Purchase order (PO): definition, example, and why it matters
POs spell out items, quantities, prices, and shipping terms. The seller invoices against the PO number, which the buyer's AP department matches before paying. Common in fleet, government, and enterprise work.
Short definition. A formal request from a buyer authorizing a seller to perform work or ship goods.
Category. Purchase order (PO) is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds purchase order (po) into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does purchase order (po) mean?
POs spell out items, quantities, prices, and shipping terms. The seller invoices against the PO number, which the buyer's AP department matches before paying. Common in fleet, government, and enterprise work.
Related terms
Invoice — A document a business sends a customer requesting payment for goods or services.
Net 30 — Payment terms requiring full payment within 30 days of the invoice date.
Accounts payable (AP) — Money you owe suppliers for goods or services received but not yet paid.
