What type of transaction means a customer is committing to purchasing items from a supplier at a specific price?

A purchase order is a document that outlines a customer's commitment to buying products or services from a supplier at a specified price. It serves as a formal request and details the items, quantities, and agreed-upon prices, making it a crucial tool for managing procurement and ensuring both parties are aligned on the terms of the transaction.

This commitment through a purchase order helps organizations maintain control over their purchasing processes, allows suppliers to plan their inventory and deliveries accordingly, and provides a clear record for both parties in case of discrepancies.

In contrast, options like vendor credit refer to an amount credited back to a buyer for returned items or discounts, a bill typically represents a request for payment after the goods or services have been delivered, and an expense denotes an incurred cost without the specific commitment to purchase associated with a purchase order.