What is a written order by a buyer for merchandise called?

A written order by a buyer for merchandise is referred to as a purchase order. This document serves as an official communication from the buyer to the supplier, detailing the types and quantities of goods requested, along with the agreed-upon pricing and any relevant terms. The purchase order is essential for initiating the procurement process because it effectively signals the buyer's intent to purchase and can serve as a legally binding contract upon acceptance by the seller.

Understanding this concept is crucial in the context of business transactions, as purchase orders help maintain clear records for both buyers and sellers, ensuring that orders are fulfilled accurately and that there is accountability in the procurement process. The purchase order also lays the groundwork for further documentation, such as invoices and order confirmations, which are used later in the transaction cycle.