Subcontract Agreement Vs Purchase Order
A general agreement is one of the most important business documents you can have, and here`s the reason. The seller can only accept the offer by signing the document and not only by supplying the goods. The order must contain descriptions, quantities, prices and discounts on the products in the order. The ideal order also includes payment terms and shipping/delivery dates. It also contains an order number, the date of issue and the signature of the person who authorized the purchase. The difference between an invoice and an order is that the buyer designs the order and the seller designs the invoices. While both documents contain similar details, the invoices do not contain the technical information contained in the producer organisations (i.e. The due date of the materials). Subcontractors use POs to order goods and services, and suppliers use invoices to indicate when payments are due. In addition, orders define the sales contract, while invoices confirm that sales contract A is a document mentioning the products sold, setting the agreed prices and setting the terms of the sales contract for a specified period. There are no rules on when both types of documents should be used. The use of an order or contract depends on the nature of the purchase or the usual practice of the sector.
For example, real estate transactions are carried out with a sales contract, not with an order. In the case of a government contract, the rules or directives of the government agency may prescribe the nature of the document to be used.