Business transactions are based on orders vs invoices. Whether it is sales or payments, both are required in the line of business; however, the two have different purposes. An order is a request for the purchase of goods or services, while invoice refers to the act of requesting payment following that previous transaction. Different types of record-keeping and financial observations, in fact, depend utterly on the understanding of how these two documents differ.
Misunderstanding or mishandling of orders or invoices can lead to delays, mistakes, or legal issues. That is where a comprehensive tool like Invocreto comes into play. It allows businesses to control orders and invoices in one consolidated platform, tracking with clarity all workflows associated with them and improving oversight on finance issues. This blog will be telling the distance between an order and an invoice and how Invocreto can streamline the entire process.
What is an Order?
An order is a formal request by a customer to buy specific goods or services provided by a business. It is a contract between the buyer and seller, with all the terms of the sale, but no payment involved yet.
- Purpose: To record the customer’s intent to buy.
- Information:
- Products or services requested.
- Quantity or specifics.
- Delivery date or location.
- Customer’s contact information.
What is an Invoice?
An invoice is a business request to pay, usually through the mail or electronically initiated following the delivery of goods or services. It is a form of financial document covering both the amount owed and terms of payment.
- Purpose: It is applied majorly in collecting payments against the goods or services delivered.
- Information:
- Summary description of the goods or services provided.
- Tax-inclusive amount payable
- Payment terms and date of payment
- Invoice number for all references
- Business and Contact Information.
Managing Orders vs Invoices in Invocreto
The first thing you do in Invocreto is set up your account and lay the foundation for smooth transactions. The process is straightforward: you sign in to Invocreto, which enables you to easily onboard your customers and outline the products or services your business offers. From here, you can seamlessly start creating and managing orders and invoices.
This straightforward process is outlined in detail in our blog: Getting Started with Invocreto.
With Invocreto, creating orders and invoices is simple, enabling you to manage business transactions effectively. Here’s how:
Creating an Order:
- You should click the ADD + button in the Orders section on the dashboard.
- Depending on your needs, choose Sales Order or Purchase Order from the dropdown menu below it.
- Sales Order: Need the sales order option to account for a customer’s demand for products or services.
- Purchase Order: Click it to make an order on goods or services required of your suppliers.
Fill in the required details:
- For Sales Orders give information about the customer, the product specification, quantities, and delivery timelines.
- For Purchase Orders, enter the supplier’s details, requested items, quantities, and expected delivery dates.
- Confirm the order to save it
Creating an Invoice:
- Go to the Invoices section on the dashboard and click the ADD + button.
- Select the appropriate option:
- Sales Invoice: Create an invoice for customers to request payment for delivered goods or services.
- Purchase Invoice: Record an invoice received from suppliers to track payments and manage expenses.
Fill in the necessary details:
- For Sales Invoices, make sure to include customer information, a summary of the goods or services provided, payment terms, applicable taxes, and the total amount due.
- For Purchase Invoices, enter the supplier information, details of items received, payment terms, and the corresponding amounts.
- Review and confirm the invoice to save it, and download for record-keeping.
Conclusion
Orders and invoices are essential for smooth business running, as orders capture purchase intent and invoices ensure timely payment. Invocreto simplifies managing both, offering an all-in-one platform to handle transactions efficiently.
Start Using Invocreto
Sign up on Invocreto and simplify your processes. Onboard customers quickly, define products or services, and get started with managing orders and invoices from a single dashboard. Take control of your business today with Invocreto!