Browse Definitions :
Definition

purchase order

A purchase order is a buyer's request to a seller to order goods.  

A purchase order is not an active order upon creation but upon acceptance from the seller. Generally, the item(s), prices and quantities have already been negotiated. Once accepted by the seller, a purchase order becomes a legal agreement to provide the mentioned goods at the agreed-upon price.

Purchase orders differ from invoices, which record transactions that have occurred. The purchase order documents of an agreement for placing an order. Buyers draft a purchase order; once accepted an invoice will be created to detail the agreed-upon order. Payment for a purchase order is due at a particular time after the invoice has been submitted, often specified as an invoice due date.

As part of procurement planning, purchase orders ensure that details are clear and correct and provide convenient audit trails when something goes wrong.

This was last updated in April 2016

Continue Reading About purchase order

SearchCompliance

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • cracker

    A cracker is someone who breaks into someone else's computer system, often on a network; bypasses passwords or licenses in ...

  • Malware quiz: Test your knowledge of types and terms

    Malware trends are constantly evolving, but older techniques are still often used in cyber attacks today. Test your knowledge of ...

  • digital signature

    A digital signature is a mathematical technique used to validate the authenticity and integrity of a message, software or digital...

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

  • erasure coding

    Erasure coding (EC) is a method of data protection in which data is broken into fragments, expanded and encoded with redundant ...

  • continuous data protection

    Continuous data protection (CDP), also known as continuous backup, is a backup and recovery storage system in which all the data ...

Close