What are the characteristics of a purchase order?

A purchase order (PO) is a formal document issued by a buyer to a seller, indicating the details of products or services to be purchased. Key characteristics include a unique PO number for tracking, a description of the items, quantities, agreed prices, delivery instructions, and payment terms. It serves as a legally binding contract once accepted by the seller, ensuring clarity and reducing the risk of disputes. Additionally, POs help in inventory management and financial planning for both parties.