A purchase order is a financial document created by you (buyer) for the vendor (seller). Purchase Order includes details like the purchase order number, product or service name, rate, quantity that buyer wants to purchase from the seller.
Is this Online Purchase Order Format really free?
Create up to 20 invoices and other documents in a year - completely free. Invoices, Quotations, Pro Forma, Expenses and more. No hidden charges.
Can I customize the purchase order format?
Yes. You can customize your purchase order form by adding your logo, signature, and also by adding multiple fields and columns on the purchase order form.
Can I generate purchase orders with other format?
Yes. You can use multiple templates which also includes letterhead. You can also change the color and font of the purchase order form.
How is an online purchase order useful to me?
With Refrens online purchase order, you can create professional purchase orders online for free. Manage and save all your purchase orders in one place with detailed information about your vendors.
Can I track my purchase order online?
Yes. You can track all your online purchase orders from the purchase order dashboard.
Is my data safe?
Absolutely. Only you can decide who you want to share the invoices, quotations with. The documents you create are accessible only through special URLs that you share or PDFs that you download. We do not share your data with anyone for any purpose.
The purchase order form is one of the important documents issued by the buyer intending to purchase products from the seller at a specified price. Purchase Order includes all the important information that an invoicing document must have like buyer and seller details, product name and description, quantity, rate, and specified amount.
Usually, a purchase order is placed via a mediator called buying agent or indent agent which helps in buying the product or service you are in need of. The purchase order itself is not a legally binding contract for both parties.
If both do not have any purchasing contracts, then both the party sign the purchase order and consider it as a contract for the transaction.
To get a more clear idea of what purchase order is? Let's understand this with an example:
Suppose you need a computer for your small business, so first you find the perfect supplier that can provide the product as per requirements at a low price. Then you tell the supplier your needs (via purchase order). They provide the product and you pay for it. This is how most small businesses are operated.
But many times this is not what actually happens. You are running a business and small goes for your supplier as well. There are chances that this process can get hindered because of some issues like shortage of product, shipment delay, payment issues, miscommunication when ordering the product, and many more.
Whereas it happens the exact opposite when working with a trusted supplier. All the work and processes get smoother and timely finishes delivery, and all this can be done via purchase order.
Moreover, a purchase order can be used by both parties to check and reverify the transaction that happened between two parties.
What is an Online Purchase Order?
An online purchase order is a financial document summarizing the purchase of goods or services that are agreed upon by both buyer and seller under certain terms and conditions. By creating a purchase order online, a company or an organization can effectively manage and track their purchase expense with minimal human error. It also helps you cut the business purchasing expenses and helps to improve the purchase order cycle.
Why is a Purchase Order Necessary?
Generally, the purchase order is mostly used by mid to large size enterprises to keep ongoing purchases smoothly from the vendors. But for small businesses, this is not the case, because of the simple purchasing habits they don’t feel to create purchase orders.
But as the business grows, demand for purchase increases and more people get involved in the purchasing process. Here the business realizes the importance of purchase order and it also helps to make financial accounting more efficient and easier. Purchase order makes the transaction between vendors and business more relevant and transparent.
Let's understand how the purchase order form works in detail:
Suppose you have started a call center business and now you want computers for your business. Here, you will start searching for the perfect vendor who can provide you with the best computers at a low rate.
So you search them on Google or you find a person who can refer the person to you. Here, multiple vendors will either contact you or send you quotations about the product you are in need of along with the price.
You will now skim the best quotations received from the vendor. And now you send them a purchase order stating to them the quantity of the product you required with the specified amount. You will further add more about when you are expecting the product to get delivered, payment methods, and modes. If the supplier can provide the discount.
Once the vendor views your PO, they will check for the inventory and stock whether they can fulfill the requirement you shared on PO.
Once the vendor knows that he can fulfill the requirement of the computer, he will agree to your PO and thus PO becomes the legally binding contract between both parties. As proof of confirmation, the PO is approved, signed and send back to the buyer.
The buyer views the purchase order and knows that the PO is confirmed from the vendor side.
Once the purchase order is approved, now it's time for the vendor to fulfill the request and ship it to the buyer before the due date. During this process itself, the vendor sends a proforma invoice to the buyer stating the confirmation of delivery of the product by adding all the relevant information like the product name, quantity, rate, and total price. Many times seller using this proforma invoice asks for advance payment.
Once the buyer receives the proforma invoice, he or she can re-verify the name, rate, and amount of the product.
The seller then sends the delivery of the product along with the invoice to be paid. Now here it's the responsibility of the buyer to make the payment of the invoice upon agreed payment terms.
Here you get to know not just about the role of purchase orders but also the role of creating quotations, proforma invoices and invoices.
While creating a purchase order, there are a few details that should be fulfilled by every purchase order template which are as follows:
Here are the elements one should look into when having the purchase order template:
PO Date and Due Date
Line Item Name and Description
Terms and Conditions
VAT (if applicable)
How to Create Online Purchase Orders with Templates?
Here is the step-by-step guide to creating a purchase order using the purchase order template
Start with adding the title of the document as “Purchase Order” and then add your company logo to give a more professional look to the PO. Adding a company logo is completely optional but it is good to add a logo since it gives more of branded look to the PO.
The second step is to add the PO number, PO date, and due date so that the vendors know when is the last day to ship the product.
In Order By section, add buyer details and in Order To section, add the vendor details. Details you can include are the name of the company, address, email, phone number etc.
Add Shipping Details, this is the section where you add the shipping details, and where you want your product to be shipped.
In the line item section, add the name and detailed description of the product with the quantity required and also the estimated amount of the product you want from the vendor.
Add Terms and Conditions, here is this section add payment terms. Shipping terms or any other important terms you want to mention.
Here is your purchase order get created but if you want to add more details then Refrens also provide the option to add attachments, and to add notes.
How do send Purchase Orders to Suppliers?
Once the purchase order is created on Refrens, you will get multiple options to share the PO with your client. One of the most popular sharing methods on Refrens is to use Email Purchase Order options, where users share the PO directly to their seller via email.
The email option is one of the useful features, as you can easily track if the PO is delivered to the client or not and also whether the seller has opened your PO. Hence, tracking of PO makes it easy and you can also schedule to send the PO for a future date.
Other option includes downloading the PO in PDF format, sending it via WhatsApp, or sharing the common PO link with the client.
Refrens’ Free Purchase Order - helps you create a purchase order instantly. Make effortless transactions with your supplier and track all your purchase orders in one place. Create purchase orders, by adding all the necessary details of your vendors. Add multiple fields and columns to purchase orders as per the requirements and can also change the invoice templates as per the needs.
If you have a global vendor, still you can make a purchase order online with multiple currencies as Refrens supports 200+ countries. Not just currencies, you can also change the number format of the purchase order to the international number system. With one click, duplicate the purchase order which eventually saves you time.
Refrens’ user-friendly and optimized interface helps you to download the purchase order in one go. Easily create, manage, and download the purchase order hassle-free. You can download it as a PDF, print it, and can also email the purchase order to your vendor. Refrens also has the feature of WhatsApp sharing the purchase order.
What are the other tools provided by the Refrens other than Purchase Order Template?
Refrens provides almost all the tools which are essential for small businesses, freelancers, and agencies to run their businesses seamlessly. Tools that include invoice generator, proforma invoice templates, estimate & quotation generator, and expense management software.