Purchase order

How it is used

Usually shortened to PO and used as a reference number in all later emails and documents. Buyers issue or place a PO; sellers receive, accept or confirm it. Once accepted, it often works as the sales contract.

Example sentences

1. We received the purchase order this morning and will confirm the delivery date today.

2. Please quote our purchase order number on the commercial invoice.

Common collocations

• issue a purchase order
• PO number
• confirm a purchase order
• blanket purchase order

Related terms

• order confirmationA document or message from the seller accepting a buyer's order and repeating the agreed products, prices, delivery date and terms.
• place an orderTo ask a supplier officially to supply goods, usually by sending a purchase order or accepting a quotation.
• quotationA written statement from a seller giving the price, quantity, delivery and payment conditions for goods a buyer is interested in.
• proforma invoiceA preliminary invoice sent before shipment that shows what the final invoice will contain, so the buyer can arrange payment, an import permit or a letter of credit.

This word in other fields

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

• purchase order · Logistics & Supply Chain
• purchase order · Accounting & Tax
• purchase order · Office & Administration

More terms: Quotations and Orders

• lead time
• request for quotation
• minimum order quantity
• unit price
• sample