Master your spending : How to create the perfect purchase order template
Is your procurement process feeling slow and disorganized ? If you’re tired of chasing paperwork and want better control over your company’s spending, a solid purchase order system is the ultimate goal. Until you have a fully integrated solution such as My Intranet HRIS, you can start optimizing today. This guide will show you how to create a professional purchase order template that brings clarity and control to your purchasing.
The anatomy of a legally sound Purchase Order
For a purchase order to be legally valid, it must include the following mandatory fields :
- the customer’s address : the company issuing the order
- the supplier’s address : the company receiving the order
- a registration number clearly identifying the company (registration number in the commercial register)
- a list of products ordered, their prices and the total amount of the order (including VAT where applicable). You can refer to a supplier’s quotation to fill in each order line.
We strongly advise you to include some additional data :
- a unique purchase order number that will appear on the supplier’s invoice
- the payment deadline
- target delivery date
- the customer’s general terms and conditions of purchase (or the supplier’s general terms and conditions of sale).
The purchase order is then signed, or even stamped with the company stamp, and sent to the supplier. From this point onwards, the order is formal and commits the customer to paying for the product or service purchased. The purchase order acts as a binding contract. It is a bilateral contract, meaning it creates reciprocal obligations for both the customer and the supplier.
Download our purchase order template
You can download a free purchase order template below :
Go paperless : The game-changing benefits of digital purchase orders
Dematerializing purchase orders is a key improvement your business can achieve with a solution like My Intranet HRIS. The advantages are as follows :
- Save Valuable Time : Slash data entry time with pre-filled supplier information and automatic calculations.
- Approve with a Click : Streamline your approval process with a secure, electronic workflow that eliminates bottlenecks.
- Instant Delivery : Send professional, PDF purchase orders to your suppliers instantly via email.
- Never Miss a Detail : Easily track deliveries and automatically generate payment requests upon receipt of the invoice.
- Gain Full Financial Control : Make smarter decisions with centralized, real-time reporting on all your company’s purchases.
At a time when teleworking is becoming increasingly widespread, the use of such a solution is essential to ensure that all players in the supply chain can continue to collaborate effectively.
Is a purchase order mandatory ?
No, you don’t have to issue a purchase order. Simply signing an estimate is sufficient. It is even possible to work without a purchase order or quotation, but this increases the risk of disputes between customer and supplier, since the customer is under no obligation to pay for the products received, and the supplier is under no obligation to deliver to the customer in the absence of a clearly formalized commitment.
The purchase order is essential to contractualize the commitment and define a precise framework, especially in terms of price, quantity of products or services ordered and lead times. Over and above the contractual aspect, this document is also useful for the company’s sound management, as it enables us to control expenditure commitments.
From Chaos to Control
A well-structured purchase order is more than just a document ; it’s the foundation of a sound procurement strategy. It protects both you and your suppliers, ensures financial clarity, and paves the way for greater efficiency. By implementing a professional template and embracing digital tools, you can transform your purchasing process from a source of friction into a strategic advantage.
Ready to take the next step ? Discover how My Intranet HRIS can fully automate and simplify your entire procure-to-pay process.
