What is a Purchase Order and how it is used among companies in America

In America, the Purchase Order is used to confirm orders in sales between companies. PO is widely used in every industry and for every type of product

The Purchase Order is the standard method used in the U.S. market to place orders and is by far the most popular among U.S. companies. The Purchase Order includes all details about the products or services. At the very least, the Purchase Order will consist of the following:

• Header with the business name and address of the seller;
• Business name and address of the buyer;
• The date of the order;
• Tracking number;
• Product number, model number, or SKU;
• Quantity of the item;
• Price of the item;
• The required delivery date for the order;
• Billing Address;
• Shipping Address;
• Subtotal price including taxes, shipping charges, discounts, and other adjustments.

The Purchase Order must also include the main Terms of Sale [or Terms and Conditions], typically printed on the back of the Purchase Order. The Purchase Order must also be signed twice: first on the front to confirm the products to be purchased, and second on the back to accept the Terms of Sale. In America the Purchase Order will generate at least three other documents:

• Order Confirmation;
• Invoice;
• Packing Slip

The different types of Purchase Order used in America

• Standard Purchase Order: are the most commonly used type.
• Planned Purchase Order: Used to lock in or reserve products that you intend to purchase in the coming months.
• Blanket Purchase Order: a global purchase order means a commitment to purchase a number of products up to a specified value.
• Contract Purchase Order: specifies the terms of an impending purchase order that will then be confirmed with a Standard Purchase Order.