Definition: A written sales contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor. It will specify payment terms, delivery dates, item identification, quantities, shipping terms and all other obligations and conditions.
Purchase orders are generally preprinted, numbered documents generated by the retailer's financial management system which shows that purchase details have been recorded and payment will be made.
Also Known As: PO
Examples: Every time our retail store places an order with our vendors, we submit a purchase order. This document allows us to track outstanding orders and accounts payable.
