A purchase order is a financial document summarizing the purchases of goods or services that are agreed upon by both buyer and seller under certain terms and conditions. By creating a purchase order, 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.
Generally, the purchase order is mostly used by the 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 businesses more relevant and transparent.
Using purchase orders, it is easy to make purchases for small businesses. It makes your purchase transaction seamlessly easy. Following is the purchase order cycle.
When there is a product or service requirement in the business. The buyer asks for a quotation from different suppliers. The buyer will definitely go with the supplier who gives you the best deals for the products.
The buyer then creates a purchase order using a purchase order template and sends the purchase order via email to the vendor.
The vendor then receives the PO and confirms whether the seller can fill the inventory of the buyer or not. If it is not possible, the seller asks the buyer to modify the PO and if the buyer refuses to do it then PO is canceled and the buyer finds another supplier to fulfill the order.
If the buyer accepts the purchase order, then the seller confirms it by sending all the necessary information which includes the product details, rate, quantity, and shipping details on the proforma invoice. The proforma invoice also includes a purchase order number so that the buyer can easily track which order has arrived.
Once the product has arrived, the buyer can easily match the product using the purchase order number.
The seller then sends the invoice to the buyer asking for the payment of the product or service delivered by the buyer. It also includes the purchase order number and proforma number so that the buyer can verify and match the order.
The buyer then pays the invoice as it was mutually agreed by both parties at the time of purchase order.
While creating a purchase order, there are a few details that should be fulfilled by every purchase order generator which are as follows:
PO and Quotation Number: It is good to have a quote number for which the purchase order is being issued and the same for the purchase order while creating the invoice.
Order By Details: This section will showcase all the details of the buyer. I.e; brief details about the business.
Order To Details: It will show all the necessary information about the seller.
Product or Service Details: Amongst all sections, this is the most important one. It includes all the details about the product or service along with the price and quantity required for each item.
Terms & Conditions: It should have the detailed terms and conditions of the purchase order.
Additional Notes: As the name suggests, this is just an addition to the purchase order where the buyer can add extra information or instructions about the product or service.
Using Refrens’ purchase order generator, you can customize and use multiple templates with one click. After creating a purchase order at step 1, you can select the purchase order design at step 2. Not only designs, but you can also choose multiple colors from your organization or company logo which suit your purchase order. Also, you can change the headings with different fonts. Refrens main templates include Professional Purchase Order, Letterhead, Business Purchase Order, and also a Print-friendly one. You can customize each of the templates easily and can select your own color.
As a professional, you must always try to send the purchase order via Email. Using our purchase order template, you can easily create a purchase order and can send the PO to the vendor directly using the email option. You only need to add the email address of the vendor in the recipient section, else all the details will be pre-filled by our system. You can also edit or add the new subject line and body of the mail. When the vendor receives the mail, get the option to view the purchase order by clicking on the button or they can directly download from the mail. Refrens also provides other options to send the purchase order such as downloading the purchase order as PDF, printing it or you can even share through WhatsApp or sharing the link( after copying the link).
Refrens provides multiple purchase order templates to their users for free. For different purposes, there are different templates. Some of these are as follows:
Professional Purchase Order Template:- Specially designed for professional ones. Easy to customize templates.
Letterhead Purchase Order Template:- Make your purchase order more professional using letterhead. Add your company logo and choose from the different font headings.
Business Purchase Order Template:- For small business owners, entrepreneurs, and startups.
Print-friendly Purchase Order Template:- Simple black and white compact template.
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.
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 your 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.
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 template, quotation generator, expense management software.