A purchase order (PO) is a legally binding document that a buyer creates and submits to a seller. A purchase order, like your “cart” on an e-commerce site, is simply a list of items you wish to buy. It specifies the order specifics, such as the amount and categories of items required by the customer, as well as payment conditions and delivery information.
A purchase requisition differs from a purchase order in that the latter serves as a contract between the buyer and the vendor. Purchase orders are typically utilized by small firms buying large quantities of items.
A pet store, for example, may need to purchase wide varieties of dog food from a supplier and order numerous bags of each type of food. The purchase order procedure that the pet store owner would utilize to obtain the supplies they require: The store owner makes a purchase order outlining what they want from the provider.
