A draft purchase order is a purchase-order record that has not yet completed approval or been formally issued to the supplier. It can be edited or canceled without representing an authorized commitment.
What is included in the draft?
It may contain supplier, items, quantities, prices, currency, delivery details, accounting codes, tax, terms and supporting requisition references.
When does it become valid?
The organization’s workflow defines when the order becomes approved and issued. A saved record, generated number or internal preview does not necessarily authorize the supplier to proceed.
Why distinguish draft from issued?
Clear status prevents premature production, duplicate orders and unauthorized commitments. Supplier-facing documents should show whether they are drafts.
What controls should apply?
Restrict supplier transmission, require delegated approval, validate budget and contract terms, and retain version history.
What should happen after approval?
Lock or version key terms, record the issue timestamp and recipient, and route later changes through a controlled amendment process.
