Purchase Order
A purchase order is the buyer’s formal order document, the written reference both sides work from.
What a purchase order is
A purchase order, PO, is the buyer’s formal order document: items, quantities, prices, delivery terms, and dates, sent to a supplier and becoming the reference both sides work from.
Why purchase orders matter
The PO turns a conversation into a commitment: what was ordered at what price is written, numbered, and checkable. Receiving checks deliveries against it, accounting matches invoices to it, and disputes resolve by it.
What a PO carries
- PO number, the reference everything else cites
- Items, quantities, and agreed unit prices
- Delivery date, location, and shipping terms
- Payment terms the invoice must match
Frequently asked questions
What is three-way matching?
Paying only when three documents agree: the PO, the receiving record, and the invoice. It’s the basic control against paying for goods that never arrived or prices never agreed.
Do small stores need formal POs?
Earlier than they think: the first supplier dispute over quantities or price is cheaper with a numbered document than a chat history. Most inventory tools generate them anyway.