Purchase Order Number: This is a unique number generated for the PO. Validity: The purchase order is valid from the signing date. The buyer can impose a penalty or deduction if the supplier delays the delivery. The delivery date is the core of a purchase order the vendor must deliver the material on or before the stated date. It is essential because it determines the delivery date.ĭelivery Date: The seller has to deliver goods or services by this date. Issue Date: This is the PO’s signing date. Content of a Purchase OrderĪ purchase order can have the following details: The PO can contain the minimum order quality to provide a cushion and guarantee profit. For example, they can fix the price of certain hardware items, and the seller must provide them when required and for the same price. Blanket Purchase Order: In a blanket purchase order, the buyer orders the same material repeatedly over a fixed duration to get a discounted price. Service Order: This is a specific purchase order for works or services. It is like LPO the only difference is the paying currency for example, it can be in USD, Pound, or Euro. You use an FPO to buy commodities from outside of your country. Foreign Purchase Order (FPO): A Foreign Purchase Order is also called an International Purchase Order. For instance, in the USA, an LPO is in the USD, and in Kuwait, it is in the Kuwaiti Dinar. You use it to buy goods and pay in local currency. This purchase order is valid for transactions within a country. Local Purchase Order (LPO): Buyers use an LPO for local purchases.
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