Purchase Order (PO)

A purchase order (PO) is a formal document issued by a buyer to authorize the purchase of goods or services from a supplier under specified terms. In a restaurant, a purchase order records what is being ordered, the quantities, agreed prices and delivery requirements. It helps control spending and provides a reference for receiving and invoice reconciliation.

What a purchase order includes

• PO number and date: a unique reference and the date the order was issued.
• Buyer and supplier details: business names, contact information and delivery location.
• Product specifications: item description, brand, grade, size, pack format and approved substitutions.
• Quantity and unit: case, kilogram, litre, each or another clearly defined unit of measure.
• Price and terms: agreed unit price, currency, discounts, freight, taxes and payment terms where applicable.
• Delivery details: requested date, time, receiving instructions and any special handling requirements.
• Authorization: the person or system approving the purchase under the business’s purchasing policy.

Example in restaurant purchasing

A restaurant may issue a PO for 20 kg of salmon at an agreed price per kilogram, with a specified product grade, delivery date and receiving location. The receiving employee checks the delivered product against the PO and records any shortages, substitutions or quality issues.

Purchase order versus invoice

A purchase order authorizes and specifies what the business intends to buy. A supplier invoice requests payment for what the supplier says was delivered. Comparing the PO, receiving record and invoice helps identify quantity and price discrepancies.

Why purchase orders matter

Purchase orders support budget control, approval workflows, supplier communication, inventory planning and audit records. They are particularly useful when several employees can order goods or when the business operates across multiple locations.

Chef’s tip: specify pack size and unit of measure clearly. A price per case is not comparable with a price per kilogram unless the case weight and usable yield are known.