A standing or open purchase order is often created by the customer because it allows the customer to order quantities of a product (s) from the vendor over a period of time (usually a year) at a specified price. An open PO (purchase order) is often used for services, which occur over a period of time.

The typical sections of a purchase order are:

• Date


• The purchase order number


• Names and addresses of both the customer and the supplier/vendor.


• Description of the items being ordered, the cost for each, and the total amount.

Source: www.biztaxlaw.about.com