Difference between a PO and an invoice?

The PO is issued by the buyer before delivery (what they want to buy); the invoice is issued by the supplier after delivery (what must be paid). Matching them (plus receipt) is 3-way match.

What does confirming a PO mean?

The supplier accepts the PO as-is or proposes changes (price, quantity, date). In EDI, this message is ORDRSP (order response).

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Operations Glossary
Purchase Order (PO)

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Category: Comerț B2B · Acronym: PO

Purchase Order (PO)

Quick answer: The official document by which you buy from a supplier: agreed products, quantities, prices and terms.

Key takeaways

Issue — the buyer creates and sends the PO
Confirmation — the supplier accepts or proposes changes (ORDRSP in EDI)
Delivery — accompanied by an ASN / DESADV
Invoicing — the supplier's invoice references the PO
Closure — after receipt and matching (3-way match)

What a purchase order is

A Purchase Order (PO) is the document issued by the buyer to the supplier, specifying products, quantities, prices, dates and delivery terms. It is the legal and accounting basis of the purchase.

PO lifecycle

Issue — the buyer creates and sends the PO

Confirmation — the supplier accepts or proposes changes (ORDRSP in EDI)

Delivery — accompanied by an ASN / DESADV

Invoicing — the supplier's invoice references the PO

Closure — after receipt and matching (3-way match)

Why it matters

A clear, confirmed PO prevents disputes: everyone knows what, how much, at what price and when. It is the anchor for receipt, invoicing and document matching.

How Azuvio helps

Azuvio publishes POs in the supplier portal or sends them via EDI (ORDERS), collects confirmations and links them to ASNs and invoices for automatic matching in the ERP.

Frequently asked

Difference between a PO and an invoice?: The PO is issued by the buyer before delivery (what they want to buy); the invoice is issued by the supplier after delivery (what must be paid). Matching them (plus receipt) is 3-way match.
What does confirming a PO mean?: The supplier accepts the PO as-is or proposes changes (price, quantity, date). In EDI, this message is ORDRSP (order response).

Where Azuvio fits

Related terms

Supplier portal — A platform where suppliers see your orders, confirm dates, send ASNs and invoices, and track their payments.
Supplier order confirmation — The supplier's response to a purchase order: acceptance, rejection or proposed changes.
3-way match — The control that compares the purchase order, the receipt and the invoice before approving payment.
Procure-to-Pay (P2P) — The end-to-end procurement cycle: request → order → receipt → invoice → payment → reconciliation.

Last updated: 2026-07-06