A purchase order is the document a buyer sends to commit to a purchase. It states what is being bought, how many, at what rate, by when, where to deliver and on what payment terms. Once the supplier accepts it, it is the agreed basis for delivery and billing.
What a good PO contains
- PO number and date.
- Supplier name, address and GSTIN.
- Item, HSN, quantity, unit and rate.
- Tax, delivery date and delivery address.
- Payment terms, such as 30 days from receipt.
- Who approved it.
A PO is a commercial document. It carries no GST liability by itself.
Why use one
For a small business, a PO turns a phone call into a record both sides can check. For a larger one, it is the control point: who may buy, up to what value, from which suppliers. When goods arrive, they are checked against the PO; when the bill arrives, it is checked against both.
In MatruOS
You raise a purchase order, it goes for approval, and once approved you send it to the supplier. Goods received are recorded against it line by line, and the supplier's bill is matched to the PO and the goods received.