Purchase Order With Example

• Category: Contracts - Sale of Goods
• State: Multi-State
• Control #: US-01688-AZ
• Format: Word; Rich Text

Description example of a purchase order

This form is a Purchase Order. The purchase order contains categories for: Item, Part Number and Description, UM, Quantity, Price, and Extension.

A purchase order (PO) is a legally binding document that businesses use to initiate a purchase from a supplier for goods or services. It serves as a formal request and contract between the buyer and the seller, outlining the specific details of the transaction. The purpose of a purchase order is to ensure clear communication, facilitate accurate record-keeping, and establish terms and conditions between the parties involved. Keywords: Purchase order, document, legally binding, business, supplier, goods, services, request, contract, buyer, seller, transaction, communication, record-keeping, terms, conditions. Example of a purchase order: -------------------------------------------- ABC Corporation Purchase Order -------------------------------------------- PO Number: PO-001 Date: October 10, 20XX Bill To: ABC Corporation 123 Main Street Any town, USA Ships To: XYZ Supplier 456 Elm Street Otherwise, USA Item Quantity Unit Price Total -------------------------------------------- Product A $$10010.001,000.00 Product B $$5020.001,000.00 Subtotal: $2,000.00 Tax: $200.00 Shipping: $50.00 -------------------------------------------- Total: $2,250.00 Payment Terms: Net 30 days Delivery Time: Within 7 business days -------------------------------------------- Types of purchase orders with examples: 1. Standard Purchase Order: This is the most common type of purchase order where the buyer requests specific goods or services from the seller at agreed-upon prices. The example provided above is a standard purchase order. 2. Blanket Purchase Order: A blanket purchase order is used when a business needs to make multiple orders from a supplier over a specified period, often at negotiated prices. This type of PO allows companies to streamline repetitive ordering processes. For example, XYZ Corporation may issue a blanket purchase order for office supplies to be delivered in monthly batches throughout the year. 3. Contract Purchase Order: A contract purchase order is used when the buyer and the seller enter into a long-term agreement for the supply of goods or services. The terms, conditions, and pricing are predetermined and outlined in the contract. For instance, a construction company may have a contract purchase order with a cement supplier, clearly stating the quantity, price, and delivery schedule for a specific construction project. 4. Planned Purchase Order: A planned purchase order is a preliminary order that businesses use to communicate their future demands to suppliers. It serves as an estimated forecast based on anticipated needs rather than an immediate order. This type of purchase order helps suppliers plan their production and inventory levels accordingly. An example would be a retailer issuing a planned purchase order to a clothing manufacturer for the upcoming holiday season.