Purchase Orders Definition
A purchase order (PO) is a document that a buyer creates to communicate their intent to buy products or services from a seller. The purchase order outlines the types and quantities of products or services that the buyer agrees to purchase at a given price. It also includes the terms of sale, such as the delivery date, payment terms, and any warranties or return policy.
The PO is a binding contract between the buyer and seller, so it’s important that all of the details are accurate and agreed upon before signing. Once both parties have signed the purchase order, they are legally obligated to uphold their end of the deal.