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What is a purchase order?

Glossary definition

What is a purchase order?

A purchase order (PO) is a document indicating details about the purchase of goods, such as quantity and costs. It is often legally binding and as such is essentially a contract.

A PO might be issued by the purchasing department within a businesses in order to track and authorise purchases.

Or it might be issued by a buyer to a supplier to close a deal regarding the purchase goods or services.