Purchase Order | Get Free Templates In All Formats
Here are all you need to know about the purchase order and the purchase invoice. We have included all needed purchase order templates, examples, and tips to get your invoice orders and invoices correct.
What Is The Definition of A Purchase Order & What It Is Used For?
The purchase order is a commercial binding document that a buyer issues to the seller. A seller also uses it if he depends on outsourcing suppliers of his products. The purchase orders are similar to your “add to card” pages on any e-commerce platform.
Any purchase order carries a unique PO number and contains detailed information about the purchased products or goods. It indicates the types, quantity, unit price, and total payment of the intended products. It identifies the payment methods, terms, and any other conditions.
Issuing the order with no prior contracts does not make it binding on the seller. Rather accepting or signing the order makes it legally binding as it becomes a contract between both parties.
The Difference Between A Purchase Order And A Standard Invoice
Many people think that both purchase orders and standard invoices are similar. However, they differ in major derails:
|A Purchase Order||A Standard Invoice|
|A client or a customer issues the purchase order to a seller.||The seller or service provider issues the invoices to the buyer or customer.|
|It takes place before providing the service, products, or any transaction.||It usually takes place after providing the service or goods.|
|It requests the seller to sign the order to confirm the acceptance of the deal.||It requires the buyer to pay off the total price according to the payment methods.|
|It is similar to proforma invoices but the latter is issued by the seller.||There are many types of invoices that have common interactions.|
|Both purchase orders and invoices carry a unique number and contain a details description of the products or services provided. They also contain payment methods and payment conditions.|
Benefits of Issuing Purchase Order
There are many benefits of issuing a purchase order. Here are some other main features of using purchase orders:
Purchase orders are much easier for Communication
Usually, it makes it easier to communicate with the buyer and confirm his ability to provide the good required. It tracks your sales and allows transparent billing. Issuing the order reduces the risk of errors and misunderstandings between the seller and the buyer.
The process takes no time
No more time spent. It takes no time to issue the purchase order using purchase templates or software generators.
Easy to send to sellers
It is very easy to send the purchase order to a seller using your email address or even print it to keep a hard copy of your order.
Using a purchase order reduces the monthly fees and allows you to pay your sellers wisely in multiple currencies.
How To Create And Fill A Purchase Order Template?
To create a valid and proper purchase order, your need to follow certain instructions. You can also depend on purchase order forms and templates and fill their fields. But in both cases, you need to ensure that all required template fields are there and the validity of the data input.
Purchase Order Details
For your order to be valid, you must include a unique PO number and a heading telling this is a purchase order. It also carries the issuing date of the order.
The order must include some basic information about the seller and his business. You can include your seller’s business name, address, and contact information.
The standard invoice must carry information about the buyer. Such as his name, address, and contact.
Your purchase order must include a description of the products or services you require. This information is the products’ names, short descriptions, units, quantity, prices, and total cost.
If the requested products or goods require shipping, you need to add details regarding where you want these products to be shipped. You should also add the shipping terms and methods if you want a specific shipping method or company.
Payment Terms & Delivery Date
The purchase order must include basic payment terms as well as the forms of currencies available.
Note: Remember to always have a printed or a backup copy of your order for archival purposes. You can send it via email to your vendor.
Download the Purchase Order Template.
Here are some customizable purchase templates and forms that your can download, fill, and customize to fulfill your needs:
- A free purchase order template in Excel.
- Totally Free Export purchase order form in Google Sheet.
- A Free purchase order template in PDF.
- Get a free purchase order template in Google Docs.
- A free Purchase order in Microsoft Word to Download
Note: You need to make a copy of the provided google sheet and google docs to access them and then start editing your private copy.
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