As per Wiki, A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
It is a buyer-generated document which states the requirements and serves as a legal document authoring a purchase transaction.
A purchase order describes the quantities, prices, discounts, payment terms, delivery date, date of shipment, other associated terms and conditions, and identifies a specific seller.
Issuance of a Purchase Order (PO) doesn’t mean a contract, but when accepted by the seller, it becomes a binding between buyer and the seller.
Generally, most companies use purchase orders. It allows them to communicate clearly and explicitly their intentions to the sellers.
They help to protect the sellers when a buyer refuses to pay for the goods or services utilized.
Additionally, PO’s are helpful in getting financial aid from commercial lenders or financial institutions.
Currently, almost every financial institutions have many trade finance facilities that business people can avail against the purchase orders.
We have created a Purchase Order Template with all predefined formulas. You just need to enter Supplier’s information and product details.
This template can be useful for purchase department of companies, individual small and medium businesses etc.
Click here to download the Purchase Order Excel Template.
Additionally, you can download other accounting templates like Petty Cash Book, Simple Cash Book, and Accounts Payable Excel Templates from here.
Let us discuss the Contents of the Purchase Order Template in detail.
Contents of Purchase Order Template
This template consists of 3 sections:
1. Header Section
2. Supplier Details Section
3. Order Details Section
1. Header Section
As usual, the header section consists of a company logo, name of the company, company contact details(address, phone numbers, fax, email address and website) and the Purchase order heading.
After the above details, it includes the Date of order and the Purchase Order number or PO#.
2. Supplier Details Section
Supplier details consist of the name of the supplier and the supplier’s address.
The supplier details vary from company to company. Some include telephone numbers, fax number etc and some don’t.
3. Order Details Section.
Order details section is the main section of the purchase order template. It consists of following subheadings:
Product code: If buyer/seller has any predefined code then he must enter here or else leave it blank.
Product Description: Details of product/commodity etc.
Unit: Here you can define the quantifier of the product. It can be like kilograms, liters, tons, Boxes or pieces.
Quantity: Enter the quantity you wish to purchase in the quantity column.
Price/Unit: In this column, you need to enter the price per unit.
Total: Total= Quantity X Price/Unit.
List down all the products/commodities you wish to purchase.
Lastly, the template consists of the notes and Final Total section.
In Notes section you can put any specific notes regarding the order.
Final total consist of shipping, loading and other miscellaneous charges.
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very Informative and knowledgeable templates.