Difference Between Purchase Order and Sales OrderDecember 8, 2014BySurbhi SLeave a Comment

The two terms purchase and sales are not new to us, we clearly understand it because we go through with these two terms daily, but what we dont 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 Sales Order.Content: Purchase Order Vs Sales Order1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONPURCHASE ORDERSALES ORDER

MeaningPurchase order is a document used for ordering goods.Sales order is a document used for confirmation of sale.

DetailsPrepared by Company and sent to the supplier.Issued by Company to Customers before delivery.

Effect of acceptanceCreates a contract between company and supplier.It approves the sale.

Definition of Purchase OrderA written commercial document prepared by the buyer containing types, prices, quantities and terms of the goods to be bought or sold and services to be provided and sent to the seller is known as Purchase Order (PO). When 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 OrderA written commercial document issued by the seller to its customers containing the details of merchandise and services to be rendered before actual delivery is known as Sales Order (SO). In other words, it is a document for which approves sales and consist of various details like date, mode and time of delivery etc.Key Differences Between Purchase Order and Sales Order1. When Purchase Order is accepted, it becomes a binding contract between buyer and seller. On the other hand, when the sales order is accepted, it approves the sale.2. With 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 delivery of goods and services.3. Purchase Order is prepared by the company and sent to the supplier of goods and services, whereas the Sales Order is issued by the company to its customers.Similarities Contains details for merchandise and services. Written commercial document.ConclusionPurchase Order and Sales 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 SO for the confirmation of sale which after the delivery of such goods or services completes the transaction.---------- Difference Between Voucher and InvoiceDecember 16, 2014BySurbhi SLeave a Comment

Every company records full details of its transactions in such a way that at the end of the accounting period exact profit is determined. For this purpose the vouchers and invoices 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 Voucher and Invoice.Content: Voucher Vs Invoice1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONVOUCHERINVOICE

MeaningThe voucher is termed as a written internal document used for recording a liability or debt to make payment to the supplier or seller of goods or services.An invoice is termed as a written commercial document issued to buyer by seller for indicating details of the sale transaction of goods or services.

TypesReceipt, Payment, Purchase, Sales, Journal, Contra etc.Excise Invoice, Commercial Invoice, Tax Invoice, Proforma Invoice etc.

DescriptionName, Address and other details of payee, transaction details, amount, date, etc.Items and its quantities, prices, amount, discount details (if given), date, credit terms and payment details, etc.

Definition of VoucherA voucher is a written document used by the accounts payable department of any organization. It represents that a liability or debt against any external party which is to be paid off by the entity itself. The voucher is generated after matching with three different documents which is purchase order, invoice and receiving report.After matching with the above three documents the voucher is attached to them. The voucher must be signed by the company so that the further proceedings can be done. These vouchers are working as an audit evidence and very beneficial for auditing purposes as proper records of all the transactions are kept by the company.Definition of InvoiceAn invoice is a commercial document which is further not negotiable to any other person. It is provided by the seller to the buyer of goods or services, indicating the quantities of items purchased, agreed prices, discount, terms of credit and payment details. It is a sales invoice for the vendor while purchase invoice for the buyer.When the sale of goods or services done in credit the invoice becomes a trade receivable for the seller while trade payable to the buyer.

Key Differences Between Voucher and Invoice1. The voucher is a document for recording liability while Invoice is a list of goods sold or services rendered, issued by the supplier to customer when sales is done.2. There are 6 types of vouchers whereas there are 4 types of invoices.3. Vouchers 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 invoice contains details of the goods purchased from a particular company.Similarities Written Document. Retained by the company for future references. Details of transaction. Acts as an evidence at the time of auditing.ConclusionNow a days, due to the emergence of electronic system, these documents are also available in either electronic form or paper form or both, depending upon the policies of the organization. The voucher is dependent on the invoice because it can be made only when it is matched with the three documents discussed above and invoice is one of them. Hence, they are not contradictory in nature, but completes each other. With the help of these two documents full tracking of the transaction can be done, which acts as a proof at the time of auditing. Apart from that it is a written as well as authorized documents which also works as a good audit evidence.------ Difference Between Invoice and Cash MemoFebruary 11, 2015BySurbhi S1 Comment

A business transaction contains various stages which start from the purchase order and ends on the final payment of the merchandise. Numerous vouchers are involved in it which states the details about the transaction. Whenever you purchase any commodity you will get invoice, receipt and cash memo. Have you ever tried to differentiate the invoice and cash memo?When you buy goods you will either get the bill or invoice which is followed by a cash memo. In this article we are going to discuss the difference between invoice and cash memo.Content: Invoice Vs Cash Memo1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONINVOICECASH MEMO

MeaningA commercial document issued by the seller to the buyer to make a request for payment.A commercial document issued by the seller to the buyer when cash is received as a payment.

Time of IssuePrior to payment.At the cash payment.

Issued at the time ofCredit SalesCash Sales

Evidence ofPayment DuePayment Received

Definition of InvoiceAn Invoice is a non-negotiable instrument which indicates the indebtedness of the purchaser to the seller. It is given by the seller to the buyer for making a request of payment for the goods sold or services rendered to him. It is used to record day to day the sale transaction.A typical invoice may contain the following details: Date of issue of invoice Invoice Number Name and address of buyer Name and Address of seller Unit Price of Goods Quantity Discount (if any, but only trade discount) Tax (VAT or Service tax as the case may be) Total Amount due Signature of the seller or his authorized agent.Definition of Cash MemoCash Memo is also a non-negotiable commercial instrument indicating, the cash has been received from the purchaser for the goods sold to him. It works as a proof of cash payment made. When the cash is received for the sold goods, no debit is raised against it. The cash memo contains the following description: Date Serial Number Name and address of supplier Name and address of buyer Unit price of goods Quantity Discount (if any, both for trade and cash discount) Tax (VAT or Service tax as the case may be) Total Amount Received Signature of the cashier.Key Differences Between Invoice and Cash Memo1. An instrument indicating the payment due against any goods sold or services rendered is invoice. Conversely, an instrument indicating cash payment made for the merchandise is known as a cash memo.2. An Invoice is raised prior to the payment while cash memo is raised when the payment is done.3. An Invoice 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 received.4. Signature of seller or his agent is there in the invoice. On the other hand signature of cashier is found in the cash memoSimilarities Non-negotiable commercial document. Raised by the supplier of goods or services. Sent to the purchaser or receiver of goods or services.ConclusionInvoice and Cash Memo both are business voucher raised at different events. An Invoice can be sales invoice from sellers perception and purchase invoice from a buyers perception. With the help of invoice the seller can easily locate the payment on which invoices are made and which are still due.On the other hand, Cash Memo is the proof of the amount paid by the buyer. The seller retains a copy for future reference------------- Difference Between Invoice and ReceiptJanuary 17, 2015BySurbhi SLeave a Comment

There are a lot of complications in understanding the difference between invoice and receipt. The persons who engage in trading activities knows them, undoubtedly, but the person related to non-trading activities may have to go with severe perplexity to interpret the two terms. Here with the help of this article, the major difference between invoice and voucher has been discussed for the full apprehension of the two entities.Content: Invoice Vs Receipt1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONINVOICERECEIPT

MeaningAn invoice is a commercial document issued by the vendor to the purchaser to request paymentA receipt is a document issued by the vendor to the purchaser after the final payment is done.

Time of IssueBefore the payment.After the payment.

ImportanceTo record the details of the merchandise sold, but the payment is yet due against it.To act as an evidence that the payment for merchandise bought has been done.

DetailsQuantity, unit price, invoice number, discount, taxes and total due.Quantity, unit price, receipt number, discount, taxes, the total amount paid and mode of payment.

Definition of InvoiceAn invoice is an acknowledgement issued by the vendor to the purchaser of goods or services to request for the payment of goods sold or services rendered by him. It is a non-negotiable legal document which identifies the buyer and seller of the stuff. It contains details regarding quantity, price, discount, taxes, the total amount due for the payment, invoice number, date of issue of invoice and the sellers signature. The instrument is delivered prior to the payment of the goods for indicating the amount due against the merchandise.Definition of ReceiptA receipt is a legal commercial instrument used for indicating that some goods or services of value have been received. It is issued by the vendor 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, taxes, discounts, mode and date of payment, total amount paid, receipt number and signature of the seller or his authorized agent.Key Differences Between Invoice and Receipt1. An Invoice is a request for payment and receipt is a confirmation of payment.2. The major difference between the two is that the invoice is issued prior to the payment while the receipt is issued subsequent to the payment.3. The invoice is used to track the sale of goods or services. On the contrary, receipt acts as a documentation for buyer that the amount for the merchandise has been paid.4. The invoice indicates the total amount due whereas the receipt indicates the total amount paid along with the mode of payment.Similarities Both are commercial documents. Both are a part of the purchase cycle. Both contain details about buyer and seller. Both are legally non-negotiable instrument.ConclusionInvoice and Receipt both are a prominent part of the purchase cycle. The invoice helps the seller to keep the record of sale and to determine that amount of merchandise has been received or not. The buyer can also track and match the details of goods or services listed on the invoice are received. The receipt can help the buyers to track payments for the stuff and sellers can also identify that amount on which invoices is received and which ones are still outstanding----------- Difference Between Tax Invoice and Retail InvoiceFebruary 17, 2015BySurbhi S2 Comments

In general, there are two types of invoices tax and retail. We have compiled their differences and comparisons along with their proper definition. Have a look on it.Content: Tax Invoice Vs Retail Invoice1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONTAX INVOICERETAIL INVOICE

MeaningA tax invoice is an invoice issued by a registered dealer to the purchaser, showing the amount of tax payable.A retail invoice is an invoice issued by the seller to the buyer for the amount due against the goods sold to him.

ObjectiveAvailing an input tax creditRequest for Payment

Issued whenGoods are sold with the purpose of resale.Goods are sold to the ultimate consumer.

Tax Identification NumberYesNo

Definition of Tax InvoiceA legal document issued by a registered dealer (seller) on the event of a sale, to another registered dealer (purchaser), who is not the consumer, is known as a tax invoice. The invoice should be created in triplicate i.e. original for the buyer and the rest two are retained by the seller.Tax invoice plays a significant role in any countrys tax system as the dealers issue invoices, for recognizing a transaction. At the end of the financial year, they had to submit the details of these invoices to the relevant tax authorities. So, this is an important tool used by the government to avoid tax evasion.

A typical tax invoice looks like the image given above. The tax invoice may consist of the following details: Invoice Number Date of issue of invoice. Name and address of the seller Name and Address of the buyer Tax Identification Number (TIN) Quantity Unit Price Total Amount Tax Charged Signature of authorized signatoryDefinition of Retail InvoiceA commercial instrument issued by the seller to the purchaser i.e. end user of the goods, is known as Retail Invoice. Generally, the invoice is created in duplicate, i.e. original for buyer and dupicate for the seller. It is used to request for payment from the buyer. Retail invoice can also be issued on account of interstate sales or sale to an unregistered dealer.

A typical retail invoice may look like the image given above. You can find the following details on the retail invoice: Invoice Number Date of issue of invoice Details of buyer Details of seller Quantity Unit Price Total Amount Discount (if any) Signature of seller or his authorized agentKey Differences Between Tax Invoice and Retail Invoice1. When goods are sold with the purpose of resale tax invoice is issued, where as when the goods are sold to the final consumer retail invoice is issued.2. Tax invoice is capable of availing input tax credit (credit on inputs, i.e. tax already paid at the time of purchase) as opposed to retail invoice which is not capable of availing input tax credit.3. In case of goods sold to unregistered dealers within the state Retail Invoice is issued not the tax invoice.4. Tax invoice contains a TIN number, but Retail invoice dont.Similarities Non Negotiable Instruments Shows Amount Payable Description of buyer and sellerConclusionIt is the duty of every registered dealer to issue tax invoices at the time of sales. Here Registered dealer means the dealer who is registered under any tax Act while if the dealer is not registered then retail invoice is issued to / by him------------ Difference Between Sales and MarketingNovember 5, 2014BySurbhi SLeave a CommentEveryone is aware of buying and selling things, in fact, there is hardly anyone in this world who never purchased anything. These purchasing and selling of goods and services involves many activities in it such as creating, promoting, disseminating, delivering and exchanging through money or moneys worth. It is concerned with the two major terms which are Sales and Marketing.Both of the two are so closely interrelated that their difference is not seen in general way, however both of them are different from each other. Now lets understand the difference between Sales and Marketing.Contents: Sales Vs Marketing1. Comparison Chart2. Definition3. Key Differences4. Similarities5. ConclusionComparison ChartBASIS OF COMPARISONSALESMARKETING

MeaningThe act of transfer of ownership of a product from manufacturer to the ultimate customer in exchange of money or any other consideration is known as Sales.Marketing is understanding the requirements of the customers in such a way that whenever any product is introduced according to their requirement, it sells itself.

TermShort termLong Term

ScopeOne product is created to satisfy the requirement of a customer.Advertisement, Sales, Research, Customer satisfaction, After sales services etc.

RelationshipOne To OneOne to Many

Activity related toPersonsMedia

Definition of SalesSales 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 exchange of money or any other similar consideration, for the purpose of increasing revenue. It is the beginning of the contract between the vendor and the customer.For promoting sales normally special prices or discount offers are used by the entities for attracting customers towards the product. There are many activities involved in generating sales, which are- Demonstrating product. Establishing Tie-ups. Satisfying Customer needs. Building Contacts. Using E-commerce strategy.Definition of MarketingMarketing 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. It looks after their new metrics to know about the interest of the customer or group. It involves the dissemination of the value of product to the customer so that its sales will increase along with the brand reputation.For increasing the market of any product normally special offers are introduced to attract customers. The activities involved in marketing are- Research of market Creation of product Promotion of product Advertisement of Product Communicating the value of the Product Selling of the product After Sales Services Customer SatisfactionKey Differences Between Sales and Marketing1. Sales is the transfer of ownership of product from one person to another for some value, whereas Marketing is the act of analysing the market and understanding the needs of customers in such a way that whenever a product is launched as per their needs, it will sell itself.2. Sales are one to one relationship while marketing is one to many relationship.3. Sales are a short term process while marketing is a long term process.4. Sales is basically human driven on the other hand, marketing is media driven.5. Sales focuses on the individual, i.e. directly interacting to persuade them to purchase the product, but marketing focuses on the general public, i.e. creating the value of product to increase sales.6. Sales uses push strategy while marketing uses pull strategy.SimilaritiesFor running any business marketing and selling of a product is must because without proper sales any business can be failed. Both of the terms are converging at some points like the main purpose of the two is increasing revenue and therefore they both help business to survive in the long run.In one hand Sales focuses on individual 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 achieve the required sales volume or we can say that the last step for marketing is sales which requires a good marketing team. In this way both the terms are somewhere interlinked very closely.ConclusionAs we have already discussed that the two terms Sales and Marketing are not contradictory in nature, but they are interconnected however there are many differences between them. Both of these play a very important role in running any business, neglecting any one can severely affect the whole business.Sales is a human oriented function so the personnel involved in the sales activity should be given proper training and incentives to increase sales. On the other hand, Marketing is a media oriented so best channels for promoting and advertising the product should be procured to raise demand for product and brand reputation---------