The buyer will issue a Purchase Order document, which is a request for the types of products they want to purchase. A Proforma Invoice and Purchase Order can be issued in any order. These are important documents that are used to counter check all information to avoid any confusion or problems with the supply and delivery of products. Any additional information agreed between the buyer and seller can be included on these documents. Both parties will have to counter sign each document as they represent a legally binding agreement between the buyer and seller. If there are any disputes relating to the order, these documents will be referred to in a court of law.
This will be created by the buyer and it will include the buyer’s signature. The seller will have to double check all information, counter sign and send a copy back to the buyer.
An example of a Purchase Order document:
What information is included on a Purchase Order ?
- Seller’s company name, address and contact details
- Buyer’s company name, address and contact details
- Product Description – including item codes, description, specifications
- Product Quantity
- Product Pricing
- The selling terms agreed (IncoTerm) – Refer IncoDocs’ IncoTerms Graph
- Invoice Currency
- Payment Terms – as negotiated between buyer and seller
- Buyer and Seller Reference numbers
- Estimated supply lead time
- Estimated shipping details (vessel name & ETD, if known)
- Signatures of the Seller and Buyer, including name and dates