Difference Between Purchase Order and Sales Order December 8, 2014 By Surbhi S Leave a Comment
The two terms ‘purchase’ and ‘sales’ are not new to us, we clearly understand it because we go through with these these two terms daily, daily, but what we don’t know know is about purchase order and sales order which is quite difficult. Come and lets understand the meaning and the difference between Purchase Order and ales Order.
Content: Purchase Order Vs Sales Order !. Comparison Chart ". #efinition $. %ey #ifferences
&. imilarities '. Conclusion Comparison Chart BASIS OF
PURCHASE ORDER
COMPARISON
SALES ORDER
Meaning
Purchase order is a document used or ordering goods!
Sa"es order is a document used or conirmation o sa"e!
Detai"s
Pre#ared by Com#any and sent to the su##"ier!
$ssued by Com#any to Customers beore de"ivery!
% %ect ect o acce acce#t #tan ance ce
Crea Creattes a cont contrract act bet bet&e &een en com#any and su##"ier!
$t a##roves the sa"e!
Definition of Purchase Order ( written commercial commercial document document prepared by the buyer containing containing types, prices, quantities and terms of the goods to be bought or sold and ser)ices to be pro)ided and sent to the seller is known as Purchase Order *PO+. hen the seller accepts the terms offered by the buyer and agrees at a certain point, it becomes a binding contract between both the parties. Definition of Sales Order ( written commercial commercial document document issued by the seller seller to its customers customers containing containing the details of merchandise and ser)ices to be rendered before actual deli)ery is known as ales Order *O+. -n other words, it is a document for which appro)es sales and consist of )arious details like date, mode and time of deli)ery etc.
Key Differences Between Purchase Order and Sales Order
!. hen Purchase Order is accepted, it becomes a binding contract between buyer and seller. On the other hand, when the sales order is accepted, it appro)es the sale. ". ith the help of PO the buyer can order goods while with the help of sales order, the buyer can know the date, time and mode of deli)ery of goods and ser)ices. $. Purchase Order is prepared by the company and sent to the supplier of goods and ser)ices, whereas the ales Order is issued by the company to its customers. Similarities •
•
Contains details for merchandise and ser)ices. ritten commercial document.
Conclusion Purchase Order and ales Order are somewhere interconnected because when the Company sends PO to its supplier, and he accepts the proposal after agreeing with the terms and conditions he sends the O for the confirmation of sale which after the deli)ery of such goods or ser)ices completes the transaction. ----------
Difference Between Voucher and Invoice December 1', 2014 By Surbhi S Leave a Comment
)ery company records full details of its transactions in such a way that at the end of the accounting period e/act profit is determined. 0or this purpose the )ouchers and in)oices are being kept by the company for recording full details of transactions. These two entities are quite confusing and which is not clear to many people. Come and lets understand the difference between 1oucher and -n)oice.
Content: Voucher Vs Invoice !. Comparison Chart
". #efinition $. %ey #ifferences &. imilarities '. Conclusion Comparison Chart BASIS OF
VOUCHER
COMPARISON
INVOICE
Meaning
(he voucher is termed as a &ritten interna" document used or recording a "iabi"ity or debt to ma)e #ayment to the su##"ier or se""er o goods or services!
*n invoice is termed as a &ritten commercia" document issued to buyer by se""er or indicating detai"s o the sa"e transaction o goods or services!
(y#es
+ecei#t, Payment, Purchase, Sa"es, ourna", Contra etc!
%-cise $nvoice, Commercia" $nvoice, (a- $nvoice, Proorma $nvoice etc!
Descri#tion
.ame, *ddress and other detai"s o #ayee, transaction detai"s, amount, date, etc!
$tems and its /uantities, #rices, amount, discount detai"s i given, date, credit terms and #ayment detai"s, etc!
Definition of Voucher ( )oucher is a written document used by the accounts payable department of any organi2ation. -t represents that a liability or debt against any e/ternal party which is to be paid off by the entity itself. The )oucher is generated after matching with three different documents which is purchase order, in)oice and recei)ing report.
(fter matching with the abo)e three documents the )oucher is attached to them. The )oucher must be signed by the company so that the further proceedings can be done. These )ouchers are working as an audit e)idence and )ery beneficial for auditing purposes as proper records of all the transactions are kept by the company. Definition of Invoice (n in)oice is a commercial document which is further not negotiable to any other person. -t is pro)ided by the seller to the buyer of goods or ser)ices, indicating the quantities of items purchased, agreed prices, discount, terms of credit and payment details. -t is a sales in)oice for the )endor while purchase in)oice for the buyer. hen the sale of goods or ser)ices done in credit the in)oice becomes a trade recei)able for the seller while trade payable to the buyer.
Key Differences Between Voucher and Invoice !. The )oucher is a document for recording liability while -n)oice is a list of goods sold or ser)ices rendered, issued by the supplier to customer when sales is done. ". There are 3 types of )ouchers whereas there are & types of in)oices. $. 1ouchers contain details of the total quantities, the total amount of the goods purchased and ledger to which it has been recorded. On the contrary, an in)oice contains details of the goods purchased from a particular company. Similarities •
•
ritten #ocument. 4etained by the company for future references.
•
•
#etails of transaction. (cts as an e)idence at the time of auditing.
Conclusion 5ow a days, due to the emergence of electronic system, these documents are also a)ailable in either electronic form or paper form or both, depending upon the policies of the organi2ation. The )oucher is dependent on the in)oice because it can be made only when it is matched with the three documents discussed abo)e and in)oice is one of them. 6ence, they are not contradictory in nature, but completes each other. ith the help of these two documents full tracking of the transaction can be done, which acts as a proof at the time of auditing. (part from that it is a written as well as authori2ed documents which also works as a good audit e)idence. ------
Difference Between Invoice and Cash Memo ebruary 11, 2013 By Surbhi S 1 Comment
( business transaction contains )arious stages which start from the purchase order and ends on the final payment of the merchandise. 5umerous )ouchers are in)ol)ed in it which states the details about the transaction. hene)er you purchase any commodity you will get in)oice, receipt and cash memo. 6a)e you e)er tried to differentiate the in)oice and cash memo7 hen you buy goods you will either get the bill or in)oice which is followed by a cash memo. -n this article we are going to discuss the difference between in)oice and cash memo.
Content: Invoice Vs Cash Memo !. Comparison Chart ". #efinition $. %ey #ifferences &. imilarities
'. Conclusion Comparison Chart BASIS OF
INVOICE
COMPARISON
CASH MEMO
Meaning
* commercia" document issued by the se""er to the buyer to ma)e a re/uest or #ayment!
* commercia" document issued by the se""er to the buyer &hen cash is received as a #ayment!
(ime o $ssue
Prior to #ayment!
*t the cash #ayment!
$ssued at the time o
Credit Sa"es
Cash Sa"es
%vidence o
Payment Due
Payment +eceived
Definition of Invoice (n -n)oice is a non8negotiable instrument which indicates the indebtedness of the purchaser to the seller. -t is gi)en by the seller to the buyer for making a request of payment for the goods sold or ser)ices rendered to him. -t is used to record day to day the sale transaction. ( typical in)oice may contain the following details9 •
#ate of issue of in)oice
•
-n)oice 5umber
•
5ame and address of buyer
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5ame and (ddress of seller
•
:nit Price of ;oods
•
•
#iscount *if any, but only trade discount+
•
Ta/ *1(T or er)ice ta/ as the case may be+
•
Total (mount due
•
ignature of the seller or his authori2ed agent.
Definition of Cash Memo Cash =emo is also a non8negotiable commercial instrument indicating, the cash has been recei)ed from the purchaser for the goods sold to him. -t works as a proof of cash payment made. hen the cash is recei)ed for the sold goods, no debit is raised against it. The cash memo contains the following description9 •
#ate
•
erial 5umber
•
5ame and address of supplier
•
5ame and address of buyer
•
:nit price of goods
•
•
#iscount *if any, both for trade and cash discount+
•
Ta/ *1(T or er)ice ta/ as the case may be+
•
Total (mount 4ecei)ed
•
ignature of the cashier.
Key Differences Between Invoice and Cash Memo !. (n instrument indicating the payment due against any goods sold or ser)ices rendered is in)oice. Con)ersely, an instrument indicating cash payment made for the merchandise is known as a cash memo. ". (n -n)oice is raised prior to the payment while cash memo is raised when the payment is done. $. (n -n)oice is issued for the credit transaction as a proof of amount due, whereas cash memo is issued for cash transaction as a proof of the amount recei)ed. &. ignature of seller or his agent is there in the in)oice. On the other hand signature of cashier is found in the cash memo Similarities •
5on8negotiable commercial document.
•
4aised by the supplier of goods or ser)ices.
•
ent to the purchaser or recei)er of goods or ser)ices.
Conclusion -n)oice and Cash =emo both are business )oucher raised at different e)ents. (n -n)oice can be sales in)oice from seller’s perception and purchase in)oice from a buyer’s perception. ith the help of in)oice the seller can easily locate the payment on which in)oices are made and which are still due. On the other hand, Cash =emo is the proof of the amount paid by the buyer. The seller retains a copy for future reference -------------
Difference Between Invoice and eceipt anuary 1, 2013 By Surbhi S Leave a Comment
There are a lot of complications in understanding the difference between in)oice and receipt. The persons who engage in trading acti)ities knows them, undoubtedly, but the person related to non8trading acti)ities may ha)e to go with se)ere perple/ity to interpret the two terms. 6ere with the help of this article, the ma>or difference between in)oice and )oucher has been discussed for the full apprehension of the two entities.
Content: Invoice Vs eceipt !. Comparison Chart ". #efinition $. %ey #ifferences &. imilarities '. Conclusion Comparison Chart
BASIS OF
INVOICE
COMPARISON
RECEIPT
Meaning
*n invoice is a commercia" document issued by the vendor to the #urchaser to re/uest #ayment
* recei#t is a document issued by the vendor to the #urchaser ater the ina" #ayment is done!
(ime o $ssue
Beore the #ayment!
*ter the #ayment!
$m#ortance
(o record the detai"s o the (o act as an evidence that the merchandise so"d, but the #ayment #ayment or merchandise bought is yet due against it! has been done!
Detai"s
5uantity, unit #rice, invoice number, discount, ta-es and tota" due!
5uantity, unit #rice, recei#t number, discount, ta-es, the tota" amount #aid and mode o #ayment!
Definition of Invoice (n in)oice is an acknowledgement issued by the )endor to the purchaser of goods or ser)ices to request for the payment of goods sold or ser)ices rendered by him. -t is a non8negotiable legal document which identifies the buyer and seller of the stuff. -t contains details regarding quantity, price, discount, ta/es, the total amount due for the payment, in)oice number, date of issue of in)oice and the seller’s signature. The instrument is deli)ered prior to the payment of the goods for indicating the amount due against the merchandise. Definition of eceipt ( receipt is a legal commercial instrument used for indicating that some goods or ser)ices of )alue ha)e been recei)ed. -t is issued by the )endor to the purchaser to act as a proof that payment has been made. The receipt is generally issued subsequent to the payment of the stuff. The document contains details of buyer and commodity like quantity, price, ta/es, discounts, mode and date of payment,
total amount paid, receipt number and signature of the seller or his authori2ed agent.
Key Differences Between Invoice and eceipt !. (n -n)oice is a request for payment and receipt is a confirmation of payment. ". The ma>or difference between the two is that the in)oice is issued prior to the payment while the receipt is issued subsequent to the payment. $. The in)oice is used to track the sale of goods or ser)ices. On the contrary, receipt acts as a documentation for buyer that the amount for the merchandise has been paid. &. The in)oice indicates the total amount due whereas the receipt indicates the total amount paid along with the mode of payment. Similarities •
?oth are commercial documents.
•
?oth are a part of the purchase cycle.
•
?oth contain details about buyer and seller.
•
?oth are legally non8negotiable instrument.
Conclusion -n)oice and 4eceipt both are a prominent part of the purchase cycle. The in)oice helps the seller to keep the record of sale and to determine that amount of merchandise has been recei)ed or not. The buyer can also track and match the details of goods or ser)ices listed on the in)oice are recei)ed. The receipt can help the buyers to track payments for the stuff and sellers can also identify that amount on which in)oices is recei)ed and which ones are still outstanding
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Difference Between !a" Invoice and etail Invoice ebruary 1, 2013 By Surbhi S 2 Comments
-n general, there are two types of in)oices @ ta/ and retail. e ha)e compiled their differences and comparisons along with their proper definition. 6a)e a look on it.
Content: !a" Invoice Vs etail Invoice !. Comparison Chart ". #efinition $. %ey #ifferences &. imilarities '. Conclusion Comparison Chart
BASIS OF
TAX INVOICE
COMPARISON
RETAIL INVOICE
Meaning
* ta- invoice is an invoice issued by a registered dea"er to the #urchaser, sho&ing the amount o ta- #ayab"e!
* retai" invoice is an invoice issued by the se""er to the buyer or the amount due against the goods so"d to him!
6b7ective
*vai"ing an in#ut ta- credit
$ssued &hen
oods are so"d &ith the #ur#ose o oods are so"d to the u"timate resa"e! consumer!
(a- $dentiication .umber
9es
+e/uest or Payment
.o
Definition of !a" Invoice ( legal document issued by a registered dealer *seller+ on the e)ent of a sale, to another registered dealer *purchaser+, who is not the consumer, is known as a ta/ in)oice. The in)oice should be created in triplicate i.e. original for the buyer and the rest two are retained by the seller. Ta/ in)oice plays a significant role in any country’s ta/ system as the dealers issue in)oices, for recogni2ing a transaction. (t the end of the financial year, they had to submit the details of these in)oices to the rele)ant ta/ authorities. o, this is an important tool used by the go)ernment to a)oid ta/ e)asion.
( typical ta/ in)oice looks like the image gi)en abo)e. The ta/ in)oice may consist of the following details9 •
-n)oice 5umber
•
#ate of issue of in)oice.
•
5ame and address of the seller
•
5ame and (ddress of the buyer
•
Ta/ -dentification 5umber *T-5+
•
•
:nit Price
•
Total (mount
•
Ta/ Charged
•
ignature of authori2ed signatory
Definition of etail Invoice ( commercial instrument issued by the seller to the purchaser i.e. end user of the goods, is known as 4etail -n)oice. ;enerally, the in)oice is created in duplicate, i.e. original for buyer and dupicate for the seller. -t is used to request for payment from the buyer. 4etail in)oice can also be issued on account of interstate sales or sale to an unregistered dealer.
( typical retail in)oice may look like the image gi)en abo)e. Aou can find the following details on the retail in)oice9 •
-n)oice 5umber
•
#ate of issue of in)oice
•
#etails of buyer
•
#etails of seller
•
•
:nit Price
•
Total (mount
•
#iscount *if any+
•
ignature of seller or his authori2ed agent
Key Differences Between !a" Invoice and etail Invoice !. hen goods are sold with the purpose of Bresale @ ta/ in)oice is issued, where as when the goods are sold to the final consumer retail in)oice is issued. ". Ta/ in)oice is capable of a)ailing input ta/ credit *credit on inputs, i.e. ta/ already paid at the time of purchase+ as opposed to retail in)oice which is not capable of a)ailing input ta/ credit. $. -n case of goods sold to unregistered dealers within the state 4etail -n)oice is issued not the ta/ in)oice.
&. Ta/ in)oice contains a T-5 number, but 4etail in)oice don’t. Similarities •
5on 5egotiable -nstruments
•
hows (mount Payable
•
#escription of buyer and seller
Conclusion -t is the duty of e)ery registered dealer to issue ta/ in)oices at the time of sales. 6ere 4egistered dealer means the dealer who is registered under any ta/ ‘(ct’ while if the dealer is not registered then retail in)oice is issued to D by him ------------
Difference Between Sales and Mar#etin$ .ovember 3, 2014 By Surbhi S Leave a Comment
)eryone is aware of buying and selling things, in fact, there is hardly anyone in this world who ne)er purchased anything. These purchasing and selling of goods and ser)ices in)ol)es many acti)ities in it such as creating, promoting, disseminating, deli)ering and e/changing through money or money’s worth. -t is concerned with the two ma>or terms which are ales and =arketing. ?oth of the two are so closely interrelated that their difference is not seen in general way, howe)er both of them are different from each other. 5ow lets understand the difference between ales and =arketing.
Contents: Sales Vs Mar#etin$ !. Comparison Chart
". #efinition $. %ey #ifferences &. imilarities '. Conclusion Comparison Chart BASIS OF
SALES
COMPARISON
MARKETING
Meaning
(he act o transer o o&nershi# Mar)eting is understanding the o a #roduct rom manuacturer to re/uirements o the customers in the u"timate customer in e-change such a &ay that &henever any o money or any other #roduct is introduced according to consideration is )no&n as Sa"es! their re/uirement, it se""s itse"!
(erm
Short term
Long (erm
Sco#e
6ne #roduct is created to satisy the re/uirement o a customer!
*dvertisement, Sa"es, +esearch, Customer satisaction, *ter sa"es services etc!
+e"ationshi#
6ne (o 6ne
6ne to Many
*ctivity re"ated to
Persons
Media
Definition of Sales ales are considered as the act of transfer of possession of a product from manufacturer to distributor, distributor to wholesaler, wholesaler to retailer and from retailer to the ultimate consumer in e/change of money or any other similar consideration, for the purpose of increasing re)enue. -t is the beginning of the contract between the )endor and the customer.
0or promoting sales normally special prices or discount offers are used by the entities for attracting customers towards the product. There are many acti)ities in)ol)ed in generating sales, which are8 •
#emonstrating product.
•
stablishing Tie8ups.
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atisfying Customer needs.
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?uilding Contacts.
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:sing 8commerce strategy.
Definition of Mar#etin$ =arketing is made from the term ‘market’, which means ‘to analyse’ and figure out the needs of the customer so that the company will produce the products according to the requirement of the customer. -t looks after their new metrics to know about the interest of the customer or group. -t in)ol)es the dissemination of the )alue of product to the customer so that its sales will increase along with the brand reputation. 0or increasing the market of any product normally special offers are introduced to attract customers. The acti)ities in)ol)ed in marketing are8 •
4esearch of market
•
Creation of product
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Promotion of product
•
(d)ertisement of Product
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Communicating the )alue of the Product
•
elling of the product
•
•
(fter ales er)ices Customer atisfaction
Key Differences Between Sales and Mar#etin$ !. ales is the transfer of ownership of product from one person to another for some )alue, whereas =arketing is the act of analysing the market and understanding the needs of customers in such a way that whene)er a product is launched as per their needs, it will sell itself. ". ales are one to one relationship while marketing is one to many relationship. $. ales are a short term process while marketing is a long term process. &. ales is basically human dri)en on the other hand, marketing is media dri)en. '. ales focuses on the indi)idual, i.e. directly interacting to persuade them to purchase the product, but marketing focuses on the general public, i.e. creating the )alue of product to increase sales. 3. ales uses push strategy while marketing uses pull strategy. Similarities 0or running any business marketing and selling of a product is must because without proper sales any business can be failed. ?oth of the terms are con)erging at some points like the main purpose of the two is increasing re)enue and therefore they both help business to sur)i)e in the long run.
-n one hand ales focuses on indi)idual customers for the selling of a product, which requires sales personnel and on the other hand, marketing creates a proper market for the product to achie)e the required sales )olume or we can say that the last step for marketing is sales which requires a good marketing team. -n this way both the terms are somewhere interlinked )ery closely. Conclusion (s we ha)e already discussed that the two terms ales and =arketing are not contradictory in nature, but they are interconnected howe)er there are many differences between them. ?oth of these play a )ery important role in running any business, neglecting any one can se)erely affect the whole business. ales is a human oriented function so the personnel in)ol)ed in the sales acti)ity should be gi)en proper training and incenti)es to increase sales. On the other hand, =arketing is a media oriented so best channels for promoting and ad)ertising the product should be procured to raise demand for product and brand reputation ---------
