Purchase Orders A Purchase Order (often abbreviated as PO) is a record of a request to purchase a product from a Vendor. It contains one or more SKUs, the quantity desired for each and the price offered for them.
A Purchase Order progresses through set stages:
- It starts of as simply Saved This state indicates that the PO has been saved but no further action has been under-taken.
- Once it has been sent to the Vendor, it transitions to Sent.
- Once a confirmation has been received from the vendor it becomes Confirmed At this point the PO may be considered a legal contract between the Company and the Vendor.
- Once the ordered SKUs are received, the PO will be marked as either Partial or Complete. A Voucher is then created from the Purchase Order.
A voucher is a record that the Company owes a vendor funds. Like Purchase orders they transition through states; Pending, Paid and In Dispute