A Purchase Order is a standard document that customers or clients can use to make repeat orders for goods or services from a business.
A Purchase Order is a formal way to record orders made for goods or services and helps ensure that a business is in a position to meet the needs of clients or customers. When a Purchase Order is accepted, a binding contract is formed.
A Purchase Order sets out the delivery address, the number of goods or scope of services, the price, the shipping costs where appropriate, and the payment terms. It also creates a record of orders that can then be matched with invoices.
If your clients or customers are placing repeat orders for your goods or services, then it is good practice to provide a
- Name and address of customer;
- Delivery name and address;
- Date of the purchase order;
- Payment terms;
- Quantity of goods or description of services;
- Unit price; and
- Total price of all the goods or services.