A Purchase Order is an official document which is sent by the seller or vendor to the purchaser. The key purpose of a purchase order is to specify the terms of purchase that exist between both the seller and the buyer. The purchase order is a formal document which enlists all the terms and conditions of the agreement along with the specification of each item or service that the vendor is bound to deliver. This order shows the buyer what he ordered and what the company has sent to him or her. Typically every purchase order is different in nature and description but the key purpose of a PO is the same so it’s quite possible to enlist the key elements of a purchase order.
Purchase Order template is a MS Word 2013 template. This is a sales related word template. Here goes its preview and download link below,
Key Elements of a Purchase Order:
- Item Description:
Items you get are the same that you ordered that’s why it’s essential that the purchase order clearly provide details about the items or products included in the shipment that were ordered by the buyer or if the company offered some alternates and the buyer accepted it. If the buyer has agreed to buy the new or substitute products, it’s necessary to send the purchase order which contains new items list not the old or previous ones.
- Quantity and Unit:
this step may seems easy but actually it’s not as you have to enlist each and every item that has came in the shipment. If a box contains 100 pieces and the entire shipment includes 10 boxes, it means there are 1000 items in the shipment. If the purchase is too big to send in one shipment, you better tell the buyer that the remaining items are coming in another shipment followed by the present one.
the purchase order should contain the detailed price per item, per package and per ton. If the buyer has to pay for the shipment and packaging charges, mention that too. Also it’s a must to mention the time duration in which the buyer is asked to make the payment.
- Freight and handling charges:
it depends on the deal and agreement if the buyer will pay for the handling charges of if the company. When the buyer agrees to pay the freight and handling charges, he or she pays it prior to the delivery and those charges are added on the sales invoice and when the buyer receives the shipment, he doesn’t have to pay anything to the delivery staff. Whatever the agreement says or the buyer agrees to, this should be included on the purchase order.
- Delivery date:
unless the buyer mentions that the shipment should arrive on a specific date, the vendor or seller is bound to deliver the items or product before or on the date, both parties agree to. As you know that if you want the delivery urgent, it will charge more as compared to a standard time delivery. This means that you have to add the date on the purchase order so that the buyer knows exactly when the shipment will be delivered to his or her doorstep.
- Receiver’s address:
in order to deliver the shipment to the correct person, his or her address is needed where the buyer wants to receive the delivery. This address is asked and kept in record when the buyer makes the order so that the company won’t have to contact him again and again.
- Instructions (if any):
if the items in the delivery needs to be handled with care in case the parcel contains fragile products, the buyer should be informed about that. This way before opening he will know how to carry and open the package.
Here is download link,