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Purchase order

nageshwara rao (ACCOUNTANT) (29 Points)

28 April 2015

IS purchase order is raised only for the credit sales

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3 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 28 April 2015

usually it does.. but there are no restrications.. you can do that for cash purchase also...!!

nageshwara rao (ACCOUNTANT) (29 Points)
Replied 28 April 2015

what is the purpose of purchase order sir

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 28 April 2015

Purchase order is given so that all conditions restrications wil b there in an document, rather than being telephonic.. you need documents approved.. A PO is a legal document...

If you place a order on phone and laters cancel it... no party can do anything of tis..but u have forwarded a approved PO to party.. Party can claim compensation if you cancels it