Purchase Order
A Purchase Order is an official order first sent from a buyer to a seller to order a list of items at the quantities and prices listed in the PO.
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Frequently Asked Questions
There are four types of Purchase Orders as follows:
Standard purchase orders: This is used when a buyer knows what to purchase, when to pay for the order, and the delivery schedule.
Planned purchase orders: Businesses use planned purchase orders to indicate the items to order but with estimated quantities and delivery date.
Blanket purchase orders: Used by a company to place multiple orders from the same vendor at a discount.
Contract purchase orders: This document precedes the standard purchase order and outlines the items ordered, quantities, unit prices, and delivery schedule. The use of a contract purchase order elevates the legal protection afforded to both parties.
A purchase order is created by a company as a request for goods and services from a vendor. After receiving a purchase order, a vendor would deliver the goods and services ordered and asks for payment with an invoice.
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