Glossary · PO · purchase order meaning
Purchase order: definition
A purchase order is a commercial document used by a buyer to specify the goods or services ordered, their quantities, agreed prices and delivery terms. It gives the buyer and supplier a shared reference for fulfilling the order and checking the invoice against what was ordered and received.
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Purchase order, quote and invoice: what each document does
A quote sets out the supplier's proposal. A purchase order records what the buyer orders, while an invoice records the sale and the amount payable. After accepting an electronic quote, a business customer may issue its own purchase order so its purchasing team can track the commitment.
Compare the quantities, prices, currency, delivery dates and payment terms before starting work. If the order differs from the accepted quote, ask the buyer to clarify the agreement. Keep the purchase order number distinct from the invoice number so both teams can identify the right documents during later discussions.
Using a purchase order to check deliveries and invoices
Useful details include the order number and date, buyer and supplier contacts, item descriptions, quantities, unit prices and delivery address. Record the agreed payment terms and the person responsible for the order. These details help a small business coordinate purchasing with the people who receive the goods or check the work.
Before approving an invoice for payment, compare it with the purchase order and the goods or services received. Track partial deliveries separately so the remaining quantities stay clear. Electronic invoicing concerns the format and exchange of the invoice; the purchase order still has its own role in the purchasing process.
Connecting accepted quotes and invoices in Eazyclick
Eazyclick's Quotes & invoices module lets your customer accept a quote online with a timestamp. The accepted quote becomes an invoice with a payment link, connected to the customer record. Ziggy, Eazyclick's AI assistant, highlights quotes awaiting acceptance and suggests follow-ups for you to approve.
Related terms
- Electronic quote An electronic quote is a quote created, sent and accepted online: the customer opens it in a browser, accepts it with a click or a signature, and the acceptance is recorded with its date and time.
- E-invoicing E-invoicing is the issuing, sending and receiving of invoices as structured data (for example in the UBL format) that software can read automatically.
- CRM A CRM (Customer Relationship Management) system is software that centralises a company's contacts, conversations and sales opportunities, so that every customer and prospect can be followed up.
Further reading
Questions about Purchase order
What is a purchase order?
A purchase order records the goods or services a buyer orders from a supplier, including quantities, agreed prices and delivery terms. Its reference helps both sides track the order. The buyer can later compare the purchase order with the delivery and invoice before approving payment for the purchase.
What is the difference between a purchase order and an invoice?
The purchase order describes what the buyer orders; the invoice records the sale and the amount payable to the supplier. They have different references and purposes. Comparing them with the goods or services received helps the buyer check quantities, prices and any partial deliveries before arranging payment.
Is a purchase order the same as a quote?
No. A quote presents the supplier's proposed goods or services and prices, while a purchase order records the buyer's order. A business customer may issue a purchase order after accepting a quote. Check that the two documents agree on quantities, prices and timing before fulfilling the order.
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