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BluPay glossary

Purchase order

A buyer-issued commercial document describing the goods or services being ordered and the agreed or proposed purchasing details.

Payments & operationsbeginnerSources checked

Also known as PO · purchase orders

What it means

Before the invoice

A purchase order can specify items, quantities, price references, delivery requirements and an identifying number. A seller’s invoice subsequently requests payment for the relevant supply. These documents serve different roles and should remain linked in the records.

Controls across the workflow

Businesses can compare the order, receipt or acceptance evidence and invoice before approving payment. Exceptions such as changed quantities or partial delivery need review rather than silent overwriting. A payment transaction reference adds evidence of the transfer but does not replace the purchasing documents.

Related concepts

B2B payment, Invoice, Payment reconciliation.

In practice

A concrete example

A distributor matches a supplier invoice to the purchase order and received quantities before approving the payment.

Technical notes & boundaries

A purchase order’s contractual effect depends on acceptance, terms and applicable law. The cited FAR rules are a specific US federal procurement example.

Go to the source.

Original references used for this definition. Product details and standards can change.

  1. 01US FAR: purchase ordershttps://www.acquisition.gov/far/13.302-1
  2. 02European Commission: invoicing requirementshttps://taxation-customs.ec.europa.eu/taxation/vat/vat-businesses/invoicing_en