Invoicing

    Purchase order (PO)

    A formal request from a buyer authorizing a seller to perform work or ship goods.

    Definition

    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.