How to Differentiate a Sales Order Vs an Invoice?

Read Time: 2 minsWhat Is a Sales Order?
A sales order is a document given when a customer places an order for goods or services to confirm the terms of the transaction. The supplier issues the sales order to its purchaser before delivery. A sales order includes the client’s information, the items ordered as well as their quantity and cost.

What Is the Purpose of a Sales Order?
The sales order is dedicated to affirming the supply of goods and services that are requested for purchase by another party. It shows that the purchaser has reviewed the items to be supplied. Moreover, it lists out the details of the order and involves in the optimization of the order process while saving valuable time and resources. It is important to add that a sales order helps in improving the tracking and data processes of the inventory while also reducing human errors.

What Is An Invoice?
An invoice is a document issued from a seller to a purchaser. This commercial document includes important data such as the order quantities, the products, the pricing, and payment terms.

What Is the Purpose of an Invoice?
The invoice is dedicated to offering a record of the sale in order for the business to affirm that will get paid by the clients. In addition, an invoice provides documentation for the tax records as well as for bookkeeping purposes. Also, it is involved in tracking inventory processes as well as providing legal protection.

What’s The Difference: Sales Order VS Invoice
There are multiple differences between a sales order vs an invoice.
• Purpose of Use • Date of Documentation • Accounting Procedures • Type of Product

Summing Up
A sales order and invoice are necessary to an organization’s work process. However, each document has a different purpose of use, includes different information, and provides different kinds of advantages to a organization. There are multiple dissimilarities between a sales order vs an invoice document but as long as a organization has a great understanding of the procurement process it will be easier to choose the ideal document type.

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