How to Send a Purchase Order & What Information to Include

A purchase order (PO) is a formal commercial document issued by a buyer to a seller. It formalizes a buyer’s intent to purchase specific goods or services, detailing types, quantities, and agreed-upon prices. POs provide clarity for both parties, streamline the purchasing process, and serve as a record-keeping mechanism.

Essential Details for Your Purchase Order

Before creating a purchase order, gather all specific information. This ensures accuracy and completeness, important for financial control and dispute resolution. Without precise details, a purchase order cannot adequately serve as a clear record.

Include comprehensive buyer information, such as your company’s full legal name, physical address, and contact details for the purchasing agent. This ensures the vendor can identify the purchasing entity and direct inquiries. Similarly, provide the vendor’s legal name, address, and contact information for their sales or order processing department.

Detail each item or service with clear descriptions, including product names, model numbers, or specific service scopes. Specifying the exact quantities for each item is important. This detail helps prevent misunderstandings about the order’s contents and facilitates accurate inventory management upon receipt.

The pricing section must state the unit price for each item and the total price for each line item or service. Outline agreed-upon payment terms, such as “Net 30” (payment due 30 days after the invoice date) or “payment upon delivery.” These terms manage cash flow and set financial expectations for both parties.

Include shipping information, such as the preferred shipping method, the exact shipping address, and any special delivery instructions. A specific delivery date or timeframe should be noted to manage expectations for receipt of goods or completion of services. Finally, assign a unique purchase order number for easy tracking and reference by both the buyer and the seller.

Assembling Your Purchase Order Document

Once details are gathered, structure this information into a formal purchase order document. This transforms raw data into a clear, organized, and professional communication tool. Accuracy in this phase helps avoid discrepancies and ensures the PO serves as a reliable record.

Businesses often create purchase orders using various methods, including accounting software, dedicated procurement platforms, or standardized online templates. Some companies may utilize manual spreadsheets or word processing documents, particularly smaller enterprises. Regardless of the format chosen, the goal is to present the information clearly and consistently.

A standard purchase order begins with a header containing the unique PO number, the date of issue, and contact information for both the buyer and the vendor. Following this, the document details the line items, providing a comprehensive breakdown of each item’s description, quantity, unit price, and extended price. This section ensures that all goods or services are explicitly enumerated.

The purchase order includes sections for subtotal calculations, applicable taxes, and any shipping costs, culminating in a total amount due. Payment terms and shipping instructions are clearly stated within the document. Space for notes or special instructions allows for any unique requirements or agreements to be documented. An authorization or signature line may be included to signify approval, reinforcing the document’s legal standing once accepted by the vendor.

Transmitting Your Purchase Order

After the purchase order document has been assembled and verified, its formal transmission to the vendor is the next step. This initiates the transaction and communicates the buyer’s intent. The chosen transmission method should be reliable and ensure prompt delivery and acknowledgement.

Email is a common and efficient method for sending purchase orders. When using email, attach the completed PO as a PDF document to maintain its formatting and integrity. Use a clear subject line that includes the purchase order number and your company name, such as “Purchase Order # [Your PO Number] from [Your Company Name],” to facilitate easy identification by the recipient.

Many vendors utilize online portals or dedicated procurement systems for order submission. If the vendor provides such a system, inputting the purchase order details directly into their platform ensures seamless integration into their order processing workflow. This method often provides immediate confirmation of receipt and can streamline communication.

For certain transactions, particularly those involving physical documents or requiring a higher degree of formality, traditional mail or courier services remain viable options. This ensures a physical copy of the purchase order is delivered, which can be important for audit trails or when dealing with vendors who prefer paper documentation. While less common, fax transmission is still utilized by some businesses, especially for established vendor relationships or in industries where it remains a standard practice.

Post-Submission Actions and Tracking

Once a purchase order has been transmitted to the vendor, several important actions are necessary to ensure the transaction progresses smoothly and is properly recorded. These post-submission steps are important for financial accountability and effective supply chain management. They help confirm the vendor’s receipt and commitment to the order.

A primary action involves confirming that the vendor has received the purchase order. This can be achieved by requesting an email confirmation, checking the status within an online vendor portal, or following up directly with the vendor’s sales or customer service department. Prompt confirmation helps avoid delays and ensures the order process has officially begun.

Maintaining a comprehensive record of the sent purchase order is equally important for internal controls and future reconciliation. Businesses should retain a copy, whether digital or physical, for their own records. Organizing these POs systematically, perhaps by date, vendor, or the unique purchase order number, facilitates easy retrieval for accounting and audit purposes.

Finally, it is necessary to track the order’s status and follow up with the vendor as needed. This includes monitoring expected delivery dates and verifying that goods or services are received as specified. Should any discrepancies arise, such as missing items or delayed deliveries, prompt communication with the vendor, referencing the purchase order, is important for resolution.