Purchase Order
A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a contract between the buyer and seller, so no contract exists until the purchase order is accepted. It is used to control the purchasing of products and services from external suppliers.
Creating a purchase order is typically the first step of the Order-to-cash process in an ERP system.
Read more about Purchase Order: Background, Electronic Purchase Orders
Famous quotes containing the words purchase and/or order:
“How happy a thing were a wedding,
And a bedding,
If a man might purchase a wife
For a twelvemonth and a day;”
—Thomas Flatman (1637–1688)
“The largest business in American handled by a woman is the Money Order Department of the Pittsburgh Post-office; Mary Steel has it in charge.”
—Lydia Hoyt Farmer (1842–1903)