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Glossary
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Purchase Order (PO)

Purchase Order (PO)

What is a Purchase Order (PO)?

A document that specifies the types, quantities, and prices of products and services to be purchased from external vendors and suppliers.

More In-Depth Definition of a Purchase Order (PO)

Purchase Orders (PO) are essential for controlling spending and ensuring that both parties have a clear understanding of the transaction terms. By providing detailed information about the order, including delivery dates and payment terms, POs help streamline the purchasing process and serve as a legally binding agreement that protects both the buyer's and supplier's interests.

Example of a Purchase Order (PO)

The project manager may submit a Purchase Order (PO) to secure the necessary materials for the upcoming phase of construction, specifying quantities and delivery dates.

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