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Purchase order (PO)

A purchase order (PO) is a legal document and a commercial invoice between a buyer and a supplier, specifying the type, quantity, and agreed price for goods or services the buyer agrees to purchase from the supplier. It serves as a commitment from the buyer to purchase the specified goods or services, and from the supplier to provide the goods or services described in the purchase order. A PO is the first step in the ordering process that is followed by a shipment and invoicing.