Why Do You Need a Purchase Order?

A purchase order is essential for streamlining the procurement process by clearly outlining the specifics of a purchase agreement, including the quantity, price, and delivery terms. It serves as a legal document that helps prevent misunderstandings between buyers and suppliers and provides a basis for verifying that the goods or services received match the agreed-upon terms. Utilizing purchase orders also aids in financial planning and record-keeping, facilitating better budget management and audit compliance.