Skip to main content

What is a purchase order?

How ordering, receiving and billing fit together.

A purchase order is what you send your supplier: these items, this many, at this price, by this date. Everything that happens afterwards — the delivery, the invoice, the chasing — hangs off it.

What it gets you

Confirm an order and Brahmin Solutions starts counting that stock as on its way. It shows up in the Expected column against those items, so anyone looking at stock levels can tell the difference between we have none and we have none, but 200 land on Tuesday.

That distinction is most of the value. Without it, every stock question ends with someone walking over to ask the buyer.

Ordering is not receiving

A purchase order does not put anything in your warehouse. Only receiving does that.

The order records what you asked for. The receipt records what actually turned up. Keeping them separate is what lets you see that you ordered 100 and only 60 arrived — which is exactly the thing you want to know before the customer calls.

Three documents, one order

Document

Records

Created when

Purchase order

what you asked for

you place the order

Receipt

what arrived

the delivery turns up

Bill

what you owe

the invoice arrives

One order can have several receipts and several bills — deliveries come in stages, and suppliers invoice on their own schedule. They do not have to match up, and they do not have to happen in order. Enter the invoice before the goods arrive if that is how your supplier works.

Related articles

Did this answer your question?