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Buyer creates a purchase order It serves two purposes. One is to ensure that the goods ordered match the ones that are received. Secondly, the PO number is matched to the invoice to make sure the buyer is charged the right amount for the goods.

The purchase order process consists of all the steps businesses take to create, approve, validate, manage, and track POs, from the moment a need is identified up to the point of delivery or sale.

Once your customer receives the goods, you invoice them for the fulfilled order, and they pay the purchase order financing company directly. Then, the PO financing company deducts its fees and pays you the rest.

The Four Types of Purchase Orders Include: Standard Purchase Orders (PO) Standard purchase orders are (not surprisingly) the most used type of purchase order, and the easiest to understand. ... Planned Purchase Orders (PPO) ... Blanket Purchase Orders (BPO) ... Contract Purchase Orders (CPO)

A purchase order (PO) is an official document a buyer sends to a seller. The purchase order binds the buyer to a promise to pay the seller for designated products at a future date. The purchase order form itself specifies the types and quantities of each product. Purchase orders are beneficial to both parties involved.