PO Full Form is Purchase Order. PO is an official or commercial document, which is issued by the buyer to the seller. It has all details of the type of transaction, items, number of items or quantity, price agree, and more. Issuing PO constitutes to the legality of the transaction. The seller accepts the PO to confirm the contract. A PO is applicable to transactions and services that exceed a certain amount.
Companies make use of purchase orders for many reasons. PO is an explicit communication of the transaction in detail. The purchase order protects the seller, in terms of proper payments from the buyer. Currently, most companies opt for electronic PO to cope up with the trend and save the environment.