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A purchase order (PO) is a business document and the buyer’s first official offer to the seller that specifies the types, quantities, and agreed-upon pricing for items or services. It’s used to keep track of what items and services are purchased from outside vendors. Purchase orders are an important component of an enterprise resource planning system.

Indent is a purchase order that is usually placed through an agency (indent agent) and is subject to specific terms and conditions.

A purchase order does not constitute a contract in and of itself. If there is no prior contract, the seller’s acceptance of the order becomes a contract between the buyer and the seller.

Many purchase orders are no longer written on paper and are instead sent electronically over the Internet. Electronic purchase orders are commonly used to acquire products or services of any kind online.

Electronic Purchase Orders go under a variety of names. E-Procurement, E-Purchasing, and E-Purchase Requisition are some of the terms used to describe it. Electronic Purchase Orders are usually referred to by all of these words.

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