A purchase order or purchase order is the document in which an acquisition is recorded. It is important to include it in cases where the product that is purchased is not delivered at the time, that is, in online sales. We tell you more about what it is, purchase order models and how to make one.
If you are professionalizing your online business or want to start, you will surely be interested in knowing what a purchase order is and if you need to work with this document in your transactions.
With this in mind, we created this guide that goes from the definition of a purchase order, the concept and how to make one, to showing you concrete models and examples to help you carry it out. Shall we start?
What is a purchase order?
The purchase order is the document that records the request for a transaction and its price. It works as an agreement and support for both the buyer and the seller, to establish the conditions of the acquisition.
It is also called “web purchase order” because it is a widely used document in the . Since there is a period of time between the transaction being made and the customer actually obtaining the product, it is the way to capture the terms of the transaction and the price in writing.
So far we have the definition of purchase order, purchase order or acquisition order. To continue delving into the concept, we are going to list the characteristics of this document.
Characteristics of a model purchase order
To move towards what an example purchase order would be, we are going to know what features or attributes characterize it. All purchase order
- it is a legal and official document,
- works as a guarantee or proof of a commercial operation,
- certifies that the transaction was carried out,
- it is a mercantile endorsement of the terms of the operation,
- displays the detail of the elements that make up the transaction and
- It allows to maintain order and clarity in business sales.
With this, you probably already have a clearer idea of what a purchase order is and what information it contains. Now let’s delve into the benefits it has for managing sales.
Web purchase order: what is it for
To understand the purpose of this voucher, let’s talk about the purchase order as a concept. So, what is this document for each of the parties?
- Verifies and accredits the commercial operation, ensuring that both the buyer and the seller handle the same information.
- It is useful to the seller for that sale.
- It works as proof of the operation to the buyer, to have proof that the payment was made and that the product is waiting.
- Streamlines the process of financial control, order tracking and business administration.
These are the main functions of the document. Next, we are going to know the elements that cannot be missing in a purchase order model and then we will see an example. Let’s keep going!
The elements of every purchase order
A web purchase order must have the following elements to fulfill its function of support, proof and accreditation.
- Details of the seller and buyer: name or company name of the seller, depending on the one in question, and identification of the buyer. You can also add contact information, such as phone number.
- Delivery and billing information: the purchase order must contain the details about the shipment of the purchased good and the billing address.
- Date and Tracking Number: To serve as a supporting and organizational document, the date must appear on the purchase order along with a tracking number or code. This allows the seller to identify and locate each order.
- Description and details of the good or service purchased: this is the name of the product or service, which may include a brief description or note, if necessary.
- Unit price, quantity, applicable VAT and total price: the information corresponding to the amounts must be made explicit to provide clarity in the total amount to be paid. Since we are talking about this, if you want to learn, we invite you to click on that link and access the guide.
- Delivery date or term: just as the date on which the purchase order is made is included, here it is the day of delivery of the request or the period of time that the shipment takes.
- Place and form of delivery: here the buyer’s data is written, to establish where and how the installment is carried out.
- Signature or authorization: usually includes the signature of the client, that is, the recipient, once the delivery is made.
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Now that we’ve seen what each of the components of a model purchase order is about, let’s move on to a concrete example.
Purchase order: example
In this section, we are going to share with you a model purchase order so that you can use it as a base or guide. You can take this reference and make a template for your business as a Word document or Excel spreadsheet.
Remember that you can make purchase orders for products, services, reference (so that it remains as an administrative record) or advice, among others.
Purchase order model
How to place a web purchase order
The steps to follow to make a purchase order are:
- Send the purchase request.
- Select a provider.
- Confirm the order.
- Receive the purchase made.
Let’s take a closer look at each of these processes.
1. Send the purchase request
Once the decision to acquire a good or hire a service is made, a request must be made, which is usually sent to the department in charge of purchasing.
That document contains the details of what is required and why this purchase is being executed for the company.
This sector, then, is in charge of analyzing the case, issuing the authorization and continuing with the process of choosing a provider.
2. Select a provider
The purchasing department will be in charge of looking for candidate suppliers to acquire the good or hire the service. Here it is important to compare what each one offers, including, of course, the price of each alternative.
Depending on the available budget and the specific needs of this acquisition request, one supplier or another will be chosen.
Once the supplier is selected, the purchase order is issued, as we saw in the previous section. With this, the transaction is formalized and progress continues in the process.
If there is a point to adjust, the purchase order is not approved, the supplier sends it back to the issuer to make the changes until an agreement is reached that can be signed.
3. Confirm the order
At this point, the supplier received the purchase order with the data and signed it, taking charge of delivering the good or service in a timely manner, as indicated in the document. With this verification, the transaction is approved and you can continue moving towards the payment and delivery management.
4. Receive the purchase made
Finally, it remains to wait for the stipulated delivery date to arrive to receive the purchase. When it is time for delivery, it is advisable to check that everything matches what was requested to approve the operation and close the delivery circuit.
For example, if the acquisition of 100 blue and black pens was requested for an office installation, it would be appropriate to ensure that the quantity requested for each color in the purchase order coincides with the quantity that is being received.
The purchase order is a document that you can make in Word or Excel, even create your own editable templates to streamline processes.
And if you are thinking of digitizing your business or starting to sell online, have you already thought about doing it through your own online store? At Tiendanube we offer you an accessible, easy-to-use and professional alternative to help you expand your business.
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Finally, keep in mind that this post does not have the nature of advice or recommendation to adopt a specific tax criterion, which should be consulted with tax advisors regarding all tax consequences to the extent deemed necessary.
In this sense, this guide does not constitute advice or professional service by Tiendanube on any particular matter. The company assumes no liability for any damages resulting from or in connection with the use of such information.
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