Creating a Purchase Order (PO) is the initial step in formalizing a purchase, businesses outline the products or services, quantities, agreed prices, and delivery terms. Ensures transparency and alignment between the buyer and the supplier, helping streamline procurement and reduce the potential for errors. Creating an invoice is the formal request for payment after goods or services have been delivered. The invoice typically includes item details, pricing, applicable taxes, and the total amount due. This helps businesses maintain smooth cash flow, track transactions, and ensure timely payments.