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welcome to academic game tutorials in this video we will look into the differences between purchase order and sales order the purchase order is a written commercial document issued by the buyer to the seller comprising of containing types prices quantity quality and terms of the goods to be delivered on the other hand the sales order is a confirmation document prepared by the seller and sent to customers before the delivery of specified goods at the customer's place both purchase order and sales order become binding when the party to whom it is issued accepts it while purchase order authorizes the sale of products sales order confirms the sale of goods so let's look into the basic differences between purchase order and sales order in a tabular form difference number one purchase order is a document used for ordering goods when purchase order is accepted it becomes a binding contract between a buyer and seller on the other hand sales order is a document used for confirmation of sale when the sales order is accepted it approves the sale number two purchase order is prepared by the buyer and is sent to the supplier with the help of purchase order the buyer can place an order for goods and services on the other hand sales order is issued by the supplier to its buyer before delivery with the help of sales order the buyer can know the date time and mode of delivery of goods and services and difference number three purchase order creates a contract between the buyer and supplier whereas a sales order approves the sale