Purchase order forms play a vital role in completing commercial transactions. They are mostly taken for granted. However, little do we know that they are critical documents because the validity of the sales or purchase transaction is affected by the existence of these forms.
For you to fully understand how purchase order forms work and how important they are to your business transactions, this post provides key principles and tips in dealing with such forms. You can learn from these and eventually apply them in the course of planning and executing your very own purchase order form templates.
Nature of Purchase Order Forms
These types of forms are considered as business forms. They are designed to provide and present a detailed breakdown of relevant information regarding a purchase transaction. These are usually written and created by buyers and are forwarded to the sellers.
On the part of the buyer, the purchase order form serves as a document that embodies their intention to purchase specified products or goods from a particular seller. The following are some of the sample inclusions of a purchase order form:
- list of items to be purchased;
- the agreed quantity and quality;
- a breakdown of the price list and summary of fees and charges;
- shipping information;
- statement of warranties; and
- other payment terms and conditions.
Furthermore, this type of form is also legal in character. It protects and upholds both the rights of the seller and buyer. It ensures that obligations are complied with in good faith, and can help mitigate the occurrence of breaches and abuses.
Writing a Purchase Order Form
In writing a purchase order form, you should come up with a clear framework. Bear in mind that it is not just a mere document, but has commercial and legal implications. Here are some points that you may consider:
Make use of high-quality purchase order templates.
Researching for purchase order form templates can open your mind to new formatting styles and content structure. There are various benefits in using pre-made templates. They are convenient to use and can boost your productivity. However, it is crucial that you customize the template and suit to your context. One way of customizing the form is by adding your company logo and using the color scheme adopted by your company.
Come up with a comprehensive and targeted layout.
There are various tools that you can use in crafting a purchase order form. You may use MS Office programs such as MS Excel, MS Word, and more. This is dependent on your preference and what truly suits your interests.
Ensure that all the details are complete and updated.
Your form layout must be complete. This is done to ensure that you don’t miss important details that can be the cause of future conflicts and complaints. You should include a purchase order number or other identifiers to further track the inflow and outflow of your forms. Furthermore, the form must be dated and duly updated.
It is a cardinal rule in dealing with purchase order forms that the terms are specific. General terms can lead to multiple interpretations which are main sources of disputes. As much as possible, the list of the products must be specific and concrete and the matrix adopted must be clear.
And lastly, adopt a professional formatting. There should be enough spaces between certain points and lines. Additionally, the font size and font style must be formal and legible. Overall, purchase order forms are not really technical if you fully understand their dynamic and purpose.