Purchasing Orders, or POs, are official documents that businesses use to determine what they need to purchase from suppliers. They’re important for streamlining the procurement process and ensuring accuracy. When creating a PO, businesses will outline exactly what they need – such as product type, quantity, and delivery date. It’s also possible to include special instructions, such as payment terms and delivery preferences. Once a PO is signed off by both parties, a legally binding contract is in place and the purchasing process can begin. An effective PO system helps businesses manage their supply chain in an efficient and cost-effective way.