legally binding document created by a buyer and presented to a seller. Much like your “cart” on an e-commerce site, a purchase order is essentially a list of what you want to buy. It lays out the order details, including quantity and types of products the buyer needs, as well as payment terms and delivery details.  The difference between a purchase requitision and a purchase order is that the latter acts as a contract between the buyer and the seller. By submitting an order, the buyer is committing to purchasing goods or services for the agreed upon amount. Since the order is filled before the buyer receives their bill, a purchase order gives the seller insurance against non-payment.

The Difference Between a Purchase Order and an Invoice  Because purchase orders and invoices are both legally binding financial documents that are exchanged between sellers and buyers, it’s not surprising that the two are often mixed up. The two are also connected because a purchase order is often used to create an invoice, as a reference for the goods purchased and their prices. However, each document is used at a different point in the buying process, and they are used by different people as well.

 Here’s a quick list of differences buyers and sellers need to know:  Purchase Order • Created by the buyer • Created before purchase • Lays out goods needed • Includes proposed payment details  Invoice • Created by the seller • Created after purchase • Confirms goods delivered • Requires payment on a specific date