{"id":2101,"date":"2022-10-22T11:11:00","date_gmt":"2022-10-22T11:11:00","guid":{"rendered":"https:\/\/www.hashmicro.com\/blog\/?p=2101"},"modified":"2023-11-15T07:12:54","modified_gmt":"2023-11-15T07:12:54","slug":"purchase-order-vs-invoice","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/blog\/purchase-order-vs-invoice\/","title":{"rendered":"The Difference Between Purchase Order and Invoice"},"content":{"rendered":"<p>In running a business, you will deal with purchase orders and invoices on a daily basis like <a href=\"https:\/\/www.hashmicro.com\/hash-core-erp\">ERP software<\/a>. These two things will always be present in your daily life at the office. Unfortunately, there are still many people who do not understand the difference between these two terms.<\/p>\n<p>Although the content is more or less the same, purchase orders (PO) and invoices have a number of fundamental differences between them. To avoid embarrassing yourself when dealing with a vendor because you using the wrong term, you need to read this article first.<\/p>\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:1310721,&quot;3&quot;:{&quot;1&quot;:0},&quot;21&quot;:0,&quot;23&quot;:2}\"><a href=\"https:\/\/www.hashmicro.com\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" width=\"712\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2025\/11\/Free-Product-Tour-resized.webp\" alt=\"Free Demo\"><\/a><\/span><\/p>\n<div id=\"toc_container\">\n<h2><strong>Table Of Content<\/strong><\/h2>\n<ul>\n<li><a href=\"#1\">Understanding Purchase Order<\/a><\/li>\n<li><a href=\"#2\">Definition of Invoice<\/a><\/li>\n<li><a href=\"#3\">Conclusion<\/a><\/li>\n<\/ul>\n<h2 id=\"1\"><strong>Understanding Purchase Order<\/strong><\/h2>\n<p>PO is a commercial document issued by the buyer to the seller.\u00a0The contents of the PO generally include details of the items you want to buy from the seller.\u00a0This detail usually consists of the item name you want to buy, amount, color, price, etc. that are deemed necessary.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-2102\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/purchase-order-vs-invoice.jpg\" alt=\"purchase-order-vs-invoice\" width=\"660\" height=\"370\" srcset=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/purchase-order-vs-invoice.jpg 750w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/purchase-order-vs-invoice-300x168.jpg 300w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\" \/><\/p>\n<p>Buyers are required to list everything they want to buy from the supplier completely and clearly.\u00a0This is important to avoid confusion between the supplier and the buyer. You wouldn&#8217;t want\u00a0your supplier to send the wrong items,\u00a0do you?\u00a0If both parties have agreed on the contents of the purchase order, then this document will be a contract that binds both parties legally.<\/p>\n<p><strong>Read more: <a href=\"https:\/\/www.hashmicro.com\/blog\/importance-purchase-order-po-business\/\">The Importance of Purchase Order (PO) in Business<\/a><\/strong><\/p>\n<style>\r\n.cta-in-article-image .desktop-banner{\r\n    display: none;\r\n    text-align: center;\r\n}\r\n.cta-in-article-image .desktop-mobile{\r\n    display: block;\r\n    text-align: center;\r\n    width: 100%;\r\n}\r\n@media (min-width: 650px) {\r\n    .cta-in-article-image .desktop-banner {\r\n        display: block!important;\r\n    }\r\n}\r\n@media (min-width: 650px) {\r\n   .cta-in-article-image .desktop-mobile {\r\n        display: none!important;\r\n    }\r\n}\r\n<\/style>\r\n<div class=\"cta-in-article-image\">\r\n\t<a href=\"https:\/\/www.hashmicro.com\/grants?utm_source=blog&medium=banner-article\" target=\"_blank\" rel=\"noopener\">\r\n\t\t<div id=\"desktop-banner-container\">\r\n\t\t\t<div class=\"desktop-banner\">\r\n<!-- \tnew CTC Grants Banner\t\t -->\r\n\t\t\t\t<img decoding=\"async\" width='696' height='189' src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2025\/07\/CTC-Grants-scaled.webp\" alt=\"download skema harga software erp\">\r\n\t\t\t<\/div>\r\n\t\t<\/div>\r\n\t\t<div id=\"mobile-banner-container\">\r\n\t\t\t<div class=\"desktop-mobile\">\r\n\t\t\t\t<img decoding=\"async\" width='450' height='497' src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2023\/11\/EDG-Banner-Mobile.png.webp\" alt=\"download skema harga software erp\">\r\n\t\t\t<\/div>\r\n\t\t<\/div>\r\n\t<\/a>\r\n<\/div>\r\n\r\n\r\n\n<h2 id=\"2\"><strong>Definition of Invoice<\/strong><\/h2>\n<p>The buyer sends the purchase order to the supplier, and the invoice is the opposite. An invoice is a document that the supplier makes for the buyer. The contents of the invoice document are more or less the same as the PO documents. It&#8217;s only the purpose that different. <a href=\"https:\/\/www.hashmicro.com\/procurement-and-purchasing-management-system\">Purchasing management systems<\/a> help you make it easier.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-2103 size-large aligncenter\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/invoice-vs-po-1024x621.jpg\" alt=\"invoice-vs-po\" width=\"660\" height=\"400\" srcset=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/invoice-vs-po-1024x621.jpg 1024w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/invoice-vs-po-300x182.jpg 300w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/invoice-vs-po-768x466.jpg 768w, https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2019\/02\/invoice-vs-po.jpg 1148w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\" \/><\/p>\n<p>The invoice is proof of order to collect payments to buyers for sold goods\/services that have. Just like PO, invoices legally bind the seller and buyer. At this stage, the invoice indicates that the buyer owes the seller.<\/p>\n<p>There are two ways to deliver invoices that are usually done by sellers to buyers. First, send the invoice to the buyer when the item reaches the buyer, generally when it approaches maturity. The second way is when both parties have agreed on the purchase order and the buyer has completed the order.<\/p>\n<p>The following are the differences and similarities between purchase orders and invoices:<\/p>\n<h3>Difference:<\/h3>\n<ul>\n<li>Purchase orders (PO) are made by the buyer and are aimed at the seller, while the invoice is made by the seller for the buyer.<\/li>\n<li>The contents of the PO are complete details of ordering goods\/services you want to buy.\u00a0Whereas invoices are details of billing of goods\/services sold to buyers.<\/li>\n<li>The seller sends the purchase order when the buyer orders goods\/services. The seller sends an invoice at the due date of the order payment when they send the goods\/services.<\/li>\n<\/ul>\n<h3>Equation:<\/h3>\n<ul>\n<li>Both documents are equally binding on buyers and sellers legally.<\/li>\n<li>PO and invoice are both proof that there are buying and selling transactions between buyers and sellers.<\/li>\n<li>The contents of the PO and invoice have almost the same information, which is about buyers and sellers, addresses, telephone numbers, and so on.<\/li>\n<\/ul>\n<h3><strong>Conclusion<\/strong><\/h3>\n<p>Purchase orders and invoices are an integral part of daily activities in your company.\u00a0If until now you are still having trouble making purchase orders and invoices correctly, you can use the purchasing system from HashMicro.<\/p>\n<p>This easy, practical, and complete purchase software has proven to increase the efficiency of the purchasing process in several companies in various countries, such as Indonesia, Singapore, and other countries.<\/p>\n<p>If you want to automate other business aspects of your company in one system, you can implement an <a href=\"https:\/\/www.hashmicro.com\/erp-system\">ERP system<\/a> from HashMicro. This ERP software is customizable and has been used by well-known companies such as The Face Shop, Nature Republic, Wendy&#8217;s, Baskin-Robbins, and many more. Experience the benefits of the Hashmicro system with a <a href=\"https:\/\/www.hashmicro.com\/free-product-tour\/\" target=\"_blank\" rel=\"noopener\">free demo<\/a> now!<\/p>\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:513,&quot;3&quot;:{&quot;1&quot;:0},&quot;12&quot;:0}\"><a href=\"https:\/\/www.hashmicro.com\/procurement-and-purchasing-management-system?medium=moneysite-banner\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" width=\"712\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2025\/06\/Procurement.webp\" alt=\"Procurement\"><\/a><\/span><\/p>\n<\/div>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What exactly is procurement system?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Procurement software, also known as purchasing software, is a computer program that automates the whole company's procurement process. Precisely, this system controls the cost of goods procurement in a company to be more efficient, such as automating the management of purchase submissions from each branch...\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What is the benefits of procurement software?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"1. Product and vendor management\n2. Quotation & Purchase order\n3. Approval\n4. Budgeting\n5. Invoice\n6. Report generation\n<a href='https:\/\/www.hashmicro.com\/id\/sistem-pembelian'>procurement<\/a>\"\n    }\n  }]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In running a business, you will deal with purchase orders and invoices on a daily basis like ERP software. These two things will always be present in your daily life at the office. Unfortunately, there are still many people who do not understand the difference between these two terms. Although the content is more or [&hellip;]<\/p>\n","protected":false},"author":219,"featured_media":16230,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[153,323],"tags":[706,433,432],"class_list":{"0":"post-2101","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting","8":"category-e-invoicing","9":"tag-purchase-order","10":"tag-purchasing-software","11":"tag-purchasing-system"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Difference and Equation Between Purchase Order and Invoice<\/title>\n<meta name=\"description\" content=\"Like a Purchase order, an invoice is legally binding on the seller and the buyer. 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