How To Write a Purchase Order

When you run a store or if you buy from a store, you are always issued a purchase order or it can be clearly described as sort of a written contract between the vendor and the buyer. It will contain the most vital information that you need to track down and document your purchases. If you are the vendor, you can keep it as a record of your sales. As it can also be described as a sort of a contract, it differs from the actual contract between vendor and buyer because a purchase order is strictly for products or materials only. It does not contain the information or prices about labor and other items other than the actual material being purchased. In your store, you should always issue a purchase order or PO. Here is how you can do write that purchase order:

  • The first thing your purchase order should have is your company letterhead. If you do not have a letterhead yet, you can start writing your purchase order by writing down your company name, your logo if you have any. You should include all the information about your company like contact numbers, fax numbers, email address and most importantly, your company’s address.
  • If you cannot seem to do your own purchase order, there are websites that offer purchase order templates that you can use immediately. There is a trial version that you can buy later on if you are satisfied with their product. Having a template purchase order will make your job easier in making one. But be very careful in choosing the one that is the most user-friendly and the most complete template or else you might end up having incomplete purchase order transactions.
  • In writing your purchase order, you should specify in complete detail the item you are purchasing. List down the style, pattern, color, model and stock number if there is any. Your complete details will help you identify the item in the event a customer comes to have it changed or if there are any complaints about not getting the right product or description of the product. The most important thing to remember is to indicate the price as a single item and the quantity. You should indicate the total of the items purchased as well.
  • Another thing you should write down on a purchase order is the payment terms. Indicate whether the customer paid for the items as cash, debit or credit card. It is important to do so to track the credit lines and cash flow of your store. The terms should indicate as well if it is under an installment basis or a full payment.
  • The date of purchase should always be written on the purchase order. If you have a shipping method that is necessary, indicate it as well.

The importance of a purchase order is to give each vendor that you transact with some control on your transactions. Sometimes when you are running a multi-product store, or if you are purchasing from different vendors, you need to give a specific breakdown for each of them. The purchase orders are probably the handiest document you need for your business transactions.


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