Purchase order

How it is used

Shortened to PO. Many companies follow a 'no PO, no pay' policy, so suppliers must quote the PO number on their invoice. A three-way match checks the PO, the goods receipt and the invoice.

Example sentences

1. Please quote the purchase order number on your invoice, otherwise we can't process it.

2. The purchase order was approved, but the goods haven't arrived yet.

Common collocations

• raise a purchase order
• PO number
• approve a purchase order
• three-way match

Related terms

• invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.
• accounts payableMoney a company owes to its suppliers for goods or services bought on credit, and also the team that processes and pays those supplier invoices.
• internal controlThe policies and procedures a company uses to protect its assets, prevent errors and fraud, and make sure its financial reporting is reliable.
• receiptA document that proves money has been paid or goods have been received, given to the person who paid or delivered.

This word in other fields

The same English word can have a different meaning in another field:

• purchase order · Logistics & Supply Chain
• purchase order · International Trade
• purchase order · Office & Administration

More terms: Invoices & Payments

• accounts receivable
• bad debt
• credit note
• payment terms
• due date