A purchase order (PO) is a document a buyer sends to a supplier to confirm they want to buy goods or services. It lists what they’re ordering, how much they need, and when they want it delivered.
What’s in a Purchase Order?
A typical PO includes:
- Buyer and supplier details
- Product names or codes
- Quantities
- Agreed prices
- Delivery address and date
- Payment terms
Why POs Are Useful
Purchase orders help keep things organised and clear for both sides.
- They act as a contract — once accepted, both sides must stick to it.
- They help track orders and spending.
- They reduce mistakes or confusion later on.
Example
A retailer sends a PO to a supplier asking for 1,000 boxes of packaging at £1.20 each, to be delivered in two weeks. The supplier confirms the order, and both parties now have a clear record of the agreement.