Business is not only confined to vendors and buyers but there are a lot of aspects that need to be taken care of. The same is this scenario when the business is looking forward to creating the invoice mentioning all the details. Some new businesses have no clue what is a purchase order and how they will be able to create it in this online era.
If you are someone who wishes to know about it, keep reading till the last because, in this read, we are discussing it in detail so that there will be no confusion later on and creating a purchase order will be easier for you!
What is a purchase order?
A purchase order is a legal document the buyer creates and sends to the vendor indicating the purchase of goods or services. This document creates all the details considering the product being purchased, amount, and quantity. If the product needs to be delivered to any other state, the same details are also mentioned.
The best part is this document helps bind both the parties and help them to keep the transaction processes streamlined. When the buyer has created the purchase order, they can send the same to the vendor or supplier and seek approval on it.
There are 4 types of purchase orders:
- Standard purchase orders – The most common PO is usually the standard one, which helps the buyer understand how much they need to spend and when it’s needed. This can be anything from a simple estimate to something as detailed as a proposal with all the text shown in quotation marks.
- Planned purchase orders – the one that allows buyers to include information about the quantity and delivery date for an item once they have verified their purchase. This provides a lot of room for buyers to customize their purchases, enabling the buyer to order in larger quantities or receive the product faster than expected.
- Blanket purchase orders – Planned Purchase Orders are often used interchangeably with Blanket Purchase Orders, especially in the case of larger businesses.
- Contract purchase orders – This is a purchase order that we use at large enterprises like this one. It is similar to orders you would typically find in businesses where they look to be extra safe. You’ll typically find very few of these.
How to create a purchase order?
With Invoice Office, You can create a purchase order with very simple steps.
Fill in all the details available, including the purchase order number, buyer details, vendor details, shipping address, line items, and subtotal. All these parameters must be mentioned clearly because in case any confusion happens, the vendor may not be able to understand what are you up to.
After mentioning these details, you are all set to get the digital copy available and send it to the vendor.
This is the simplest process that users need to follow to create the purchase order. When you create the purchase order with INVOICE OFFICE, you will not need to go into any problematic steps because this tool is very easy to use, and all your needs will be catered to at one destination. Just mention the details and choose the template to create the best purchase order document for you!
