Purchase Order

A purchase order is a legal document sent from the buyer to the vendor which authorizes the purchase of goods or services. The purchase order details what’s being purchased, for what amount, in what quantity, and also expected dates (or time frame) and place (or places) of delivery. The PO document is legally binding and it helps both sides of the transaction log deliver, and streamline the purchase.

How do you use a Purchase order?

Purchase orders should contain detailed information about both the company and the vendor. Both parties are in agreement with the information that is written on a purchase order. If discrepancies arise, the purchase order can be consulted for verification.

• Contact Information; The name, address, email, phone number, and other contact information for both companies should be completed. Since the purchase order will be used by both the ordering business and the contractor, contact information is critical for future communication.

• PO Number; Both the ordering company and the outside vendor will need to track purchase orders, probably within a centralized computer system. Assigning a clear PO number will help both parties access the information quickly and efficiently.

• Item SKU; If an order involves raw materials, one should include individual SKU numbers on the purchase order. This ensures the correct items are being selected, packed, and invoiced. The purchase order can also be used to cross-check received items.

• Item Description; The name of the items, as well as identifying information such as size, color, or model number should be listed in further detail. This is often easier to identify than an alphanumeric number or barcode.

• Quantity; The number of each item ordered should be listed. Quantities should correspond clearly to the item number and description. This is particularly important if a given quantity is back-ordered or is not currently available.

After downloading this order template and filling in the blanks, you can easily customize the style, typography, details, and appearance of your Purchase order. If this isn't the right template that you are looking for, then certainly take a look at the other letters that Bizzlibrary.com has to offer. We have many letters ranging from cover letters to business letters and thank you notes.