What it means
A purchase order, or PO, is a document you send a supplier to buy specific items at an agreed price. Once the supplier accepts it, it's a commitment on both sides.
Why it matters
The PO is what you receive against and what you match the vendor bill to. When it's raised straight from the quote, the cost you quoted is the cost you buy at.
Related terms
Vendor bill, receiving, three-way match, drop ship.
