Difference Between Purchase And Purchase Order

Usually, the purchase of goods or services or assets for cash or credit from suppliers or vendors is called purchase but in accounting the word “Purchases” is used when goods are purchased which may be Cash Purchases or Credit Purchases while purchase of Assets and services for cash or on account is called purchase. Purchase order is made by buyer to vendor or supplier informing about quantities of goods ordered, company information, etc.,

Purchase will take place when the company gives purchase order to supplier or vendor for the delivery of goods, services or assets.