GD Accounting Glossary
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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