Definition

Noun: A formal, commercial document issued by a buyer to a seller, authorizing a transaction. It specifies the types, quantities, and agreed prices for products or services, and becomes a legally binding contract once accepted by the seller.

Usage

A purchase order is used in business-to-business transactions to initiate a purchase. It serves as an official request and authorization for a supplier to provide goods or services under specified terms. It is distinct from an invoice, which is a request for payment sent by the seller after the order is fulfilled.

Examples

• The office manager issued a purchase order for new desks and chairs.
• We cannot ship the materials until we receive a signed purchase order from your company.
• Please reference the purchase order number (PO# 45012) on all correspondence and packing slips.

Advanced Usage

• "To raise a purchase order": To create and issue a purchase order.
  • The department head approved the budget, so I will raise a purchase order for the software license.
• "Open purchase order": A purchase order under which multiple deliveries can be made against a single order, often up to a specified total value or within a time period.
  • We have an open purchase order with the supplier for office supplies this quarter.

Variants and Related Words

• PO (n.): The common abbreviation for "purchase order."
  • Make sure the PO number is on the box.
• Purchase Requisition (n.): An internal document used by an employee to request that a purchase order be created. It is not sent to the supplier.
• Standing Order (n.): A similar arrangement for regular, recurring purchases, but may not always involve a formal purchase order document for each instance.

Synonyms

• Order: A more general term, but in a commercial context, it often implies a purchase order.
• Work Order: Specifically for authorizing a job or service rather than goods.
• Indent: A historical or specific regional term for a formal purchase order, especially in import/export.

Related Phrases

• "To place an order": To request goods or services. This action typically results in the creation of a purchase order in a formal business setting.
  • We need to place an order for more raw materials.
• "To fulfill an order" / "To fill an order": To complete and ship the items specified on a purchase order.
  • The warehouse will fulfill the purchase order by Friday.

Noun

1. a commercial document used to request someone to supply something in return for payment and providing specifications and quantities
   • IBM received an order for a hundred computers