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Purchase order

A purchase order is a buyer's request or commitment to purchase specified goods or services on stated terms. A purchase order typically identifies the supplier, quantity, price and delivery terms. The business can compare it with the goods received note and invoice as part of its controls. Recognition depends on the actual transaction and applicable accounting requirements. Matching these documents can reveal incorrect quantities, prices or duplicate supplier invoices.

Worked example

A business orders 100 units from a supplier.

Common mistake

The order alone is not an invoice or proof that goods have been received.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA F1 Supporting July 2027–August 2028
ACCA F2 Direct July 2027–August 2028
ACCA F3 Supporting July 2027–August 2028
ACCA FA Direct September 2026–June 2027
ACCA K1 Direct July 2027–August 2028
FIA FFA Direct September 2026–June 2027

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