What name is given to the purchasing document completed by the buyer and given to the supplier?

What name is given to the purchasing document completed by the buyer and given to the supplier?

• A. FOB origin
• B. Purchase requisition
• C. Invoice
• D. Purchase order

Answer: (D)

When a buyer formalizes what they want to purchase and forwards it to the supplier, the document they use is a purchase order. This form explicitly communicates what is being ordered, how much, at what price, and under which delivery terms and location. It turns the buyer’s intent into an official request and, once the supplier accepts it, becomes a binding agreement that guides fulfillment and invoicing. Other terms serve different roles. A purchase requisition is an internal request to start the purchasing process, not something sent to the supplier to place the order. An invoice is a bill issued by the supplier after goods or services are delivered, requesting payment. FOB origin is a shipping term indicating where the responsibility and ownership transfer during transit, not a purchasing document.

When a buyer formalizes what they want to purchase and forwards it to the supplier, the document they use is a purchase order. This form explicitly communicates what is being ordered, how much, at what price, and under which delivery terms and location. It turns the buyer’s intent into an official request and, once the supplier accepts it, becomes a binding agreement that guides fulfillment and invoicing.

Other terms serve different roles. A purchase requisition is an internal request to start the purchasing process, not something sent to the supplier to place the order. An invoice is a bill issued by the supplier after goods or services are delivered, requesting payment. FOB origin is a shipping term indicating where the responsibility and ownership transfer during transit, not a purchasing document.