Home › Glossary › Zoho Inventory › Purchase Order
Zoho Inventory

Purchase Order

A Purchase Order (PO) in Zoho Inventory is a formal document sent to a supplier requesting the purchase of specific items at agreed quantities and prices. It creates a legally binding commitment and forms the basis for receiving goods and matching supplier invoices.

What is a Purchase Order in Zoho Inventory?

A Purchase Order is the document that initiates the procurement process. It tells the supplier exactly what you want to buy, in what quantity, at what price, and when you need it. When the supplier accepts the PO, it becomes a binding agreement. Zoho Inventory tracks POs from creation through goods receipt and supplier invoice matching.

Purchase Order lifecycle

  1. Draft: PO created but not yet sent.
  2. Issued: PO sent to supplier.
  3. Partially Received: Some items from the PO have arrived; others are still pending.
  4. Received: All items received in full.
  5. Billed: Supplier invoice matched and recorded against the PO.
  6. Closed: Fully received and billed; no further action needed.

Three-way matching

Zoho Inventory supports three-way matching: the supplier’s invoice is matched against the original PO and the goods receipt note. Only when all three documents agree on quantities and prices is the invoice approved for payment.

Need help implementing this in Zoho?

Aaxonix is a certified Zoho implementation partner based in Pune. Architecture-first, no surprises.

Book a Free Consultation →
← Back to Glossary