A purchase order (PO) is a pre-arranged document made by potential buyers that they send to manufacturers. It is a written outline of services and products that the potential buyers intend to buy from particular manufacturers. The terms of a purchase order usually consists of the name and address of the buyer, the dollar amount, and an itemized list of the goods or services being purchased. Some purchase orders specify the date of the transaction, other require a set date and time. The specific details may vary from buyer to buyer.
A PO typically provides a detailed list of the goods to be purchased and their expected delivery dates. The buyer submits a set of purchasing information, including his or her company identification number (EIN), trade name, EFL name, and credit card number. In addition, a PO may contain provisions covering returns, exchange or refunds, shipping policies, and payment options. The purchaser submits a completed Purchase Order, indicating the price and other specifics such as the business address, contact person, method of payment, and time of transaction. The document becomes a legally binding contract between the buyer and the vendor when the buyer signs and completes the form.
Purchase Order Template
A purchase order template allows companies to easily create a final version of a contract without the complex process of designing one from scratch. By using pre-designed templates, vendors can quickly and efficiently develop and print a finalized version of a contract. The purchase order template gives vendors an easy, convenient way to record key terms and conditions of a specific contract. This saves time and money because it eliminates the need to individually record each term and condition. Also, it eliminates the possibility of forgetting or leaving out any critical terms or conditions that should be highlighted during the purchasing process.
Other features of a purchase order template include the creation of invoice forms, which make it easy for the company to print a professional-looking invoice, including line-by-line item identification (LIC). Another important feature is the inclusion of an invoice sample, which enables a company to compare the costs of a standard invoice and a template invoice. This means that when vendors sell their products, they do not have to spend additional time to convert their invoices into a template. It also means that companies can use these templates more often than they would have to remake the entire invoice.
Download Purchase Order Spreadsheets Template
When a company purchases goods from different suppliers, it is necessary for them to obtain receipts or statements from all suppliers to ensure that all terms of the agreement are recorded in the purchase order. A purchase order sample allows a company to easily generate a receipt or statement from all suppliers without having to spend valuable time on the task. A purchase order template includes a blank purchase order form and a product description in a separate sheet of paper. A blank invoice sample contains a generic product receipt and a product reimbursement invoice, which enable a company to generate invoices from a purchase order sample and use them with suppliers to complete the purchase.
How to use purchase order template
Begin by downloading the template and setting up your company by providing basic details like Company Name, Company Slogan, Company Address. This template provides a provision to select the default currency by selecting a country currency symbol from the drop down menu under the country specific settings. Here you can set the relevant tax type and sale tax rate. It also has a inbuilt design picker, where you can choose a colour that is most appropriate for your company. And if this is not enough you can also use Excel’s Themes or colours that can be found in the Page Layout ribbon available in Excel 2007 and above.
Once the settings are specified, go to the second sheet named “Purchase Order” and customise it by inserting your logo on the top. Also specify the details of vendor, whom you want to send this Purchase Order and shipping information like shipping mode, method, terms and delivery date.
After this record the information of the products along with required details like code, quantity and price. In case you have agreed on some discounts with your vendor then you can simply add discounts at the end of product specification along with Shipping and Handling Cost and Sub Total amount is computed automatically.
If you have some instructions for the Vendor for any particular Purchase Order then you record that in “Notes and Instructions” area.
Many businesses use a purchase order template as a guide for sending invoices and statements to vendors and suppliers, or as an inventory management system. A template eliminates the need to re-request or print suppliers’ statements or invoices from their own supplies. For example, when a company buys raw materials at a local supplier and sends invoices and bills to the vendor, it might take many days before the invoice is delivered. By using a purchase order template, however, a company can quickly generate its bills from a single source and print them right from their own printers.