A Purchase Order Form precisely identifies requirements, forms the basis of a contract and supplies information for record-keeping.
RECIPE FOR SUCCESS INGREDIENT CARDS
Ingredient 3: Protect Your Food Business
Question:
What is a purchase order form?
Answer:
An appropriate method of ordering is to use a Purchase Order Form developed specifically for your business. This is preferable because a purchase order form has a number of functions other than just informing the supplier that you wish to purchase goods.
It is important to identify your precise requirements and to include your written terms and conditions on the form. This will overcome any confusion as to the exact details of the order and will be a reference if there is a dispute.
It also creates the basis of a contract. When making a purchase it is unwise to rely on verbal agreements. While verbal agreements can constitute valid contracts, they are difficult to enforce legally.
It also provides information for record-keeping. This includes checking deliveries against orders, giving a record of what has been ordered, and ensuring that bookkeeping information is collected.
This form is most important and should be clearly designed to include all of the information that you need. The forms should be numbered sequentially to allow you to maintain control and account for every form.
When the goods arrive and have been checked, the copy, together with the supplier’s delivery docket, is held by the business until the supplier’s invoice is received.
Question:
How do I create a purchase order form?
Example:
Purchase Specification
Eye Fillet of Beef
Definition: Taken from the hindquarter
Weight Range: 200g
Surface fat: To be completely removed
Length of ‘top’: Not to exceed 100mm
Depth of ‘eye’: The main ‘eye’ must not be less than 55mm
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