The WooCommerce Purchase Order Gateway extension adds a field to the checkout screen where your customer enters their purchase order number (provided by you directly to the customer in a manual agreement).
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Once a Purchase Order is entered, the order is placed in On-hold status until the store owner manually marks the order as Completed. The purchase order number is neatly displayed within order information screen, as well as the invoice.
Yes. You can tweak the instructions shown to customers via the WooCommerce / Settings / Payments / Purchase Order screen.
The purchase order field will appear in the checkout when a subscription product is in the cart, as long as manual renewals are enabled in the settings for Subscriptions. If manual renewals are not enabled, the purchase order field will not appear.
Purchase orders are often used in a business-to-business context. Thus, the purchase order number would need to be issued manually using your business’ own purchase order management system.