business ideas

  • Category Archives : business ideas
  • Posted by: nita
  • 2017-04-28

How Does a Purchase Order Work?

If you’re running a business of your own, you will likely need to use a purchase order. But what exactly is this document, and why do you need it?

Essentially, a purchase order is a legal document that binds both singing parties, usually between a supplier and a buyer. It outlines all the items that are being purchased, as well as the unit prices for each. The purchase order – also referred to in short form as a “PO” – details the payment terms and delivery date for the items bought.

Back in the day, purchase orders were paper-based and tended to be cumbersome to have to deal with. However, these days, computer systems have made the PO process much easier and more streamlined. They also help to ensure better tracking of inventory and payment. Luckily, you can get your hands on a free online PO template that includes all …