A Purchase Order (PO) is a formal request issued by a buyer to a seller to purchase a specific product or service. It outlines the details of the transaction, including the products or services being purchased, their quantity and cost, payment terms, and delivery timeline.
The PO serves as an agreement between the two parties and is used to track and manage inventory. In other words, it facilitates communication between buyers and sellers, helps ensure orders are fulfilled correctly, and reduces the risk of misunderstandings. By utilizing POs, companies can improve their overall business operations and provide better customer service.