Purchase Order

A purchase order, akin to a shopping list, is an official document created by a buyer to record purchases, track payments, maintain inventory, and facilitate transactions, often used to specify partial receipt of an order or for direct delivery from vendor to customer.

A purchase order is like a shopping list created by a buyer for a seller. It tells the seller what the buyer wants to buy, how much, and at what price. It's an official document that both parties agree on, outlining all the important details of the transaction. This includes things like what's being purchased, how much it costs, when it needs to be delivered, and how it will be paid for.

You'd create a purchase order to record the cost of purchases, allowing you to track your payments and keep your inventory up to date. Use a purchase order specifically if you want to record partial receipt of an order as perhaps the full quantity was not available from the vendor, or if you sell items by delivering them directly from your vendor to your customer.

Once the seller accepts the purchase orer, they start getting everything ready for the buyer. It's basically the first step in making sure everyone's on the same page when buying and selling goods or services.