A Purchase Order (PO) is a document issued by a buyer to a seller, indicating the type, quantity, and agreed price for products or services the seller will provide to the buyer. It is a legally binding document that serves as a contract between the buyer and seller, and outlines the buyer’s commitment to pay for the goods or services they have requested.

A PO also helps the seller track and fulfill the buyer’s order. It is important to note that a PO is not a guarantee of payment, but rather an agreement between the buyer and seller to purchase the goods or services specified in the PO.

Additionally, a PO is not a sales invoice, as it does not represent a completed transaction. A sales invoice is issued after the goods or services have been delivered and accepted by the buyer.