Glossary › Purchase Order (PO)
Purchase Order (PO)
A buyer's formal commitment to purchase, issued before delivery. Suppliers quote the PO number on their invoice.
A purchase order is issued by a buyer to formally commit to a purchase: items, quantities, prices, and delivery terms. Larger clients often require their PO number on your invoice before they will process payment.
For your own buying, POs create a record of what was ordered so deliveries and supplier invoices can be checked against them.
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