What is the difference between an order and an invoice?

• A. An order requests goods/services; an invoice requests payment for goods/services delivered.
• B. An order confirms delivery; an invoice confirms receipt.
• C. An order is a payment document; an invoice is a delivery note.
• D. An order is a price list; an invoice is a tax form.

Answer: (A)

In business documents, the two pieces have distinct roles in the buying and selling process. An order is the buyer’s formal request for goods or services. It authorizes the supplier to provide what’s requested and often includes details like items, quantities, and delivery expectations. An invoice, on the other hand, is the seller’s bill. It requests payment for goods or services that have already been delivered or completed, and it usually states the amount due, the due date, and payment terms.

So the best description is that an order requests goods or services, while an invoice requests payment for goods or services delivered. The other options mix up the purposes: a delivery note or receipt-related confirmation relates to confirming what was delivered, not requesting payment; and a price list or tax form describes different administrative documents altogether.