Mercado | The difference between a Purchase Order and a Commercial Invoice

The difference between a Purchase Order and a Commercial Invoice

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The difference between a Purchase Order and a Commercial Invoice

Tags:
Import, Purchase Order, First Mile, Last Mile, Supply Chain, Global Supply Chain
Dallas-based startup empowers businesses to optimize international trade.

What is a Purchase Order (PO)?

A Purchase Order (PO) is a document created by a buyer and provided to a supplier (also known as a supplier, vendor, etc.) with a request for a specific order. Purchase Orders typically include details surrounding the type and quantity of items, stating an agreed price and payment terms. A unique Purchase Order number enables easy distinction between orders.

Upon receipt of the Purchase Order, a seller can accept, reject or modify the terms (which must then be agreed by the buyer). Upon acceptance, a legally binding contract is then formed between the two parties.


Read more about what Purchase Orders are here →

"A Purchase Order (PO) is a document created by a buyer and provided to a supplier (also known as a supplier, vendor, etc.) with a request for a specific order. Purchase Orders typically include details surrounding the type and quantity of items, stating an agreed price and payment terms. A unique Purchase Order number enables easy distinction between orders."

What is a Commercial Invoice?

A Commercial Invoice is a document created by a seller based on the original Purchase Order (PO) which has been issued by the buyer. A Commercial Invoice will contain details of the buyer, the seller, an order number (for reference), details of product’s quantity, price, terms, etc., delivery terms, and terms of payment alongside other details of contractual agreements between the two parties. Typically, a Commercial invoice is issued at the time of shipment.

What is the difference between Purchase Order and Commercial Invoice?

The main difference between a Purchase Order and a Commercial Invoice is that a Purchase Order is issued by the buyer, whilst a Commercial Invoice is prepared by the seller. Purchase Orders provide an offer of a contract of sale, whereas Commercial Invoices are a confirmation of sale. Purchase Orders can be a single document covering multiple shipments, whereas Commercial Invoices are prepared separately per shipment.


ABOUT MERCADO

At Mercado Labs, we know your product is the lifeblood of your business. And yet managing your imports has become increasingly complex over recent years, with products taking on average 4 months to receive, suppliers located thousands of miles away, and external forces – from trade wars to global pandemics – creating extreme uncertainty. Most of the process is analog and takes far too long. So we wanted to change that.

The Mercado platform helps importers to better manage their orders from source to store. By focusing on the First Mile – the initial 120 days of an order – we help businesses optimize their global trade, eliminating pain and mitigating risk across the supply chain.


Get in touch and find out what Mercado can do for your business.

                       

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From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Purchase Order Commercial Invoice
Issued by the buyer. Issued by the seller.
Offer of a contract of sale. Confirmation of sale.
Single document covering multiple shipments. Separate documents per shipment.