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A purchase order is a document sent from a buyer to a seller, with a request to order a product. When the seller accepts the document, it forms a legally binding contract between the buyer and the seller.
2. Buyer drafts the purchase order and sends it to the seller for approval.
What is Local Purchase Order? Local Purchase Order which we can also call Purchase Order is a commercial document that is prepared by the buyer to a seller for the purchase of goods and services. In most cases, the seller will issue what we call a quotation to the buyer for the supply of the goods.
A purchase order is a document that a buyer sends to a seller. The purchase order provides details on what the buyer is requesting from the seller. However, the purchase order by itself does not create a contractual agreement between the buyer and the seller.
While the purchase order shows what goods were ordered from the supplier, the sales order is generated by the supplier and sent to the buyer. It signifies the confirmation or approval of the sale. Nowadays, the PO process is no longer paper-based, and the buyer usually sends its suppliers an electronic PO.
A purchase order is a document sent from a buyer to a seller, with a request to order a product. When the seller accepts the document, it forms a legally binding contract between the buyer and the seller.
A purchase order, or PO, is an official 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.
The buyer is responsible for creating and issuing a purchase order. In larger companies, a procurement or purchasing department will typically issue the purchase order. In smaller companies, the business owner, operations manager, or financial manager may issue the purchase order.
Once it is signed by both parties, it is a legally binding contract. The seller can only accept the offer by signing the document, not by just providing the goods. A PO is created before there is an agreement between the parties: The buyer sends the PO to the seller, who then has the choice of whether to accept it.