Purchase Order Letter

As per the life cycle of a product an enquiry about it does not always end in a sale. Once a customer likes a product it results in a sale but only through a verbal order or a written one. A Purchase Order is the document that initiates the purchase and helps close the sale. In today’s times of multiple companiesavailable for all products, there is some amount of trust in the customer and even a verbal confirmation of an order is acceptable. But most of the times it is only against some advance.

A Purchase Order Letter is a document that confirms to the seller that the customer in a specified time frame requires a particular quantity of the product. Nowadays one company to the other confirming the order, which is generally a bulk order, writes Purchase Order Letters or it is written by an individual to a company again in the case of placing a bulk order.

DOS AND DON’T’S OF PURCHASE ORDER LETTER

  • A Purchase Order Letter should be written as soon as the decision for the purchase has been made
  • The company with whom the order is being placed should be given enough time to execute the order
  • The letter should clearly indicate the product code or item number, the size and the quantities being ordered
  • The date when the Purchase Order Letter is being generated is very important because that identifies when the order was placed
  • If the order is being placed by a company then it usually should be in a Purchase Order format
  • The Purchase Order Letter should also indicate the date by when the order is expected to be executed or delivered
  • The mode of delivery of the material should also be identified in the letter
  • The letter should also carry the mode of payment by which the payment will be made
  • If any advance has already been paid against the order, it must be mentioned in the Purchase Order Letter
  • The address where the order has to be delivered should be very clearly mentioned in the letter along with any landmarks, if any, to locate the address
  • The Purchase Order Letter should give the details of the costing of the price including taxes, etc so that there is no confusion while making the payment
  • The name of the company or dealer with which the order is being placed should be clearly written on the letter to avoid any miscommunication of details
  • There is no scope for any grammatical or punctuation errors in the Purchase Order Letter
  • The contents of the letter must be carefully read through to ensure that the order details have been correctly mentioned
  • The Purchase Order Letter should ideally be typed but the signatory should personally sign it

SAMPLE PURCHASE ORDER LETTER

______________ (Name and address of company with whom order is being placed)

_____________ (Date)

Subject: Purchase Order for 1000 pairs of socks

Dear Sir or Madam

This is with reference to our meeting on ___________ (date) when we visited your factory in connection with purchase of socks for our school children.

We are pleased to place an order for 1000 pairs of white summer socks against item number ___________ and size _________. We would appreciate if the order is delivered at the address given below latest by ____________ (deadline date) so that we can start selling it to the children before the onset of summers.

___________________ (Name and address where delivery will be made)

The terms and conditions of the purchase order are as follows:

1. Order for 1000 pairs of white summer socks with item number _________ and size __________.

2. Delivery will be made at the address mentioned above.

3. The order should be delivered latest by __________.

4. 100% payment will be made on delivery.

5. If the order is not delivered by the due date, please consider it as cancelled.

6. The price per pair, as mutually agreed, is Rs. ___________ inclusive of all taxes.

We hope to have a long business relationship with you.

Please feel free to contact the undersigned for any clarifications or discrepancy in the order details.

Best regards,

(Name of signing authority)

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