PO vs Invoice: What Are the Differences?


When you’re a business owner, it’s important that you keep track of all the money you get and spend. After all, it’s the only way you can ensure your company stays successful, right?

Enter the tax world, which is full of financial terms you don’t know. If you’re not familiar with the terms, it can be difficult to understand. That’s why we’re here to help you understand PO vs invoice.

Learn more about the differences between these two here!

PO vs Invoice: The Difference in Purpose

The main difference between these two types of documents is their purpose. A purchase order is usually used at the beginning of a transaction before any goods or services are provided. An invoice is after goods or services are usually delivered, as a request for payment.

There are a few other key differences between purchase orders and invoices. For example, PO includes detailed information about the goods or services purchased, while invoices contain only a brief description.

PO is usually generated by the buyer, while invoices are usually generated by the seller. Finally, purchase orders are binding contracts, while invoices are not.

Destination of the Document

A PO, or purchase order, is a document that is usually sent from a buyer to a seller. This document indicates the quantity and requested delivery date of the goods or services that the buyer wishes to purchase.

What is an invoice? It is a document sent from a seller to a buyer this document itemizes the goods or services provided, along with the corresponding charges. Once the buyer receives an invoice, they are responsible for paying the seller for the goods or services that were provided.


There are a few key differences between a PO and an invoice design processing. A PO is usually created before any goods or services are ordered, as it is a way for a buyer to commit to a purchase. An Invoice is after the purchase has been usually made, and used to request payment from the buyer.

In terms of processing, a PO usually goes through a few more steps than an Invoice. For example, a PO may need to approve by a manager before it can be sent to the supplier, whereas an Invoice can be usually sent directly to the buyer.

Additionally, a PO may need to match the corresponding Invoice before it can be processed, whereas an Invoice can process on its own.

The Relation Between Po and Invoice

After knowing the differences between PO vs invoice. Small businesses have a lot to keep track of and one of the most important things is making sure that these two are related. This can be a difficult task, but it is crucial for maintaining accurate financial records.

A good way to stay on top of this is to use an invoice template that includes a place for you to enter your PO number. This will help you to ensure that all your records are accurate and up to date.

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