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What is a Purchase Order (PO)?

A purchase order (PO) is a document issued by a production (the buyer!) to a seller, indicating the type, quantity, and agreed price for products or services that the seller will provide to the buyer.
Dec 15
 It is essentially a formal request for a vendor to supply certain goods or services under specific terms and conditions. A purchase order typically includes the following information:

1. Purchase order number for tracking and reference
2. Buyer and seller information, including names and addresses
3. Date of issue
4. Description of the goods or services being purchased
5. Quantity of the goods or services
6. Agreed-upon price per unit and total amount
7. Delivery date and location
8. Terms of payment and any discounts or incentives
9. Any specific terms and conditions, such as warranties or return policies
The purchase order serves as a legally binding contract between the buyer and the seller once it is accepted by the seller. It helps streamline the procurement process by providing a clear record of the agreed-upon terms, which can prevent disputes or misunderstandings between the parties involved. Moreover, the purchase order acts as a reference point for both the buyer and the seller throughout the transaction, from the initial order placement to the delivery and payment stages.

In Film & TV we no longer use written POs, these have been replaced by digital purchase order (PO) systems. These systems are a software-based solution that facilitates the electronic creation, management, and processing of purchase orders within your accounts departments. The Digital PO systems aim to streamline and automate the procurement process, enabling the project to efficiently manage their purchasing activities in a digital environment. This system typically replaces traditional paper-based methods with a more efficient and accessible electronic platform.

So what do we mean by “Automate the procurement process”? Well when you write a PO now, as soon as it is finished we can automatically send it to your PPS or Producer for sign off… as soon as one person has signed, it automatically emails the next, meaning that the only hindrance to sign off is how long it takes someone to get round to looking in their inbox. If you are waiting for your PO to come back, it is sometimes worth checking that it hasn’t gotten stuck somewhere in the chain.