What is the difference between a sales invoice and a purchase invoice?
Mainly, both these invoices function to state the number of goods and the payment due as a transaction is made, but other specifics vary.
A purchase invoice is issued by a buyer after they send the Purchase Order to the vendor. It’s issued on the date of purchase as a confirmation of the quantity and cost of the items purchased, and its payment is due after goods are expected to be delivered. The purchase invoice tracks a company’s expenses and cash outflow.
On the other hand, a sales invoice is issued by the seller, and it shows when they expect the payment. It is usually sent by the vendor as they dispatch the goods and mentions the number of items as well as the total cost they are owed. The sales invoice essentially marks the completion of an order, and the vendor uses it to track their revenue and cash inflow.
It is the sales invoice that the procurement team utilizes for three-way matching after the receipt of the product. Companies use invoice automation software for this purpose to eliminate all recording, approval, and processing errors.
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