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A Purchase Order (aka PO) is an official a document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future. The advantage to the buyer is the ability to place an order without immediate payment. From the seller’s perspective, a PO is a way to offer buyers credit without it reduces credit risk, since the buyer is obligated to pay once the products or services have been delivered. Each PO has a unique number associated with it that helps both buyer and seller track delivery and payment. A blanket PO is a commitment to buy products or services on an ongoing basis, until a certain maximum is reached. |