Purchase Order

A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a firm order and a contract binding on both parties. A purchase order sets out the description, quantities, price, discounts, payment terms, date of performance or shipment, and other associated terms and conditions for the delivery of goods or the rendering of a service, and identifies a specific seller. Also called an Order.

« Back to Glossary Index

Related Terms:

How did we do?