Speaking from experience, the purchase order (PO) is handy in communicating equipment requirements clearly.
One of the most convenient aspects of the PO is all information for a successful purchase is included.
- Purchase Order Number
- Purchase Date
- Company Address
- Company Supplier/Customer Number
- Supplier Address
- Delivery Address
- Payment Terms (Credit Card, Net Terms)
- Shipping Method / Prepay & Add (PPA)
- Material List: Manufacturer, Model, Description, Cost, Quantity
- Line-Item Subtotal
- Cost Total
- Notes
- Signature
A purchase order is a contract between two parties: Material or Services for Money. There are a few forms of the PO that I issue.
- PO only. This may be for a list of material which requires no clarifications. Specifically, the standard components purchased from a typical supplier where the supplier and the customer have established the proper communications with little deviation.
- PO with notes. The PO may be for components that require a bit of clarification in the note field.
- PO with notes and accessory documents. The accessory documents may be a subcontract, drawings, or a copy of the quote. Some suppliers like to have their quote returned with the PO or at least the quote number added to the PO.
If you are developing a purchase order, note the clarity required to conduct a successful business transaction. It is best to omit doubt of purpose with proper communication. The excuse, “We discussed this on the phone!” may not be a valid reason if there is an error.
Just to note, an associate in design reported he can achieve a deeper shade of black if a bit of blue is included. An observer of the more intense black may see just a beautiful black color, but the designer knows what it took to get there. To get to your purchase goal, ensure the intent is spelled out clearly in the PO to remove all doubt. You know what you need more than your supplier knows what you need.
If you are purchasing for any organization where your signature is attached to the PO, ensure the company has an insurance to protect the purchasing agent.