Ready-to-use Purchase Order Template in Excel, OpenOffice Calc & Google Sheet to request purchase, issue, and track POs for your business.
In addition to the above, this article consists of detailed information about POs. Such as definitions, types, processes, printable formats, advantages, disadvantages, and much more.
It can be helpful to students as well as individuals to easily learn purchase management.
Enter vendor’s name, product id, product description, and product price per unit in the “Vendor-Product List” sheet.
Simple and easy to use. Just follow the below-mentioned steps:
- Insert Date and PO number.
- Select Vendor Name and Product Code from the dropdown list. The template will automatically fetch the product description and price.
- Insert Quantity and Additional Information if applicable.
That’s it and your Purchase Order is ready to print.
Table of Contents
Download Purchase Order Templates (Excel, OpenOffice Calc & Google Sheet)
We have prepared Purchase Order Template with predefined formulas and formats. It helps you to easily manage and track your purchase orders. Download your desired format and start using it.
Purchase Requisition Template
Standard Purchase Order Template
Blanket Purchase Order Template
Contract Purchase Order Template
Planned Purchase Order Template
Purchase Order Tracker Template
Moreover, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at email@example.com.
What Is a Purchase Order?
A Purchase Order is an important commercial document that indicates the product type and quantity. A buyer uses it to initiate the purchase of goods from the seller.
It is a legal binding of purchase upon acceptance by the seller. Businesses can use this as a legal document if the buyer denies receipt or the seller fails to fulfill the product needs.
Elements of Purchase Order
There are different types of PO and have different elements as per the type. Every company’s document by default consists of the company logo and company title.
Usually, a Purchase Order consists of the following:
- PO Date.
- PO Number.
- Vendor Details (Name & Address).
- Delivery Address.
- Product Information (Product Description, Product ID, Product Quantity, Product Price, Delivery Date, etc.).
- Order Value Summary ( Sub-Totals, Taxes, Discounts, Additional charges such as shipping, freight, etc).
- Additional Instruction (Batches, Product Packing, Product dimensions, etc).
In addition to the above, the Blanket PO will include a schedule of deliveries as per the buyer schedule whereas the Contract PO includes the contract details based on which the PO is issued.
What Is Purchase Requisition?
A Purchase Requisition is a preliminary document that department heads or location heads use to the needs of their respective department. It consists of the following details:
- Issue Date.
- Required Date.
- Name of Department/Location Head.
- Vendor Name.
- Product Details (Product Description, Product ID, Product Quantity, Product Price, Delivery Date, etc.).
- Issuer’s Signature.
- Approval Authority Signature.
Large companies that have multiple departments or locations require to evaluate department needs from time to time for the smooth running of the business.
Thus, a buyer uses a purchase requisition for evaluating his total demand from the respective department.
Printable Purchase Requisition Format
Click on the image below to download the printable Purchase Requisition Format:
Process of Issuing a PO
Different businesses have different processes based on the nature of business. Generally, businesses use the steps for issuing a PO:
- Evaluate department-wise demands of products.
- Reconcile the same with Department heads.
- Finalize total requirement and flow of supply.
- Get quotations from multiple vendors.
- Finalize the supplier and approve the quotation.
- Issue a PO with all the details.
- Review of PO by the seller.
- Approval of PO by the seller.
Thus, after the approval, the seller is bound to send the goods as per the schedule mentioned in the PO.
Importance of Purchase Orders in Business
Using a PO simplifies your work in many ways. PO ensures clear communication between the buyer and the seller. This eventually decreases the chances of disputes.
Moreover, it is helpful in preparing budgets. It also voids error and misuse of goods especially in production industries where raw material is purchased for making a final product. Furthermore, timely management of purchases ensures the smooth running of the business.
Types of Purchase Orders
There are 4 types of Purchase Orders depending on the purpose of purchase: Standard PO, Blanket PO, Contract PO, and Planned PO.
Let us understand each type of PO in detail.
Standard Purchase Order
A standard PO or Simple PO is a document that consists of basic details of purchase. These include PO number, vendor information, product, quantity, and price.
Usually, most businesses use Standard PO. Because the requirements surrounding a purchase such as dimensions, packing, etc are much important.
Printable Standard PO Format
Click on the image below to download the printable Standard PO Format:
Blanket Purchase Order
Blanket PO is similar to A Standard PO. The only difference is that it does not have delivery dates. It sometimes also omits price and quantities. Furthermore, Blanket POs are used to avail schemes and discounts offered by the seller.
In simple terms, businesses use a Blanket PO in scenarios where they’re not sure of when or how often they will need to order.
Printable Blanket PO Format
Click on the image below to download the printable Blanket PO Format:
Contract Purchase Order
A Contract PO, as the name suggests, is associated with a purchase contract between buyer and seller. In addition to product details, it also includes the purchase contract information.
During the contract period, a buyer issues standard purchase orders which include relevant details for each purchase.
Usually, the contract consists of further details of batches or lots or delivery. Moreover, such contracts help the buyer to produce material at better prices as the contract defines a time. Thus any increase during this period doesn’t affect the finances of the buyer.
Printable Contract PO Format
Click on the image below to download the printable Contract PO Format:
Planned Purchase Order
A buyer uses a Planned PO by estimating future needs. Similar to other POs, all the order details are mentioned except the delivery dates. Delivery Dates in a Planned PO are estimated.
The only difference between a Blanket PO and Planned PO is of delivery dates. One consists of a schedule of dates whereas another doesn’t.
Printable Planned PO Format
Click on the image below to download the printable Planned PO Format:
Advantages Of Using Purchase Orders
- Reduces turn around time of the procurement process.
- Proper vigilance and monitoring of purchase of goods.
- Helps in developing better business relations.
- Assists in achieving cost control.
- It provides an overview of required future cash flow.
- Serves as collateral in getting financial aid from banks, NBFCs, etc.
Disadvantages Of Using Purchase Orders
- Expensive and time-consuming process for small businesses.
- Chances of misuse of increases if the managers involved are fraudulent.
- Blanket POs increase the work of the Accounts Department. Because they have to carefully manage the blanket releases over the period.
Uses of Purchase Orders
Usually, the first and foremost is the procurement of goods. Additionally, it serves as collateral for obtaining finance. Moreover, the supplier uses it to get long-term credit on the basis of continuous orders.
Thus, a purchase order is cost-effective and helps in many ways, especially for large businesses.
Frequently Asked Questions
Purchase Orders are binding between buyer and seller for the supply of goods. Order forms are prescribed formats provided by sellers asking for orders. Both have different significance. Purchase orders can be used as legal documents whereas an order form cannot be used as a legal document in a court of law. Usually, a procurement manager is appointed for this purpose or the Purchase manager handles Purchase orders. GRN stands for Goods Received Note. It is issued by a seller that acknowledges the supply of goods by a seller and receipt of goods by the buyer. MRN stands for Material Receipt Note. It is a buyer document that indicates receipt of materials at the inventory location from a supplier. Usually, manufacturing companies use this document when the raw material ordered from the head office or branch office is delivered to the warehouse. It includes product details such as quantity, date, PO number, supplier name, and location.
What is the difference between Purchase Orders and Order Form?
Who handles the Purchase Orders?
What is GRN in purchase?
What is MRN in purchase?
Purchase Orders are binding between buyer and seller for the supply of goods. Order forms are prescribed formats provided by sellers asking for orders. Both have different significance. Purchase orders can be used as legal documents whereas an order form cannot be used as a legal document in a court of law.
Usually, a procurement manager is appointed for this purpose or the Purchase manager handles Purchase orders.
GRN stands for Goods Received Note. It is issued by a seller that acknowledges the supply of goods by a seller and receipt of goods by the buyer.
MRN stands for Material Receipt Note. It is a buyer document that indicates receipt of materials at the inventory location from a supplier. Usually, manufacturing companies use this document when the raw material ordered from the head office or branch office is delivered to the warehouse. It includes product details such as quantity, date, PO number, supplier name, and location.
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