What is Purchase Order (PO)?
A purchase order is a document a buyer sends a supplier listing the items, quantities and agreed prices it wants to buy.
Updated
Meaning
English
A purchase order is a document a buyer sends a supplier listing the items, quantities and agreed prices it wants to buy.
Roman Urdu
Purchase order woh document hai jo khareedar supplier ko bhejta hai, jis me items, tadaad aur tay shuda qeemat likhi hoti hai.
Also called PO, order to supplier, supplier order.
Example
A hardware store sends its paint distributor a PO on WhatsApp for 40 tins of white emulsion and 20 of primer at the agreed rates. When the truck arrives, staff check the delivery against the PO.
How it works
Many Pakistani shops order by phone or by telling the distributor's salesman what is needed, and nothing is written down. A purchase order fixes the quantity and rate in advance, so short deliveries, wrong items and price changes are caught at the door instead of at payment time.
A PO is not a purchase yet: nothing enters stock until goods arrive. When they arrive, the delivery is received against the PO, fully or partly, and the rest stays open. Keep open POs visible so staff know what is already on the way and do not order twice.
In Nafaa
In Nafaa a purchase can be saved as an order that puts nothing in stock until it is received. The reorder list turns suggested quantities into purchase orders grouped by supplier and branch, which can be sent on WhatsApp or printed, and orders can be received in parts.
Related terms
- GRN (Goods Received Note)
A goods received note records what actually arrived from a supplier, checked against the purchase order, before the stock is added and the bill is paid.
- Reorder Level
A reorder level is the stock quantity at which a new order should be placed, so stock arrives before the shelf runs empty.
- Accounts Payable
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.