Purchase order

A purchase order, also called a purchase order or purchase order note, is a document by which the buyer requests goods from the seller.

Purchase order

In this way, what we do is document our product needs. The usual thing is to send this document to the supplier so that it can supply said order. Being able to do it physically or virtually (email or website).

The purpose of the order note is to be able to subsequently contrast the delivery note with this order and note possible incidents, as well as to have the conditions of said order in writing.

The process in a purchase order

First you must find out the needs we have. Once the appropriate supplier has been chosen, this order order is issued. The seller receives the original and the buyer keeps a copy. The seller serves the order and attaches a delivery note that is checked against it. If there is something not supplied, it remains as pending.

This document is useful for both parties. The buyer can control the type or amount of expense and make a forecast of payments. The seller can organize his different orders and make a forecast of charges. In both cases, management programs and even a spreadsheet are helpful. On the other hand, for legal purposes, once accepted, it commits both parties to the agreed exchange.

Contents of an order note

Normally, they are usually the same data required on a delivery note, only that the expression "Order order" or similar will appear on the letterhead. We detail them below:

  • Buyer and seller details. The tax identification number of each country is very important. Also the tax address.
  • Date and place of issue of the order. The first is essential, especially to control the time it takes our supplier to supply it. In this way, we can avoid stock breaks.
  • Product name and reference. The quantity ordered, the price and possible discounts, promotions or bonuses are also included.
  • The chosen payment method , as well as the terms and amounts to be paid, if applicable. This point is important to properly manage the treasury.
  • Total cost , possible transportation, insurance or similar expenses and, as an essential part, the authorized signature.
  • Date and mode of delivery. At this point, upon delivery, a delivery note will be sent to the customer to sign, which is usually attached to the order. Possible incidents or what has not been provided must also be noted.

The truth is that these strict requirements are sometimes relaxed, depending on the commercial and trust relationship. In many cases, orders are made verbally or by phone. It can even be requested by email but without an order document. Even so, it is convenient to always have a control of these orders.

An example of the purchase order

Let’s see an example of what an order document could be. In it we can see all the necessary data and possible discounts and expenses related to the supply of said goods. Also the space reserved for incidents and for the signature of the person who receives the merchandise.

Order 1

Note: The data provided above is fabricated data.