What Information is Needed on Purchase Order?

The purchase of goods and services by a business usually involves several steps. During the procurement process, a hand full of documents are used to ensure the right goods or services are purchased. One such document that is used by almost all businesses to seamlessly carry out transactions is the purchase order.

A purchase order is a document that a buyer creates and sends to a supplier, which details the goods or services required. In turn, the supplier uses this document to create a quotation and presents it to the buyer for the transaction to proceed. Additionally, a purchase order allows the buyer and supplier to check track of what is contained within their storage departments.

Purchase Order Basic Information

A valid purchase order usually contains a few basic information. Such information is needed to ensure that the transaction that occurs afterward is easy and straightforward. The basic details that are found on a typical purchase order include the following.

Buyer Details
Shipment Details
Required Items
Comments and Remarks
Totals

Buyer Details

Any business that creates a purchase order must include its details on the piece of document. The inclusion of such information on the document lets the supplier know who they are dealing with. In addition, if there is a special arrangement or discount policy between the buyer and supplier, the supplier can easily apply it once the purchase order is received. Therefore, a purchase order typically contains the name and the address of the buyer.

Shipping Details

In many cases, a buyer usually includes the shipping details for the goods or services they want to purchase. This detail is included so that a supplier can quickly make delivery of goods or services, especially if there is a long-standing business relationship between the two parties involved. The shipping details of a buyer are typically the address for the delivery of goods or services. Additionally, the method of shipping may be included. Therefore, if the buyer prefers to arrange for the collection of goods, this information is also included.

Required Items

It is critical for the buyer to include the name and description of the goods or services they want to purchase from a supplier. Furthermore, the quantity and the expected delivery date for each item may be indicated so that the supplier is given all the necessary information needed to fulfill the request.

Comments and Remarks

Comment and remarks are usually included on a purchase order. Doing this makes the request clearer to the supplier. Comments are usually written at the bottom of a purchase order. On the other hand, remarks may be included against each item that is requested for.

Totals

The totals section of a purchase order includes the subtotal and the final total. Although this information may be changed once a quotation is sent, the buyer still includes it in the purchase order to track changes in rates of goods and services between different orders.

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