Lapasar
Purchasing & Procure-to-Pay

Purchase Order (PO)

Also known as: 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.

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A PO is a legally binding offer once accepted by the supplier. It states the items, quantities, agreed prices, delivery details and terms, and carries a unique number used to track the order through receipt, invoicing and payment. POs create a clear commitment and an audit trail.

In a mature process, a PO is generated from an approved requisition and later matched against the goods received note and the supplier's invoice — the three-way match — before payment. Blanket POs cover repeated deliveries over a period under a single order.

Frequently asked questions

What is a purchase order?
A purchase order is the official document a buyer issues to a supplier confirming an order — the items, quantities, prices, delivery and terms — and it becomes binding once the supplier accepts it.
What is a PO number used for?
The unique PO number links the order to its requisition, goods received note and invoice, so the purchase can be tracked and reconciled through to payment.

Go deeper

Free purchase order template

Explore related across the knowledge graph

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