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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.
Related Terms. Written order or a formal demand by the user(s) of a good or service (which is not made available without a specific request) to the organization's purchase (or stores) department. It generally includes the brand and model name or number, description, quantity, and the required delivery date. Also called purchase requisition.