Purchase Order (PO)

• To streamline the purchase process, a standardized Purchase Order (PO) should be issued by the buying company.

• A PO is the central reference point of the purchase process. The entire purchase transaction can then be followed through this PO as the reference.

• PO method can help in regulating and monitoring the purchase process. A detailed analysis of our purchase pattern can also be done by studying the data of the POs issued during a period.

• A lot of confusion and possible errors in purchase process can be avoided if the PO method is used properly.

The PO can have some or all of the following and more information:

1) Date, Serial Number

2) Order type, Quotation/Pro-forma Invoice number (if any)

3) Name and address of the vendor

4) Our billing address

5) Our shipping address (if delivery is required at a different place)

6) Sales Tax number and other registration numbers of vendor and ours as applicable

7) Product description, quantity, rate, amount, discount etc.

8) Payment terms

9) Delivery method and delivery date

10) Instructions, if any

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