Also known as: PO
A Purchase Order is a formal document a broker issues to authorise and commit spend on a partner's services before an invoice is raised. It links approved budget to a specific deliverable or campaign.
A purchase order is issued by the broker's procurement or finance function once a spend has been internally approved. It carries a unique PO number, references the underlying scope of work, and commits a specific budget amount to a named partner and deliverable. It exists before the partner ever raises an invoice.
For service-based partners such as content studios, event producers or webinar partners, the PO is the hard evidence that budget was actually authorised. The practical risk it removes is doing the work and then discovering finance will not pay because no PO ever existed, since many broker accounts-payable systems enforce a three-way match between the PO, the delivery and the invoice. The rule of thumb is simple: if the broker runs procurement, secure the PO number before starting billable work, and quote it on every invoice so payment cannot stall on a paperwork gap.
The broker and partner settle the deliverable and price, usually via an SOW.
The broker's procurement or finance function approves the budget.
Procurement raises a purchase order with a unique number referencing the scope.
The partner starts delivery only once the PO number is in hand.
The partner quotes the PO number so the invoice matches and payment clears.
Why it matters for partnership: For service-based partners, such as content studios or event partners, a signed PO is proof the spend is internally approved. Delivering work without a PO risks doing the work and then finding no budget was ever authorised to pay for it.
A broker's marketing team wants a partner to produce a webinar series. Procurement issues a PO for $8,000 referencing the SOW; the partner starts work only once the PO number is in hand.
| Aspect | Purchase Order | Invoice |
|---|---|---|
| Issued by | The buyer (broker) | The seller (partner) |
| Timing | Before the work | After delivery |
| Purpose | Authorise and commit spend | Request payment |
| Contains | PO number and budget | Amount due and terms |
Never begin invoiced service work without a PO number if the broker uses procurement; 'we'll sort the paperwork later' is how partners end up unpaid.
Starting delivery on a verbal go-ahead when the broker's finance system will not pay any invoice that lacks a matching PO.
Rarely; POs apply to fixed-fee service work, not pure pay-on-performance commission deals.