Note: This is an example procedure only. It is specific to the processes and the online accounting application used by Colkea.
An invoice is issued by a seller to request payment for goods or services purchased.
To claim GST on a purchase over $82.50, including GST, you need a tax invoice. See Issuing tax invoices on the ATO website for further information. Tax invoices for sales of $1,000 or more also need to show the buyer's identity or ABN.
A purchase order is issued by the purchaser to request the purchase of specified goods or services for an agreed price from the seller. A purchase order only becomes a commitment after it is accepted by the seller.
Not all purchases require the issue of a purchase order. Many purchases are made under other arrangements, such as a contract, and include:
- phone and internet services
- bank fees and charges applied to an bank account.
When to issue a purchase order?
Issue a purchase order when a seller requires a formal commitment to purchase the goods or services before delivering the goods or providing the services.
A quote is issued by a seller to provide the full details and pricing of the goods or services to be provided to a potential buyer.
When to issue a quote?
A quote is issued when the goods or services being provided are complex or when requested by a buyer.