Accounting glossary

What is purchase order?

The document that commits you to buy: items, quantities, prices, delivery expectations. A PO is the reference the delivery is checked against and the bill is matched to — the three-way match that stops paying for goods that never arrived.

Example

You raise PO 2026/0008 for 49 units at $21,490.63 from a packaging supplier. Nothing has been received and no stock has moved — it is a request.

Receive 30 units against it and the PO carries the remaining 19 as still open, which makes the list your outstanding-order report.

In SeroBooks

POs with approval control, received against by GRNs, settled into bills. Purchase orders

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