Purchase Order (PO)

A formal business document issued by a buyer to a seller, detailing the specific goods or services to be procured, their quantities, and the agreed-upon prices. It serves as a legally binding agreement between the buyer and seller, outlining the terms of the purchase and initiating the procurement process. Purchase orders are essential for managing and controlling the acquisition of products and services from external suppliers, ensuring that the buyer receives the items they require at the negotiated prices.