Differences between Purchase Order and Invoice.

This video delves into the crucial differences between a purchase order (PO) and an invoice, emphasizing their unique roles in the buyer-seller relationship. A purchase order serves as the formal offer from the buyer to the seller, ultimately creating a binding contract once accepted. In contrast, an invoice is a commercial document used by the seller to notify the buyer about the delivered goods, playing a distinct role from a purchase order in the transaction process. Understanding these distinctions is essential for navigating the legal implications and maintaining clarity in business transactions.