A purchase order (PO) is a commercial document by which a buyer formalises a firm order. It specifies the references of the products or services, the quantities, the agreed unit prices, as well as the delivery and payment terms. Unlike a quote, which is merely a revocable commercial proposal, a purchase order embodies a commitment that binds both parties as soon as it is accepted.
The term can be read from two perspectives. In the purchasing (procurement) cycle, the company issues a purchase order to its supplier once it has selected an offer. In the sales cycle, the "customer purchase order" corresponds to the order placed by the customer — often by accepting a quote — and triggers picking, delivery and then invoicing.
Within a management chain, the purchase order is a central link in the document trail: quote → purchase order → delivery note → invoice. It serves as the reference for the "order / receipt / invoice" three-way match that secures purchasing, and constitutes a supporting accounting document. The applicable VAT, discounts and any down payments are generally shown on it.
In eyeot, sales management lets you turn an accepted quote into an order, whose information then flows through to invoicing and stock without any re-entry.