Change Order
Also known as: Purchase order amendment
A change order is a formal amendment to an existing purchase order or contract that alters quantity, price, specification or delivery terms.
Requirements shift after an order is placed — quantities change, specifications are revised, delivery dates move. A change order documents that variation and captures the agreement of both parties, keeping the purchase order accurate and the audit trail intact. Without it, receiving and invoice matching quickly fall out of step.
Controlling change orders is important because uncontrolled variations, especially on projects and construction, are a common source of cost overruns. A clear approval process for changes protects budgets and ensures amendments are authorised, priced and recorded properly.
Frequently asked questions
- What is a change order?
- A change order is a formal amendment to an existing purchase order or contract that alters quantity, price, specification or delivery terms, agreed and documented by both parties.
- Why are change orders important?
- They keep the purchase order accurate for receiving and invoice matching, maintain the audit trail, and control the cost overruns that uncontrolled variations can cause.
Related terms
Purchase Order (PO)
A purchase order (PO) is the official document a buyer sends to a supplier to confirm the order of goods or services at agreed prices and terms.
Read definitionThree-Way Matching
Three-way matching is a control that checks the purchase order, goods received note and supplier invoice agree before an invoice is paid.
Read definitionContract Management
Contract management is the process of creating, executing, tracking and renewing supplier contracts to ensure both sides meet their obligations and value is realised.
Read definitionExplore related across the knowledge graph
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