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Definition of Purchase Order. A document used by the buyer to order required goods from the supplier is known as a purchase order. The order comprises of the list of products or services along with its agreed price the seller would offer. If accepted, it becomes a binding contract between both the parties.
The requisition is your request for the good or service. An order is a formal authorization to purchase the good or service. Your purchasing department creates a purchase order, which in turn a supplier receives. A sales order is generated orders that you can track until you receive the good or service.