Invoicing explained
Purchase order vs Invoice
A purchase order is created by the buyer to authorize a purchase before it happens; an invoice is created by the seller to request payment after delivery. The PO commits to buy; the invoice asks to be paid.
What is purchase order?
A purchase order (PO) is sent by the buyer to the seller, listing the items, quantities, and agreed prices they want to buy. It authorizes the purchase and creates a paper trail for approval.
What is invoice?
An invoice is sent by the seller after delivering the goods or services, requesting payment. Many businesses require the matching PO number on the invoice so it can be approved quickly (PO matching).
Purchase order vs Invoice: the key differences
Here's how purchase order and invoice differ at a glance:
- Who creates it — buyer creates the PO; seller creates the invoice.
- Timing — PO before the purchase; invoice after delivery.
- Purpose — PO authorizes the buy; invoice requests payment.
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Frequently asked questions
What is the difference between purchase order and invoice?
A purchase order is created by the buyer to authorize a purchase before it happens; an invoice is created by the seller to request payment after delivery. The PO commits to buy; the invoice asks to be paid.
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