A purchase order form is a request from one company to another to send supplies, equipment or materials. A purchase order form is a legal document that protects both buyer and seller. A purchase order form indicates the terms and conditions under which a product will be delivered to a buying company. Purchase order forms can be created manually or with computer software. There isn't a set template or standardized way to create a purchase order form, but there are specific elements that should be included. Here's how to manually create a purchase order form.

Creating a Purchase Order Form

Step 1.

Create a title for your purchase order form. List the name of the vendor you're purchasing goods from at the top of the purchase order form. Include all of a vendor's contact information, such as phone numbers, email addresses, and the physical address of the vendor.

Step 2.

List the items your company wants to buy from the vendor. Quantities should be entered in the left margin, followed by the name or description of the product. This protects you and your vendor from having to deal with issues like partial shipments.

Step 3.

Write the payment terms clearly on the purchase order form. Most vendors expect payment in 30 days or less from the time you receive your supplies. If the vendor offers discounts to you for paying early, place the time frame you have to take advantage of the discount on the purchase order form. This prevents confusion in regard to payment issues.

Step 4.

List the price of each item you're requesting to the right of the item description. Price should be listed on a per unit basis, and multiplied by the quantity ordered. If you order 4 widgets at $1.00 each, your total cost of widgets equals $4. Add the total of each line item to calculate the sub-total of your purchase order.

Step 5.

Indicate the method of delivery on the purchase order form. In some cases, you'll pick up your order in person, or it may be shipped to your place of business. If your order is shipped, the carrier being used to ship your goods should be indicated.