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Download purchase order template in Microsoft Excel format.
Advantages of a Free Purchase Order Template
A free purchase order template can be gainfully employed by modern businesses for multiple functions. By integrating the free purchase order template with other related functions such as tracking deliveries against the purchase order, invoices raised by the vendor, payments against the invoice and finally, finance management function related to the purchase can be conveniently addressed. This measure can potentially reduce plenty of man hours consumed in manually controlling these functions independently.
A purchase order is essential in business to business transactions. However, when individuals are ordering one or more items from a business, a formal purchase order is not essential. In most business environments, the purchase order is a part of the materials management function that works in unison with the finance function. It is the responsibility of the finance function to earmark funds for effecting payments against purchases made.
Before you examine the free purchase order template, you would be better off with an understanding of the importance of this format in trade and commerce. When we go shopping, most of us write out a list of things we need to pick up so that repeated trips to the store can be avoided. In business, the purchase order is an extension of the shopping list, but the structure and content of the purchase order follows some legal prescriptions from the concerned regulator. A legally tenable purchase order should be signed by an officer authorized by the buyer and should carry the following minimum information.
• A purchase order number that is unique and not replicated for any other purpose. This purchase order number is vital for all accounting functions and all other connected documents that follow, leading up to the payment against the purchase order.
• Shipping information – Complete details of where the goods are to be shipped, mode, carrier/vessel/liner, basis of delivery (CIF,C&F,FOB) etc. will be covered here. The buyer can specify a place other than his usual business address for delivery.
• Billing address – Billing address must be mentioned in full even when it is the same as the official address of the buyer.
• Description of goods – An exhaustive description of goods ordered is provided here and some people may use an annexure to include specifications, drawings etc.
• Pricing – Unit price and gross price of each item should be clearly mentioned. Duties and taxes, commission to agents etc. are generally shown separately and not included in the price.
Once these attributes are available in the free purchase order template you are considering, you can proceed to integrate it with the materials management function/accounting function. It is important to study the compatibility of the free purchase order template with your existing operating system and the other software products that you are using.