Purchase Order

DEFINITION

A commercial document issued by a buyer to a seller, detailing the merchandise or services the seller will provide to the buyer. Sending a purchase order to a seller constitutes a legal offer to buy products and services. A legal sales contract is formed when the purchase order is accepted. It will specify payment terms, delivery dates, item identification, quantities, shipping terms, and all other obligations and conditions.

LOGISTOPEDIA SAYS

A purchase order is often abbreviated as P.O. and a specific purchase order is usually identified by a P.O. number. P.O. numbers are helpful in aiding companies keep track of information about a specific transaction. P.O. numbers are not a universal standard and are usually only used within a company to keep track of it’s own operations.

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