when an indentor raise for the  products / material he/she 
wants i.e product name , no of unit ,to the purchase 
officer. The puchase officer collect the quotation for the 
same from the different dealers and  issue the po to the 
lowest quoted person. 
                 The purchase order contain the 
specification of the product, rate of the product, unit of 
the product and total amount of the same. and also tax part 
should be mentioned wheather the afore said amount is 
included of Taxes or not.
               The PO also contain of Terms and Conitions 
depends upon the products. like payment terms, delivety 
time. warranty period, delivery place, any  performance 
bank guarntee needed before release of Payment.according to 
product the terms & Conditions changes.
 The p.o is legal document for the dealers, the dealers act 
according to the P.O . So before issuing  P O go through 
their  quotaion properly and issue the same to avoid 
unneccesary problems.