Purchase Order Format
A Purchase Order or PO is a formal document between the buyer and seller and contains the list of items to be delivered. It is typically sent by the buyer to order items and contains the details of the product quantity, agreed price, delivery date and other terms.
Creating a purchase order starts with a potential buyer identifying a vendor who sells goods or services. Once the seller is shortlisted, the buyer lists out the type of product, quantity, and when it’s required. Next, the buyer drafts a purchase order with all the information and sends it to the vendor for approval. Once the seller receives the PO, he checks the product’s availability and approves or rejects it based on whether or not he can fulfil the order.
If the seller approves the request, he must deliver the goods as agreed upon. The seller sends an invoice with the amount indicated on the PO. It contains the information of the products, quantity, price, etc. Then, the buyer has to make the payment as per the payment terms mentioned on the purchase order.
This is how a typical purchase order works. Let’s also know the essential components of a purchase order, how to create it in word, excel, and PDF and about the online tools that help generate purchase orders in quite less time.
Free Purchase Order Format Online
Main Elements of a Purchase Order
Every business follows a unique format of the purchase order. Some might create purchase orders on their own using available tools like Word, Excel, or PDF, and some use online software to generate one. No matter what kind of tool businesses use, the main elements of the purchase order should be included. Here is the list of the aspects that need to be included in the purchase order.
- Billing Address
- Shipping Address
- Vendor/Seller information
- Voucher details
- Voucher number
- Mode of payment
- Supplier’s ref no/order number
- Mode of delivery
- Delivery terms
- Order Details
- Product details
- Total amount (including taxes)
- Due date of delivery
- Payment Terms and Conditions
- Other details
Purchase Order Format in Word
- Open MS Word, click ‘File > New Document’
- Click on ‘Insert > Header’
- Choose the Header format, which allows you to insert the purchase order heading (on the left) and the business logo (on the right).
- In the next line of the header, add Date (on the right), Order number (in the centre), and company name and contact details (on the left).
- Right below the header field, on the right side, insert customer name and contact details under the header – ‘Invoice To’
- Next comes the purchase details fields. Based on your business requirement, include fields like product description, quantity, unit price, discount, total price, etc. You can also use a table to represent this data.
- Leave multiple fields empty to enable data entry.
- Below the table, to the right, include fields for sub-total, tax, discount, and total amount.
Purchase Order Format in Excel
- Open Microsoft Excel. Select ‘File > New >Blank WorkBook’
- Remove the gridlines by clicking on the ‘View’ tab and then unchecking ‘Gridlines’ in the ‘Show’ section.
- Click on the ‘Header & Footer’ tab and give the header for the sheet as ‘Purchase Order’.
- In the next cell, enter your company details, including company name, address, email ID and GSTIN.
- Create ‘Shipping To’ field to enter customer details like name, company name, address, email ID, and GSTIN/UN in the next cell.
- To its right, create fields like Purchase Order No., Date, Due Date, Terms, etc.
- Create the ‘Goods or services’ section to enter data, including name of the product/service, quantity, tax rate, discount, unit, total amount, etc., as per your business requirement.
- At the bottom of the page, provide your bank details and other payment modes like UPI bar code, UPI ID, or UPI phone number.
You can also insert some excel formulas to auto-populate the cells when creating purchase orders. For instance, the ‘Date field’ can be auto-filled with the current day’s date using the formula =TODAY().
Purchase Order Format in PDF
Both purchase order format in Word and purchase order format in Excel can be downloaded in PDF form. If you want to create everything from scratch in the PDF itself, you can simply copy and paste the details from the purchase order format in word to the PDF and save it. Whenever you would like to send a purchase order, you can simply make a copy of the PDF format, fill it and send it to the buyer.
Simple Purchase Order Format
The simple purchase order format offered by myBillBook enables users to create a purchase order in a few easy steps. A simple purchase order contains all the required information that a seller might require to provide details about the availability of the products.
Using myBillBook, buyers can create professional simple purchase orders that reflect the company’s brand image and simplify the quote collection process.
A simple purchase order format avoids the hassle of explaining the purchase requirements to each and every seller manually. As buyers need to approach multiple sellers with the same purchase requirements, having a simple purchase order format is a handy tool to get their job done.
Buyers can fill the purchase order format with the required details using the myBillBook mobile or myBillBook desktop application and send it to the sellers through Whatsapp, e-mail or take a printout of the same.
Purchase Order Format for Machinery
A purchase order format for machinery is a simple purchase order tailored for machinery-related businesses. It allows buyers to request quotes to procure machinery and related equipment. A machinery purchase order contains the list of equipment and quantity required by the buyer and is sent to the machinery supplier.
myBillBook’s purchase order format for machinery helps buyers to get multiple quotes from the sellers in simple and easy steps. It eliminates the need to explain to each and every buyer the business requirements separately. Buyers can simply fill the purchase order format for machinery once and send it to multiple suppliers. myBillBook also offers a digital signature option that makes the quote more authoritative.
A typical purchase order format for machinery contains details like the buyer’s company name, address, quotation details, vendor details, machinery description and required quantities, estimated price, etc.
Pharmacy Purchase Order Format
A Pharmacy purchase order is placed to request the supply of medical-related products in the pharma industry. A Pharmacy purchase order must include regulated substances only. A pharmacy purchase order is mandatory to buy regulated medicines in the pharmaceutical industry. And the purchase must be made only from authorised personnel.
myBillBook online application provides easy-to-use pharmacy purchase order formats that help buyers get quotes from various suppliers without much effort. The purchase order formats for the pharma industry are customised in such a way they are easy to use and can be sent to the supplier through various online channels.
Medicine purchasers can send the purchase orders through Whatsapp or e-mail or simply download the hard copy and use it as required.
Purchase Order Format for Software Purchase
Just like any other purchase order formats, software purchase order formats also help bulk software buyers to send purchase orders to the suppliers.
Using an online purchase order format generator like myBillBook helps software buyers quickly send purchase orders to various sellers. Instead of drafting an almost similar e-mail to multiple software sellers, they can simply fill the purchase order format for Software purchases offered by myBillBook and send it through various online channels, including Whatsapp.
Purchase Order Format for Solar Systems
Solar Systems retailers, wholesalers, distributors, and installers can use the solar system purchase order formats offered by myBillBook to send their interest to the solar system suppliers.
myBillBook desktop or mobile application allows the users to customise the purchase order format as per their business needs. Users can add their business logo, account details, digital signatures, and many things to make the purchase order as professional as possible.
Once the purchase order format for solar systems is filled, buyers can share it via e-mail, WhatsApp, or download it to send the hard copy to the potential sellers.
Company Purchase Order Formats
A company purchase order format is a general purchase order format that can be used by any company looking for sellers of specific products.
Using myBillBook mobile or desktop application, retailers, wholesalers, and distributors can send company purchase orders without much effort. The ease of using the application helps businesses share multiple purchase orders in a short time. This helps them get quotes quickly and continue doing their business without hassle.
Fabric Purchase Order Formats
A fabric purchase order format offered by myBillBook helps fabric retailers to send purchase orders to different textile wholesalers in a few clicks. They can create fabric purchase orders on the go and get quotes instantly.
myBillBook offers easy to use interface to help small and medium business owners feel comfortable with the purchase order generation process. With a few clicks, they can add their requirements to the purchase orders and send them instantly. As most of the details are common for the purchase orders, using myBillBook helps them avoid redundancy and get quotes quickly.
Purchase Order Format for Air Conditioners
When a company wants to buy air conditioners in bulk, they use a purchase order format for air conditioners to let suppliers know their requirements. The purchase orders in such cases typically include the type of air conditioners required, their quantity, expected delivery date, delivery type, and other details related to the order.
A company looking for bulk AC purchases must send multiple orders to various parties to get the best quotes possible. To make this process easy, myBillBook’s purchase order format for air conditioners helps businesses send orders much more efficiently in less time.
Tips To Create An Effective Purchase Order
- Always include the buyer details like the name, address, contact details, and the company logo.
- Space should be provided only to mention the delivery address. This is necessary to avoid any confusion between the delivery address and the company address. Also, the delivery address must be highlighted.
- To showcase the legal entity, the format of the purchase order must include the details of business authorisation or other information.
- It is recommended to include the payment criteria apart from the terms and conditions. In case the payment methods are agreed upon previously, then make sure to enter that in black and white.
- Just like the payment terms, the buyer can also add information regarding the terms of delivery in the purchase order.
- To achieve the goal of the business, the buyer can specify particular clauses that state the acceptance and return of the products.
Also Check Other Billing & Invoicing Format
Benefits of Using Purchase Orders
Regardless of the size of the organisation, purchase orders are used for several reasons in the purchasing department. Here are some of the reasons that state the need for a purchase order in a business.
1. Purchase orders set a clear expectation
A purchase order helps clarify the vendors’ needs, and both sellers and buyers can use PO when the orders are not delivered as anticipated.
2. Track & manage orders
This is official documentation that gives the details of income or pending deliveries to the procurements, finance, and operation teams.
3. Helps in budgeting
When a PO is generated, the purchasers can factor these costs into company budgets and can spend the money more wisely.
4. Legally binding document
The PO can serve as a legally binding document without a formal contract after the vendor accepts the order. This document will serve as legal protection for both vendor and the buyer.
5. Purchase orders are an essential part of audit trails
When an audit happens in the company, the auditors will look for any financial discrepancies. But when the company issues, processes, and records the purchase orders, it helps in ensuring that the company has enough documents to submit to the auditors.
6. Increases the speed of the PO process
Generating a purchase order manually will take a lot of time and effort. It can also create errors in the information written in the PO, resulting in extra work and pressure for the whole team. However, if myBillBook is used, then creating a purchase order can be done by anyone within a few minutes.
7. Enhances Productivity
When the purchase order is made quickly without any mistakes using the PO app, it helps in enhancing the productivity of the entire team. In addition, since all the purchase order details are available in myBillBook billing software, it helps the accounts departments record the transaction details quickly. Thus, the company can increase the cash flow and achieve early payment discounts.
8. Saves Money and Time
By using myBillBook, every business can reduce labour costs since an employee does not waste a lot of time making a purchase order. Also, recording the details in the book of accounts becomes quicker. Hence the employees can work more efficiently in less time, resulting in saving a lot of time and money.
9. Tracks all activities in real-time
If the purchase orders are created on paper, it becomes very difficult to track the details whenever you want. But if you are using myBillBook, you can check the details and track the order whenever you need it. Besides, all the activities currently happening can be monitored simultaneously using the app.
Does myBillBook provide free purchase order formats?
Yes, myBillBook provides free purchase order formats for all its subscribers at zero cost.
Can I send purchase orders in Excel, Word, and PDF formats?
Yes, you can download the purchase order format from myBillBook, fill it with the required details and convert it into Excel, Word, and PDF formats.
What is a purchase order format?
A Purchase order format is a document format used by the buyers to enquire about the availability of required goods. A buyer typically fills it with product description, product quantity, delivery date and other terms.
What is a standard PO?
A standard purchase order or PO is issued when the information about the required material or products is known.
What are the four types of purchase orders (PO)?
Standard PO, Contract PO, Planned PO, and Blanket PO are four types of purchase orders.