Which document is used to formally place an order with a vendor?

Which document is used to formally place an order with a vendor?

• A. Purchase order
• B. Receiving report
• C. Delivery invoice
• D. Quotation

Answer: (A)

Purchase orders are the formal document used to place an order with a vendor. They specify exactly what is being purchased, the quantities, agreed prices, delivery terms, and ship-to details, acting as the buyer’s instruction to the supplier. Once the vendor accepts the PO, it becomes a binding agreement and creates an auditable record for procurement, budgeting, and accounts payable. The other documents serve different roles: a receiving report records what actually arrives and is used to verify against the order and invoice; a delivery invoice is the bill for goods already delivered; a quotation is a price proposal that helps select a supplier but does not itself place the order.

Purchase orders are the formal document used to place an order with a vendor. They specify exactly what is being purchased, the quantities, agreed prices, delivery terms, and ship-to details, acting as the buyer’s instruction to the supplier. Once the vendor accepts the PO, it becomes a binding agreement and creates an auditable record for procurement, budgeting, and accounts payable. The other documents serve different roles: a receiving report records what actually arrives and is used to verify against the order and invoice; a delivery invoice is the bill for goods already delivered; a quotation is a price proposal that helps select a supplier but does not itself place the order.