Purchase order

A purchase order (PO) is a formal document that a buyer issues to a seller to confirm a purchase. It specifies the details of goods or services the buyer wants to acquire, including:

Description of items or services

Quantity

Price (per unit and total)

Delivery date

Payment terms

Purchase order number (for tracking and reference)

It acts as a legally binding contract once the seller accepts it. Businesses use POs to control purchasing, keep financial records, and avoid misunderstandings about orders.