The following flow is the Oracle Apps PO flow.

Any Business should/will follow the following steps while dealing with PO. -------------------------------------------------------------------------Step 1: Requisition When the company/person wants to purchase any item a Requisition is created Step 2: RFQ (Request For Quotation) Once Requisition is approved then the company/person will Request for Quotation (RFQ) specifying the required item, quantity.... etc and send them to the vendors who can supply the item Step 3: Quotation Once the vendor receives the RFQ then he will prepare the Quotation and send it back to the company/person Step 4: Purchase Order (PO) After receiving different quotations from different vendors company/person will go through the quotations and approves the quotation that is best suited/reliable for the company/person. Based on the approved quotation Purchase Order is generated to the vendor. Now the vendor will supply the item. Step 5: Receipts Once the Item is shipped the vendor will raise the Receipt to the company/person. Step 6: Invoice Based on the receipt Invoice is generated. For this invoice the company/person will make Payments. --------------------------------------------------------------------------