Raise A Purchase Order

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Raising a purchase order is an important and necessary step for businesses and individuals engaged in the buying and selling of goods or services. While it may seem like a mundane task, failing to properly raise and manage a purchase order can have serious implications, both legally and financially.

A purchase order is a legally binding document that outlines the terms of an agreement between buyer and seller, clearly outlining each party’s expectations, obligations, and rights in the event of any disputes arising from the agreement. It also helps to streamline the purchasing process by providing detailed information about when goods or services are shipped out, received by the buyer, invoiced and paid for. This helps to both protect both parties from any unexpected costs that may arise down the line as well as to ensure that inventory is managed effectively.

The Genie AI community template library enables anyone to draft high quality legal documents without needing expensive legal advice thanks to its millions of datapoints teaching Genie’s AI what market-standard purchase orders look like. With our free template library available at your fingertips today you can confidently create legally-binding purchase orders quickly-and easily -giving you more time to focus on other areas of your business or life while still getting complete peace of mind!

So if you’re looking for some guidance on how best to raise a purchase order - no matter your level of experience - make sure you read on below for our step-by-step guidance and access our template library today!

Definitions (feel free to skip)

Vendor: A vendor is a person or company that sells products or services.
Purchase Order: A purchase order is a document sent from a buyer to a seller, indicating the type, quantity, and agreed-upon price for goods or services.
Contract: A contract is an agreement between two or more parties that is enforceable by law.
Invoice: An invoice is a document sent to a buyer from a seller that details the goods or services purchased and the amount due.
Shipping Document: A shipping document is a document that provides details of a shipment, including the products being shipped, the destination, and the expected delivery date.
Payment Terms: Payment terms are the conditions under which payments are made by a buyer to a seller.
Taxes: Taxes are mandatory payments made to a government or other authority in order to fund public services.
Fees: Fees are payments made to cover the cost of a particular service or activity.
Discounts: Discounts are reductions in the price of goods or services.

Contents

• Identifying the Goods or Services Needed
• Preparing the Purchase Order
• Researching Payment Terms
• Gathering Necessary Documentation
• Submitting the Purchase Order
• Checking Order Confirmation
• Tracking the Order
• Receiving and Accepting the Goods or Services
• Resolving Any Issues
• Closing the Order

Get started

Identifying the Goods or Services Needed

• Review the project requirements, budget and timeline to determine what items are needed
• Research and compare options to find the best product or service to meet requirements
• Make a list of items needed, including quantity, specifications, and estimated cost
• Ask for quotes from suppliers and compare prices
• When you have chosen the items that you will be purchasing, move on to the next step: Preparing the Purchase Order

Preparing the Purchase Order

• Gather all relevant information about the goods or services, including the quantity, cost, taxes, and delivery details
• Compile the information into a purchase order document
• Check the information for accuracy and completeness
• Obtain approval from the necessary parties, such as the budget holder
• Send the purchase order to the supplier
• When the supplier has accepted and signed the purchase order, you can move on to the next step of researching payment terms.

Researching Payment Terms

• Research vendor payment terms: review the vendor’s website and/or contact the vendor directly to confirm payment terms
• If necessary, negotiate payment terms with the vendor
• Make sure to document the payment terms in writing
• When the payment terms have been agreed upon, you can check this step off your list and move on to the next step.

Gathering Necessary Documentation

• Gather all documents related to the purchase order, such as an invoice, quote, or purchase agreement
• Ensure that the documents include all necessary information, such as pricing, payment terms, and delivery date
• Ensure that the documents are signed and dated by both parties
• You will know that the step is complete when all documents are collected and signed.

Submitting the Purchase Order

• Compile all necessary documentation into an organized, easily readable document
• Complete the purchase order form and include all necessary information
• Check accuracy of all information on the form
• Send the purchase order form to the vendor
• Confirm the vendor has received the purchase order
• Check off the task of submitting the purchase order when you receive confirmation from the vendor that they received the order

Checking Order Confirmation

• Check the confirmation email for the order number, date and supplier’s details.
• Ensure that the details of your purchase order are correct.
• Contact the supplier if any corrections are needed.
• Once you have verified the details of the order, you can move on to the next step.

Tracking the Order

• Check the order tracking website or contact the supplier to see when the order is expected to arrive
• Make sure to check the tracking website or supplier regularly to stay updated on the order’s arrival
• Once the order is expected to arrive, make sure you are available to receive and accept the goods or services
• You will know you have completed this step once you are aware of when the order is expected to arrive

Receiving and Accepting the Goods or Services

• Check the goods or services to make sure it matches the order
• Ensure that the quantity ordered is the same as the quantity received
• Sign off on the delivery note to indicate that you have received the goods or services
• Update the purchase order to reflect the delivery of the goods or services

You can check this off your list when you have received and accepted the goods or services and the purchase order has been updated.

Resolving Any Issues

• If there are any problems with the goods or services received, contact the supplier to resolve the issues
• Ask the supplier to provide a solution, such as a replacement or a refund
• If the supplier is unable to provide a satisfactory solution, contact the original requester and provide them with the details of the issue
• Document the solution in the purchase order before closing it
• Check that you have received a satisfactory solution and can now close the order before checking it off your list

Closing the Order

• Contact the vendor to check if all items on the order have been received
• Once you have confirmed that all the items have been received, send the vendor a confirmation of the purchase order and request an invoice
• When the invoice has been received, review it to ensure that all items and pricing match what was listed in the purchase order
• Once the invoice has been verified and approved, enter the invoice into the accounting system
• Request that the vendor provide a copy of the invoice and any other relevant documents to the Accounts Payable department
• Record the invoice in the Accounts Payable system to track the purchase order
• When the invoice has been successfully processed, the purchase order is considered closed and the process is complete
• You will know that you have finished this step when the invoice has been processed in the Accounts Payable system and the purchase order is considered closed.

Example dispute

Suing a Company for Breach of Contract Based on Purchase Order

• The plaintiff must prove that there was an agreement between the two parties, that the agreement was breached, and that the breach caused them harm.
• The plaintiff must show that the purchase order was an enforceable agreement, which means that all required elements of a contract must be present.
• The purchase order must be specific in terms of products and services, delivery date, price and other terms of the transaction.
• The plaintiff must prove that the defendant did not fulfill their obligations under the purchase order, such as failing to provide the goods or services, or failing to deliver the goods or services on time.
• The plaintiff must also prove that they suffered actual damages as a result of the breach. This could include costs for replacing the goods or services, the loss of profits, or other losses.
• The court may also consider punitive damages or other relief if the breach is found to be intentional or reckless.
• Settlement of the lawsuit may include payment of damages, specific performance of the contract, or other relief as determined by the court.

Templates available (free to use)

General Purchase Order Terms And Conditions Buyer Friendly
General Purchase Order Terms And Conditions Buyer Friendly California
Indemnity Agreement With Private Developer And Compulsory Purchase Order Cpo
Purchase Order
Purchase Order Agreement
Section 226 Draft Order For Compulsory Purchase Order
Statement Of Case For Section 226 Compulsory Purchase Orders
Statement Of Reasons For Section 226 Compulsory Purchase Order

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