Understanding Detail About Purchase Order
Purchase Order: Purchase order is a letter that show many items or product which is wants to be order and buy by a buyer. This letter made by buyer and be given to seller or supplier. The supplier will check for the items. This is also agreement letter between seller and buyer. Buyer will check and prepare all the buyer write in Purchase order. This Purchase order usually called by PO. This is contain detail about, the item, description, amount and price.
This is of course different from the invoice which is usually made by the supplier and will be sent to the buyer, this PO made from the buyer which is then sent to the seller.
The content of the PO itself usually consists of details of the company involved, the date of the order, and important details of the things to buyter wants to buy. For example, details about the name of the item, the number of items to be purchased, the price and other additional terms. Basically, this purchase order is a letter requesting goods whose quantity and price will be stated by the buyer.
Although this purchase order is somewhat complicated, placing a PO through a PO can provide a sense of security from the possibility of additional fraudulent acts and to place the availability of materials at the desired price.
Make a Purchase Order
When you want to purchase goods or services from a company or supplier using the PO system, there are a number of steps you must take to anticipate and minimize losses from the company. So it would be better if you make a list of the company’s material requirements within a certain period of time which can then be done by:
• Choosing the best supplier through various sources such as trade directories, advertisements or offers from their own suppliers. It could also be based on suggestions from business forums
• After you choose a supplier, you can immediately make a PO.
• Make sure to match the data on the number of goods and the type of goods that are listed on the PO form first so that no errors occur
• Save the PO form so you can use it as a guide for future purchases
In addition, you as the buyer must also pay attention to several things in making a PO such as:
As an ordered, you must clearly state the identity of your company in the PO
Include in detail what you want to buy and order, for example, such as brand, name of item, quantity and other information. Don’t forget to clearly state the manufacturer or supplier you choose. If necessary, you can mention the media as an advertisement for the products offered
Don’t forget to mention the type of delivery, the time of delivery and the method of delivery you want and the payment methods you can make Include the number of your PO. This number is arguably very important in tracking if one day there is a mistake or problem with the purchase order you made
Benefits of Purchase Order
Each letter or form used by a company certainly has different benefits. Likewise with purchase orders, here are some of the benefits of purchase orders for companies:
Ordering from a supplier can indeed be done directly. However, this will usually be a little dangerous because you could be fooled, especially if the ordering system is not in accordance with the SOP. This is not the same from placing an order for things with the Purchase Order system, where it will be safer from fraud, so that it can minimize losses that could be experienced by the company.
Determine Your Own Price
So, in this purchase order, you as a buyer can determine what price you want and then submit it to the seller. Well, if the seller agrees to the price and goods you want, of course this can be more profitable for the company.
In fact, if you place an order and purchase via a Purchase Order in large quantities, usually you will get a discount or special price which is certainly cheaper. This of course will save the company more money and can be a plus in itself.
Securing the Availability of Goods
Making purchases by means of a Purchase Order can help you secure the items you want to buy. This is because when you submit the Purchase Order, of course the seller will ensure the availability of the goods you want and save them for delivery at the specified time. If the item you ordered is an item that runs out quickly in the market, then this PO system will be very helpful.
Purchase Order Example
Purchase Order Function
Even though it looks quite complicated to order goods from a supplier using a purchase order, a purchase order with a PO will provide a sense of security from additional fraud and secure the availability of materials at the desired price.
Things You Need To Considered When Making A Purchase Order.
As a customer, include a clear company identity in the purchase order. Include any details that you will order, such as brand, item name, quantity, and other information. State clearly the manufacturer or supplier you choose. Mention the media as the place to advertise the products being offered (if necessary).
State the form and quantity of the order in detail, if needed, make a list in the table to make it easier to search and service. State the shipping method, delivery time, payment method, and also the shipping method you want. Include the PO (purchase order) number. This number is very important for tracing if there are errors or problems.
In carrying out company operations, of course, there are many things that are done. One of them is the procurement process or procurement of goods. Procurement is usually also known as purchasing or purchasing goods made as a form of money circulation and investment made by the company itself.