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Creating a Purchase Order Form With Microsoft Excel

How to Create a Purchase Order Form with Microsoft Word

Creating a Purchase Order Form

A purchase order is a document sent by the buyer to the seller specifying the details of the goods and services. If there previously existed no agreement between the two parties this document can act as a contract when signed by either party.

Since these documents are legally binding, with signature, buyers can use purchase orders to create a paper trail and keep track of inventory. It can be beneficial in the following situations:

  • Tracking payments to different vendors
  • Keeping track of large orders
  • Keep records for auditing purposes in the future
  • Use it to specify the terms between the parties involved

Main Elements of a Purchase Order

  • Seller: Includes information of the party providing goods and services in exchange for money.
  • Buyer: Information on the party that is acquiring goods or services and giving out money in exchange.
  • Order Number: You need to come up with a unique code that will be used to track down orders to manage the inventory.
  • Description of Goods & Services: This provides details for the goods and services such as cost, quantity and total amount.
  • Billing Address: The address where the invoice should be sent to the seller so that goods acquired can be paid for.
  • Shipping Address: The location where the goods are expected to be delivered.
  • Shipping Date: The day when goods will be shipped from the seller to the buyer.
  • Signature: Both parties are required to sign the document. The buyer signs when he shows his intentions of buying goods and the seller when he accepts the buyer’s offer.
  • Order Date: When parties decided to start the transaction.
Creating a Purchase Order Form With Microsoft Word

How to Make a Purchase Order in Microsoft Word

  1. You can make a purchase order in a matter of minutes by using Word. Here are some of the steps to create a PO document.
  2. Open a Microsoft Word document and click on the MS Office icon on the top left corner of the screen.
  3. From the drop down list that appears choose the option “new”. Under new, a list of template options will appear. Choose “Purchase Orders”.
  4. If you cannot find the Purchase Order template under the template categories listed, choose installed templates. Type purchase order in the text box under the new dialog box to make it easier to find the template you’re looking for.
  5. You’ll find many different categories and different types of purchase order templates. Each has its own purpose. Choose the format that best suits your business. Once you’ve finished, click the download button.
  6. The template you download will be in the form of a table consisting of rows and formats. However, these are only grid lines and you’ll need to make them visible in order to add the necessary information on the spaces provided.
  7. To make the lines visible go to Table Tools and choose design tab. Under the design tab, choose borders then pick the “view grid lines” option.
  8. You can now add your company logo, slogans, and other details by clicking on the different areas defined by the templates grid line. You can adjust images and icons by using the placeholders at the corners of the image.

How to Make a Purchase Order Form in Excel

  1. You can use the same technique to make a purchase order forms in MS Excel.
  2. Open an Excel document and click on the icon on the top left corner of the screen.
  3. Choose new and “purchase orders” from the resulting list.
  4. If the template has not been installed already click on download which is the option on the bottom left corner of the resulting dialog box.
  5. Choose from the different types of templates available and click create.
  6. Enter details in the purchase order including business name, logo, business slogan etc.

If you have an accounting software like QuickBooks or Sage, you can use tools within it to make your purchase order document. However, the steps outlined here are easy to follow and you’ll be using templates which require minimal formatting. You’ll need to keep a paper trail for referencing and auditing purposes. These records can be useful when you want to take advantage of purchase order financing in the future.

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