In this article
The purchase order is often overlooked by Moroccan very small businesses, in favor of a simple phone call or an informal email. Yet it is one of the most useful documents for securing your purchases, framing the supplier relationship and avoiding disputes. Here is everything you need to know.
1. What is a purchase order?
A purchase order (PO) is a commercial document issued by a buyer to a supplier. It formalizes an intention to buy under precise conditions: products or services ordered, quantities, agreed prices, delivery deadlines and payment terms.
Unlike a quote (which comes from the seller), the purchase order is initiated by the buyer. Once accepted by the supplier, it becomes a commercial contract binding both parties.
2. Why issue a purchase order?
Legal security
A PO signed by both parties is written proof of the agreed conditions. In the event of a dispute (contested price, incomplete delivery, missed deadline), it is your first line of defense before a commercial court.
Purchase control
In companies with several buyers, the PO makes it possible to impose an approval workflow: only orders with a PO approved by management are processed. This prevents unauthorized purchases and makes budget control easier.
Accounting reconciliation
When the supplier invoice arrives, your accountant can check that the amounts match the original PO. This 3-point check (PO / delivery note / invoice) is called three-way matching — a standard practice in accounts payable.
Deposit request
A supplier may require a deposit before starting production or delivering. The PO is the supporting document your bank will use to authorize the transfer.
3. When to issue a purchase order?
The PO is particularly useful in these situations:
- Recurring orders: same supplier, same product — the PO standardizes each transaction
- Large orders: above a certain amount (e.g.: > 5,000 MAD incl. VAT), a written PO is essential
- Critical deadlines: when the delivery date is a contractual commitment
- Several suppliers competing: so that each one responds on the same basis
- Public procurement contracts: often required by administrations
4. Details to include in a purchase order
- "PURCHASE ORDER" heading — with a reference number (e.g.: PO-2026-0042)
- Issue date
- Full details of the buyer: company name, address, ICE, IF
- Full details of the supplier
- Precise description of the products or services: reference, designation, unit
- Quantities ordered
- Agreed unit prices excl. VAT
- VAT rate and VAT amount
- Total excl. VAT and incl. VAT
- Any discounts (as a % or as an amount)
- Desired delivery deadline or due date
- Delivery address
- Payment terms (deadline, payment method)
- Buyer's signature (and ideally a stamp)
5. Purchase order vs proforma invoice vs quote
| Document | Issued by | Role |
|---|---|---|
| Quote | Seller/Supplier | Commercial proposal from the supplier |
| Proforma invoice | Seller/Supplier | Formalized offer for financing or customs |
| Purchase order | Buyer | Official purchase confirmation |
| Final invoice | Seller/Supplier | Receivable due after delivery |
The typical flow: Quote → Purchase order → Delivery note → Invoice → Payment
6. Is a purchase order really binding?
Yes, as soon as it is accepted by the supplier (signature, confirmation email, acknowledgment of receipt). Article 490 of the Moroccan Code of Obligations and Contracts (DOC) provides that a contract is formed by the meeting of offer and acceptance. An accepted PO is therefore a contract.
In practice:
- The supplier can refuse or propose a counter-offer (different deadline, quantity or price)
- If the supplier does not deliver in accordance with the PO, you have a remedy
- If you cancel a PO that has already been accepted, you may owe cancellation fees
Manage your purchase orders with Billora
Billora lets you create professional purchase orders in a few clicks: select the supplier, add the lines, and get a PDF ready to send. Once the goods are received, you can generate the corresponding expense directly from the purchase order.
Also read: Paying suppliers in Morocco: legal deadlines, payment methods and tracking what you owe.