To see an invoice in action check out our free invoice generator. It’s where the vendor officially requests payment for the goods or services outlined in the PO-usually when they’ve been completed, manufactured, or shipped. The difference between purchase orders and invoicesĪ purchase order is a legal document that shows you’re committed to paying a certain price in return for goods or services, based on the timescales agreed.Īn invoice, on the other hand, is a separate document that follows the PO. The vendor also uses a PO to get things in place to be able to deliver the quality and quantity of goods ordered by the buyer on a specific date. The sum of your outstanding POs is money you’ve committed to pay to suppliers over the next few months. Not only will you know which SKU quantities you’ve ordered from each vendor, but you’ll also be able to use your PO information to understand cash flow. While it sounds like another unnecessary step in the ordering process, creating a PO for the goods you’re about to purchase helps track incoming inventory. It’s your commitment to purchasing that quantity of stock from that vendor. If your apparel pos store is sourcing 500 t-shirts from a manufacturer, for example, you’d send a PO to them. When using a purchase order (PO), your retail store is committing to buy products from a supplier or vendor. The difference between purchase orders and invoices.
0 kommentar(er)
