Purchase Order (PO)

Tags: Glossary

An agreement that shows the agreement with the vendor to buy goods.

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What is a Purchase Order (PO)?

A purchase order (PO) is an official document issued by a buyer to a seller, indicating the type, quantity, and agreed-upon price for goods or services the seller will provide to the buyer. POs are used to control the purchasing of products and services from external suppliers.  


This document serves as a legally binding agreement between the buyer and seller that the goods or services will be provided as specified. 

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