All companies need something; they may not be able to provide everything they need to run their business well. They will be required to make purchases from others, whom they call suppliers.
Hence, a purchase order is made out. A purchase order is statement of intention to purchase or procure some resources from another company. It should state specifically the items required, the quantity and the date required.
It is usually an order form submitted to the supplier who will fulfill the order accordingly, adding on the item price, taxes, service fees, delivery charges and payment terms. Sometimes, interest charges may be included if the payment is made using credit cards where a minimal percentage is accrued on the total cost. Other times, a discount is offered when the items are on sale, ex-stock or the customer is a regular patron.
Hence, a purchase order template may have the following information:
* Company’s Name & Logo
* Company’s address
* Vendor’s name & address
* Shipping address
* Contact person on shipment
* Contact person title & department
* Items required
* Item code
* Description of items
* Date required
The purchase order may also state specifics on the items placed so that the vendor will supply the correct item.
The purchase order may also contain some terms and conditions to assist the vendor such as “Urgent – before <Date>”. There may be specific shipping instructions too.
Consider the attached sample template for your convenience.