What is a purchase order and when to use it

A purchase order (PO) is a formal request to buy goods or services from a vendor. It documents what you want to purchase, how much, at what price, and when you need it—before you actually receive or pay for anything.

Why purchase orders matter

Purchase orders create a clear paper trail between you and your vendor. They help you:

• Plan inventory: Know what's coming in and when, so you don't run out of stock
• Control costs: Lock in agreed prices and quantities upfront
• Match invoices: When the vendor's bill arrives, you can verify it matches what you ordered
• Track spending: See all open commitments to vendors at a glance

Without a purchase order, you might order verbally or by email, then receive an unexpected invoice for a different amount or quantity.

How it works in Usystems

When you create a purchase order in Usystems, you:

1. Choose a vendor and add line items (products/services, quantities, and prices)
2. Save the order—it starts in Draft status
3. When ready, confirm the order (moves to Open status)—this tells you it's been sent or acknowledged
4. As you receive goods, the order moves toward Received and finally Completed

You can see how much of each item has arrived, and the system tracks which invoices have been matched to the order.

When to use a purchase order

Use a purchase order when:

• You're buying inventory items (products you'll resell or use in production)
• You want to formally commit to a purchase with a vendor
• You need to plan ahead—the vendor needs lead time to prepare

You don't need a PO for:

• Occasional small purchases from a supplier (though you may choose to anyway)
• Walk-in vendor invoices where you pay on the spot

To get started, navigate to Purchase Orders → New Purchase Order Open in Usystems and add your first order.