In a Medical Stores system, what is the difference between an indent and a purchase order?

• A. An indent is an internal requisition from a department to the Medical Store; a purchase order is the external contract issued by the Medical Store to a supplier to procure goods.
• B. An indent is the external contract with a supplier; a purchase order is the internal requisition.
• C. An indent is the purchase order number; a purchase order is the internal requisition.
• D. An indent is a funding approval; a purchase order is an invoice.

Answer: (A)

The key idea is that an indent starts internal demand, while a purchase order formalizes an external purchase. An indent is an internal requisition from a department to the Medical Store, naming what items are needed and in what quantities. It doesn’t bind a supplier or create a contract; it just signals the requirement within the organization. After the indent is reviewed and approved, the Medical Store issues a purchase order to a supplier. The purchase order is a formal external contract that binds the supplier to deliver the specified goods at agreed prices and terms, detailing items, quantities, delivery dates, and payment conditions.

So, the indent initiates the internal demand, whereas the purchase order secures the actual procurement from an external supplier. The indent is not an external contract, the purchase order is not merely an internal requisition, the indent is not a PO number, and a purchase order is not an invoice.