A purchase request is an official document that initiates the approval process for obtaining goods and services. This document lays out the details of what is needed, the estimated cost, and any additional information required to support the request. It’s typically used when the budget is uncertain or if more than three quotes are required.
A purchase order (PO) is a contract between a buyer and a seller that outlines the terms of purchase. It’s issued after a purchase request has been approved and serves as a formal record that describes the items being bought and the agreed upon prices. The PO also states payment terms and delivery dates, as well as any other specific requirements from the buyer. Even though it’s not legally binding, it serves as evidence of an agreement between the two parties.