For office managers the PO is the control that stops uncontrolled spending: no PO, no order. It also gives finance a matching reference when the invoice arrives, which is what makes supplier payment straightforward.
The discipline only holds if raising a purchase order is fast. Where it takes a week, people buy first and ask afterwards, which is how uncontrolled spending starts.
Common questions
What does Purchase Order mean in simple terms?+
A purchase order, usually shortened to PO, is the document raised to commit to buying goods or services at an agreed price before the supplier invoices.
How does Purchase Order affect property and running costs?+
For office managers the PO is the control that stops uncontrolled spending: no PO, no order. It also gives finance a matching reference when the invoice arrives, which is what makes supplier payment straightforward.
What else should you know about Purchase Order?+
The discipline only holds if raising a purchase order is fast. Where it takes a week, people buy first and ask afterwards, which is how uncontrolled spending starts.