Invoice

A bill and an invoice may be considered the same but that is not always the case. The main differences are:

• Bills are the sum of all invoices due. A seller that issues multiple invoices to a customer can also send a bill that indicates the total due.

• To the layman, a bill and an invoice may be interchangeable.

• Some industries favor bills over invoices, which include accountancy and law.

While invoices are traditionally printed and physically sent to customers, businesses are adopting electronic invoicing at a rapid pace. By content, e-invoices are the same as printed invoices but with certain advantages:

• Reduction of paper use, which saves money and helps to portray the company as eco-friendly.

• E-invoices are not prone to physical damage

• Easier to sort and reproduce

• Quicker data collection

• Easier to audit

There are several e-invoicing standards, including UBL and EDIFACT. Digital invoices can be sent via an app, web page, or email.

A purchase order is created by a company as a request for goods and services from a vendor. After receiving a purchase order, a vendor would deliver the goods and services ordered and asks for payment with an invoice. A purchase order would contain similar information as the invoice, including the:

• date when the PO is issued

• information of the issuer of the PO

• information of the vendor receiving the PO

• delivery address

• delivery date

• description of goods and services

• quantity and unit and total costs

• payment terms