Which document is issued externally to confirm and specify quantities and prices for a purchase?

Which document is issued externally to confirm and specify quantities and prices for a purchase?

• A. Purchase Requisition
• B. Purchase Order
• C. RFI
• D. Contracting

Answer: (B)

The document that is issued externally to confirm and specify quantities and prices for a purchase is the Purchase Order. It is sent to the supplier and lays out exactly what is being bought, the quantities, unit prices, delivery terms, and other conditions. Once the supplier accepts the Purchase Order, it becomes the official, binding instruction to fulfill the order. Internal to the organization, a Purchase Requisition starts the process by requesting items but isn’t sent to the supplier. A Request for Information is used to gather data from potential suppliers, not to confirm a purchase. Contracting involves establishing a formal agreement for ongoing or multiple purchases, rather than the specific details of a single order.

The document that is issued externally to confirm and specify quantities and prices for a purchase is the Purchase Order. It is sent to the supplier and lays out exactly what is being bought, the quantities, unit prices, delivery terms, and other conditions. Once the supplier accepts the Purchase Order, it becomes the official, binding instruction to fulfill the order.

Internal to the organization, a Purchase Requisition starts the process by requesting items but isn’t sent to the supplier. A Request for Information is used to gather data from potential suppliers, not to confirm a purchase. Contracting involves establishing a formal agreement for ongoing or multiple purchases, rather than the specific details of a single order.