What is a Purchase Order, and why is it important in the procurement process?
A Purchase Order (PO) is an official document issued by a buyer to a vendor, confirming the intent to purchase specific goods or services. It includes critical details such as:
Quantity and specifications of items
Unit prices and total value
Delivery timelines
GST/HSN details
Payment terms
In the procurement process, a PO serves as a legal and commercial agreement between the buyer and supplier. It helps avoid miscommunication, ensures both parties are aligned, and allows systematic tracking of materials and costs.
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A Purchase Indent is an internal request raised to initiate the purchase of raw materials or finished goods. It formally documents what items are needed, how much is required, why itβs needed, and by when. Instead of creating a Purchase Order (PO) ...