Handelot glossary part 1

A deal is concluded if the involved parties exchange incorporation documents, a purchase order, and a proforma invoice.

A purchase order (PO) is a commercial document marking the first official offer issued by a buyer to a seller. It indicates types, quantities, and agreed prices for products or services. A PO is used to control the purchasing of products and services from external suppliers. In other words, it is the confirmation of purchasing certain stocks from a particular supplier.

A proforma invoice (PI) outlines how much a certain number of goods or services will cost. If the supplier is sending a PI, it means they physically possess the goods in question in their stockroom if it is not mentioned otherwise within the document.

If the customer is sending the PO, it means he agrees to the terms of the supplier and to take the stock despite and currency and price fluctuations. By law, this is a confirmed contract and a closed transaction.