The following is true about a Purchase Order except:

JAMB Commerce 2023 429 views
Source: JAMB · 2023

The following is true about a Purchase Order except:

  1. It is a legally binding document
  2. It is used to request goods from a supplier
  3. It confirms payment has been made ✓
  4. It outlines the terms of the sale
Explanation

A purchase order is sent by a buyer to a supplier to ask for goods. It states the items, quantity and terms, and once accepted it is binding.

It does not confirm payment. Payment is confirmed by a receipt, so this is the exception.

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