C1 - Section 5 Purchase orders Flashcards

1
Q

Purchase order definition

A

A buyer generated document that authorises a purchase transaction.

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2
Q

How do purchase orders work?

A

If the customer is happy with he quoted price, then a ‘purchase order’ (AKA order) is put in with the business.

This order may be be phone, email, generated through a website, fax or in writing.

it is important to double check:

  • Does the price agree with what was quoted?
  • Are the delivery terms acceptable?
  • Are any discounts applicable?
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3
Q

What information is usually found on a purchase order?

A
  • Name and address of business placing order.
  • Order date
  • Order number
  • VAT reg number of business placing order
  • Name/address of business the order is placed with
  • Product/service details
  • Product reference
  • Quantity bought.
  • Unit Price ex VAT
  • Total ex VAT
  • Purchase authorisation signature
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