Proposed Purchase Order (PPO)

A preliminary document that contains information related to items, quantities, prices, and terms and conditions for the required parts or services. The customer issues a PPO to the supplier once the bidding process is completed. Based on the supplier response, the customer can approve or reject the PPO. The PPO gets converted to a purchase order (PO) or a discrete purchase order (DPO), if the customer approves the PPO.