A purchase order is a commercial document that the buyer initiates and sends off to the seller. The purchase order is, in essence, a summary of the products or services (an agreed-upon price) that the buyer will be buying from the seller.
For all the businesses involved in procurement such as transportation, manufacturing or warehousing, it is important to follow good inventory management practices to increase the bottom-line savings.
Our free purchase order template is one of those important practices that can bring measurable benefits to your company or organization.
Purchase Order Template
Use for Excel, OpenOffice, and Google Sheets
Many businesses rely on purchase order financing to help them buy larger quantities of goods and supplies without harming their cash flow. Many vendors will accept purchase orders of net 30 or net 60 days, giving you time to recoup the money you’ve spent while working to grow your business. Our free purchase order template, unlike an order form template, is only used in the business-to-business marketplace. Retailers, construction firms, ad agencies and other vendors who typically accept purchase orders from companies they believe are credit-worthy; typically, this means you are considered a good customer who pays on time.
By downloading our amazing free purchase order template will allow you to keep the same cash flow until the invoice is due. For many business owners, this is a vital function that helps grow the business. Many companies using purchase order forms to order goods on credit. Remember, a purchase order, once accepted by the vendor, is also considered as a legal contract that you are guaranteeing payment for.
People often confuse purchase orders and invoices. However, they are quite different. Invoices are sent by the seller to the buyer after the goods have been delivered or services rendered. A purchase order, on the other hand, is sent by the buyer to the seller before any goods or services are delivered.
When completing your purchase order, you should make sure to include the following details:
- The date issued for the purchase order
- The names and addresses of the buyer and seller
- The number of purchase order
- The shipping method, terms, and delivery date
- The product or service details (including quantity, description, unit price, etc.)
- The terms and conditions for the transaction
The purchase order is very useful for any buyer who intends on purchasing goods or services from a/any supplier. While some small business owners may look at purchase orders as unnecessary burdens, in fact, they are much more crucial.