A purchase order (PO) is a legally binding document created by a buyer and presented to a seller. Much like a shopping cart, a PO contains all the items the buyer wants to purchase from the seller, laying out the order details, including quantity and types of products the buyer needs, as well as payment terms and delivery details.

A PO is a contract between buyer and seller. The buyer is committing to purchasing goods or services for the agreed amount. This gives the seller insurance against non-payment.

References

• https://www.sumup.com/en-us/business-guide/what-is-a-purchase-order/