What are purchase orders, and what are they used for?
Purchase orders (POs) are documents issued by a buyer to a seller that officially request specific goods or services. The PO serves as an offer from the buyer to the seller and, when accepted by the seller, becomes a binding agreement between both parties.
POs are used throughout almost all industries and help ensure that buyers receive exactly what they requested — in the right quantity, quality, and at the right price. POs also ensure that sellers are paid for the goods or services on time.