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What is a purchase order (PO)?

A purchase order is a document prepared by the company that lists out the items they want to purchase from vendors. Typically, the purchase order would be filled out by someone in the purchasing department and would then be approved by the Chief Financial Officer or equivalent individual.

The purchase order is then sent to the vendor. One of the checks that the company should do is verify that the invoice received from the vendor matches the quantity that was requested in the purchase order.


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