PO stands for Purchase Order, an important document used in order management. It is a written agreement between a buyer and seller that specifies the exact goods or services to be delivered and the price to be paid.  A PO serves two primary purposes: it provides an efficient way for buyers and sellers to communicate their needs and creates a legal record of the transaction. It also helps protect both parties from potential disputes or misunderstandings by providing clear agreement details. Usually, when a customer places an order, they provide their supplier with a PO clearly outlining what they're ordering and how much they'll pay for it. The supplier then reviews the PO, makes any necessary changes, sends an approved version back to the customer, and processes the order accordingly. The PO also indicates that goods have been ordered and received, which may be required for financial records. In most cases, the PO should include detailed information about the product(s) being purchased, including item name, description, quantity requested, and unit cost. In addition to product information, POs should include details such as the delivery date and payment terms.