The seller sends a document to the customer which contains the agreed terms like approving product order, quantity, shipping cost, etc.

A PO specifies Quantity purchased Product or service being bought Specific brand names, SKUs, or model amounts, Cost per unit, Delivery date, Delivery location, Billing address, Payment provisions, such as on delivery or at 30 days.

A purchase order, or PO, is an official document issued by a customer committing to pay the seller for the sale of particular products or services to be delivered. The customer’s advantage to place an order without instant payment. From the seller’s standpoint, a PO is a way to provide shoppers credit with no risk, since the customer is responsible for payment once the merchandise or services have been delivered. Every PO has an exceptional number associated with it, which assists both seller and buyer to track payment and delivery. A blanket PO is a devotion to buy services or products on an ongoing basis until a specific maximum is reached.