What’s PO Number? Definitions, examples and FAQs

The term “PO number” has certainly come up in conversation at some point if you work in purchasing, procurement, or supply chain management. But what precisely is a PO number, and why is it crucial in trade dealings? This blog will explain the word, give some usage examples, and address some frequently asked queries regarding PO numbers.

What’s a PO Number on invoice?

A PO number (purchase order number) is a unique code of a selected purchase. A purchase order is an important document issued from a buyer to a seller. It includes the type, quantity, and agreed-upon price of goods or services that the buyer wants to buy. The PO number meaning tracks and references the purchase order throughout the procurement process, from the initial request to the final payment.

Is PO number required?

For a number of reasons, purchase order (PO) numbers are a crucial component of the procurement process. The file is helping to understand that the buyer and seller are in agreement over the particular transaction. All parties involved—the buyer, the supplier, and the accounts payable division—can refer to the PO number as a point of reference.

In addition, PO numbers can aid to fight against fraud and errors. It is simpler to track the status of the order and spot any differences if each purchase order has a distinct identifier. This can aid in avoiding errors that could cost the buyer money, such as overbilling, duplicate orders, and other types.

Where to Include a P.O. Number on an Invoice?

You should add the P.O. numbers on the file of purchase order. You can either add PO numbers on left or right on top. When you print or scan your order, you should always include the PO number.

How to create a PO Number?

You can either create POs manually or use purchase order generators.

1. Manual PO Number creation

Firstly, you should prepare a purchase order number manually using a numbering scheme that makes sense for your company such as XYZ12345 but doing this can be time-consuming and easy to make mistakes. By using a purchase order generator template, such as the one offered by Someka.net, you can automate the process and ensure that your PO numbers are accurate and consistent.

2. Automatic PO Number generators

You can also use automatic PO number generators. These kind of tools, will help you to create codes for your purchase orders. Also, Someka’s Purchase Order Generator can create tons of PO Numbers without any confusion.

Why to use a PO Number?

Whether you invest in a purchase order management system or create PO numbers manually, adopting PO numbers can assist your procurement process to run more smoothly and enhance your business operations as a whole.

Why PO Numbers Matter

For a number of reasons, these are a crucial component of the procurement process. In addition, these can help to reduce fraud and errors. It is simpler to track the status of the order and spot any differences if each purchase order has a distinct identifier. Someka’s Packing Slip Generator help you to track and identify products easily. This can aid in avoiding errors that could cost the buyer money, such as overbilling, duplicate orders, and other types. Beside being a mandatory element, PO numbers also simplify your bookkeeping processess.

Examples of PO Number

Depending on the business and the style of the purchase order, PO numbers can take many key formats. So, some businesses employ a sequential numbering scheme in which numerical value gives each PO number in order. Others could mix letters and numbers to get a more distinctive identity.

Say, for illustration, that XYZ Manufacturing has to buy some raw materials for their manufacturing process. They send their supplier, AYZ Suppliers, a purchase order with the following information:

Purchase Order Number: PO-13456

Supplier Name: AYZ Suppliers

Date: 07.02.2023

Description: 100 units of raw material B

Price: $20 per unit

In this case, PO-00123 is the unique identifier for this particular purchase order. If XYZ Manufacturing needs to follow up with AYZ Suppliers about the order, they can reference the PO number to ensure they are discussing the correct purchase order.

FAQs on Purchase Order Number

1. Is PO number legally binding?

No, PO Numbers are to help you track your orders and for your suppliers.

2. Is the invoice number same as PO number?

No, PO numbers are different than invoice numbers. Invoice number is used after the sales process finishs. On the other hand, purchase order numbers are before the sales process starts. Invoice po number differs on the usage areas.

If you want to track your commercial invoices, Someka’s Commercial Invoice Tracker is here to help.

3. What’s a PO Number on Amazon?

Amazon sellers, create POs when they sell a product on Amazon. Those purchase order #’s are only for sellers to track your demand easily.

Tracking the Inventory

After you finalise your purchases, you will need to arrange your inventory.  Excel can help you with it. Here is the blog: Can Excel Track Inventory ?