Orders and deliveries break down when purchasing and receiving are treated as the same step. That is when counts, costs, and retail prices stop matching what actually arrived. This guide explains how a purchase order and invoice each serve a different purpose, so your store can order what it needs, confirm what was delivered, and update inventory the right way. We also cover how Cheers POS keeps purchasing in one place and speeds up invoicing using distributor invoice downloads.
The Core Difference Between A Purchase Order And an Invoice
A Purchase Order Is Created Before Products Arrive
A purchase order is used when you are going to order products for your store. You create the purchase order based on the needs your store has and the products you believe must be restocked to maintain your flow of business through selling products.
This step is about planning. You decide what to order so your shelves stay stocked and your store can keep selling without disruption.
An Invoice Is Created After Delivery And Sign-Off
Invoicing and receiving happen later in the workflow. After you place the order through purchasing, the products get delivered to your store. You sign off on them to confirm you are willing to pay for the products that were delivered. Once totals are established, you invoice the products into the system.
That sign-off matters because it ties delivered products to the totals you are paying for. Then the system work starts.
Key takeaway: A purchase order sets the restock plan. An invoice confirms the delivery and posts totals, products, and updates into your system.
What Invoicing Updates Inside Your Inventory System
Invoicing Adds Products, Costs, And Retail Price Changes
Invoicing is the point where you individually add your new products and your costs. If retail prices need adjustments, you update those retail prices during invoicing. After that, inventory gets updated within your solution.
This step is where receiving becomes accurate system data. It is also where pricing stays current when costs change.
Manual Entry Requires Line-By-Line Matching
Manual invoicing often requires individually typing item numbers to make sure inventory matches the product you are looking for. Then you add it to the specific invoice you paid for, so the system recognizes those new products coming in.
That approach can work, but it takes time and focus. It also creates more opportunities for mismatches when an item number does not align with the correct product record.
Pro Tip: If your process depends on hand-keying invoice lines, reduce manual entry first. Faster invoice posting helps inventory match delivered products sooner.
Need expert help with purchase order and invoice workflows? Contact Cheers POS for a free consultation.
How Purchasing Has Changed And How Cheers POS Organizes It
Stores Order Through Websites, Distributor Reps, And In-Store Support
Purchasing is not limited to one channel anymore. Many distributors have websites, so you can place orders online. You can also place orders with your distributor rep by calling and explaining what you need. In larger stores, distributor representatives may come to the store and make suggestions. They may keep an inventory of their products and watch which products are moving. They may recommend replacements and better placement in the store where products might sell.
These options can help a store buy smarter. They can also create inconsistent workflows if purchasing decisions are spread across too many channels.
Cheers POS Keeps Purchasing Decisions In One Place
Cheers POS centralizes purchasing, so important decision-making happens in one place, especially when you do not have someone catering to your store. You can make decisions based on reorder amounts, what is committed, what is selling, what is not selling, and specific time frames.
That keeps purchasing tied to store needs and real movement. It also reduces guesswork when it is time to restock.
How Orders Become Invoice-Ready In Cheers POS
Orders Become Invoicable And Wait In A Queue
Once orders go out, you can send them to any distributor. Then those orders automatically become invoicable. They sit in a queue and wait for the delivery to come to the door.
When the delivery arrives, you can identify which products were not on back order and which ones got delivered. Then you apply your new prices and your new costs. This ties receiving actions directly to the order that was created earlier.
Cheers POS Downloads Distributor Invoices To Reduce Hand Keying
Cheers POS can download invoices from any distributor and allow that information to flow into your inventory instead of being hand-keyed. That reduces the need to type line-by-line numbers just to match products correctly.
Key takeaway: When purchasing creates clean orders and invoicing posts clean deliveries, inventory updates stay accurate, and pricing stays current.
If you want a workflow that keeps ordering and receiving consistent, contact Cheers POS to build a purchase order and invoice process that fits your store and supports accurate inventory with every purchase order and invoice.
