SweetFA

Term Explainer

What is a purchase order (PO)?

A purchase order is a customer-issued reference approving work or goods before invoicing.

A PO is usually issued by the customer before work starts or before billing.

Some businesses will not pay an invoice unless the PO number is included.

If a client provides a PO, add it to the invoice to reduce payment delays.

Guidance only. PO usage depends on customer procurement rules and contract terms.
Review status: Pending legal review
Last reviewed: 2026-03-05