In this article, we will discuss in detail the difference between a purchase order and a tax invoice.
It is vital that every business maintains a proper documentation system since any delay can lead to fines and penalties. Having a repository of documents will allow them to retrieve any document whenever needed.
The buyer uses a purchase order (PO) to place an order stating the goods required, the delivery date, the price, and other details. Purchase Orders become legally binding documents when the seller accepts them. They specify the type and cost of goods, the delivery date and terms of payment.
The seller of goods sold creates an invoice. It details the type of goods sold, the amount due from the buyer, and the date the payment is due.
If you need to know more about Tax invoices, read the article.
We have prepared the following table for you to better understand the specific differences between a purchase order and a tax invoice.