This document aids the purchaser to clearly define his requirement to the seller. On the other hand the seller can protect this selling deal by meeting the specifications of the purchase order. If the buyer is violating the deal and is not ready to pay the assigned amount then the seller could claim for the default through this documented evidence. Likewise, the purchase order contains the details of product that is delivered to the buyer and any flaws in the product, packaging or shipment could be objected by the buyer if the product or procedures are not following the purchase order specifications.
Component of a Purchase Order Form:
- Purchaser details like name, address and signature
- supplier’s details his name and address
- date when the purchase is done
- delivery address
- identification number for each purchase order
- Assigned model number
- List of item(s) being purchased
- Description of items
- quality standards of the products
- quantity of each product
- Associated dates
- Details of packaging
- Unit price
- Discounts on unit price
- Details of net amount
- terms of payment
- legal responsibility during shipment,
- Dispute settlement clauses.
- Invoicing and payment procedures
If you are an employee and are responsible to make purchases for your business then the purchase order will save you from many glitches. You can get the payable amount back from the company and you can claim for any discrepancy regarding the delivery or quality of the purchased items.
Electronic purchase order forms are available as templates .These templates are generally pre-formatted with all titles, grids and general details. You can download any template which meets your company or purchase’s specifications and fill the blank field with your own data to format a valid purchase order. These purchase orders are then printed for hard copies which are save in the folders of both the buyer and the seller wither last but not the least component of a valid purchase order is the signature from both the buyer and the seller to complete the deal in an authentic style.