Purchase Order (PO)

A purchase order (PO) is a document the client sends to you that formally authorizes the engagement. It specifies what's being purchased, the agreed price, payment terms, and delivery expectations. In corporate procurement, no PO often means no payment — the finance team won't process your invoice without a matching PO number.

For freelancers working with mid-size or enterprise clients, understanding the PO process is essential. The typical flow: you send a proposal or quote, the client's procurement team issues a PO against it, you reference the PO number on every invoice you send, and their accounts payable matches your invoice against the PO before releasing payment.

A PO protects both sides. For the client, it's a budget control mechanism — it caps the spend at the approved amount. For you, it's a written commitment to pay. If a client issues you a PO for ₹3,00,000 and you deliver the work, they're contractually obligated for that amount even if the project sponsor leaves the company.

Always ask new corporate clients: "Does your company require a purchase order?" If yes, get the PO before starting work. Include the PO number on every invoice. If the PO amount doesn't cover scope changes, request a revised PO before doing additional work.

Smaller clients and startups rarely use POs. In those cases, a signed statement of work or accepted proposal serves the same purpose.