Purchase order

An order (English: Purchase order ) is the request of a customer to a manufacturer, dealer or service provider for the provision of a product or service. The order ends in most cases in a contractual relationship through which commit both sides to settle the mutual agreements.

Often, the procurement process must previously by a purchase requisition (short form often requisition ) are triggered in the ordering company, provided the need for the goods or services ordered is present. Only on the basis of this requisition is triggered the corresponding order from the shopping.

As part of the production planning and control, it is also called external orders or sales orders unlike internal construction contracts (see contract manufacturing ).

Order types

One of the distinctions between the following types of orders: A standard purchase order is an optimal order, it is ordered so much that the storage costs will not rise by dead money, but enough goods must be available to meet customer requirements. A small order is to order a small quantity. To order, see contract supplier's contract. A limit order is an order with a value limit ( upper limit ) and a term instead of a delivery date. A stock transfer order is an order for the rearrangement of goods or other materials from one plant to another plant or from one camp to another camp.