What Is A Purchase Order?


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Yooti Bhansali Profile
Yooti Bhansali answered
A Purchase Order or a PO is a business-related document which is issued by a purchaser to a seller, denoting the kind, amounts and agreed upon costs for the product or service which the seller is offering to the purchaser. Forwarding a purchase order to a supplier consists of an officially authorized offer to purchase products or services. The approval of a purchase order by a manufacturer or seller generally creates a one off agreement amongst the purchaser and manufacturer so in actuality; no contract is in existence till one accepts the purchase order. A purchase order also generally identifies extra clauses like the terms of payment, freight responsibility, the date on which the product must be delivered etc.

A typical purchase order generally includes of a serial number, a billing and shipping address, terms of payment, and an inventory of the products or service along with amounts and costs.
Priti Kumar Profile
Priti Kumar answered
A purchase order refers to an order given to a supplier when a company is buying something from them.

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