The wording on a purchase order is critical to its success. Most companies get purchase order forms that outline all of the blanket conditions of the transaction. A blanket condition is something that applies to every order. Examples of blanket conditions include the payment options, return policies and shipping policies. The information that is specific to that order is also important when being printed on a purchase order.
This section will outline the payment terms of the transaction as the buyer understands them. If the seller has a different view of the payment terms, then that should be discussed before the purchase order is made final.
There are two specific elements of the delivery date that should be included on every purchase order. The first element is the date itself. In most cases, the delivery date is negotiated between the seller and buyer in advance of creating the purchase order. The other element that should be included is an indication as to whether or not that delivery date is firm. If a product is critical to the success of a project, then the customer may need the delivery date to be firm. If the product is not critical, then a flexible delivery date can make the relationship between the buyer and seller much smoother.
Product Or Service Details
The product or service details need to be extremely comprehensive. These are some of the more important conditions that the vendor will be held to when it comes time to pay on the purchase order. The buyer needs to outline the exact terms of the service or specifications of the product on the purchase order for it to be effective. A general or vague product or service description could wind up causing confusion and delay payment.
A purchase order should include the unit price, the number of units, the total price, a subtotal, any shipping and handling charges, any taxes or other fees and then a final purchase order price. The complete purchase order pricing goes right along with the product or service details as one of the more important parts of the purchase order. Be sure to include all elements of the pricing on the purchase order so that there can be no confusion between the buyer and the seller.
It is always interesting to see how many companies forget to put complete contact information on a purchase order. If this information is not complete, then the vendor may not know who to contact if there is an issue.
Comprehensive Shipping Information
If a buyer does not want his product shipped to the wrong location, then be better check his shipping details on the purchase order before issuing the order. A vendor will ship to whatever location is on the purchase order. If the customer has special shipping instructions and does not include them on the purchase order, then the buyer will have created an issue that the vendor will not be responsible for.