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What is a purchase order confirmation?
Whenever a buyer places an order, a purchase order is issued. The supplier in turn generates a purchase order confirmation to confirm the purchase order.
What is a purchase order?
A purchase order (PO) is an administrative document that specifies the quantity, quality, unit and total price of goods or services that suppliers must provide. The purchase order also states the general terms and conditions such as delivery terms, price, payment terms, payment means, legal conditions etc.
What is a purchase order confirmation?
A purchase order confirmation (POC) is the conclusion of the negotiation between a buyer and a supplier about the sales price and delivery date and hour of a purchase order a buyer sent. The confirmation outlines the acceptance (total or partial) of the conditions set by the buyer in the purchase order. If the purchase order confirmation confirms the purchase order totally, then the parties are legally bound to the transaction as per the terms set therein.
Why is a purchase order confirmation important?
Purchase order confirmations serve a legal as well as an operational function ensuring smooth procurement activities.