A quick guide to a purchase order form.

Learn why purchase order forms are vital for businesses and how you can easily write and sign them.

Most businesses need a steady flow of supplies to keep their operations running. A purchase order form ensures smooth and less risky purchasing processes between businesses and suppliers. Read on to learn more about purchase orders in general and what to include when you create yours.

What is a purchase order form?

Is a purchase order a contract? A purchase order form is an official contract document in which a buyer agrees to purchase goods or services from a vendor. Purchase order forms are crucial because they standardize the business’ procurement process. They help you buy supplies faster, provide a paper trail for bookkeeping, and can serve as proof in disputes.

There are different types of purchase order forms, such as standard, planned, and digital. They all achieve the same end goal, only with slightly different terms used in each.

What are the types of purchase orders?

Various types of purchase orders cater to different business needs by offering flexibility and structure. Here’s a concise guide to five key types:

• Standard purchase order. Specifies quantity, description, and agreed-upon price for goods or services.
• Blanket purchase order. Covers multiple deliveries over an extended period, which is ideal for recurring orders.
• Contract purchase order. Formalizes long-term commitments with suppliers, detailing terms and conditions.
• Single purchase order. Used for one-time or infrequent transactions without establishing a long-term relationship.
• Consignment purchase order. Involves supplying goods while retaining ownership until they are sold or used.
• Turnkey purchase order. The supplier delivers a complete product or service, ready for immediate use, common in projects like construction.

What to include in purchase order forms.

There’s no universal standard for purchase order forms. However, they should include at least the following details:

1. PO number. The purchase order number is a small code number that helps you identify different orders.
2. Buyer and vendor details. Include the names and contact details of both the buyer and seller.
3. Order details. List each item you plan to purchase alongside the order volume, product codes, and prices.
4. Delivery details. Detail where, when, and how the seller should deliver the product, together with shipping costs.
5. Summary. Include the subtotal, applicable taxes, and the grand total.

If you want to make sure you don’t forget any important details, there are many free purchase order templates available online.

What is the purchase order form format?

The purchase order form provides a standardized format for communicating purchasing details between buyers and sellers. This structured form maintains clarity and consistency. Here’s a breakdown of the typical purchase order form format:

• Header. Buyer and seller details, addresses, contacts, and a unique PO number.
• Date and delivery. Issue date and expected delivery date.
• Itemized list. Description, quantity, unit price, and total cost for each item.
• Payment terms. Agreed-upon payment details, due date, and any discounts or penalties.
• Shipping/billing. Shipping destination and billing information.
• Signatures. Space for authorized signatures from both parties.
• Logo and branding. Company logo and branding elements for a professional touch.

Purchase order example.

Let’s walk through an example of a purchase order form. A consumer electronics company seeks product diversification and issues a PO to a component supplier.

• PO Details
  Number: PO-2023001
  Issued: January 15, 2023
  Delivery Date: February 1, 2023

• Microprocessors Procurement
  Quantity: 10,000 units
  Unit Price: $2.50
  Total Cost: $25,000.00
  Payment: Due within 30 days

• Logistics
  Shipping/Billing Address: Electronics Corp, 123 Main St, Anytown, USA

• Terms and Conditions
  Warranty: 90 days
  Returns: Within 15 days

• Authentications
  Signatures from Buyer and Seller
  Special Instructions:
  Phased delivery in three equal installments on specified dates

• Brandings
  Company logo included for identification

• Electronic Submissions
  Facilitated via email to info@electronicscorp.com

This gives transparency and is efficient in the procurement process by providing clarity on terms, quantities, and logistics between the consumer electronics company and the component supplier.

Create a purchase order form template and sign digitally.

Create a purchase order form template that you can reuse more than once. By doing this, you can save time and ensure you have all of the necessary bases covered. Every purchase order form needs to be signed. You can make approving them faster with electronic signatures. E-signatures are legally binding, simple to process, and save money on printing and paper costs. With Adobe Acrobat, you can add and request signatures, track requests, and more.

Discover more ways Adobe Acrobat's e-signature solutions can help you improve your business operations.