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A business transaction usually starts when a customer extends his or her desire for goods or services through an order. Although it is a document filled out by the buyer, an order form, also known as a purchase order, is usually created by the seller for uniformity and to ensure that everything the business entity wants to know about an order is included. Moreover, you can use the document to feature your branding.
For these reasons, your order form must not only be functional but also visually pleasing to your potential customers. Note that many people will trust on your credibility if your invoice is professionally crafted and designed. To help you with your order forms, here are order templates and examples that you may refer to.
A well-crafted purchase order that is both functional and appealing consists of the following important elements:
1. Letterhead: This consists of your business name, logo, business address, and contact information such as telephone or mobile numbers, email, or website. Some would also include their business registration number and tax registration number.
2. Title: Usually placed at the top of the page, the word “Purchase Order” must be clearly indicated in the document in order to distinguish it from the other types of documents. You may also see job order examples.
3. Serial number: Every purchase order must have a unique purchase order number or serial number to easily track, manage, and account the transaction.
4. Date: This refers to the date of issuance of the purchase order.
5. Vendor reference number: This pertains to the vendor reference which can be a quotation number if the purchase order was raised in acceptance of the quotation made by the same vendor or seller.
6. Payment terms: The terms of the payment must also be clearly indicated in your document, which stipulate the period allowed to a buyer to pay the amount due and other provisions like cash in advance, cash on delivery, or online payment. You may also see service order examples
7. Client information: The client name or business name, address, and contact details must also be specified in the purchase order.
8. Items ordered: The details of the customer’s orders must be clearly stated. These include the description of goods, quantity, price per unit, unit of measure, and the net amount for each item ordered.
9. Grand total: This pertains to the total amount of all the items stated in the order that a customer must pay to the seller.
10. Delivery date: This refers to the number of days or the due date that a customer expects the goods to be delivered.
11. Comments: A space for comments, notes, delivery instructions, among others must also be provided in the purchase order. You may also see event order examples.
12. Terms and conditions: The terms and conditions of your company regarding the transaction must be indicated clearly in your purchase order to avoid future disputes. This is usually placed in the footer or the reverse side of the order form.
Here are the typically used purchase order types in different business industries.
Below are the answers to the frequently asked questions regarding orders.
Typically, there is an expiration for orders, and this must be stipulated in the purchase order form in order to set a timeframe for the seller to respond to the order.
The information included in the order typically includes everything, such as those elements mentioned above, except for taxes and other payments outside the purchase transaction. In the event that the counterparty needs a company or VAT registration number, it must be included in the purchase order. Note that the things beyond the control of the supplier need not be in the order form, but if you are expecting any tax payments to be included, this must be specified in the order.
It is possible to request the purchase order to be modified in case you want to change the quantity of an item and add or remove an item from your order. It is also allowed to cancel a purchase order as long as there are no payments yet by the buyer to the seller.
A purchase order becomes a legally binding contract formed between the buyer and seller that is enforceable in court when the seller accepts and signs the purchase order. The buyer’s request must be clearly and explicitly communicated to the seller to avoid confusion when the order is received by the seller. Hence, in the event that a buyer refuses to pay, the seller is protected by the contract between both parties, that is, the purchase order.