When a PO is used, the invoice should include the PO Number as a reference.
The seller will then prepare an invoice as either a receipt for payment already recieved, or to request payment. When the seller accepts the purchase order, it becomes a legally binding agreement between the seller and buyer. An invoice is created by a seller to bill a client for products and services. What is the difference between an invoice and a purchase order?Ī Purchase Order (PO) is an official order form completed by the buyer to communicate the specific services and products the buyer agrees to purchase from the seller, including descriptions, quantities and prices. This version of the purchase order template includes drop-down lists for selecting the Vendor and the Ship To location, using the technique described on the Customer List page.
