Purchase Invoice vs Sales Invoice: What Is the Difference?

Short answer

A sales invoice is the invoice a supplier issues to request payment for goods or services. The customer records that same document as a purchase invoice because it represents something the customer bought. The document is usually identical; the name changes with the business perspective.

Comparison at a glance

| Question | Sales invoice | Purchase invoice | | --- | --- | --- | | Who uses the term? | Seller or supplier | Buyer or customer | | What does it record? | Revenue and amount receivable | Purchase, expense, asset, and amount payable | | Who creates the original? | Supplier | Usually received from supplier | | Main workflow | Send and collect | Review, approve, and pay |

What should match?

Both parties should retain the same invoice number, supplier and customer details, issue date, goods or services, quantities, prices, tax, currency, total, due date, and payment reference. The customer may also add an internal purchase or approval reference without changing the supplier's original invoice.

Do not confuse the invoice number with a purchase order number. Invoice Number vs Purchase Order Number explains how these references work together.

Supplier workflow

The supplier creates and approves the invoice, sends it to the correct customer contact, records the due date, tracks payment status, and issues any credit note or correction. A professional invoice delivery process helps reduce approval delays.

Customer workflow

The customer receives the invoice, checks it against the purchase order, contract, delivery record, or approved service, confirms the tax and total, approves it, and schedules payment. The customer should not edit the supplier's document; discrepancies should be resolved through a corrected invoice or credit note.

Example

A design studio sends invoice INV-2090 for $2,000 to a retailer. The studio records INV-2090 as a sales invoice and accounts receivable. The retailer records the same INV-2090 as a purchase invoice and accounts payable. Both records should reconcile to the same amount and tax.

Record-keeping checklist

• Preserve the original supplier invoice.
• Match invoice and purchase order references.
• Record approval, due date, and payment.
• Link credit notes and refunds to the original.
• Avoid duplicate entry of the same invoice.
• Retain records under applicable tax and accounting rules.

Use the Invoice Reconciliation Process to match invoice and payment records.

FAQs

Is a purchase invoice created by the buyer?

Usually the supplier creates the invoice and the buyer records it as a purchase invoice. Some self-billing arrangements work differently and require an agreed process.

Is a sales invoice the same as a receipt?

No. A sales invoice requests payment, while a receipt confirms that payment was received.

Can the buyer change a purchase invoice?

The buyer should not alter the supplier's original document. Ask the supplier for a corrected invoice or credit note when information is wrong.