Purchase Order - What is the difference between a purchase order and an invoice?

Q: What is the difference between a purchase order and an invoice?

The creation of a purchase order is the first step in a business transaction, it is issued by the buyer and authorizes a seller to provide a product or service at a specified price. The invoice is a bill issued by the seller when that product has been delivered or the service has been completed.

Answer

The buyer initiates a commercial transaction by issuing a purchase order, which allows the seller to offer a product or service at a set price. After the vendor has delivered the merchandise or finished the service, they will send an invoice.

Purchase Order - What is the difference between a purchase order and an invoice?

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