A purchase order, PO for short, is a legally binding document that a buyer creates for a vendor to indicate information about what they want to buy. This document outlines the quantity, price agreed for the particular products, delivery date and terms of payment for the buyer.
What does a Purchase Order contain?
As previously stated, a purchase order is created when you wish to order products from a vendor, and this has to contain the name and description of these products, along with clear prices and exact quantity.
A purchase order format should clearly specify:
- Name of vendor, details of vendor, including GSTIN
- P.O date and due date
- Products / services you wish to buy with their respective quantity, price, tax rate and HSN / SAC code
- Payment terms for the purchase and any notes for the vendor.
You have a textile business and have to purchase new materials from one of your vendors. You create a purchase order in which you specify what materials you need, their prices, tax and payment conditions.The vendor will then agree to the purchase order you sent and sends you the materials you requested, along with an invoice. When you receive these products, you compare the invoice with the initial purchase order and if they match, you pay the invoice that the vendor has sent you. You proceed to register this invoice as a bill for your company, for accounting purposes. Purchase Order Management
a. Purchase Order Entry.
1. provision to enter Purchase order for supplier.
2. provision to enter different types of Purchase order e.g. Material PO, Subcontract PO, rate PO, Blanket PO etc.
3. Provision to enter multiple purchase order item code/part number.
4. Provision to display current stock for item.
5. Provision to view past PO rates for the item.
6. Provision to enter Requirements , Specifications for each items.
7. Provision to enter Items specific notes to be printed as Item Description.
8. provision to Items specific delivery schedule and delivery addresses.
9. Provision to enter Internal and Supplier's notes for execution of Purchase order .
10. Provision to enter Multiple contacts of Supplier's for execution of Purchase order .
11. Provision to enter Multiple references for Purchase order execution e.g. drawing number, enquiry number, past executed purchase order etc.
12. Provision to enter Multiple contacts of our company for execution of Purchase order .
13 . Provision to enter Multiple Taxes of Excise, VAT, service Tax, TDS; Other deductions in % as well as amount etc. The taxes can be defined for each item of purchase order.
14. Provision to define priority and status of purchase order.
b. Purchase order Document.
1. Provision to display information as entered in purchase order entry in pre- formatted document format.
2. Provision to print pre-formatted document format with company logo and company details.
3. Provision to re-print pre-formatted document format with company logo and company details.
c. MIS Report:
1. Purchase order status report as on today.
2. Periodic Purchase order Summary report.
3. Customer wise Purchase order summary report .
4. Item wise Purchase order report.
5. Customized MIS report as per your requirement: One number.
6. Provision to export data displayed in above reports to excel.