purchase order



A buyer-generated document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties.

A purchase order sets forth the descriptions, quantities, prices, discounts, payment terms, date of performance or shipment, other associated terms and conditions, and identifies a specific seller. Also called order.

Use purchase order in a sentence

  • Make sure to finish installing the software on the servers this morning so we can ship them today and complete the purchase order for Acme.

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  • The transaction was underway and we received the purchase order in the mail and that made us feel a bit relieved.

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  • Our accounts payable department issued a purchase order specifying the precise terms by which XYZ company would be able to provide goods and services to our company.

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