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Download purchase order template in Microsoft Excel format.
Learning through a Sample Purchase Order
A sample purchase order is a great way for you to acquaint yourself with structure and content of this important business format. When individuals go shopping, they can prepare a list, go around the neighborhood store, fill the cart, pay off the bill and bring home what they have bought. But, when it comes to legally recognized businesses, the process is not that simple. Regulators in every nation provide the guiding principles and prescribe formats in which business documents are presented. A purchase order forms part of such commercial documentation procedure and to understand the content and structure of this format, you should examine a sample purchase order.
A purchase order is the part of trade and commerce practice and often follows an offer from the vendor. Once the offer from the vendor is accepted, the buyer has to confirm his requirements through a purchase order. Though the quantity ordered can vary from the offer, the price cannot change except when it has been amended by the vendor in writing. When you examine a sample purchase order, you can understand the structure and basic content of a purchase order used by businesses.
Businesses generally go through the process of inviting quotations or offers before placing a purchase order on vendors offering the most competitive quote. In some circumstances, the buyer may not accept the lowest quote for reasons of quality, reliability, and reputation. Depending on the value of the purchase order and the equipment/goods/services ordered, the process of inviting quotations, examining each quote, and finally releasing a purchase order can take different dimensions. Government bodies and large corporates invite tenders instead of quotes and the tenders are opened a fixed date and time either in the presence of tenderers present or by a committee appointed by the buyer for the purpose.
A sample purchase order should contain the following minimum particulars:-
• A valid purchase order number that will be reflected in all documents relating to the order leading up to the payment for goods/services supplied.
• Address for shipment – The buyer can designate an address of his choice for shipment irrespective of the address from where the order originates.
• Billing address – Even when the billing address and the address from where the order is released are the same, this information should be clearly indicated on the purchase order.
• Description of goods – The purchase order should exhaustively describe the goods ordered, including reference to drawings, specifications, and other relevant information.
• Pricing information – The purchase order shall mention the unit price, total price of each item and the combined gross value of the order.
• It is a general practice that taxes, duties, commission to agents etc. are separately shown in the purchase order.
Understand however, that the sample purchase order you examine may carry additional information and the basic details as above are only the prescribed minimum.