Purchase orders are business forms where detailed information is entered for the purchase or sale of goods and services. A purchase order, also called an "PO", is a vital part of the accounting and financial aspect of the company. Templates are invaluable in learning how to place a purchase order.
Steps
Step 1. Create an outline of the purchase orders for the company
- The templates can be used to create a specific purchase order to meet the needs of your business.
- Various templates are available on the Internet for free or low-cost download.
- Before downloading the free forms, be sure to verify the copyright information for each one.
Step 2. Select the purchase order (PO) format
Many forms have many colored and numbered pages for faster entry of information, and for tracking and accounting purposes. All the forms have the same items, which are:
- Purchase order number: a number assigned specifically for each form
- Vendor number: the name and address of the vendor and vendor
- Phone numbers: a phone or fax contact number
- Name of other providers: used when a third party is the provider.
- Recipient: the name of the person who will receive the merchandise.
- Destination: the address where the merchandise will be shipped.
- Description: for example, item name, warehouse number, unit price, quantity, and total
- Terms: the dates established to receive the merchandise or the payments.
- Signatures: the signature of the recipient or of the person (or more) authorized to approve the operations.
- Date: the date the item was requested and when the PO was approved.
Step 3. Understand the terms
A signed purchase order is a legal and binding agreement between the parties for the items or services. If you have to return an item, ask if there are any return or restocking fees. Accept changes made to the purchase order only if they have a date and a signature from someone authorized.
Step 4. Save time and money with a program that does the bookkeeping
Purchase a program that has the ability to store related orders, payments, returns, debits, and credits on purchase orders. With the program you can upload or download the information to carry out reports, audits or for tax purposes.
Step 5. Keep business records organized
Always keep a copy of the original and modified documentation. When you receive goods, please make sure the orders are complete. Do the math and check that the numbers match.
Step 6. Return the defective items
If an item is faulty, contact the seller immediately. Give them the PO number, the item number, the date it was received, the date the order was placed, and the description of the item's defect. Write down the name, title, and phone number of the person contacted.