What does it mean when one pays for something with a purchase order?
Answer:
Many places won't allow you to do this.we usually write up a purchase order, give it to the finance office and they give us the money to go buy the item we want. Otherwise.
First, you must create a corporate account and apply for a credit account. You will receive a credit line when your application for a credit account is approved. Once the account is activated, you will be given the opportunity to enter a purchase order number in a field on the order form when you place your order. There is usually no need to mail a hard copy of your purchase order.
Amazon.com gives you a good explanation of how to do this here:
http://www.amazon.com/gp/help/customer/d.
good luck!
it means they have an account with some sort of credit limit, and will promise to pay when they receive the bill at the end of the month.
It is a business to business transaction, perhaps not subject to sales tax, accounting depts. clear the transaction.
Businesses, government organizations etc. use purchase orders.
A purchase order specifies quantity, specifications ( or catalog numbers ) of what is ordered, delivery information etc.
In a rush they will call the supplier, give an oral order number and the final paper work will come down later.
OLD Guy
A Purchase Order (abbreviated PO) is a commercial document issued by a buyer to a seller, indicating the type, quantities and agreed prices for products or services that the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a once-off contract between the buyer and seller so no contract exists until the PO is accepted. POs usually also specify additional conditions such as terms of payment, Incoterms for liability and freight responsibility, and required delivery date.
Usually a purchase order is a promisarry note.
The company issuing it usually requires a purchase order signed by an authorized person before their account department will issue a cheeck.
In most cases, the company accepting the purchase order has already cleared the other company for a credit line.
They (usually a business) has a direct billing account with the company. The company sends a bill every month to the business and it is usually discounted.
Purchase orders (or POs) are used by the business to keep track of expenses, to trace materials for quality control purposes, and to prevent employees from racking up the account.
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