Example purchase order

In our last post we provided an example of a simple email sales quotation that you might send a prospect. In this post we’re going to review the hypothetical purchase order (PO) that came in response to that quote. Click on the below thumbnail to open up the PO.

Sample purchase order

Now what’s wrong with this PO? A quick look reveals two discrepancies with your quotation.

  1. The delivery date is two weeks after receipt of order instead of your stated four week delivery. Typically this can be explained by the fact that the engineer gave the correct delivery data to the purchasing agent and it just took two weeks to actually get through purchasing. If you can’t physically handle this delivery, you need to call purchasing and your engineering contact and get this fixed.
  2. You quoted your per unit price of $100 based on an order of 25 widgets. Your customer only ordered 10, but kept the same per unit price. If they are well qualified and you think that there may be future fruitful business, I would recommend ignoring this issue and simply fulfilling the order.

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3 comments ↓

#1 Example sales quotation | Engineers Can Sell on 11.21.08 at 9:45 pm

[…] Example purchase order → […]

#2 James D Mitchell - the HelpMeCableGuy! on 02.18.10 at 2:11 pm

I would also recommend that you confirm any “hand written” or “Verbal” PO’s should be checked with the purchasing team to ensure it’s valid. Schools are notorious for having a teacher think they have approval, or sending a Purchase Req. which was never formally approved. Either way, you want to make sure your PO will be paid.

Another thing is to confirm any shipping questions, sometimes clients may use their shipping account; other times they use “Prepay & Add”, but if any question always ask, otherwise you might pay for freight and they won’t pay for freight since they have their own shipping procedure.

Finally, ensure you have the correct bill-to address, sometimes companies will not accept invoices at their physical address, or they use a PO Box. If this is the case, it will make your payment much slower than if you followed their procedure– or it may not even get forwarded and you’ll have to resubmit the invoice!

Best Regards!

James M.

#3 Chris Peters on 08.11.11 at 4:54 pm

Thanks! This is a good start. We used templates until we had so many invoices that we had to switch to this service.
Chris

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