PO VS Invoice

Know the Difference between Invoice and Purchase Order (PO)

In the process of doing business, sales invoices and purchase orders are two forms that are used in the clear understanding of transactions between two parties. In an organization with a sales department and a purchasing department, both these departments need to use one or both forms for internal and external purposes. 

A purchase order is a purchase request from the buyer to the seller, whereas an invoice is a payment request from the seller to the buyer. The terms are sometimes used interchangeably by customers. Although purchase orders and invoices have many similarities, they are two separate documents with various purposes. The critical differences between Invoice and Purchase Order (PO) have been depicted in the form of an Infographic. Check the infographic below-

Invoice VS PO

This infographic has shown you the differences between an invoice and a purchase order. Invoice software should be what every business needs for invoicing procedures because it will make life easier! 

Which On-demand Invoicing software can generate both PO and Invoices?

Invoicera is an online invoice generator software with over 14 years of expertise that manages Purchase Order Management for more than 3 million firms globally. The invoicing software aids in the preparation and management of every business purchase order and Invoice. It also allows you to capture all your communications to keep a thorough track of all your documents.

You may also keep a record of all your conversations and documents with this tool. It can automate the following areas of your business –

  • Online time tracking
  • Auto invoicing and payments
  • Expense management
  • Recurring/subscription billing
  • Workflows
  • Client/vendor panels
  • Multilingual & multi-currency support
  • 30+ Online payment gateways
  • APIs for 3rd party integration
  • Subcontractor billing and time management
  • Purchase order management
  • Financial reporting & analysis
  • Staff permissions

Connect with us today to know more about our intelligent billing solutions. We look forward to working with you soon!

Sign up today to try Invoicera for free here.

Must Watch this video for a difference b/w Invoice and Credit Memo.

Also, Like & Subscribe to our Youtube channel to get notified for more business tips and tricks.


Ques. What is the difference between Invoice number and PO number?

Ans. PO number is a unique identifier for each purchase order. The invoice number, on the other hand, is used to identify each Invoice.     

Ques. How will you differentiate between Invoice and receipt?

Ans. An invoice is created first, followed by a payment request. On the other hand, a receipt is generated after cash has been paid as proof of service to show that money was received.

Ques. What is the difference between a PO invoice and a non-PO invoice?

Ans. When a purchase requisition procedure is in place, the purchase will be activated by a pre-approved purchase order (PO) sent to the supplier. 

A non-PO invoice, also known as an expense invoice, will be delivered by the supplier when purchases are made outside of the authorized purchasing process.

Ques. What information is conveyed by Invoice and PO?

Ans. The Invoice confirms that the sales have occurred, whereas PO defines the terms of the sale.

Ques. Does Invoicera support auto invoicing and PO management both?

Ans. Yes, Invoicera supports both auto invoicing and PO management. It is online invoicing software for small businesses, including invoicing, billing, time tracking & more. Invoicera is compatible with Mac & PCs, iOS & Android device management.



One comment

Leave a Reply

Your email address will not be published. Required fields are marked *