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Why Do You Need Purchase Order Templates?
When you have just been starting your business related with buying and selling physical stuff, you will need to get yourself be familiar with the purchase order and invoice. These two terms indeed are very similar, but they are completely different and important.
Regarding purchasing, we only deal with the invoice term and forego the purchase order due to its increase of the paperwork used. However, this is clearly needed to clarify things between supplier and buyer. This legal document is needed to avoid dispute and potential legal action in the future.
What Are The Difference Between Purchase Order and Invoice?
In terms of definition, the purchase order is related to the confirmation order (officially), meanwhile, the invoice is about payment of an order. The ones who initiate the purchase order is a purchase, meanwhile, the invoice will be the vendor.
The receiver of ‘purchase order’ will be the vendor and the invoice will be received by the purchaser. Also, the purchase order will be sent onset, and the invoice will be delivered right after you complete your payment.
Besides, the purchase order will have components like (date, the name of the company who is purchasing products or services, the description including price list and quantity), payment method, mailing address, invoice address, and also purchase number. Conversely, the invoice will include the invoice number, the payment schedule, credits and discounts and also the total of the goods.
Is There Any Similarities Between Invoice and Purchase Order?
Even though both terms are completely different, invoice and purchase order have two similarities. Both of them are legal documents which contain of agreement between vendor and purchaser. Both terms also include mailing information, price and order details.
Usually, suppliers will have their own purchase order template or simply they get it free from the website and customize it. You also can download our purchase order templates for free on this page.
Why Do Companies Make and Use Purchase Order Templates?
Using templates will ease them to customize any kind of purchase order. Apart from that, you always have good things to know why you should use the companies purchase order templates.
- Making Clear Expectation – This is beneficial to clarify their needs with the vendors and both (purchaser and vendor) can use it to fix order problem when it doesn’t come as expected.
- It Helps You Manage The Orders – The best thing you will get from a purchase order is helping you manage and document delivered and undelivered goods.
- It Helps on Budgeting – When the purchase order is made, this will help the company to set the budget wisely.
- This Is A Legally Binding – Once it is accepted by the vendor, this document is legally binding.
- The key Factor of Auditing – Auditing financial problem using this document will be so helpful because you can check it to the supplier directly to see whether something is going wrong.
In conclusion, if you are starting a business, it is time to consider using the purchase order template if you don’t have time to make it on your own.