Download this business purchase order template. This is editable Excel template. You can customize this Purchase Order Template as per your requirement. This template is useful for businesses – small to medium sized. If you are looking for a PDF Purchase order format, You can download the same > Business Purchase Order Template PDF Format. This is an editable PDF format of this purchase order template.
About Business Purchase order template
This template for purchase order is drafted in Microsoft Excel. Hence, this is easily downloadable. Also, You can capture various purchase order details in this template. Color scheme is changeable as per the requirement.
You can capture the following business information in this template :
- Your company name and logo
- Tax information of your company
- Purchase Order Number
- Purchase Order Date
- Vendor information
- Customer information
- Shipping and Delivery Terms
- Shipping Methods
- Delivery date
- HSN Code of materials and services
- Product description, quantity, Unit price and total amount.
Purchase orders are essential business document. To define purchase order in simple language, we can understand it as a correspondence or some sort of confirmation from one party to another party for delivery or exchange of goods or services.
Why are purchase orders important ?
Benefits of having process of purchase orders and documentation thereof, can be summarized as below –
- They help businesses to remove chances of duplicate orders. With Purchase orders tracking process in place, you can identify and rectify duplicate orders to same vendors.
- And, Purchase orders help in financial audits. While conducting statutory audits, auditors check the accuracy, correctness and completeness [Financial Assertions] of all the procurements.
- Price data analytics is easy with purchase orders and per unit price in place. With price analytics in place, business managers and owners can prepare themselves for sudden price spikes and fluctuations.
- For businesses documenting all the purchase orders, the process streamlines the tracking of all the incoming purchase orders.
- Also, Purchase orders procedures help in efficient and effective communication between vendors and customers.
- Interesting fact, Purchase orders are legally enforceable. Purchase orders act as an important document during dispute resolution.
Frequently asked questions [FAQ]
Below are some of the frequently asked questions pertaining to purchase orders and sub-processes thereof.
a. Who issues the purchase orders ?
The Buyer issues the purchase order. A buyer is someone, who wants to make sure they got exactly what they ordered. Furthermore, An invoice is issued by the vendor, who wants to make sure they get paid. Purchase orders are sent by the buyer to the vendor first, and they outline exactly what the order should contain and when it should arrive. Download this template to understand this in detail.
b. How can purchase orders be sent to supplier ?
Once the purchase order draft is ready, the buyers sends the Purchase order to supplier. Purchase orders can be sent to supplier via various methods, namely,
- Purchase Order Document Courier Mail
- E-mail [Effective]
- In Person Delivery
- Telephone Confirmation [Informal Method]
c. Who should approve the purchase orders ?
Ideally, purchase orders should be signed by the authorized signatory from the Buyer side. This is because buyer is responsible for creating the Purchase Orders.
In an organization, where there is dedicated Procurement team, approval for purchase orders should be taken as per the Delegation of Authority Matrix applicable for the relevant time period. [can differ company to company].
d. Is purchase order a contract ?
Purchase order contains details of vendor and customer. All the products and services are also inclusive in the document itself. Hence, a signed/ agreed purchase order is a full value contract. And, signing a contract duplicates documents unnecessarily.
e. Is a purchase order legally binding contract ?
Once a supplier accepts a Purchase Order, it forms a legally binding contract between the vendor/ buyer and the supplier.
f. What are the types of Purchase Orders (PO) ?
As per the general business concept, there are four types of purchase orders (PO) :
- Standard Purchase Orders
- Planned Purchase Orders
- Blanket Purchase Orders “Standing Order”
- Contract Purchase Orders
You can learn more about these types of purchase orders in the article by Tradogram > Go to article.
Download and use BUSINESS Purchase Order Template
To use this free BUSINESS PURCHASE ORDER excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.
After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software. Once extracted, you can open the file using Excel and start entering data or customizing the template.