What is a "purchase order"?

A purchase order is a formal document that outlines the details of a purchase transaction between a buyer and a seller. It typically includes information such as the quantities and descriptions of the goods or services being ordered, the agreed-upon prices, delivery instructions, payment terms, and other relevant details. The primary purpose of a purchase order is to provide clear communication and documentation of the order, ensuring that both parties understand the terms of the transaction. This formal structure helps prevent misunderstandings and serves as a legally binding agreement once the seller accepts it.

In contrast, the other options do not accurately represent what a purchase order is. A request for customer feedback focuses on gathering opinions about a product or service rather than detailing a transaction. A summary of sales reports provides an overview of past sales activities rather than outlining future orders. A notice of shipment delays addresses logistical issues related to the delivery of goods rather than specifying the details of what has been ordered.