What is Purchases Order (PO)

What Does Purchase Order Mean In Accounting?

A Purchases order (PO) is a document issued by buyer to seller intimating for the sale of goods or services purchased on cash or credit. The purchases order contains quantities of items ordered, agreed price of goods or services, etc.

The seller gets the information from the purchase order about the time of delivery of goods or services. The agreed price also helps him to collect the dues on time.