Electrical Tools-23

Purchase Order Basics

A purchase order (PO) is a document generated by the buyer

What is a purchase order?

A purchase order (PO) is a document generated by the buyer that clearly details the products or services your company plans to purchase from a vendor. By providing this document, buyers and sellers both understand what is expected in the transaction.

What is a PO number?

This is a new and unique number generated solely for this document. This number is important because it will be used on shipping documents and invoices to show the transaction was pre-approved.

What information is on a PO?

Purchase orders protect both sides, the buyer and seller, if either makes a mistake. A PO provides legal clarity and concrete instructions for the seller.   

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