Purchase Order vs Invoice: What’s the Difference?

A purchase order authorizes a purchase; an invoice requests payment for it. Here’s how the two documents work together.

Purchase order (PO)

Invoicing term

A purchase order is a buyer-issued document authorizing specified goods or services at agreed terms. A seller may place the PO number on the corresponding invoice to help the buyer match and approve it.

Invoice

In InvoiceCast

An invoice is a formal payment request that itemizes goods or services provided, the amount owed, the parties involved, and the payment terms.

How InvoiceCast handles this Learn more →

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